PRINCIPAL FINANCIAL GROUP INC

Previous wording

The following analysis discusses our financial condition as of June 30, 2025, compared with December 31, 2024, and our consolidated results of operations for the three and six months ended June 30, 2025 and 2024, prepared in conformity with U.S. GAAP. The discussion and analysis includes, where appropriate, factors that may affect our future financial performance. The discussion should be read in conjunction with our Form 10-K, for the year ended December 31, 2024, filed with the SEC and the unaudited condensed consolidated financial statements and the related notes to the financial statements and the other financial information included elsewhere in this Form 10-Q.

Current wording

The following analysis discusses our financial condition as of September 30, 2025, compared with December 31, 2024, and our consolidated results of operations for the three and nine months ended September 30, 2025 and 2024, prepared in conformity with U.S. GAAP. The discussion and analysis includes, where appropriate, factors that may affect our future financial performance. The discussion should be read in conjunction with our Form 10-K, for the year ended December 31, 2024, filed with the SEC and the unaudited condensed consolidated financial statements and the related notes to the financial statements and the other financial information included elsewhere in this Form 10-Q.

Previous wording

On January 16, 2025, we announced the signing of an agreement with BCT to expand our investment management capabilities and exit our sponsor and trustee (pension) roles in Hong Kong for MPF Schemes. BCT will be assuming the role as sponsor and trustee for the Principal MPF Schemes. The transaction is expected to close during the first half of 2026, subject to regulatory approval; however, certain transaction impacts were recognized in first quarter 2025. We impaired our distribution agreement intangible asset and contract cost asset, resulting in a $65.4 million loss reported in operating expenses on our consolidated statements of operations. Additionally, we classified our customer relationship intangible asset as held-for-sale, resulting in a $77.0 million loss reported in net realized capital gains (losses) on our consolidated statements of operations. For segment reporting, the impairments are reflected in loss from exited business and the held-for-sale write-down is reflected in net realized capital losses. As such, they had no impact on our Principal Asset Management segment pre-tax operating earnings.

Current wording

On January 16, 2025, we announced the signing of an agreement with BCT to expand our investment management capabilities and exit our sponsor and trustee (pension) roles in Hong Kong for MPF Schemes. BCT will be assuming the role as sponsor and trustee for the Principal MPF Schemes. The transaction is expected to close in 2026, subject to regulatory approval; however, certain transaction impacts were recognized in first quarter 2025. We impaired our distribution agreement intangible asset and contract cost asset, resulting in a $65.4 million loss reported in operating expenses on our consolidated statements of operations. Additionally, we classified our customer relationship intangible asset as held-for-sale, resulting in a $77.0 million loss reported in net realized capital gains (losses) on our consolidated statements of operations. For segment reporting, the impairments are reflected in loss from exited business and the held-for-sale write-down is reflected in net realized capital losses. As such, they had no impact on our Principal Asset Management segment pre-tax operating earnings.

Previous wording

Foreign currency exchange rate fluctuations create variances in our financial statement line items. The most significant impact occurs within our Principal Asset Management segment where pre-tax operating earnings were negatively impacted $2.9 million and $8.9 million for the three and six months ended June 30, 2025, respectively, as a result of fluctuations in foreign currency to U.S. dollar exchange rates. This impact was calculated by comparing (a) the difference between current year results and prior year results to (b) the difference between current year results and prior year results translated using current year exchange rates for both periods. We use this approach to calculate the impact of exchange rates on all revenue and expense line items. For a discussion of our approaches to managing foreign currency exchange rate risk, see Item 3. “Quantitative and Qualitative Disclosures About Market Risk — Foreign Currency Risk.”

Current wording

Foreign currency exchange rate fluctuations create variances in our financial statement line items. The most significant impact occurs within our Principal Asset Management segment where pre-tax operating earnings were positively impacted $0.1 million for the three months ended September 30, 2025 and negatively impacted $8.8 million for the nine months ended September 30, 2025, as a result of fluctuations in foreign currency to U.S. dollar exchange rates. This impact was calculated by comparing (a) the difference between current year results and prior year results to (b) the difference between current year results and prior year results translated using current year exchange rates for both periods. We use this approach to calculate the impact of exchange rates on all revenue and expense line items. For a discussion of our approaches to managing foreign currency exchange rate risk, see Item 3. “Quantitative and Qualitative Disclosures About Market Risk — Foreign Currency Risk.”

