PRINCIPAL FINANCIAL GROUP INC has recently released its 10-Q report. Principal Financial Group, Inc. provides retirement, asset management, and insurance products and services to businesses, individuals, and institutional clients. Its operations are organized into Retirement and Income Solutions, Principal Asset Management, and Benefits and Protection, with additional corporate activities reported separately.
Item 2 shows that management compared June 30, 2026 with December 31, 2025, and reviewed results for the three and six months ended June 30, 2026 and 2025 under U.S. GAAP. The discussion highlights several factors affecting comparability, including foreign currency movements, variable investment income, and the 2026 reclassification of an affiliated distribution subsidiary from Benefits and Protection to Corporate. It also notes the July 6, 2026 agreement to acquire Beam Benefits, an employee benefits company serving more than 25,000 small businesses and generating about $175.0 million of premiums in 2025.
For the quarter ended June 30, 2026, total revenues were $3.91 billion, up from $3.67 billion a year earlier. Premiums and other considerations rose to $1.46 billion from $1.40 billion, fees and other revenues increased to $1.15 billion from $1.08 billion, and net investment income climbed to $1.30 billion from $1.16 billion. Net realized capital gains were $109.7 million, compared with $5.4 million in the prior-year quarter, while the change in fair value of funds withheld embedded derivative was a $104.4 million loss versus a $20.3 million gain.
For the first six months of 2026, total revenues were $7.43 billion, compared with $7.37 billion in the prior-year period. Premiums and other considerations fell to $2.61 billion from $3.15 billion, while fees and other revenues increased to $2.26 billion from $2.16 billion and net investment income rose to $2.50 billion from $2.33 billion. Net realized capital losses narrowed to $12.4 million from $111.7 million, and the change in fair value of funds withheld embedded derivative shifted to a $73.0 million gain from a $189.4 million loss.
Foreign currency movements added $7.9 million to Principal Asset Management pre-tax operating earnings in the second quarter and $15.9 million in the first half. The company also said the 2025 Hong Kong MPF transaction led to a $65.4 million impairment loss on a distribution agreement intangible asset and contract cost asset, plus a $77.0 million loss on a customer relationship intangible asset classified as held for sale. The market has reacted to these announcements by moving the company's shares -0.45% to a price of $113.58. Check out the company's full 10-Q submission here.
