Principal Financial Group (PFG) official guidance

We are well positioned to deliver on our full-year target of $1.5 billion-$1.8 billion.

This repapering activity will happen throughout 2027 and will begin to markedly decrease the earnings drag in the first half of 2027.

We continue to deliver on our financial targets with year-to-date earnings per share growth of 12% on both reported and adjusted basis at the high end of our 9%-12% target.

We continue to deliver on our financial targets with year-to-date earnings per share growth of 12% on both reported and adjusted basis at the high end of our 9%-12% target.

Given year-to-date results, we expect to come in at or above the high end of our range for the full year.

Beam was not contemplated in our 2026 outlook, and as a result, we expect full-year share buybacks to be towards the low end of our target range.

I’d reiterate that I expect full year underwriting results for SBD in total to emerge below the end of the range on that 60%-64% that was communicated in Outlook, and we do expect dental underwriting results to improve that second half, driven by both seasonality and network optimization.

Performance fees were relatively muted in the quarter due to timing, but we continue to expect full year 2026 performance fees to be in line with 2025.

This remains in line with our targeted 40% dividend payout ratio and demonstrates our confidence in continued earnings growth and capital generation.

As a reminder, you asked about looking ahead. When we look ahead, second quarter does tend to be the seasonally highest for dental. So that means that the overall SBD loss ratio does rise a bit in second quarter.

But what I would also say is that when we think about our full year results for this segment, we did communicate guidance range in terms of our margin from that 12% to 16%.

The pipeline remains a little light in the second quarter. But if you remember last year, also sort of developed this way as well, sort of lighter in the first half, more accelerated PRT sales in the second half. And we kind of expect this year be fairly similar to 2025 when it comes to PRT.

We still expect full year 2026 variable investment income to improve relative to 2025 with or without this change.

This includes $800 million-$1.1 billion of share repurchases and an increase in common stock dividend, aligned with our targeted dividend payout ratio.

As shown on slides 10 and 11, we are well positioned to, once again, deliver on our enterprise financial targets in 2026, with 9%-12% growth in earnings per share, 75%-85% free capital flow conversion, and 15%-17% return on equity.

We expect $30-35 million in seasonal expenses in the first quarter of 2026.

So Alex, if you look at where we are in 2025, about $279 million after tax or I'm sorry, pre-tax on an ex-SB basis. So that's the basis that we're building on and going into 2026. And we feel certainly that we can deliver on that $300 million target in 2026.

In International Pension, our margin target is increasing to 46%-50%, with 2026 expected in the upper half of that range due to growth in higher margin businesses.

In Investment Management, we are increasing our margin target to 35%-39%, and we remain confident in our ability to deliver on our 4%-7% adjusted revenue growth target, consistent with 2025.

In RIS, building on the strong results in 2025, we are increasing our margin target to 38%-41% and expect to be at the upper end of the margin range in 2026.