Previous wording

Net income attributable to Principal Financial Group, Inc. increased primarily due to the $158.1 million unfavorable one-time impact of the YRT Reinsurance Transactions in 2024, $32.4 million from a one-time expense accrual release in 2025 and $18.0 million from favorable market performance on required regulatory investments in Latin America. These increases were partially offset by a $167.8 million decrease due to the change in the fair value of the funds withheld embedded derivative.

Current wording

Net income (loss) attributable to Principal Financial Group, Inc. increased primarily due to the change in the fair value of the funds withheld embedded derivative.

Previous wording

Premiums and other considerations decreased $507.6 million for the Retirement and Income Solutions segment primarily due to lower sales of single premium group annuities with life contingencies.

Current wording

Premiums and other considerations increased $94.8 million for the Retirement and Income Solutions segment primarily due to higher sales of single premium group annuities with life contingencies. Premiums and other considerations increased $29.4 million for the Benefits and Protection segment primarily due to growth in our Specialty Benefits business.

Previous wording

Fees and other revenues increased for the Principal Asset Management segment due to $32.4 million higher management fee revenue as a result of increased average AUM managed by our Investment Management operations and $8.2 million higher performance fee revenue primarily in our real estate business.

Current wording

Fees and other revenues increased $5.5 million for the Retirement and Income Solutions segment primarily due to an increase in fee revenue stemming from an increase in average monthly account values, which largely resulted from more favorable financial markets. Fees and other revenues increased for the Principal Asset Management segment primarily due to $19.4 million higher management fee revenue as a result of increased average AUM managed by our Investment Management operations. Fees and other revenues increased for the Corporate segment primarily due to a $4.2 million increase in our broker-dealer operations.

Previous wording

Net realized capital gains on funds withheld assets decreased due to $52.9 million lower net gains on sales of funds withheld assets as a result of reduced sales in 2025 by an external reinsurer partially offset by a $12.5 million increase due to net unrealized gains on funds withheld assets in 2025 as compared to net unrealized losses in 2024.

Current wording

Net realized capital gains on funds withheld assets decreased due to $19.1 million lower gains on sales of funds withheld assets as a result of reduced sales in 2025 by an external reinsurer and a $16.2 million change due to net unrealized losses on funds withheld assets in 2025 as compared to net unrealized gains in 2024.

Previous wording

The change in fair value of the funds withheld embedded derivative resulted in a lower gain in 2025 than 2024 due primarily to changes in interest rates.

Current wording

The change in fair value of the funds withheld embedded derivative resulted in a lower loss in 2025 than 2024 due primarily to changes in interest rates and credit spreads.

Previous wording

Benefits, claims and settlement expenses decreased $486.4 million for the Retirement and Income Solutions segment primarily due to a decrease in reserves, largely stemming from lower sales of single premium group annuities with life contingencies. Benefits, claims and settlement expenses increased $276.2 million for the Benefits and Protection segment primarily due to the one-time impact of the YRT Reinsurance Transactions in 2024.

Current wording

Benefits, claims and settlement expenses increased $163.7 million in the Retirement and Income Solutions segment primarily due to an increase in reserves, largely stemming from higher sales of single premium group annuities with life contingencies.

Previous wording

The market risk benefit remeasurement loss increased due to a $8.9 million unfavorable impact from periodic and final settlements for derivatives used to hedge MRBs and a $5.8 million unfavorable impact from the change in fair value of the MRB asset (liability), excluding impacts of nonperformance risk, primarily driven by changes in market movements. See Item 1. “Financial Statements, Notes to Unaudited Condensed Consolidated Financial Statements, Note 10, Market Risk Benefits” for further information on market effects.

