Form 8-K

8-K — PRINCIPAL FINANCIAL GROUP INC

Accession: 0001104659-26-118774

Filed: 2026-10-26

Period: 2026-10-26

CIK: 0001126328

SIC: 6321 (ACCIDENT & HEALTH INSURANCE)

Item: Results of Operations and Financial Condition

Item: Financial Statements and Exhibits

Documents

8-K — tm2628273d1_8k.htm (Primary)

EX-99 — EXHIBIT 99 (tm2628273d1_ex99.htm)

GRAPHIC (tm2628273d1_ex99img001.jpg)

XML — IDEA: XBRL DOCUMENT (R1.htm)

8-K — FORM 8-K

8-K (Primary)

Filename: tm2628273d1_8k.htm · Sequence: 1

false

0001126328

2026-10-26

iso4217:USD

xbrli:shares

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UNITED

STATES

SECURITIES

AND EXCHANGE COMMISSION

Washington,

D.C. 20549

FORM

8-K

CURRENT

REPORT

Pursuant

to Section 13 or 15(d) of the

Securities

Exchange Act of 1934

Date

of Report: October 26, 2026

(Date

of earliest event reported)

PRINCIPAL FINANCIAL GROUP, INC.

(Exact

name of registrant as specified in its charter)

Delaware

1-16725

42-1520346

(State or other jurisdiction

(Commission file number)

(I.R.S. Employer

incorporation)

Identification

Number)

711

High Street, Des

Moines, Iowa

50392

(Address

of principal executive offices)

(515)

247-5111

(Registrant’s

telephone number, including area code)

Check

the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under

any of the following provisions:

¨ Written

communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting

material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement

communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement

communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether

the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§203.405 of this chapter)

or rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging

growth company ¨

If an emerging growth company,

indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised

financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Title

of each class

Trading

symbol(s)

Name

of each exchange on which

registered

Common

Stock

PFG

Nasdaq

Global Select Market

Item 2.02

Results of Operations and Financial Condition

On October 26, 2026, Principal Financial Group, Inc. publicly announced

information regarding its results of operations and financial condition for the quarter ended September 30, 2026. The text of the announcement

is included herewith as Exhibit 99.

Item 9.01

Financial Statements and Exhibits

Third Quarter 2026 Earnings Release

104

Cover Page to this Current Report on Form 8-K in Inline XBRL

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934,

the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

PRINCIPAL FINANCIAL GROUP, INC.

By:

/s/ Joel Pitz

Name:

Joel Pitz

Title:

Executive Vice President & Chief Financial Officer

Date: October 26, 2026

EX-99 — EXHIBIT 99

EX-99

Filename: tm2628273d1_ex99.htm · Sequence: 2

Exhibit 99

INVESTOR CONTACT:

MEDIA CONTACT:

Humphrey Lee

877-909-1105, lee.humphrey@principal.com

Sara Bonney

515-878-0835, bonney.sara@principal.com

Principal Financial Group®

Announces Third Quarter 2026 Results

Raises fourth quarter 2026 common stock dividend

(Des

Moines, Iowa) – Principal Financial Group® (Nasdaq: PFG) announced results for third quarter 2026.

Diluted

earnings per common share

3Q26

Earnings

(in millions)

3Q26

Net

income attributable to PFG

$2.91

Net

income attributable to PFG

$632

Non-GAAP

net income attributable to PFG, excluding exited business1

$1.64

Non-GAAP

net income attributable to PFG, excluding exited business1

$355

Non-GAAP

operating earnings1

$2.22

Non-GAAP

operating earnings1

$482

Non-GAAP

operating earnings excluding significant variances2

$2.49

Non-GAAP

operating earnings excluding significant variances2

$541

Third

Quarter 2026 Highlights

· Non-GAAP

operating earnings per diluted share, excluding significant variances2 of $2.49

increased 7% over prior year quarter; reported non-GAAP operating earnings per diluted share

increased 6%

· Returned $429 million of capital to shareholders, including $250 million of share repurchases and $179 million of common stock dividends

· Announced common stock dividend increase of $0.01 to $0.85 per share in the fourth quarter 2026; representing an 8% increase over the

fourth quarter 2025 and 7% on a trailing twelve-month basis

· Assets under management (AUM) of $785 billion, which is included in assets under administration (AUA) of $1.8 trillion

· Strong financial position with $1.5 billion of excess and available capital

Deanna

Strable, Chair, President and CEO of Principal®

“Our third-quarter results demonstrate the strength of our diversified business and the progress we’re making against our

strategic priorities. We grew earnings per share, continued to build momentum in the markets where we’re focused, and returned $429

million to shareholders. We’re seeing the benefits of our focus on areas where our expertise, differentiated solutions, and strong

customer relationships position us to win.

