Principal Financial Group Reveals Impressive 2024 Earnings Data

Principal Financial Group's 2024 Financial Report Overview

Principal Financial Group (NASDAQ: PFG) recently announced its impressive results for the full year and the fourth quarter of 2024. This release sheds light on the company's strong financial performance, indicating substantial growth in key metrics.

Earnings Highlights

The diluted earnings per common share for the full year were recorded at $6.68, while for the fourth quarter, it stood at $3.92. This reflects a notable growth trajectory for Principal Financial Group.

Income Metrics of Principal Financial Group

In total, net income attributable to PFG was reported at $1,571 million for the year, with the fourth quarter contributing $905 million. Such figures underscore a solid performance relative to industry standards.

Highlights also include a non-GAAP net income of $6.40 per share, adjusted for exited business operations, reflecting a consistent operational performance. The non-GAAP operating earnings of $6.97 per share in 2024 further demonstrate the company's ability to manage its business efficiently.

Fourth Quarter Highlights

In the fourth quarter of 2024, non-GAAP operating earnings showed a remarkable growth rate of 16% compared to the previous year, bringing in $2.10 per share. This increase is a testament to the company's robust operational strategies.

Shareholder Returns and Dividends

Principal Financial Group committed to returning value to its shareholders, having returned a staggering $1.7 billion in 2024 through share repurchases and dividends. Notably, the first quarter 2025 dividend has been raised to $0.75 per share.

Operational Robustness and Capital Position

The total assets under management (AUM) for Principal Financial Group amounted to $712 billion, included in total assets under administration of $1.7 trillion. This substantial capital base highlights the company's potential for future growth.

As of the end of 2024, the statutory risk-based capital (RBC) ratio for Principal Life Insurance Company remained strong at 404%, ensuring that the company is well-positioned to meet policyholder obligations.

Looking Ahead: 2025 Outlook

Principal Financial Group maintains a favorable outlook for 2025 with expectations for annual non-GAAP operating earnings per diluted share (EPS) growth of 9% to 12%. The company is also set to deploy approximately $1.4 billion to $1.7 billion in capital.

Strategic Focus and Market Position

The company’s president and CEO, Deanna Strable, emphasized the commitment to fostering growth in higher markets while maintaining a diverse and integrated economic framework. These approaches are anticipated to drive further earnings and shareholder value significantly.

Segment Performance Review

Within the full year 2024, the Retirement and Income Solutions segment exhibited recurring deposit growth of 7%, with transfer deposits increasing by 16% compared to 2023. Additionally, the Investment Management AUM rose by $32 billion to $559 billion, showcasing the segment's strong upward momentum.

Frequently Asked Questions

1. What were Principal Financial Group's earnings per share for 2024?

The diluted earnings per common share for 2024 were reported at $6.68.

2. How much capital was returned to shareholders in 2024?

Principal Financial Group returned $1.7 billion to shareholders through share repurchases and dividends in 2024.

3. What is the expected growth rate for 2025?

The company expects a non-GAAP operating earnings per diluted share growth rate of 9-12% for 2025.

4. What is the statutory RBC ratio for Principal Life Insurance Company?

The statutory risk-based capital (RBC) ratio for Principal Life Insurance Company is 404% as of the end of 2024.

5. What were the company's total assets under management?

Principal Financial Group reported total assets under management of $712 billion for 2024.

About The Author

Dedicated Author and financial expert Logan Wright here, 29 years old. After earning an economics degree, I spent a number of years working in different financial industries. My great passion is enabling everyone, from any background or experience level, to understand and be literate in financial matters.

My books and writings are centered on simplifying difficult financial ideas into doable, understandable guidance. Whether it's retirement planning, investing, or budgeting, I want to arm readers with the information they need to make wise financial choices and realize their financial objectives.

Apart from writing, I also frequently post to financial blogs and organize webinars and workshops targeted at enlightening participants about personal finance. Always, my strategy is to offer concise, doable advice that can truly improve people's lives.

Away from work, I like to read, travel, and sample new foods. My goal is to infuse everything I do with the balance that I think is essential to both financial and personal well-being. By my profession, I want to encourage and enable people to confidently and clearly take charge of their financial futures.

Contact Logan Wright privately here. Or send an email with ATTN: Logan Wright as the subject to contact@investorshangout.com.

About Investors Hangout

Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/

The content of this article is based on factual, publicly available information and does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice, and the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. This article should not be considered advice to purchase, sell, or hold any securities or other investments. If any of the material provided here is inaccurate, please contact us for corrections.