Current wording

The market risk benefit remeasurement (gain) loss change was primarily due to the $82.5 million favorable impact from the change in fair value of the MRB asset (liability), excluding impacts of nonperformance risk, primarily driven by changes in market movements. This change was offset by a $32.5 million unfavorable impact from periodic and final settlements for derivatives used to hedge MRBs. See Item 1. “Financial Statements, Notes to Unaudited Condensed Consolidated Financial Statements, Note 10, Market Risk Benefits” for further information on market effects.

Previous wording

The effective income tax rate decreased to 7% for the six months ended June 30, 2025 from 17% for the six months ended June 30, 2024, primarily due to a decrease in pre-tax income with no proportionate changes in permanent tax differences. See Item 1. “Financial Statements, Notes to Unaudited Condensed Consolidated Financial Statements, Note 13, Income Taxes” for a reconciliation between the U.S. corporate income tax rate and the effective income tax rate.

Current wording

The effective income tax rate decreased to 6% for the three months ended September 30, 2025, from 34% for the three months ended September 30, 2024, primarily due to an increase in pre-tax income with no proportional changes in permanent tax differences. See Item 1. “Financial Statements, Notes to Unaudited Condensed Consolidated Financial Statements, Note 13, Income Taxes” for a reconciliation between the U.S. corporate income tax rate and the effective income tax rate.

Previous wording

Net income attributable to Principal Financial Group, Inc. decreased $489.2 million due to the change in the fair value of the funds withheld embedded derivative and $119.7 million due to the impact from asset write-downs related to exiting our sponsor and trustee (pension) roles in Hong Kong for MPF Schemes. These decreases were partially offset by the $158.1 million unfavorable one-time impact of the YRT Reinsurance Transactions in 2024.

Current wording

Net income attributable to Principal Financial Group, Inc. increased $158.1 million due to the unfavorable one-time impact of the YRT Reinsurance Transactions in 2024, $32.4 million due to a one-time expense accrual release in 2025 and $26.4 million due to less unfavorable actuarial assumption updates, model refinements and other updates in 2025 compared to 2024. These increases were partially offset by $119.7 million due to the impact from asset write-downs related to exiting our sponsor and trustee (pension) roles in Hong Kong for MPF Schemes and $85.7 million due to the change in the fair value of the funds withheld embedded derivative.

Previous wording

Premiums and other considerations decreased $552.3 million for the Retirement and Income Solutions segment primarily due to lower sales of single premium group annuities with life contingencies.

Current wording

Premiums and other considerations decreased $412.8 million for the Retirement and Income Solutions segment primarily due to lower sales of single premium group annuities with life contingencies. Premiums and other considerations increased $81.3 million for the Benefits and Protection segment primarily due to growth in our Specialty Benefits business.

Previous wording

Fees and other revenues increased for the Principal Asset Management segment due to $13.8 million higher management fee revenue as a result of increased average AUM managed by our Investment Management operations and $8.2 million higher performance fee revenue primarily in our real estate business.

Current wording

Fees and other revenues increased $56.8 million for the Principal Asset Management segment primarily due to higher management fee revenue as a result of increased average AUM managed by our Investment Management operations. Fees and other revenues increased $16.4 million for the Benefits and Protection segment primarily due to growth in our Life Insurance business.

Previous wording

Net realized capital gains on funds withheld assets decreased due to lower net gains on sales of funds withheld assets as a result of reduced sales in 2025 by an external reinsurer.

Current wording

Net realized capital gains on funds withheld assets decreased primarily due to lower net gains on sales of funds withheld assets as a result of reduced sales in 2025 by an external reinsurer.

Previous wording

The change in fair value of the funds withheld embedded derivative resulted in a loss in 2025 compared to a gain in 2024 driven by changes in interest rates.

Current wording

The change in fair value of the funds withheld embedded derivative resulted in a larger loss in 2025 compared to 2024 due to changes in interest rates and credit spreads.

Previous wording

Benefits, claims and settlement expenses decreased $377.2 million for the Retirement and Income Solutions segment primarily due to a decrease in reserves, stemming from lower sales of single premium group annuities with life contingencies. Benefits, claims and settlement expenses decreased for the Principal Asset Management segment due to $25.5 million from the closure of our Hong Kong guaranteed constituent funds in the prior year and $16.8 million due to lower interest credited to customers. Benefits, claims and settlement expenses increased $317.2 million for the Benefits and Protection segment primarily due to the one-time impact of the YRT Reinsurance Transactions in 2024.

