The company said the change in fair value of the funds withheld embedded derivative was the main factor behind the decline in net income attributable to Principal Financial Group, Inc. for both the 3-month and 9-month periods ended September 30, 2024.

10-QQuarterly reportFiled Oct 30, 2024Period of report Sep 30, 2024Summary published (UTC) Oct 23, 2026

Key points

AI summary

The company said the change in fair value of the funds withheld embedded derivative was the main factor behind the decline in net income attributable to Principal Financial Group, Inc. for both the 3-month and 9-month periods ended September 30, 2024.
The company said the change in fair value of the funds withheld embedded derivative produced a loss in Q3 2024, mainly due to lower interest rates, and a gain in Q3 2023, mainly due to higher interest rates.
The company said premiums and other considerations in the Retirement and Income Solutions segment rose $473.8 million and benefits, claims and settlement expenses rose $720.1 million over the 9 months of 2024, citing higher sales of single premium group annuities with life contingencies as the driver.
The company said net cash provided by operating activities for the 9 months of 2024 was $3,143.9 million (compared with $2,848.4 million in 2023), and it cited the one-time effect of the 2024 YRT Reinsurance Transactions as a driver of the increase. It said net cash used in financing activities was $48.5 million (compared with $2,000.2 million in 2023).

Key figures

Quarter ended September 30, 2024

Revenue: $3.0B
Net income: −$220M
EPS: −$0.95

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.

Drivers of Lower Quarterly Net Income

The company said the change in fair value of the funds withheld embedded derivative was the main factor behind the decline in net income attributable to Principal Financial Group, Inc. for both the 3-month and 9-month periods ended September 30, 2024.

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

Funds Withheld Derivative Losses

The company said the change in fair value of the funds withheld embedded derivative produced a loss in Q3 2024, mainly due to lower interest rates, and a gain in Q3 2023, mainly due to higher interest rates.

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

Premiums and Benefits Rise Over 9 Months

The company said premiums and other considerations in the Retirement and Income Solutions segment rose $473.8 million and benefits, claims and settlement expenses rose $720.1 million over the 9 months of 2024, citing higher sales of single premium group annuities with life contingencies as the driver.

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

Operating and Financing Cash Flows

The company said net cash provided by operating activities for the 9 months of 2024 was $3,143.9 million (compared with $2,848.4 million in 2023), and it cited the one-time effect of the 2024 YRT Reinsurance Transactions as a driver of the increase. It said net cash used in financing activities was $48.5 million (compared with $2,000.2 million in 2023).

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.

View the original filing on SEC EDGAR ↗

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