Highlights

  • Net income attributable to PFG for the third quarter of 2026 was $631.9 million, or $2.91 per diluted share.
  • Non-GAAP operating earnings were $481.8 million, or $2.22 per diluted share, with listed variances reducing earnings by $0.27 per share.
  • The company returned $429 million to shareholders in the quarter, including $250 million of share repurchases and $179 million of dividends.
  • The fourth quarter 2026 common stock dividend was set at $0.85 per share, payable December 18, 2026.

Principal Financial Group, Inc. (NASDAQ: PFG) shares were trading at USD 111.24 on October 27, 2026, up 1.00%, with a relative volume at time of 4.93. The financial services company completed its acquisition of Beam Benefits and the sale of its Chile annuity business on September 1, 2026, then announced third quarter 2026 results and a higher fourth quarter dividend on October 26, 2026.

Principal Financial Group is a Delaware corporation with principal executive offices at 711 High Street in Des Moines, Iowa. It reports through Retirement and Income Solutions, Principal Asset Management and Benefits and Protection, plus a Corporate segment. Principal Asset Management includes Investment Management and International Pension, and Benefits and Protection includes Specialty Benefits and Life Insurance. Assets under management were $785.0 billion and assets under administration were $1,840.3 billion. Its fiscal year ends December 31.

Third Quarter Earnings

Net income attributable to PFG was $631.9 million, compared with $213.8 million in the third quarter of 2025. Non-GAAP net income attributable to PFG, excluding exited business, was $354.8 million, or $1.64 per diluted share, compared with $465.6 million, or $2.06. Non-GAAP operating earnings were $481.8 million, compared with $473.7 million, and $2.22 per diluted share, compared with $2.10.

Non-GAAP operating earnings excluding listed variances were $540.6 million, or $2.49 per diluted share. The variances included lower than expected variable investment income and encaje performance, and integration costs in Specialty Benefits and Corporate. Beginning in the third quarter of 2026, the company excludes actuarial assumption review impacts from non-GAAP operating earnings.

Segment Results

Retirement and Income Solutions pre-tax operating earnings were $297.8 million, compared with $310.3 million, on net revenue of $757.3 million. The company cited lower variable investment income and the effects of the 2025 actuarial assumption review. Recurring deposits were $13 billion.

Investment Management pre-tax operating earnings were $168.1 million, compared with $173.5 million. International Pension pre-tax operating earnings were $62.4 million, compared with $101.2 million, which the company tied to lower net revenue and lower encaje returns.

Specialty Benefits pre-tax operating earnings were $137.3 million, compared with $155.5 million, with an incurred loss ratio of 59.0%. Life Insurance pre-tax operating earnings were $32.4 million, compared with a loss of $69.0 million a year earlier. Corporate pre-tax operating losses were $110.5 million, compared with $91.6 million.

Total assets under management net cash flow was an outflow of $10.7 billion, compared with an inflow of $0.4 billion. On the earnings call, management attributed the outflow mainly to select active equity strategies in Investment Management.

Capital and Dividend

The company reported $1.5 billion of excess and available capital. On the call, the chief financial officer said this includes $1.15 billion at the holding company and $300 million in subsidiaries, and that the risk based capital ratio was approximately 380% against a 375% target.

The board declared a fourth quarter cash dividend of $0.85 per share, payable December 18, 2026, to shareholders as of December 2, 2026. The company said this is a $0.01 increase over the third quarter and an 8% increase over the prior year quarter.

Outlook and Management Commentary

Management said on the call that it is on track for its full year capital deployment target of $1.5 billion to $1.8 billion. Management said the Beam Benefits acquisition was not contemplated in the 2026 outlook and that it expects full year share buybacks to be towards the low end of its target range. The company said earnings per share growth year to date is at the high end of its 9% to 12% target.

For the fourth quarter, management said it expects a low single digit increase in expenses relative to the average of the first three quarters. It also said repapering of Beam Benefits policies will occur throughout 2027 and begin to decrease the earnings drag from the acquisition in the first half of 2027.