PRINCIPAL FINANCIAL GROUP INC

Previous wording

The following analysis discusses our financial condition as of June 30, 2026, compared with December 31, 2025, and our consolidated results of operations for the three and six months ended June 30, 2026 and 2025, 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, 2025, 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, 2026, compared with December 31, 2025, and our consolidated results of operations for the three and nine months ended September 30, 2026 and 2025, 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, 2025, 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 July 6, 2026, we signed an agreement to acquire Beam Benefits ("Beam"), an employee benefits company serving over 25,000 small businesses. Beam offers dental, vision and ancillary benefits supported by a cloud-native technology stack with artificial intelligence at its core, generating approximately $175.0 million in premiums in 2025. The transaction is expected to close later in 2026, subject to regulatory approval. Results of Beam operations will be reported within our Benefits and Protection operating segment.

Current wording

Beam Benefits. On September 1, 2026, we closed on our agreement to acquire Beam, an employee benefits company serving over 26,000 small businesses. Beam offers dental, vision and ancillary benefits supported by a cloud-native technology stack with artificial intelligence at its core, generating approximately $175.0 million in premiums in 2025. Results of Beam operations are reported within our Benefits and Protection operating segment.

Previous wording

Beginning in 2026, we are reporting the results of a subsidiary supporting enterprise distribution, which was previously reported in the Benefits and Protection segment, in the Corporate segment. This aligns all our affiliated distribution functions within the Corporate segment. The results for this subsidiary primarily include fees and other revenues and operating expenses that largely offset each other, resulting in a minimal impact to pre-tax operating earnings.

Current wording

Affiliated Distribution Realignment. Beginning in 2026, we are reporting the results of a subsidiary supporting enterprise distribution, which was previously reported in the Benefits and Protection segment, in the Corporate segment. This aligns our affiliated distribution functions within the Corporate segment. The results for this subsidiary primarily include fees and other revenues and operating expenses that largely offset each other, resulting in a minimal impact to pre-tax operating earnings.

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 closed in the third quarter of 2026; 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

Principal Mandatory Provident Funds. 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 closed in the third quarter of 2026. Prior to close, in the first quarter of 2025 we recognized certain transaction-related impacts, including a $65.4 million impairment of our distribution agreement intangible asset and contract cost asset, 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 were reflected in loss from exited business and the held for sale write-down was 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 positively impacted $7.9 million and $15.9 million for the three and six months ended June 30, 2026, 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 $6.4 million and $22.3 million for the three and nine months ended September 30, 2026, 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.”

Previous wording

Net income attributable to Principal Financial Group, Inc. decreased slightly due to a $105.5 million increase in after-tax losses from exited business, primarily related to the change in fair value of the funds withheld embedded derivative, that was offset by a $57.7 million increase in segment earnings and a $45.0 million increase related to after-tax net realized capital gains. Segment earnings are discussed in "Results of Operations by Segment" and net realized capital gains (losses) are discussed in “Investments - Investment Results.”

Current wording

Net income attributable to Principal Financial Group, Inc. increased due to a $528.9 million net increase in after-tax income from exited business, primarily related to an $856.5 million change in fair value of the funds withheld embedded derivative net of a $314.2 million after-tax impact associated with the disposition of our Chilean annuities business. The net increase in after-tax income from exited business was partially offset by a $113.9 million decrease related to after-tax net realized capital losses. Net realized capital gains (losses) are discussed in “Investments - Investment Results.”

Previous wording

Premiums and other considerations increased $40.7 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 $27.7 million for the Benefits and Protection segment primarily due to growth in our Specialty Benefits business.

Current wording

Premiums and other considerations increased $323.1 million in the Retirement and Income Solutions segment primarily due to higher sales of single premium group annuities with life contingencies and increased $50.2 million due to growth in our Specialty Benefits business.

Previous wording

The change in fair value of the funds withheld embedded derivative resulted in a loss in 2026 compared to a gain in 2025 due to changes in interest rates and credit spreads.

