PRINCIPAL FINANCIAL GROUP INC

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”). BCT will be assuming the role as sponsor and trustee for the Principal MPF Schemes. We are evaluating the useful life of certain existing amortizing intangible assets related to distribution and customer relationships, as well as contract costs from pension contracts, and expect to incur a write-down of these assets in the first quarter of 2025 reducing pre-tax net income by approximately $140.0 million within the Principal Asset Management segment. For segment reporting purposes, the charge will be reported as exited business andnet realized capital loss from exiting our roles as MPF Scheme sponsor and trustee. As such, it will have no impact on segment pre-tax operating earnings. The transaction is expected to close during the first quarter of 2026, subject to regulatory approval.