As the environment evolves, our priorities remain clear. We’re confident in delivering on our 2026 outlook and continuing to create

long-term value for our customers, employees, and shareholders.”

Use of non-GAAP financial measures and their reconciliations to the most directly comparable GAAP measures are included in this release.

Non-GAAP operating earnings for total company is after tax. Beginning 3Q 2026, impacts of the actuarial assumption review are excluded

from non-GAAP operating earnings.

The total company impact of significant variances is after tax. See Exhibit 1 for details on the impact of 3Q 2026 and 3Q 2025 significant

variances on net income attributable to PFG; non-GAAP net income attributable to PFG, excluding exited business; and non-GAAP operating

earnings.

Third Quarter Enterprise Results

In millions except percentages, earnings per share, or otherwise noted

Three

Months Ended,

Trailing

Twelve Months,

3Q26

3Q25

Change

3Q26

3Q25

Change

Net income (loss) attributable to

PFG

$631.9

$213.8

N/M

$1,976.9

$1,573.5

26%

Non-GAAP net income attributable to PFG, excluding exited

business

$354.8

$465.6

(24)%

$1,700.2

$1,550.8

10%

Non-GAAP operating earnings

$481.8

$473.7

$1,972.9

$1,825.6

Non-GAAP operating earnings, excluding significant variances2

$540.6

$523.3

$2,046.7

$1,915.7

Diluted earnings per

common share

Net income (loss) attributable

to PFG

$2.91

$0.95

N/M

Non-GAAP net income attributable to PFG, excluding exited

business

$1.64

$2.06

(20)%

Non-GAAP operating earnings

$2.22

$2.10

Non-GAAP operating earnings,

excluding significant variances2

$2.49

$2.32

Assets under administration

(billions)

$1,840.3

$1,792.5

Assets under management

(billions)

$785.0

$784.3

AUM net cash flow (billions)

$(10.7)

$0.4

$(11.1)

$(25.5)

$(7.8)

$(17.7)

Third Quarter Segment Highlights (compared to 3Q25)

Retirement and Income Solutions

· Recurring deposits of $13 billion, up 8%. PRT sales of $0.9 billion.

· SMB momentum with transfer deposits up 21% and recurring deposits up 7%.

Principal Asset Management

· Investment Management private markets AUM up 6%, supported

by $0.8 billion private institutional inflows in the quarter; active ETF net inflows of $0.5 billion.

· International Pension AUM of $166 billion increased

10%.

Benefits and Protection

· Specialty Benefits premium & fees increased 6% with sales up 10%;

strong underwriting results with loss ratio of 59% which remains below targeted range of 60-64%.

· Life Insurance operating margin3 of 13.6%,

driven by favorable mortality experience.

Operating margin for Benefits and Protection = pre-tax operating

earnings divided by premium and fees.

Segment Results

In millions except percentages, or otherwise noted except

percentages or otherwise noted)

Retirement and Income Solutions

Three Months Ended,

Trailing Twelve Months,

3Q26

3Q25

Change

3Q26

3Q25

Change

Pre-tax operating earnings4

$297.8

$310.3

(4)%

$1,222.7

$1,166.2

Net revenue5

$757.3

$751.7

$3,041.2

$2,919.0

Operating margin6

39.3%

41.3%

40.2%

40.0%

· Pre-tax operating earnings decreased $12.5 million primarily due

to lower variable investment income and the impacts of the 3Q25 actuarial assumption review.

· Net revenue increased $5.6 million as favorable market performance

and growth in the business was partially offset by lower variable investment income and the impacts of the 3Q25 actuarial assumption review.

Principal Asset Management - Investment Management

Three Months Ended,

Trailing Twelve Months,

3Q26

3Q25

Change

3Q26

3Q25

Change

Pre-tax operating earnings

$168.1

$173.5

(3)%

$619.3

$611.6

Operating revenues less pass-through expenses7

$436.1

$444.0

(2)%

$1,735.5

$1,724.7

Operating margin8

39.1%

39.8%

36.3%

Assets under management (billions)

$581.7

$601.6

(3)%

· Pre-tax operating earnings decreased $5.4 million primarily due to

lower operating revenues less pass-through expenses.