Current wording

The change in fair value of the funds withheld embedded derivative resulted in a gain in 2026 compared to a loss in 2025 due to changes in interest rates and credit spreads.

Previous wording

Benefits, claims and settlement expenses decreased primarily due to a decrease in reserves in the Retirement and Income Solutions segment, largely stemming from lower sales of single premium group annuities with life contingencies.

Current wording

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

Previous wording

The market risk benefit remeasurement (gain) loss change was primarily due to the $23.6 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 and a $5.1 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 9, Market Risk Benefits” for further information on market effects.

Current wording

The market risk benefit remeasurement loss change was primarily due to the $36.9 million unfavorable impact from periodic and final settlements for derivatives used to hedge MRBs offset by a $33.0 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. 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 13% for the three months ended June 30, 2026, from 14% for the three months ended June 30, 2025, primarily due to a 1% impact from foreign currency inflation and a 1% impact from interest exclusion from taxable income. These increases were partially offset by a 1% impact from releasing unrecognized tax benefits in the prior year period.

Current wording

The effective income tax rate increased to 29% for the three months ended September 30, 2026, from 6% for the three months ended September 30, 2025, primarily due to a 30% impact from a nondeductible loss on the disposition of our Chilean annuities business, a 15% increase from foreign withholding taxes, and a 5% impact from all other permanent tax adjustments in aggregate. These increases were partially offset by a 19% impact from changes in pre-tax income and an 8% impact from foreign statutory rate differentials.

Previous wording

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

Current wording

Premiums and other considerations decreased $274.6 million in the Retirement and Income Solutions segment primarily due to lower sales of single premium group annuities with life contingencies offset by a $113.2 million increase due to growth in our Specialty Benefits business.

Previous wording

Benefits, claims and settlement expenses increased $99.7 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, and increased $62.7 million in our International Pension operations due to higher inflation-based interest crediting rates to customers.

Current wording

Benefits, claims and settlement expenses decreased $86.5 million in 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, and decreased $30.3 million in the Benefits and Protection segment due to favorable impacts of actuarial assumption updates in 2026 compared to unfavorable actuarial assumption updates in 2025.

Previous wording

The market risk benefit remeasurement (gain) loss change was primarily due to the $34.0 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 an $11.0 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 9, Market Risk Benefits” for further information on market effects.

Current wording

The market risk benefit remeasurement loss change was primarily due to the $67.1 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 $47.9 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

Operating expenses increased primarily due to a $41.0 million one-time expense accrual release in 2025 with no corresponding release in 2026, a $36.1 million increase in amounts credited to employee accounts in a nonqualified defined contribution pension plan and a $30.7 million increase in nondeferrable commission expense.

Current wording

Operating expenses increased primarily due to a $54.0 million increase in nondeferrable commission expense, a $41.0 million one-time expense accrual release in 2025 with no corresponding release in 2026 and a $34.4 million increase in professional fees.

Previous wording

The effective income tax rate increased to 14% for the six months ended June 30, 2026, from 7% for the six months ended June 30, 2025, primarily due to a 6% impact from an increase in pre-tax income with no proportionate increase in permanent tax differences and a 4% impact from releasing unrecognized tax benefits in the prior year period. These increases were partially offset by a 1% impact from interest exclusion from taxable income and a 2% impact from all other permanent tax adjustments in aggregate.

Current wording

The effective income tax rate increased to 21% for the nine months ended September 30, 2026, from 6% for the nine months ended September 30, 2025, primarily due to a 10% impact from a nondeductible loss on the disposition of our Chilean annuities business, a 5% impact from foreign withholding taxes, and a 4% impact from releasing unrecognized tax benefits in the prior year period. These increases were partially offset by a 3% impact from foreign statutory rate differentials and a 1% impact from all other permanent tax adjustments in aggregate.

