Principal Financial Group Q2 2024 10-Q Filed

TL;DR

**PFG Q2 10-Q is IN! Check financials for insurance giant.**

AI Summary

Principal Financial Group Inc. filed its 10-Q for the period ending June 30, 2024. The filing details the company's financial performance and position, including its operations in accident and health insurance. Key financial data and operational expenses are referenced through various links, indicating a focus on financial reporting standards and company disclosures.

Why It Matters

This filing provides investors and analysts with the latest financial health and operational details of Principal Financial Group, a major player in the insurance and financial services industry.

Risk Assessment

Risk Level: low — This is a routine quarterly financial filing (10-Q) and does not inherently present new risks.

Key Numbers

• 20240630 — Period End Date (Financial reporting period for this 10-Q filing.)
• 20240731 — Filing Date (Date the 10-Q was officially submitted to the SEC.)

Key Players & Entities

• PRINCIPAL FINANCIAL GROUP INC (company) — Filer
• 0001126328 (company) — Central Index Key
• 6321 (company) — Standard Industrial Classification (Accident & Health Insurance)
• DE (company) — State of Incorporation
• 5152475111 (company) — Business Phone
• 20240630 (date) — Conformed Period of Report
• 20240731 (date) — Filed as of Date

FAQ

Key Financial Figures

• $0.01 — hares of the registrant's Common Stock, $0.01 par value, outstanding as of July 23, 2

Filing Documents

• pfg-20240630x10q.htm (10-Q) — 14770KB
• pfg-20240630xex31d1.htm (EX-31.1) — 11KB
• pfg-20240630xex31d2.htm (EX-31.2) — 11KB
• pfg-20240630xex32d1.htm (EX-32.1) — 4KB
• pfg-20240630xex32d2.htm (EX-32.2) — 4KB
• pfg-20240630x10q061.jpg (GRAPHIC) — 29KB
• 0001410578-24-001133.txt ( ) — 63985KB
• pfg-20240630.xsd (EX-101.SCH) — 179KB
• pfg-20240630_cal.xml (EX-101.CAL) — 181KB
• pfg-20240630_def.xml (EX-101.DEF) — 967KB
• pfg-20240630_lab.xml (EX-101.LAB) — 1390KB
• pfg-20240630_pre.xml (EX-101.PRE) — 1246KB
• pfg-20240630x10q_htm.xml (XML) — 21379KB

- FINANCIAL INFORMATION

Part I - FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements 3 Unaudited Condensed Consolidated Statements of Financial Position as of June 30, 2024 and December 31, 2023 3 Unaudited Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2024 and 2023 4 Unaudited Condensed Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2024 and 2023 5 Unaudited Condensed Consolidated Statements of Stockholders' Equity for the three and six months ended June 30, 2024 and 2023 6 Unaudited Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2024 and 2023 8 Notes to Unaudited Condensed Consolidated Financial Statements — June 30, 2024 9 1. Nature of Operations and Significant Accounting Policies 9 2. Variable Interest Entities 14 3. Investments 19 4. Derivative Financial Instruments 39 5. Deferred Acquisition Costs and Other Actuarial Balances 53 6. Separate Account Balances 56 7. Contractholder Funds 60 8. Future Policy Benefits and Claims 65 9. Market Risk Benefits 75 10. Reinsurance 79 11. Income Taxes 82 12. Employee and Agent Benefits 83 13. Contingencies, Guarantees and Indemnifications 83 14. Stockholders' Equity 85 15. Fair Value Measurements 89 16. Segment Information 108 17. Revenues from Contracts with Customers 113 18. Stock-Based Compensation Plans 117 19. Earnings Per Common Share 119 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 120 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 153 Item 4.

Controls and Procedures

Controls and Procedures 159

— OTHER INFORMATION

Part II — OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 160 Item 1A.

Risk Factors

Risk Factors 160 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 160 Item 5. Other Information 160 Item 6. Exhibits 161 Signature 162 2 Table of Contents