· Operating revenues less pass-through expenses decreased $7.9 million

primarily due to lower management fees.

4 Pre-tax operating

earnings = operating earnings before income taxes and after noncontrolling interest.

5 Net revenue

= operating revenues less: benefits, claims and settlement expenses, liability for future policy benefits remeasurement (gain) loss,

market risk benefit remeasurement (gain) loss, and dividends to policyholders.

6 Operating margin

for Retirement and Income Solutions = pre-tax operating earnings divided by net revenue.

7 The company

has provided reconciliations of the non-GAAP measures to the most directly comparable U.S. GAAP measures at the end of the release. The

company has determined this measure is more representative of underlying operating revenues growth for Investment Management as it removes

commissions and other expenses that are collected through fee revenue and passed through expenses with no impact to pre-tax operating

earnings.

8 Operating margin

for Investment Management = pre-tax operating earnings adjusted for noncontrolling interest divided by operating revenues less pass-through

expenses.

Principal Asset Management - International Pension

Three Months Ended,

Trailing Twelve Months,

3Q26

3Q25

Change

3Q26

3Q25

Change

Pre-tax operating earnings

$62.4

$101.2

(38)%

$307.7

$303.0

Net revenue

$144.1

$187.9

(23)%

$650.3

$630.6

Operating margin9

43.3%

53.9%

47.3%

48.0%

Assets under management (billions)

$166.2

$150.7

10%

· Pre-tax operating earnings decreased $38.8 million due to lower net

revenue.

· Net revenue decreased $43.8 million primarily due to unfavorable

encaje returns.

Benefits and Protection - Specialty Benefits

Three Months Ended,

Trailing Twelve Months,

3Q26

3Q25

Change

3Q26

3Q25

Change

Pre-tax operating earnings

$137.3

$155.5

(12)%

$575.1

$536.5

Premium and fees

$895.4

$845.2

$3,475.9

$3,340.5

Operating margin

15.3%

18.4%

16.5%

16.1%

Incurred loss ratio

59.0%

56.4%

58.1%

58.5%

· Pre-tax operating earnings decreased $18.2 million driven primarily

by impacts of the 3Q25 actuarial assumption review.

· Premium and fees increased $50.2 million driven primarily from growth

in the business, with a modest contribution from the 9/1 Beam Benefits acquisition.

· Incurred loss ratio remains below targeted range of 60%-64%, with

improved results in dental and group life.

Operating margin for International Pension = pre-tax operating earnings divided by net revenue.

Benefits and Protection - Life Insurance

Three Months Ended,

Trailing Twelve Months,

3Q26

3Q25

Change

3Q26

3Q25

Change

Pre-tax operating earnings

$32.4

$(69.0)

147%

$118.3

$(28.2)

520%

Premium and fees

$238.6

$248.9

(4)%

$937.5

$947.4

(1)%

Operating margin

13.6%

(27.7)%

12.6%

(3.0)%

· Pre-tax operating earnings increased $101.4 million primarily due

to impacts of the 3Q25 actuarial assumption review, along with improved mortality experience.

· Premium and fees decreased $10.3 million driven from the movement

of a subsidiary supporting enterprise distribution to Corporate.

Corporate

Three Months Ended,

Trailing Twelve Months,

3Q26

3Q25

Change

3Q26

3Q25

Change

Pre-tax operating losses

$(110.5)

$(91.6)

(21)%

$(430.4)

$(382.3)

(13)%

· Pre-tax operating losses increased $18.9 million primarily due to

lower variable investment income.

Common Stock Dividend

· Announced a fourth quarter cash dividend of $0.85 per share to holders of

common shares. This represents a 1-cent increase over third quarter of 2026 and an 8% increase over the prior year quarter.

· The fourth quarter dividend will be payable on December 18, 2026, to shareholders

of record as of December 2, 2026.