Current wording

Benefits, claims and settlement expenses decreased $213.5 million for the Retirement and Income Solutions segment primarily due to a decrease in reserves, stemming from lower sales of single premium group annuities with life contingencies. Benefits, claims and settlement expenses decreased for the Principal Asset Management segment due to $26.0 million from the closure of our Hong Kong guaranteed constituent funds in the prior year, $11.5 million due to lower new sales of Chile annuities and $9.8 million due to lower interest credited to customers. Benefits, claims and settlement expenses increased $347.2 million for the Benefits and Protection segment primarily due to the one-time impact of the YRT Reinsurance Transactions in 2024.

Previous wording

The liability for future policy benefits remeasurement (gain) loss change was due to a prior year changes in cost of reinsurance cash flow assumptions for the Benefits and Protection segment driven by the one-time impact of the YRT Reinsurance Transactions.

Current wording

The liability for future policy benefits remeasurement (gain) loss change was primarily due to the favorable effect of $442.1 million of prior year changes in cost of reinsurance cash flow assumptions driven by the one-time impact of the YRT Reinsurance Transactions and a $45.4 million impact driven by actuarial assumption updates and model refinements.

Previous wording

The market risk benefit remeasurement (gain) loss change was due to a $160.4 million unfavorable impact from the change in fair value of the MRB asset (liability), excluding impacts of nonperformance risk, primarily driven by changes in market movements. This change was partially offset by a $96.5 million favorable impact from periodic and final settlements for derivatives used to hedge MRBs. See Item 1. “Financial Statements, Notes to Unaudited Condensed Consolidated Financial Statements, Note 10, Market Risk Benefits” for further information on market effects.

Current wording

The market risk benefit remeasurement (gain) loss change was primarily due to the $78.0 million unfavorable impact from the change in fair value of the MRB asset (liability), excluding impacts of nonperformance risk, primarily driven by changes in market movements. This change was partially offset by a $64.1 million favorable impact from periodic and final settlements for derivatives used to hedge MRBs. See Item 1. “Financial Statements, Notes to Unaudited Condensed Consolidated Financial Statements, Note 10, Market Risk Benefits” for further information on market effects.

Previous wording

Operating expenses increased primarily due to a $70.6 million increase in compensation costs and $65.4 million of impairments of our distribution agreement intangible asset and contract cost asset in Hong Kong. These increases were partially offset by a $75.3 million decrease in amounts credited to employee accounts in a nonqualified defined contribution pension plan and a $41.0 million decrease resulting from a one-time expense accrual release in 2025.

Current wording

Operating expenses increased primarily due to a $79.3 million increase in compensation costs, $65.4 million of impairments of our distribution agreement intangible asset and contract cost asset in Hong Kong and a $49.8 million increase in nondeferrable commission expense. The increases were partially offset by a $67.3 million decrease in amounts credited to employee accounts in a nonqualified defined contribution pension plan, a $41.0 million decrease resulting from a one-time expense accrual release in 2025 and a $19.3 million decrease in management fees.

Previous wording

The effective income tax rate decreased to 14% for the three months ended June 30, 2025, from 20% for the three months ended June 30, 2024, primarily due to a 3% impact from our foreign valuation allowance, a 2% impact from state income taxes and a 1% impact from releasing unrecognized tax benefits. See Item 1. “Financial Statements, Notes to Unaudited Condensed Consolidated Financial Statements, Note 13, Income Taxes” for a reconciliation between the U.S. corporate income tax rate and the effective income tax rate.

Current wording

The effective income tax rate decreased to 6% for the nine months ended September 30, 2025 from 11% for the nine months ended September 30, 2024, primarily due to a 2% impact from our foreign valuation allowance, a 2% impact from foreign tax credits and a 1% impact from releasing unrecognized tax benefits. See Item 1. “Financial Statements, Notes to Unaudited Condensed Consolidated Financial Statements, Note 13, Income Taxes” for a reconciliation between the U.S. corporate income tax rate and the effective income tax rate.

