Principal Financial Group Inc Reports Full Year and Q4 2023 Results, Sets Positive 2024 Outlook
Non-GAAP Operating Earnings: $1.6 billion for FY 2023, with $441 million in Q4.
Shareholder Returns: Over $1.3 billion returned to shareholders in 2023.
Retirement and Income Solutions: Pre-tax operating earnings up 30% in Q4; net revenue increased by 12%.
Principal Global Investors: Assets under management grew to $499.5 billion, a 7% increase.
Principal International: Pre-tax operating earnings rose 18% in Q4; AUM up by 15%.
Specialty Benefits and Life Insurance: Pre-tax operating earnings grew by 6% and 5% in premiums and fees, respectively.
On February 12, 2024, Principal Financial Group Inc (NASDAQ:PFG) released its 8-K filing, announcing its full-year and fourth-quarter results for 2023 and providing an outlook for 2024. The company, a global leader in investment management services, operates across four segments: Retirement and Income Solutions, Principal Global Investors, Principal International, and United States Insurance Solutions, deriving the majority of its revenue from premiums.
Despite a challenging economic environment, PFG reported strong results for the fourth quarter and the full year of 2023. Dan Houston, the chairman, president, and CEO, credited the company's diversified and integrated business model for its ability to deliver on its outlook. PFG's focus on high-growth markets and strategic partnerships facilitated the generation of over $1.6 billion in non-GAAP operating earnings for the year, including $441 million in the fourth quarter. The company also demonstrated its commitment to shareholder returns by distributing more than $1.3 billion in 2023 and announcing a new $1.5 billion share repurchase authorization.
Financial Highlights and Segment Performance
The Retirement and Income Solutions segment saw a 30% increase in pre-tax operating earnings for the fourth quarter, with net revenue up by 12%. Principal Global Investors reported a 7% growth in total assets under management, reaching $499.5 billion, despite an 8% decrease in pre-tax operating earnings for the quarter. Principal International experienced an 18% rise in pre-tax operating earnings for Q4 and a 15% increase in assets under management. The Specialty Benefits division reported a 6% increase in pre-tax operating earnings and a 9% rise in premiums and fees. However, the Life Insurance segment faced a 41% decrease in pre-tax operating earnings for the year, with stable premiums and fees.
These financial achievements underscore PFG's resilience and strategic positioning within the asset management industry. The company's ability to navigate market volatility and deliver consistent growth in key metrics such as assets under management and operating earnings is crucial for maintaining investor confidence and driving long-term value creation.
Looking ahead to 2024, PFG is optimistic about its financial position and growth prospects. The company's strong balance sheet, diversified business model, and strategic investments position it well for continued success in the coming year.
For more detailed financial information and segment results, please refer to the full 8-K filing.
Principal Financial Group Inc's commitment to returning capital to shareholders and its positive outlook for 2024 reflect the company's confidence in its business strategy and operational execution. As PFG continues to navigate a dynamic financial landscape, its focus on growth markets and integrated offerings is expected to drive strong results and create value for shareholders.
Note: The information provided in this summary is for informational purposes only and is not intended as investment advice. Investors should conduct their own research and consult with financial advisors before making investment decisions.
Explore the complete 8-K earnings release (here) from Principal Financial Group Inc for further details.
This article first appeared on GuruFocus.