Exhibit 1

Principal Financial Group

Impact of Significant Variances10 on Net Income Attributable

to PFG; Non-GAAP Net Income Attributable to PFG,

Excluding Exited Business; and Non-GAAP Operating Earnings

In millions except per share data

Three Months Ended,

Trailing Twelve Months,

3Q26

3Q25

3Q26

3Q25

Net income (loss) attributable to PFG

(58.8)

(55.9)

(73.8)

(96.4)

(Income) loss from exited business

6.1

Non-GAAP net income (loss) attributable to PFG, excluding exited business

(58.8)

(49.8)

(73.8)

(90.3)

Net realized capital (gains) losses, as adjusted

0.2

Non-GAAP operating earnings

(58.8)

(49.6)

(73.8)

(90.1)

Income taxes

(13.8)

(10.5)

(16.2)

(21.5)

Non-GAAP pre-tax operating earnings

(72.6)

(60.1)

(90.0)

(111.6)

Per diluted share:

Net income (loss) attributable to PFG

(0.27)

(0.25)

(Income) loss from exited business

0.03

Non-GAAP net income (loss) attributable to PFG, excluding exited business

(0.27)

(0.22)

Net realized capital (gains) losses, as adjusted

Non-GAAP operating earnings

(0.27)

(0.22)

Weighted average diluted common shares outstanding

216.9

225.2

Segment pre-tax operating earnings (losses):

Retirement and Income Solutions

(32.5)

(4.5)

(53.0)

(45.6)

Investment Management

4.8

International Pension

(18.0)

28.5

3.1

22.7

Principal Asset Management

(18.0)

28.5

3.1

27.5

Specialty Benefits

(6.5)

8.3

(16.5)

11.1

Life Insurance

(6.7)

(99.3)

(17.8)

(118.7)

Benefits and Protection

(13.2)

(91.0)

(34.3)

(107.6)

Corporate

(8.9)

6.9

(5.8)

14.1

Total segment pre-tax operating earnings (losses)

(72.6)

(60.1)

(90.0)

(111.6)

Income statement line item details

of significant variances are available in our earnings conference call presentation on our website.

10 Significant variances (SVs)

in 3Q26 include 1) lower than expected variable investment income in RIS, International Pension, Specialty Benefits, Life Insurance,

and Corporate; 2) lower than expected encaje performance partially offset by higher than expected Latin American inflation in International

Pension; 3) integration costs in Specialty Benefits and Corporate. SVs in 3Q25 include 1) lower than expected variable investment income

in RIS, International Pension, Specialty Benefits, and Life Insurance, partially offset by higher than expected variable investment income

in Corporate; 2) impact of higher than expected encaje performance and Latin American inflation in International Pension; 3) impacts

of 2025 actuarial assumption review. SVs on a trailing twelve months in 3Q26 include 1) lower than expected variable investment income

in RIS, International Pension, Specialty Benefits, Life Insurance, and Corporate; 2) higher than expected Latin America inflation partially

offset by lower than expected encaje performance in International Pension; 3) integration costs in Specialty Benefits and Corporate.

SVs on a trailing twelve months in 3Q25 include 1) lower than expected variable investment income in RIS, International Pension, Specialty

Benefits, and Life Insurance, partially offset by higher than expected variable investment income in Corporate; 2) impacts of 2025 actuarial

assumption review; 3) higher than expected encaje performance and Latin American inflation in International Pension; 4) impact from a

one-time expense accrual release in RIS, Investment Management, Specialty Benefits, Life Insurance, and Corporate; 5) impact of GAAP-only

regulatory closed block adjustment in Life Insurance; 6) impact of model refinement in Specialty Benefits.

Earnings Conference Call

On Tuesday, Oct. 27, 2026, at 10:00 a.m. (ET), Chair, President, and Chief Executive

Officer Deanna Strable and Executive Vice President and Chief Financial Officer Joel Pitz will lead a discussion of results during a live

conference call, which can be accessed as follows:

· Via

live Internet webcast. Please go to investors.principal.com

least 10-15 minutes prior to the start of the call to register, and to download and install

any necessary audio software.

· Analysts who will be asking questions will be sent a dial in number and authorization code

in advance of the call.

· Replay

of the earnings call via webcast as well as a transcript of the call will be available after

the call at investors.principal.com.

The company’s financial supplement

and slide presentation are currently available at investors.principal.com, and may be

referred to during the call.

Forward-Looking Statements

This release contains statements that constitute forward-looking statements within

the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to share repurchases and planned dividends,

the realization of our growth and business strategies and results from ongoing operations. Forward-looking statements are made based upon

our current expectations and beliefs concerning future developments and their potential effects on us. Such forward-looking statements

are not guarantees of future performance and actual results may differ materially from the results anticipated in the forward-looking

statements. We describe risks, uncertainties, and factors that could cause or contribute to such material differences in our filings with

the Securities and Exchange Commission, including in the “Risk Factors” and “Note Concerning Forward-Looking Statements”

sections in our annual report on Form 10-K for the year ended Dec. 31, 2025, as updated or supplemented from time to time in subsequent

filings. We assume no obligation to update any forward-looking statement for any reason, which speaks as of its date.