Previous wording

Pre-tax operating earnings increased due to an increase in our net revenue, along with a decrease in operating expenses as described below.

Current wording

Pre-tax operating earnings increased due to an increase in our net revenue, which was slightly offset by an increase in operating expenses as described below.

Previous wording

Operating expenses decreased primarily due to a $19.4 million impact from a one-time expense accrual release in 2025, partially offset by an $11.6 million increase in staff-related costs.

Current wording

Operating expenses increased primarily due to a $10.6 million increase in staff-related costs.

Previous wording

Operating expenses slightly increased primarily due to a $22.6 million increase in staff-related costs, partially offset by a $19.4 million impact from a one-time expense accrual release in 2025.

Current wording

Operating expenses increased primarily due to a $27.7 million increase in staff-related costs, partially offset by a $19.4 million impact from a one-time expense accrual release in 2025.

Previous wording

Pre-tax operating earnings increased in our Investment Management operations due to $32.4 million higher management fee revenue as a result of increased average AUM and $8.2 million higher performance fee revenue primarily in our real estate business. These improvements were partially offset by $20.2 million increase in variable compensation expense. Pre-tax operating earnings increased in our International Pension operations due to $17.5 million of favorable variable interest income and $15.3 million of favorable relative market performance on our required regulatory investments. These improvements were partially offset by $10.3 million of foreign currency headwinds.

Current wording

Pre-tax operating earnings increased in our Investment Management operations due to $51.9 million higher management fee revenue as a result of increased average AUM, which was partially offset by $15.7 million increase in variable compensation expense. Pre-tax operating earnings increased in our International Pension operations primarily due to $15.2 million of increased fees from increased business, $15.2 million of favorable relative market performance on our required regulatory investments and $14.0 million increased variable investment income. These improvements were partially offset by $15.3 million lower earnings from our equity method investments in Brazil, primarily as a result of our prior year actuarial assumption review and other updates, and $10.9 million of foreign currency headwinds.

Previous wording

Net investment income in our Specialty Benefits business increased $4.8 million due to higher yields on invested assets and $2.4 million due to growth in invested assets. Net investment income in our Life Insurance business increased $7.7 million from mark-to-market changes on options associated with our indexed universal life insurance and $6.2 million due to growth in invested assets.

Current wording

Net investment income in our Life Insurance business increased $5.1 million due to growth in invested assets, $4.7 million from mark-to-market changes on options associated with our indexed universal life insurance and $1.8 million from higher yields on invested assets.

Previous wording

Benefits, claims and settlement expenses in our Specialty Benefits business increased $16.4 million from growth in the business, offset by $11.7 million from improved claims experience. Benefits, claims and settlement expenses in our Life Insurance business increased $58.0 million due to the one-time impact of the YRT Reinsurance Transactions in 2024 and $19.4 million from unfavorable claims experience.

Current wording

Benefits, claims and settlement expenses in our Specialty Benefits business increased $16.1 million from growth in the business and $16.1 million due to unfavorable actuarial assumption updates in 2025 compared to favorable in 2024, offset by $27.2 million from improved claims experience. Benefits, claims and settlement expenses in our Life Insurance business increased $8.6 million from unfavorable claims experience, $5.8 million due to mark-to-market changes on options associated with our indexed universal life insurance and $4.7 million due to growth in the business.

Previous wording

Dividends to policyholders in our Life Insurance business decreased $15.2 million due to a change in the policyholder dividend obligation, partially offset by a $4.1 million increase due to higher dividends on our Closed Block business.

Current wording

Dividends to policyholders in our Life Insurance business increased $15.0 million primarily due to a change in the policyholder dividend obligation.

Previous wording

Premiums and fees in our Specialty Benefits business increased $26.7 million due to growth in the business. Premiums and fees in our Life Insurance business increased $11.0 million primarily due to the one-time impact of the YRT Reinsurance Transactions in 2024.

Current wording

Premiums and fees in our Specialty Benefits business increased $83.3 million due to growth in the business. Premiums and fees in our Life Insurance business increased $11.4 million due to the one-time impact of the YRT Reinsurance Transactions in 2024 and $7.0 million due to growth in the business.

