On February 6, 2025, Principal Financial Group Inc (PFG, Financial) released its 8-K filing, detailing its financial performance for the fourth quarter and full year of 2024. The company, a leader in global investment management, offers a wide range of financial products and services through its four business segments: Retirement and Income Solutions, Principal Global Investors, Principal International, and United States Insurance Solutions.

Performance Overview

Principal Financial Group Inc (PFG, Financial) reported a diluted earnings per share (EPS) of $3.92 for the fourth quarter of 2024, significantly exceeding the analyst estimate of $1.96. The company's net income attributable to PFG for the same period was $905 million. For the full year 2024, the diluted EPS was $6.68, with a net income of $1,571 million.

The company's non-GAAP operating earnings per diluted share for the fourth quarter were $1.94, closely aligning with the estimated EPS of $1.96. For the full year, non-GAAP operating earnings per diluted share reached $6.97, surpassing the annual estimate of $4.79.

Financial Achievements and Strategic Initiatives

Principal Financial Group Inc (PFG, Financial) achieved several financial milestones in 2024. The company returned $1.7 billion of capital to shareholders, including $1.0 billion in share repurchases and $0.7 billion in common stock dividends. Additionally, the Board of Directors approved a new $1.5 billion share repurchase authorization.

The company reported assets under management (AUM) of $712 billion, contributing to assets under administration (AUA) of $1.7 trillion. This strong financial position is further supported by $1.6 billion of excess and available capital and a statutory risk-based capital (RBC) ratio of 404% for Principal Life Insurance Company.

Income Statement and Balance Sheet Highlights

Principal Financial Group Inc (PFG, Financial) demonstrated robust financial health with significant growth in non-GAAP operating earnings, which increased by 11% for the full year, aligning with the company's long-term guidance of 9-12% growth. The fourth quarter saw a 16% increase in non-GAAP operating earnings per diluted share compared to the prior year quarter.

The company's balance sheet reflects a strong capital position, enabling continued investment in growth opportunities and shareholder returns. The increase in the first quarter 2025 common stock dividend to $0.75 per share, a 9% increase over the first quarter 2024 dividend, underscores this commitment.

Commentary and Outlook

Deanna Strable, President and CEO of Principal, stated, "Strong business fundamentals, continued growth, and positive markets generated strong earnings in 2024, and we delivered on our growth and financial targets. Our strategic focus on higher growth markets, combined with our integrated product portfolio and strong distribution relationships, continues to create value and drive growth for customers and shareholders."

Looking ahead, Principal Financial Group Inc (PFG, Financial) maintains a positive outlook for 2025, with expectations of 9-12% annual non-GAAP operating earnings per diluted share growth, consistent with its long-term targets.

Analysis

Principal Financial Group Inc (PFG, Financial)'s performance in 2024 highlights its ability to exceed market expectations and deliver value to shareholders. The company's strategic initiatives, including capital returns and investment in growth markets, position it well for continued success in the asset management industry. The robust financial metrics and strategic focus on high-growth areas underscore the company's resilience and potential for future growth.

Explore the complete 8-K earnings release (here) from Principal Financial Group Inc for further details.