Previous wording

For results of operations by segment see Item 1. “Financial Statements, Notes to Unaudited Condensed Consolidated Financial Statements, Note 17, Segment Information.”

Current wording

For results of operations by segment see Item 1. “Financial Statements, Notes to Unaudited Condensed Consolidated Financial Statements, Note 18, Segment Information.” As discussed in that note, beginning in 2026 we exclude pre-tax actuarial assumption updates from segment pre-tax operating earnings.

Previous wording

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

Current wording

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

Previous wording

Net revenue increased primarily due to a $46.0 million increase in fee revenue primarily due to an increase in average monthly account values, which largely resulted from more favorable financial markets, and a $35.6 million increase in variable investment income.

Current wording

Net revenue increased primarily due to a $13.8 million impact from growth in the business and a $12.7 million increase in fee revenue primarily due to an increase in average monthly account values, which largely resulted from more favorable financial markets. These increases were partially offset by a $12.0 million impact associated with actuarial assumption updates and model refinements, which were favorable in 2025 with no corresponding activity in 2026, and a $6.8 million decrease in variable investment income.

Previous 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.

Current wording

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

Previous wording

Net revenue increased primarily due to a $36.7 million increase in fee revenue primarily due to an increase in average monthly account values, which largely resulted from more favorable financial markets, and a $27.6 million increase in variable investment income.

Current wording

Net revenue increased primarily due to a $58.7 million increase in fee revenue primarily due to an increase in average monthly account values, which largely resulted from more favorable financial markets, a $28.8 million increase in variable investment income and a $21.7 million impact from growth in the business. These increases were partially offset by a $12.0 million impact associated with actuarial assumption updates and model refinements, which were favorable in 2025 with no corresponding activity in 2026.

Previous wording

Operating expenses increased primarily due to a $19.4 million impact from a one-time expense accrual release in 2025 with no corresponding activity in 2026, a $9.1 million increase in plan administration expenses and an $8.2 million impact from growth in the business.

Current wording

Operating expenses increased primarily due to a $19.4 million impact from a one-time expense accrual release in 2025 with no corresponding activity in 2026, a $15.8 million impact from growth in the business, an $8.2 million increase in plan administration expenses and a $6.3 million increase in staff-related expenses.

Previous wording

Pre-tax operating earnings increased in our International Pension operations primarily due to $15.4 million of favorable relative market performance on our required regulatory investments and $7.1 million of foreign currency tailwinds.

Current wording

Pre-tax operating earnings decreased in our International Pension operations primarily due to $41.2 million unfavorable relative market performance on our required regulatory investments. This decrease was partially offset by $5.6 million of foreign currency tailwinds.

Previous wording

Premiums and fees in our Specialty Benefits business increased $33.1 million due to growth in the business. Premium and fees decreased $13.9 million in our Life Insurance business primarily due to lower commission income resulting from the affiliated distribution realignment in 2026.

Current wording

Premiums and fees in our Specialty Benefits business increased $50.2 million due to growth in the business. Premium and fees decreased $10.3 million in our Life Insurance business primarily due to lower commission income resulting from the affiliated distribution realignment in 2026.

Previous wording

Net investment income in our Specialty Benefits business increased $2.8 million due to higher yields on invested assets and $0.8 million from growth in invested assets. Net investment income in our Life Insurance business increased $4.8 million primarily due to mark-to-market changes on options associated with our indexed universal life insurance.

Current wording

Net investment income in our Specialty Benefits business increased $8.2 million due to higher yields on invested assets. Net investment income in our Life Insurance business decreased $6.1 million due to mark-to-market changes on options associated with our indexed universal life insurance and $4.0 million due to lower invested asset values.

Previous wording

Benefits, claims and settlement expenses in our Specialty Benefits business decreased $21.3 million due to improved claims experience offset by $19.8 million due to growth in the business. Benefits, claims and settlement expenses in our Life Insurance business decreased $16.3 million due to improved claims experience offset by $5.2 million from changes in reserves and interest credited associated with our indexed universal life business.