Previous wording

Net investment income in our Specialty Benefits business increased $7.7 million from higher yields on invested assets and $4.9 million from growth in invested assets. Net investment income in our Life Insurance business increased $12.2 million from growth in invested assets and $1.9 million from higher yields on invested assets offset by a decrease of $8.4 million from mark-to-market changes on options associated with our indexed universal life insurance.

Current wording

Net investment income in our Specialty Benefits business increased $13.8 million primarily from higher yields on invested assets. Net investment income in our Life Insurance business increased $15.0 million from growth in invested assets and $6.0 million from higher yields on invested assets, offset by a decrease of $3.7 million from mark-to-market changes on options associated with our indexed universal life insurance.

Previous wording

Benefits, claims and settlement expenses in our Specialty Benefits business increased $34.6 million due to growth in the business, offset by $10.5 million from improved claims experience. Benefits, claims and settlement expenses in our Life Insurance business increased $58.0 million due to the one-time impact of the YRT Reinsurance Transactions in 2024 and $33.3 million from unfavorable claims experience.

Current wording

Benefits, claims and settlement expenses in our Specialty Benefits business increased $50.8 million due to growth in the business and $16.1 million due to unfavorable actuarial assumption updates in 2025 compared to favorable in 2024, offset by $37.8 million from improved claims experience. Benefits, claims and settlement expenses in our Life Insurance business increased $58.0 million due to the one-time impact of the YRT Reinsurance Transactions in 2024 and $41.8 million from unfavorable claims experience.

Previous wording

Liability for future policy benefits remeasurement (gain) loss changed $4.0 million in our Specialty Benefits business due to changes in underlying claims experience. Liability for future policy benefits remeasurement (gain) loss changed $41.2 million in our Life Insurance business due to the one-time impact of the YRT Reinsurance Transactions in 2024 and $13.5 million due to changes in underlying claims experience.

Current wording

Liability for future policy benefits remeasurement (gain) loss in our Specialty Benefits business changed $40.9 million due to favorable actuarial assumption updates in 2025 compared to unfavorable in 2024 and $6.3 million due to changes in underlying claims experience. Liability for future policy benefits remeasurement loss in our Life Insurance business decreased $41.2 million due to the one-time impact of the YRT Reinsurance Transactions in 2024 and $17.0 million due to changes in underlying claims experience, offset by $22.4 million due to more unfavorable actuarial assumption updates, model refinements and other updates in 2025 compared to 2024.

Previous wording

Operating expenses in our Specialty Benefits business increased $10.5 million primarily due to growth in the business. Operating expenses in our Life Insurance business decreased $4.6 million primarily due to a one-time expense accrual release in 2025.

Current wording

Operating expenses in our Specialty Benefits business increased $26.0 million due to growth in the business and $20.5 million due to higher net commissions, offset by a $7.1 million decrease due to a one-time expense accrual release in 2025. Operating expenses in our Life Insurance business decreased $3.4 million primarily due to a one-time expense accrual release in 2025.

Previous wording

Pre-tax operating losses decreased primarily due to $11.4 million in interest income related to tax settlements, partially offset by a $9.7 million increase in compensation expense, excluding pension and OPEB non-service costs.

Current wording

Pre-tax operating losses increased primarily due to a $15.2 million increase in compensation costs, partially offset by an $8.0 million increase in interest income related to tax settlements.

Previous wording

We also manage liquidity risk by limiting the sales of liabilities with features such as puts or other options that can be exercised at inopportune times. For example, as of June 30, 2025, approximately $13.9 billion, or 99%, of our institutional guaranteed investment contracts and funding agreements cannot be redeemed by contractholders prior to maturity. Our individual annuity liabilities also contain surrender charges and other provisions limiting early surrenders.

Current wording

We also manage liquidity risk by limiting the sales of liabilities with features such as puts or other options that can be exercised at inopportune times. For example, as of September 30, 2025, approximately $14.0 billion, or 99%, of our institutional guaranteed investment contracts and funding agreements cannot be redeemed by contractholders prior to maturity. Our individual annuity liabilities also contain surrender charges and other provisions limiting early surrenders.

