Principal Financial Group Q3 2024 10-Q Filed

TL;DR

PFG filed its Q3 2024 10-Q. Financials look steady, check contractholder funds & operating expenses.

AI Summary

Principal Financial Group Inc. filed its 10-Q for the period ending September 30, 2024. The filing details the company's financial performance and operations, including information on contractholder funds and operating expenses. The company is based in Des Moines, Iowa, and operates in the accident and health insurance sector.

Why It Matters

This filing provides investors and stakeholders with a detailed look at Principal Financial Group's financial health and operational status as of the third quarter of 2024.

Risk Assessment

Risk Level: low — This is a routine quarterly filing providing standard financial disclosures.

Key Numbers

• N/A — Revenue (Specific revenue figures are not detailed in this header information.)
• N/A — Net Income (Specific net income figures are not detailed in this header information.)
• N/A — Assets (Specific asset figures are not detailed in this header information.)

Key Players & Entities

• PRINCIPAL FINANCIAL GROUP INC (company) — Filer
• 0001126328 (company) — Central Index Key
• DES MOINES (location) — City
• IA (location) — State
• 50392 (location) — ZIP Code
• 20240930 (date) — Period of Report

FAQ

Key Financial Figures

• $0.01 — hares of the registrant's Common Stock, $0.01 par value, outstanding as of October 22

Filing Documents

• pfg-20240930x10q.htm (10-Q) — 15084KB
• pfg-20240930xex31d1.htm (EX-31.1) — 11KB
• pfg-20240930xex31d2.htm (EX-31.2) — 11KB
• pfg-20240930xex32d1.htm (EX-32.1) — 4KB
• pfg-20240930xex32d2.htm (EX-32.2) — 4KB
• pfg-20240930x10q061.jpg (GRAPHIC) — 29KB
• 0001410578-24-001713.txt ( ) — 65335KB
• pfg-20240930.xsd (EX-101.SCH) — 179KB
• pfg-20240930_cal.xml (EX-101.CAL) — 181KB
• pfg-20240930_def.xml (EX-101.DEF) — 980KB
• pfg-20240930_lab.xml (EX-101.LAB) — 1403KB
• pfg-20240930_pre.xml (EX-101.PRE) — 1252KB
• pfg-20240930x10q_htm.xml (XML) — 21889KB

- FINANCIAL INFORMATION

Part I - FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements 3 Unaudited Condensed Consolidated Statements of Financial Position as of September 30, 2024 and December 31, 2023 3 Unaudited Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2024 and 2023 4 Unaudited Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2024 and 2023 5 Unaudited Condensed Consolidated Statements of Stockholders' Equity for the three and nine months ended September 30, 2024 and 2023 6 Unaudited Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2024 and 2023 8 Notes to Unaudited Condensed Consolidated Financial Statements — September 30, 2024 9 1. Nature of Operations and Significant Accounting Policies 9 2. Variable Interest Entities 13 3. Investments 18 4. Derivative Financial Instruments 36 5. Deferred Acquisition Costs and Other Actuarial Balances 50 6. Separate Account Balances 53 7. Contractholder Funds 57 8. Future Policy Benefits and Claims 62 9. Market Risk Benefits 72 10. Reinsurance 76 11. Income Taxes 79 12. Employee and Agent Benefits 80 13. Contingencies, Guarantees and Indemnifications 80 14. Stockholders' Equity 82 15. Fair Value Measurements 86 16. Segment Information 105 17. Revenues from Contracts with Customers 110 18. Stock-Based Compensation Plans 114 19. Earnings Per Common Share 116 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 117 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 152 Item 4.

Controls and Procedures

Controls and Procedures 158

— OTHER INFORMATION

Part II — OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 159 Item 1A.

Risk Factors

Risk Factors 159 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 159 Item 5. Other Information 159 Item 6. Exhibits 160 Signature 161 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 September 30, December 31, 2024 2023 (Unaudited) (in millions) Assets Fixed maturities, available-for-sale (1) $ 69,148.3 $ 65,673.1 Fixed maturities, trading (2024 and 2023 include $ 174.7 million and $ 81.2 million related to consolidated variable interest entities) 858.9 836.2 Equity securities (2024 and 2023 include $ 410.6 million and $ 394.4 million related to consolidated variable interest entities) 1,581.9 1,478.1 Mortgage loans (2024 and 2023 include $ 818.2 million and $ 871.9 million related to consolidated variable interest entities) 20,015.0 20,142.8 Real estate (2024 and 2023 include $ 743.9 million and $ 779.1 million related to consolidated variable interest entities) 2,424.4 2,345.3 Policy loans 836.9 809.3 Other investments (2024 and 2023 include $ 621.7 million and $ 596.4 million related to consolidated variable interest entities and $ 139.5 million and $ 163.2 million measured at fair value under the fair value option) 7,782.3 7,035.6 Total investments 102,647.7 98,320.4 Cash and cash equivalents (2024 and 2023 include $ 95.0 million and $ 83.6 million related to consolidated variable interest entities) 6,174.5 4,707.7 Accrued investment income 840.2 786.2 Reinsurance recoverable and deposit receivable 20,057.9 20,611.7 Premiums due and other receivables 3,730.2 3,998.8 Deferred acquisition costs 3,992.2 3,950.5 Market risk benefit asset 162.6 153.4 Property and equipment 798.2 938.4 Goodwill 1,597.1 1,608.5 Other intangibles 1,424.4 1,469.8 Separate account assets (2024 and 2023 include $ 36,897.4 million and $ 34,688.3 million related to consolidated variable interest entities) 180,653.5 167,605.6 Other assets 779.2 895.7 Total assets $ 322,857.7 $ 305,046.7 Liabilities Contractholder funds $ 42,499.4

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 notes to the consolidated financial statements, but do not expect it to have a material impact. 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 will add additional reportable segment financial information detail in 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 perio

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.

View Full Filing

View this 10-Q filing on SEC EDGAR