Principal Financial Group Inc - Registered Shares

Strong Q2 profitability & EPS growth (above target range): Adjusted non‑GAAP EPS +15% YTD and up (mid-teens) YoY; non‑GAAP operating earnings $547M (+12% YoY) and non‑GAAP EPS $2.50 (+16% YoY). Enterprise earnings growth +13% with 6% net revenue growth and 200 bps margin expansion. Margin/ROE: non‑GAAP operating ROE (ex. variances) 16.4%, up 120 bps YoY (above the 15–17% target range midpoint).

Capital return continues; dividend raised; buybacks active: Returned about $430M of capital in Q2 (including $250M share repurchases and $180M dividends; CFO later referenced $427M with $177M dividends). Total capital returned through first half: $800M. Common dividend increased 8% for the 13th consecutive quarter. Dividend policy: ~40% payout ratio. Declared $0.84/share dividend payable in Q3 (+$0.02 vs prior quarter, +8% YoY). Excess available capital: $1.6B; risk-based capital ratio ~400% (vs 375% target).

Business strength—especially Benefits/Protection and retirement momentum: - RIS: Pretax operating earnings +8% YoY; 5% net revenue growth with expense discipline; operating margin 41% (+120 bps YoY). - Benefits & Protection: Pretax operating earnings $191M (+29% YoY) driven by improved specialty benefits underwriting and life mortality. Specialty benefits loss ratio 57.4% improved ~280 bps; management expects full-year underwriting results to emerge below the low end of guidance (loss ratio range referenced: 60–64%). - Retirement ecosystem: Transfer deposits +30% YoY; recurring deposits +6% YoY; roll-ins $1.7B in Q2 / >$7B trailing 12 months (~+20%). DCIO sales $2B in Q2 / ~$8B trailing 12 months; PRT sales $500M (noted “slow start” earlier in the year).