Use of Non-GAAP Financial Measures

The company uses a number of non-GAAP financial measures that management believes are

useful to investors because they illustrate the performance of normal, ongoing operations, which is important in understanding and evaluating

the company’s financial condition and results of operations. They are not, however, a substitute for U.S. GAAP financial measures.

Therefore, the company has provided reconciliations of the non-GAAP measures to the most directly comparable U.S. GAAP measure at the

end of the release. The company adjusts U.S. GAAP measures for items not directly related to ongoing operations. However, it is possible

these adjusting items have occurred in the past and could recur in future reporting periods. Management also uses non-GAAP measures for

goal setting, as a basis for determining employee and senior management awards and compensation, and evaluating performance on a basis

comparable to that used by investors and securities analysts.

About Principal®11

Principal Financial Group®

(Nasdaq: PFG) is a global financial company with over 19,000 employees12 passionate

about improving the wealth and well-being of people and businesses. In business for 147 years, we’re helping 84 million customers12

plan, insure, invest, and retire, while working to support the communities where we do business, and building an inclusive workforce.

Principal® is proud to be recognized as one of the 2026 World’s Most Ethical Companies13

and named as a “Best Place to Work in Money Management14.” Learn more about

Principal and our commitment to building a better future at principal.com.

###

Summary of Principal Financial Group®

and Segment Results

Principal Financial Group, Inc. Results

(in millions)

Three Months Ended,

Trailing Twelve Months,

3Q26

3Q25

3Q26

3Q25

Net income (loss) attributable to PFG*

631.9

213.8

1,976.9

1,573.5

(Income) loss from exited business

(277.1)

251.8

(276.7)

(22.7)

Non-GAAP net income (loss) attributable to PFG excluding exited business

354.8

465.6

1,700.2

1,550.8

Net realized capital (gains) losses, as adjusted

122.0

8.1

267.7

274.8

Actuarial assumption review

5.0

0.0

5.0

0.0

Non-GAAP Operating Earnings*

481.8

473.7

1,972.9

1,825.6

Income taxes

105.7

106.2

439.8

381.2

Non-GAAP Pre-Tax Operating Earnings

587.5

579.9

2,412.7

2,206.8

Segment Pre-Tax Operating Earnings (Losses):

Retirement and Income Solutions

297.8

310.3

1,222.7

1,166.2

Principal Asset Management

230.5

274.7

927.0

914.6

Benefits and Protection

169.7

86.5

693.4

508.3

Corporate

(110.5)

(91.6)

(430.4)

(382.3)

Total Segment Pre-Tax Operating Earnings

587.5

579.9

2,412.7

2,206.8

Principal, Principal and symbol design and Principal Financial Group are trademarks and service marks of Principal Financial Services,

Inc., a member of the Principal Financial Group.

As of September 30, 2026

Ethisphere, 2026

Pensions & Investments, 2025

Per Diluted Share

Three Months Ended,

Nine Months Ended,

3Q26

3Q25

3Q26

3Q25

Net income (loss) attributable to PFG

2.91

0.95

6.68

2.95

(Income) loss from exited business

(1.27)

1.11

(1.14)

2.32

Non-GAAP net income (loss) excluding exited business

1.64

2.06

5.54

5.27

Net realized capital (gains) losses, as adjusted

0.56

0.04

1.23

0.80

Actuarial assumption review

0.02

0.00

0.02

0.00

Non-GAAP Operating Earnings

2.22

2.10

6.79

6.07

Impact of significant variances15

0.27

0.22

0.29

0.24

Non-GAAP Operating Earnings, excluding significant variances

2.49

2.32

7.08

6.31

Weighted-average diluted common shares outstanding (in millions)

216.9

225.2

218.6

226.8

*U.S. GAAP (GAAP) net income attributable to PFG versus non-GAAP operating earnings

Management uses non-GAAP operating earnings, which is a financial measure that excludes

the effect of net realized capital gains and losses, as adjusted; income (loss) from exited business; actuarial assumption review impacts

(beginning third quarter 2026); and other after-tax adjustments the company believes are not indicative of overall operating trends, for

goal setting, as a basis for determining employee and senior management awards and compensation and evaluating performance on a basis

comparable to that used by investors and securities analysts. Note: it is possible these adjusting items have occurred in the past and

could recur in future reporting periods. While these items may be significant components in understanding and assessing our consolidated

financial performance, management believes the presentation of non-GAAP operating earnings enhances the understanding of results of operations

by highlighting earnings attributable to the normal, ongoing operations of the company’s businesses.

