The following is a summary of the Principal Financial Group, Inc. (PFG) Q1 2024 Earnings Call Transcript:
Financial Performance:
Principal Financial Group posted $394 million in non-GAAP operating earnings, marking an 11% EPS increase compared to Q1 2023.
The company returned over $360 million of capital to shareholders, including $200 million from share repurchases.
Managed Assets Under Management (AUM) totaled $709 billion at the end of Q1, with international division generating a positive net cash flow of $1 billion.
The company raised common stock dividends for the fourth consecutive quarter and holds approximately $1.4 billion of excess and available capital.
Although group disability premiums and fees decreased sequentially from Q4, the firm reported strong Q1 PRT sales of approx $800 million. However, there were some pressure in variable investment income due to lower real estate transactions.
Business Progress:
The company is accelerating investment in high-growth areas such as retirement, asset management, and benefits and protection, with outstanding mutual fund sales and strong retirement business.
Principal International witnessed robust sales in Brazil, while Retirement and Income Solutions saw a 6% growth in sales over the previous year's quarter.
The firm received positive feedback from clients for additional services provided to plan sponsors and has minimal staff turnover, courtesy of its strong culture and competitive pay structure.
The firm managed recent regulatory changes comfortably, and is actively assessing the impact on the business.
An established Bermuda entity allowed the exploration of more growth opportunities and enhanced the company's free cash generation. It also started a private credit business targeting the smaller and middle end of the direct lending space.
Growth momentum continues in the annuity products, with focus on their variable annuity offerings and Registered Indexed Linked Annuities (RILA).
For 2024, the company continues to drive profitable growth, leverage technology and innovation, and maintain a disciplined approach to capital employment.
More details: Principal Financial IR
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