The company said the main reason Principal Financial Group's net income attributable to the company rose was the change in fair value of the funds withheld embedded derivative. It said the change was a gain from rising interest rates in Q1 2024 and a loss from falling interest rates in Q1 2024, with the Q1 2023 result being a loss.

10-QQuarterly reportFiled May 1, 2024Period of report Mar 31, 2024Summary published (UTC) Oct 24, 2026

Key points

AI summary

The company said the main reason Principal Financial Group's net income attributable to the company rose was the change in fair value of the funds withheld embedded derivative. It said the change was a gain from rising interest rates in Q1 2024 and a loss from falling interest rates in Q1 2024, with the Q1 2023 result being a loss.
The company said premiums and other considerations in its Retirement and Income Solutions segment rose $182.9 million, citing higher sales of single premium group annuities. It also said benefits, claims and settlement expenses in the same segment increased $266.4 million.
The company said its effective income tax rate was 15% in Q1 2024 and 37% in Q1 2023, and cited higher pre-tax income in Q1 2024 and pre-tax losses in Q1 2023 as the drivers of the change. Among the increases in operating expenses, it cited an increase of $48.9 million in amounts credited to employee accounts in a nonqualified defined contribution pension plan and an increase of $28.2 million in compensation costs.
The company said net cash provided by operating activities was $584.2 million in Q1 2024 and $695.3 million in Q1 2023. It also said Principal Life paid $440.0 million in stockholder dividends to its parent in Q1 2024, all of which was extraordinary and approved by the Commissioner.

Key figures

Quarter ended March 31, 2024

Revenue: $4.1B
Net income: $533M
EPS: $2.22
Operating cash flow: $584M

From the XBRL financial data filed with the SEC · not processed by AI.

Summary

AI-written

Analysis scope · Management's discussion (MD&A)We analyzed excerpts of the Management's Discussion and Analysis (MD&A) section (with omissions). Other sections of the report, such as the notes to the financial statements and risk factors, were not reviewed.

Net Income Rise and Funds Withheld Embedded Derivative

The company said the main reason Principal Financial Group's net income attributable to the company rose was the change in fair value of the funds withheld embedded derivative. It said the change was a gain from rising interest rates in Q1 2024 and a loss from falling interest rates in Q1 2024, with the Q1 2023 result being a loss.

Source · Based on the MD&A text of the filing

Retirement and Income Solutions Premiums and Benefit Expenses

The company said premiums and other considerations in its Retirement and Income Solutions segment rose $182.9 million, citing higher sales of single premium group annuities. It also said benefits, claims and settlement expenses in the same segment increased $266.4 million.

Source · Based on the MD&A text of the filing

Effective tax rate at 15% and higher operating expenses

The company said its effective income tax rate was 15% in Q1 2024 and 37% in Q1 2023, and cited higher pre-tax income in Q1 2024 and pre-tax losses in Q1 2023 as the drivers of the change. Among the increases in operating expenses, it cited an increase of $48.9 million in amounts credited to employee accounts in a nonqualified defined contribution pension plan and an increase of $28.2 million in compensation costs.

Source · Based on the MD&A text of the filing

Operating Cash Flow and Principal Life Dividends

The company said net cash provided by operating activities was $584.2 million in Q1 2024 and $695.3 million in Q1 2023. It also said Principal Life paid $440.0 million in stockholder dividends to its parent in Q1 2024, all of which was extraordinary and approved by the Commissioner.

Source · Based on the MD&A text of the filing

AI summarized the filing and translated the summary into English; it may differ from the original. For reference only, not investment advice. AI translated the published Korean report into English. Figures are copied as filed, not recalculated.

Original filing

The filing as submitted to SEC EDGAR. You can check the figures and statements of this summary against it.

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