PRINCIPAL FINANCIAL GROUP INC

2. Goodwill and Other Intangible Assets

Goodwill

The changes in the carrying amount of goodwill reported in our segments were as follows:

Finite Lived Intangible Assets

Amortized intangible assets primarily relate to customer relationship intangibles associated with our acquisition of the Institutional Retirement & Trust business of Wells Fargo Bank, N.A. and previous acquisitions in Chile, Mexico and Hong Kong. The finite lived intangible assets that continue to be subject to amortization over a weighted average remaining expected life of 14 years were as follows:

On January 16, 2025, we announced the signing of an agreement with Bank Consortium Trust Company (“BCT”) to expand our investment management capabilities and exit our sponsor and trustee (pension) roles in Hong Kong for Mandatory Provident Fund Schemes (“MPF Schemes”) within the Principal Asset Management segment. 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 that will cease to exist, resulting in a$20.0 million loss reported inoperating expenses on our consolidated statements of operations. Additionally, our customer relationship intangible asset was written down to the expected value that will be received from this transaction, resulting in a$77.0 million loss reported in net realized capital gains (losses) on our consolidated statements of operations. We also recorded an impairment for contract costs from pension contracts. See Note 21, Revenues from Contracts with Customers, for further details.

2. Goodwill and Other Intangible Assets – (continued)

During 2025 and 2024, we fully amortized other finite lived intangible assets of $56.6 million and $18.4 million, respectively.

The amortization expense for intangible assets with finite useful lives was $72.9 million, $66.1 million and $68.6 million for 2025, 2024 and 2023, respectively. As of December 31, 2025, the estimated amortization expense for the next five years is as follows (in millions):

Indefinite Lived Intangible Assets

The net carrying amount of unamortized indefinite lived intangible assets was $764.3 million and $755.1 million as of December 31, 2025 and 2024, respectively. As of both December 31, 2025 and 2024, $608.0 million relates to investment management contracts associated with our acquisition of WM Advisors, Inc. in 2006. The remaining balance primarily relates to the trade name intangible associated with our acquisition of Administradora de Fondos de Pensiones Cuprum S.A. (“Cuprum”) in 2013.