Selected Balance Sheet Statistics

Period

Ended,

3Q26

4Q25

Total

assets (in billions)

338.7

341.4

Stockholders’

equity (in millions)

11,850.3

11,917.0

Stockholders’

equity available to common stockholders (in millions)

11,816.3

11,883.9

Non-GAAP

stockholders’ equity, excluding cumulative change in fair value of funds withheld embedded derivative and accumulated other

comprehensive income (AOCI) other than foreign currency translation adjustment, available to common stockholders (in millions)

12,264.1

12,445.5

End

of period common shares outstanding (in millions)

212.8

217.4

Book

value per common share

55.53

54.66

Non-GAAP

book value per common share excluding cumulative change in fair value of funds withheld embedded derivative and AOCI other than foreign

currency translation adjustment

57.63

57.25

See Exhibit 1 for details on the impact of 3Q 2026 and 3Q 2025 significant variances on net income attributable to PFG; non-GAAP net

income attributable to PFG, excluding exited business; and non-GAAP operating earnings.

Principal Financial Group, Inc.

Reconciliation of U.S. GAAP to Non-GAAP Financial

Measures

(in millions, except as indicated)

Period

Ended,

3Q26

4Q25

Non-GAAP

Stockholders’ Equity, Excluding Cumulative Change in Fair Value of Funds Withheld Embedded Derivative and AOCI Other Than Foreign

Currency Translation Adjustment, Available to Common Stockholders:

Stockholders’

equity

11,850.3

11,917.0

Noncontrolling

interest

(34.0)

(33.1)

Stockholders’

equity available to common stockholders

11,816.3

11,883.9

Cumulative

change in fair value of funds withheld embedded derivative

(2,784.3)

(2,080.2)

AOCI,

other than foreign currency translation adjustment

3,232.1

2,641.8

Non-GAAP

stockholders’ equity, excluding cumulative change in fair value of funds withheld embedded derivative and AOCI other than foreign

currency translation adjustment, available to common stockholders

12,264.1

12,445.5

Non-GAAP

Book Value Per Common Share, Excluding Cumulative Change in Fair Value of Funds Withheld Embedded Derivative and AOCI Other Than

Foreign Currency Translation Adjustment:

Book

value per common share

55.53

54.66

Cumulative

change in fair value of funds withheld embedded derivative and AOCI, other than foreign currency translation adjustment

2.10

2.59

Non-GAAP

book value per common share, excluding change in fair value of funds withheld embedded derivative and AOCI other than foreign currency

translation adjustment

57.63

57.25

Principal

Financial Group, Inc.

Reconciliation

of U.S. GAAP to Non-GAAP Financial Measures

(in

millions)

Three Months Ended,

Trailing

Twelve Months,

3Q26

3Q25

3Q26

3Q25

Non-GAAP

Income Taxes:

Total

GAAP income taxes (benefit)

241.7

14.5

487.0

260.0

Net

realized capital gains (losses) tax adjustments

29.8

2.6

63.3

60.1

Exited

business tax adjustments

(194.8)

66.9

(194.6)

(10.0)

Actuarial

assumption review tax adjustments

1.4

0.0

1.4

0.0

Income

taxes related to equity method investments and noncontrolling interest

27.6

22.2

82.7

71.1

Non-GAAP

income taxes

105.7

106.2

439.8

381.2

Net

Realized Capital Gains (Losses):

GAAP

net realized capital gains (losses)

(387.6)

85.7

(346.3)

(114.6)

Market

value adjustments to fee revenues

0.1

0.2

(0.1)

Net

realized capital gains (losses) related to equity method investments

4.7

1.2

3.7

1.9

Derivative

and hedging-related revenue adjustments

(39.3)

(25.7)

(158.0)

(82.6)

Certain

variable annuity fees

17.1

17.2

68.7

68.2

Net

realized capital (gains) losses related to exited business

276.7

Certain

real estate-related depreciation and amortization

(21.0)

(52.0)