Current wording

Benefits, claims and settlement expenses in our Specialty Benefits business increased $29.1 million due to growth in the business and $8.3 million due to unfavorable claims experience. Benefits, claims and settlement expenses in our Life Insurance business decreased $10.2 million due to improved claims experience and $6.0 million from changes in reserves and interest credited associated with our indexed universal life business.

Previous wording

Premium and fees in our Specialty Benefits business increased $63.0 million due to growth in the business. Premium and fees in our Life Insurance business decreased $22.0 million due to lower commission income largely resulting from the affiliated distribution realignment in 2026 offset by $11.6 million due to growth in business.

Current wording

Premium and fees in our Specialty Benefits business increased $113.2 million due to growth in the business. Premium and fees in our Life Insurance business decreased $34.1 million due to lower commission income largely resulting from the affiliated distribution realignment in 2026 offset by $13.4 million due to growth in business.

Previous wording

Net investment income in our Specialty Benefits business increased $5.0 million due to higher yields on invested assets and $1.7 million from growth in invested assets. Net investment income in our Life Insurance business increased $7.8 million primarily due to mark-to-market changes on options associated with our indexed universal life insurance.

Current wording

Net investment income in our Specialty Benefits business increased $15.8 million due to higher yields on invested assets. Net investment income in our Life Insurance business decreased $11.9 million due to lower invested asset values offset by $7.3 million in higher yields on invested assets.

Previous wording

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

Current wording

Dividends to policyholders increased $14.9 million due to a change in the policyholder dividend obligation in our Life Insurance business.

Previous wording

Pre-tax operating losses increased primarily due to a $17.6 million increase in compensation costs and a $12.8 million decrease in interest income related to tax settlements.

Current wording

Pre-tax operating losses increased primarily due to a $21.9 million increase in compensation costs, $13.2 million lower net investment income largely resulting from mark-to-market losses on investments and an $11.5 million decrease 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, 2026, approximately$13.8 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, 2026, approximately $13.5 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

The revolving credit facility is committed and available for general corporate purposes. The credit facility also provides 100% back-stop support for our commercial paper program, of which we had no outstanding balances as of June 30, 2026 and December 31, 2025. Most of the banks supporting the credit facility have other relationships with us. Due to the financial strength and the strong relationships we have with these providers, we are comfortable we have very low risk the financial institutions would be unable or unwilling to fund this facility.

Current wording

The revolving credit facility is committed and available for general corporate purposes. The credit facility also provides 100% back-stop support for our commercial paper program. Most of the banks supporting the credit facility have other relationships with us. Due to the financial strength and the strong relationships we have with these providers, we are comfortable we have very low risk the financial institutions would be unable or unwilling to fund this facility.

Previous wording

Total stockholder dividends paid by Principal Life to its parent for the six months ended June 30, 2026, were $365.2 million, of which $232.0 million was extraordinary and approved by the Commissioner. As of June 30, 2026, we had $2,562.7 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, 2026, were $740.2 million, of which $232.0 million was extraordinary and approved by the Commissioner. As of September 30, 2026, we had $2,043.4 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.

Previous wording

Net cash provided by operating activities was $2,264.5 million and $1,789.2 million for the six months ended June 30, 2026 and 2025, 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 increase in cash provided by operating activities in 2026 compared to 2025 was primarily due to fluctuations in receivables and payables associated with the timing of settlements. Additionally, cash received from sales of mortgage loans held for sale increased $300.0 million in 2026 as compared to 2025.

Current wording

Net cash provided by operating activities was $3,791.2 million and $2,793.0 million for the nine months ended September 30, 2026 and 2025, 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 increase in cash provided by operating activities in 2026 compared to 2025 was primarily due to fluctuations in receivables and payables associated with the timing of settlements. Additionally, cash received from sales of mortgage loans held for sale increased $300.5 million in 2026 as compared to 2025.

