Principal Financial Group third-quarter net income rises to $631.9 million from $213.8 million

Principal Financial Group Inc. (PFG) said Monday it earned $631.9 million in net income attributable to the company in the third quarter of 2026, up from $213.8 million a year earlier.

The company disclosed the results in a filing with the Securities and Exchange Commission and in an earnings release covering the quarter ended Sept. 30.

Non-GAAP operating earnings, a measure that excludes realized capital gains and losses, income or loss from exited business and actuarial assumption review impacts, rose to $2.22 per diluted share from $2.10.

Here's how the company did:

• Net income attributable to the company: $2.91 per diluted share vs. $0.95 a year earlier
• Non-GAAP operating earnings: $2.22 per diluted share vs. $2.10 a year earlier
• Non-GAAP operating earnings, excluding variance items: $2.49 per diluted share vs. $2.32 a year earlier
• Non-GAAP net income excluding exited business: $1.64 per diluted share vs. $2.06 a year earlier
• Net income attributable to the company: $631.9 million vs. $213.8 million a year earlier
• Non-GAAP operating earnings: $481.8 million vs. $473.7 million a year earlier

The release does not report total revenue. It gives net revenue for each business segment, shown below.

Over the trailing 12 months, net income was $1,976.9 million vs. $1,573.5 million, up 26%. Non-GAAP operating earnings were $1,972.9 million vs. $1,825.6 million, up 8%.

Chair, President and CEO Deanna Strable said in the release: "Our third-quarter results demonstrate the strength of our diversified business and the progress we're making against our strategic priorities."

The release does not restate figures for the 2026 outlook. Strable said the company is "confident in delivering on our 2026 outlook."

Segment results

Retirement and Income Solutions pre-tax operating earnings were $297.8 million, down 4% from $310.3 million a year earlier. Net revenue rose 1% to $757.3 million.

Lower variable investment income and the impacts of the 3Q25 actuarial assumption review weighed on the segment's earnings. Recurring deposits were $13 billion, up 8%, and PRT sales were $0.9 billion.

The Investment Management unit of Principal Asset Management posted pre-tax operating earnings of $168.1 million, down 3% from $173.5 million. Its assets under management were $581.7 billion, down from $601.6 billion.

International Pension pre-tax operating earnings fell 38% to $62.4 million from $101.2 million. Net revenue fell 23% to $144.1 million, which the release attributes to unfavorable encaje returns.

International Pension assets under management rose 10% to $166.2 billion from $150.7 billion.

Specialty Benefits pre-tax operating earnings were $137.3 million, down 12% from $155.5 million, driven primarily by impacts of the 3Q25 actuarial assumption review.

Specialty Benefits premium and fees rose 6% to $895.4 million from $845.2 million. The release cites growth in the business and a modest contribution from the 9/1 Beam Benefits acquisition. Sales rose 10%.

The incurred loss ratio was 59.0%, up from 56.4%, and remained below the targeted range of 60%-64%.

Life Insurance pre-tax operating earnings were $32.4 million, against a loss of $69.0 million a year earlier. The increase came primarily from impacts of the 3Q25 actuarial assumption review, along with improved mortality experience.

Life Insurance premium and fees fell 4% to $238.6 million. The segment's operating margin was 13.6%.

Corporate pre-tax operating losses widened to $110.5 million from $91.6 million, primarily due to lower variable investment income.

Capital return and dividend

The company returned $429 million to shareholders in the quarter, including $250 million of share repurchases and $179 million of common stock dividends.

The company announced a fourth-quarter cash dividend of $0.85 per share, one cent more than the third-quarter rate and 8% above the prior-year quarter. The dividend is payable Dec. 18, 2026, to shareholders of record as of Dec. 2, 2026.

The company said it had $1.5 billion of excess and available capital.

Book value per common share was $55.53, up from $54.66 in 4Q25. Non-GAAP book value per common share, excluding certain items, was $57.63, up from $57.25.

Other items

The third quarter includes a $276.7 million pre-tax loss associated with the disposition of the company's Chilean annuities business.

Beginning in the third quarter, impacts of the actuarial assumption review are excluded from non-GAAP operating earnings.

Weighted-average diluted common shares outstanding were 216.9 million, down from 225.2 million a year earlier.

The company will hold a conference call on Tuesday, Oct. 27, 2026, at 10:00 a.m. ET. Strable and Executive Vice President and Chief Financial Officer Joel Pitz will lead the discussion.

The company, which has more than 19,000 employees, said it serves 84 million customers and has been in business for 147 years.