Principal Financial Group reported third‑quarter 2025 results, with net income attributable to the company of $213.8 million and diluted earnings per share of $0.95. Non‑GAAP operating earnings reached $474 million, up 15% from the same period last year.
Total operating revenues were $3.8 billion, a 6.2% increase year‑over‑year. Retirement and Income Solutions segment delivered pre‑tax operating earnings of $310.3 million, up 26%, and net revenue of $751.7 million, up 11%. Investment Management added $173.5 million in pre‑tax operating earnings, and Specialty Benefits posted $155.5 million, a 53% rise, driven by growth in the SMB market and improved underwriting.
Principal ended the quarter with $1.6 billion in excess and available capital and an estimated PLIC RBC ratio of 400%. The company also raised its fourth‑quarter 2025 common‑stock dividend to $0.79 per share, an increase of 8% over the prior year quarter.
Management reaffirmed its 2025 financial targets, including a 9%‑12% EPS growth range and a 75%‑85% free capital flow conversion, noting that the company remains well positioned to navigate market volatility and continue delivering shareholder value.
The company returned $398 million to shareholders during the quarter, comprising $225 million in share repurchases and $173 million in common‑stock dividends. Principal’s assets under management were $784 billion and assets under administration were $1.8 trillion.
Analysts had expected operating net income of $2.10 per share and operating revenues of $3.8‑$3.9 billion; the company missed consensus estimates on both metrics.
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