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements Principal Financial Group, Inc. Condensed Consolidated Statements of Financial Position June 30, December 31, 2024 2023 (Unaudited) (in millions) Assets Fixed maturities, available-for-sale (1) $ 65,768.8 $ 65,673.1 Fixed maturities, trading (2024 and 2023 include $ 159.1 million and $ 81.2 million related to consolidated variable interest entities) 786.1 836.2 Equity securities (2024 and 2023 include $ 371.5 million and $ 394.4 million related to consolidated variable interest entities) 1,512.8 1,478.1 Mortgage loans (2024 and 2023 include $ 833.6 million and $ 871.9 million related to consolidated variable interest entities) 20,253.1 20,142.8 Real estate (2024 and 2023 include $ 878.7 million and $ 779.1 million related to consolidated variable interest entities) 2,433.4 2,345.3 Policy loans 818.2 809.3 Other investments (2024 and 2023 include $ 611.2 million and $ 596.4 million related to consolidated variable interest entities and $ 171.6 million and $ 163.2 million measured at fair value under the fair value option) 7,584.9 7,035.6 Total investments 99,157.3 98,320.4 Cash and cash equivalents (2024 and 2023 include $ 100.5 million and $ 83.6 million related to consolidated variable interest entities) 4,816.6 4,707.7 Accrued investment income 822.7 786.2 Reinsurance recoverable and deposit receivable 19,734.8 20,611.7 Premiums due and other receivables 3,989.9 3,998.8 Deferred acquisition costs 3,972.9 3,950.5 Market risk benefit asset 212.3 153.4 Property and equipment 805.9 938.4 Goodwill 1,569.8 1,608.5 Other intangibles 1,419.0 1,469.8 Separate account assets (2024 and 2023 include $ 32,849.7 million and $ 34,688.3 million related to consolidated variable interest entities) 171,399.8 167,605.6 Other assets 876.3 895.7 Total assets $ 308,777.3 $ 305,046.7 Liabilities Contractholder funds $ 41,681.3 $

financial statements or other

financial statements or other significant matters Standards not yet adopted: Improvements to income tax disclosures This authoritative guidance provides improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information. January 1, 2025 We are currently evaluating the impact this guidance will have on our consolidated financial statements. Improvements to reportable segments disclosures This authoritative guidance enhances the disclosures about a public entity's reportable segments and addresses requests from investors for additional, more detailed information about a reportable segment's expenses. December 31, 2024 We are currently evaluating the impact this guidance will have on our notes to the consolidated financial statements. The disclosure changes are effective for fiscal years beginning after December 15, 2023, and interim periods beginning after December 15, 2024, and must be applied retrospectively. Standards adopted: Targeted improvements to the accounting for long-duration insurance contracts This authoritative guidance updated certain requirements in the accounting for long-duration insurance and annuity contracts. 1. The assumptions used to calculate the liability for future policy benefits on traditional and limited-payment contracts are reviewed and updated periodically. Cash flow assumptions are reviewed at least annually and updated when necessary with the impact recognized in net income. Discount rate assumptions are prescribed as the current upper-medium grade (low credit risk) fixed income instrument yield and are updated quarterly with the impact recognized in other comprehensive income ("OCI"). 2. MRBs, which are contracts or contract features that provide protection to the policyholder from capital market risk and expose us to other-than-nominal capital market risk, are measured at fair value. The periodic change in fair value is recognized in net income with the excepti

financial statements or other

financial statements or other significant matters 4. Additional disclosures are required, including disaggregated rollforwards of significant insurance liabilities and other account balances as well as disclosures about significant inputs, judgments, assumptions and methods used in measurement. The guidance for the liability for future policy benefits for traditional and limited-payment contracts and DAC was applied on a modified retrospective basis; that is, to contracts in force as of the beginning of the earliest period presented (January 1, 2021, also referred to as the transition date) based on their existing carrying amounts. An entity could elect to apply the changes retrospectively. The guidance for MRBs was applied retrospectively. Troubled debt restructurings and vintage disclosures This authoritative guidance eliminated the accounting requirements for troubled debt restructurings by creditors and enhanced the disclosure requirements for certain loan refinancing and restructuring by creditors when a borrower is experiencing financial difficulty. The update required entities to disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases. The amendments in this update were applied prospectively, except for the transition method related to the recognition and measurement of troubled debt restructurings, for which an entity had the option to apply a modified retrospective transition method. Early adoption was permitted. January 1, 2023 This guidance did not have a material impact on our consolidated financial statements. Targeted improvements to accounting for hedging activities – portfolio layer method This authoritative guidance is intended to further align the economics of a company's risk management activities in its financial statements with hedge accounting requirements. The guidance expanded the current single-layer method to allow multiple hedge layers of a single closed portfolio

financial statements or other

financial statements or other significant matters Facilitation of the effects of reference rate reform on financial reporting This authoritative guidance provided optional expedients and exceptions for contracts and hedging relationships affected by reference rate reform. An entity could elect not to apply certain modification accounting requirements to contracts affected by reference rate reform and instead account for the modified contract as a continuation of the existing contract. Also, an entity could apply optional expedients to co

View Full Filing

View this 10-Q filing on SEC EDGAR