Q3 2024 Principal Financial Group Inc Earnings Call Transcript
Key Points
- Principal Financial Group Inc (PFG) reported $412 million of non-GAAP operating earnings, translating to $1.76 per diluted share, with an EPS of $2.05 after adjustments, marking a 12% increase over the previous year.
- The company returned $416 million of capital to shareholders in the third quarter, including $251 million in share repurchases, and raised its common stock dividend for the sixth consecutive quarter.
- Total company managed assets under management (AUM) reached $741 billion, reflecting a 6% growth from the previous quarter, driven by robust returns and positive market performance.
- Principal International ended the quarter with a record $185 billion of AUM, up 8% from the second quarter, driven by robust net cash flows and favorable market performance.
- The company is experiencing strong momentum in its retirement business, with recurring deposits increasing by 10% year-over-year and contract retention rates on track to achieve the best full-year retention rates over the past five years.
- Principal Financial Group Inc (PFG) reported a net loss of $220 million for the third quarter, driven by non-economic impacts from exited businesses.
- The actuarial assumption review had a net negative impact on non-GAAP operating earnings, although it was immaterial to free capital flow and run rate earnings.
- PGI experienced net outflows, driven by lower fee and yield products and rebalancing activities by institutional clients.
- The specialty benefits segment saw a slowdown in growth, attributed to no new Paid Family and Medical Leave (PFML) sales and a competitive environment, particularly in dental.
- Variable investment income was lower than expected, primarily due to negative private equity returns in the quarter.
Good morning, and welcome to the Principal Financial Group third quarter 2024 financial results conference call. (Operator Instructions) I would now like to turn the conference call over to Humphrey Lee, Vice President of Investor Relations.
Thank you, and good morning. Welcome to Principal Financial Group's third quarter 2024 earnings conference call. As always, materials related to today's call are available on our website at investors.principal.com. Following a reading of the Safe Harbor provision, CEO, Dan Houston; and President and COO, Deanna Strable, will deliver some prepared remarks.
We will then open the call for questions. Other members of senior management will also be available for Q&A. Some of the comments made during this conference call may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act.
The company does not revise or update them to reflect new information, subsequent events, or changes in
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