Previous wording

Total stockholder dividends paid by Principal Life to its parent for the six months ended June 30, 2025, were $555.0 million, all of which was extraordinary and approved by the Commissioner. As of June 30, 2025, we had $1,622.4 million of cash and liquid assets held in our holding companies and other subsidiaries, which is available for corporate purposes. Corporate balances held in foreign holding companies meet the indefinite reinvestment exception.

Current wording

Total stockholder dividends paid by Principal Life to its parent for the nine months ended September 30, 2025, were $955.0 million, all of which was extraordinary and approved by the Commissioner. As of September 30, 2025, we had $2,675.2 million of cash and liquid assets held in our holding companies and other subsidiaries, which is available for corporate purposes. Corporate balances held in foreign holding companies meet the indefinite reinvestment exception.

Previous wording

Net cash provided by operating activities was $1,789.2 million and $2,015.9 million for the six months ended June 30, 2025 and 2024, respectively. Our insurance business typically generates positive cash flows from operating activities, as premiums collected from our insurance products and investment income received exceed acquisition costs, benefits paid, redemptions and operating expenses. These positive cash flows are then invested to support the obligations of our insurance and investment products and required capital supporting these products. Our cash flows from operating activities are affected by the timing of premiums, fees and investment income received and benefits and expenses paid. The decrease in cash provided by operating activities in 2025 compared to 2024 was primarily due to fluctuations in receivables and payables associated with the timing of settlements.

Current wording

Net cash provided by operating activities was $2,793.0 million and $3,143.9 million for the nine months ended September 30, 2025 and 2024, respectively. Our insurance business typically generates positive cash flows from operating activities, as premiums collected from our insurance products and investment income received exceed acquisition costs, benefits paid, redemptions and operating expenses. These positive cash flows are then invested to support the obligations of our insurance and investment products and required capital supporting these products. Our cash flows from operating activities are affected by the timing of premiums, fees and investment income received and benefits and expenses paid. The decrease in cash provided by operating activities in 2025 compared to 2024 was primarily due to fluctuations in receivables and payables associated with the timing of settlements.

Previous wording

Net cash used in investing activities was $1,202.4 million and $1,631.0 million for the six months ended June 30, 2025 and 2024, respectively. The decrease in cash used in investing activities was primarily due to lower net purchases of available-for-sale securities in 2025 as compared to 2024.

Current wording

Net cash used in investing activities was $1,034.6 million and $1,628.6 million for the nine months ended September 30, 2025 and 2024, respectively. The decrease in cash used in investing activities was primarily due to lower net purchases of available-for-sale securities in 2025 as compared to 2024. This was partially offset by net purchases of mortgage loans in 2025 as compared to net sales in 2024.

Previous wording

Net cash used in financing activities was $1,139.7 million and $276.0 million for the six months ended June 30, 2025 and 2024, respectively. The increase in cash used in financing activities was due in equal parts to a lower increase in banking operation deposits in 2025 as compared to 2024 and a $400.0 million repayment of long-term debt that matured during 2025.

Current wording

Net cash used in financing activities was $833.2 million and $48.5 million for the nine months ended September 30, 2025 and 2024, respectively. The increase in cash used in financing activities was due to a $400.0 million repayment of long-term debt that matured during 2025 and a lower increase in both banking operation deposits and net investment contract deposits in 2025 as compared to 2024.

Previous wording

Guarantors and Issuers of Guaranteed Securities. PFG has issued certain notes pursuant to transactions registered under the Securities Act of 1933. Such notes include all currently outstanding senior notes (the “registered notes”). For additional information on the senior notes, Item 8. “Financial Statements and Supplementary Data, Notes to Consolidated Financial Statements, Note 13, Debt” in our Annual Report on Form 10-K for the year ended December 31, 2024.

Current wording

Guarantors and Issuers of Guaranteed Securities. PFG has issued certain notes pursuant to transactions registered under the Securities Act of 1933. Such notes include all currently outstanding senior notes (the “registered notes”). For additional information on the senior notes, see Item 8. “Financial Statements and Supplementary Data, Notes to Consolidated Financial Statements, Note 13, Debt” in our Annual Report on Form 10-K for the year ended December 31, 2024.