Previous wording

Net cash used in investing activities was $2,381.0 million and $1,202.4 million for the six months ended June 30, 2026 and 2025, respectively. The increase in cash used in investing activities was primarily due to higher net purchases of available-for-sale securities in 2026 as compared to 2025.

Current wording

Net cash used in investing activities was $4,804.3 million and $1,034.6 million for the nine months ended September 30, 2026 and 2025, respectively. The increase in cash used in investing activities was primarily due to higher net purchases of available-for-sale securities in 2026 as compared to 2025. Additionally, net cash used in purchasing and selling interests in subsidiaries was $158.0 million in 2026 with no corresponding activity in 2025.

Previous wording

Net cash provided by financing activities was $945.0 million for the six months ended June 30, 2026, compared to net cash used in financing activities of $1,139.7 million for the six months ended June 30, 2025. The increase in cash provided by financing activities was primarily due to net investment contract deposits in 2026 as compared to withdrawals in 2025, the proceeds from long-term debt issued in 2026 with no corresponding activity in 2025, the repayment of long-term debt in 2025 with no corresponding activity in 2026 and an increase in banking operation net deposits.

Current wording

Net cash provided by financing activities was $1,032.8 million for the nine months ended September 30, 2026, compared to net cash used in financing activities of $833.2 million for the nine months ended September 30, 2025. The increase in cash provided by financing activities was primarily due to higher net investment contract deposits in 2026 as compared to 2025, the proceeds from long-term debt issued in 2026 with no corresponding activity in 2025, the repayment of long-term debt in 2025 with only $0.1 million of real estate long-term debt activity in 2026 and an increase in banking operation net deposits.

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, see item 1. "Financial Statements, Notes to Unaudited Condensed Consolidated Financial Statements, Note 11, Long-Term Debt" included herein, and 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, 2025.

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 1. “Financial Statements, Notes to Unaudited Condensed Consolidated Financial Statements, Note 12, Debt” included herein, and 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, 2025.

Previous wording

Long-Term Debt. For long-term debt information, see Item 1. “Financial Statements, Notes to Unaudited Condensed Consolidated Financial Statements, Note 11, Long-Term Debt.”

Current wording

Long-Term Debt. For long-term debt information, see Item 1. “Financial Statements, Notes to Unaudited Condensed Consolidated Financial Statements, Note 12, Debt.”

Previous wording

As of June 30, 2026, 48% of our net assets (liabilities) were Level 1, 50% were Level 2 and 2% were Level 3. Excluding separate account assets as of June 30, 2026, 4% of our net assets (liabilities) were Level 1, 90% were Level 2 and 6% were Level 3.

Current wording

As of September 30, 2026, 49% of our net assets (liabilities) were Level 1, 49% were Level 2 and 2% were Level 3. Excluding separate account assets as of September 30, 2026, 5% of our net assets (liabilities) were Level 1, 88% were Level 2 and 7% were Level 3.

Previous wording

Net assets (liabilities) measured at fair value on a recurring basis using significant unobservable inputs (Level 3) as of June 30, 2026, were $6,028.0 million as compared to $7,042.6 million as of December 31, 2025. The decrease was primarily due to an increase in the fair value of investment and universal life contract embedded derivative liabilities and a decrease in fixed maturities, available-for-sale and trading resulting from net settlements and net transfers out of Level 3.

Current wording

Net assets (liabilities) measured at fair value on a recurring basis using significant unobservable inputs (Level 3) as of September 30, 2026, were $6,674.3 million as compared to $7,042.6 million as of December 31, 2025. The decrease was primarily due to an increase in the fair value of investment and universal life contract embedded derivative liabilities and a decrease in fixed maturities, available-for-sale resulting from net settlements and net transfers out of Level 3. The decreases were partially offset by an increase in fair value of the funds withheld payable embedded derivative net asset.