Principal Financial Group
35 named things its latest annual report says its results depend on, each in the company's own words. 17 of them are also named by other companies we've read.
Customers
Small and medium-sized businesses
earns from · 100% of individual life sales and 74% of individual disability salesSmall and medium-sized business sales represented 100% of individual life sales and 74% of individual disability sales for the year ended December 31, 2025.Business (Item 1)
Partners and platforms
Banco do Brasil
depends on · 25.0% of the economic interest and 50.0% of the voting sharesBrasilprev has the exclusive distribution rights of its pension accumulation and income annuity products through the Banco network until October 2032.Business (Item 1)
Brasilprev Seguros e Previdencia S.A.
25.0% of the economic interestWe owned 25.0% of the economic interest and 50.0% of the voting shares as of December 31, 2025.Business (Item 1)
China Construction Bank (CCB)
depends on · 65.0% ownershipChina Construction Bank (“CCB”) is the majority partner with 65.0% ownership.Business (Item 1)
CCB Principal Asset Management Co., Ltd.
25.0%We owned 25.0% of CCBPAM as of December 31, 2025.Business (Item 1)
CCB Pension Management Co., Ltd.
17.6%We owned 17.6% of CCBP as of December 31, 2025.Business (Item 1)
Affiliated financial representatives
depends on · 68%We sell our individual variable annuity products and RILAs primarily through our affiliated financial representatives, who accounted for 68%, 70% and 85% of annuity sales for the years ended December 31, 2025, 2024 and 2023, respectively.Business (Item 1)
Federal Home Loan Bank of Des Moines
depends onnamed as a riskWe are also required to post collateral in connection with funding agreements with the FHLB Des Moines, reinsurance agreements and various other transactions.Risk factors (Item 1A)
Talcott Life & Annuity Re, Ltd.
depends onnamed as a riskWe have coinsurance with funds withheld reinsurance agreements with Talcott Life & Annuity Re, Ltd., a limited liability company organized under the laws of the Cayman Islands and an affiliate of Talcott Resolution Life, Inc., a subsidiary of Sixth Street, pursuant to which we ceded our in-force U.S. retail fixed annuity and ULSG blocks of business.Risk factors (Item 1A)
CIMB Group
depends onThe partner is CIMB Group (“CIMB”), a leading ASEAN universal bank that has strong presence in the region.Business (Item 1)
Other companies
Guaranteed minimum withdrawal benefit (GMWB) rider
exposed to its price · $4.7 billion of the $7.4 billionnamed as a riskAs of December 31, 2025, $4.7 billion of the $7.4 billion of variable annuity separate account values had the GMWB rider.Business (Item 1)
Cuprum (Administradora de Fondos de Pensiones Cuprum S.A.)
operates in · 98.0%We owned 98.0% of Cuprum as of December 31, 2025, and the rest is publicly floated.Business (Item 1)
A.M. Best, Fitch, Moody's and S&P ratings
named as a riskOur ratings could be downgraded at any time without advance notice by any rating agency.Risk factors (Item 1A)
Bank Consortium Trust Company (BCT)
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 MPF Schemes.Business (Item 1)
Places
California
concentrated innamed as a riskOur California commercial mortgage loan concentration exposes us to regional economic and catastrophe risks, including but not limited to earthquakes, fires, drought, extreme heat, flooding and tsunamis.Risk factors (Item 1A)
Also named by A, AAON, AFRM, ALK, ALLY, AN, ARE, AVAV and 88 more
Mexico
operates innamed as a riskFor example, recent judicial and regulatory reforms in Mexico may create uncertainty for investors regarding the rule of law.Risk factors (Item 1A)
Also named by AAP, AME, AMRC, ANET, AOS, ARES, AYI, AZO and 83 more
Chile annuities business sale
operates inIn January 2026, an agreement was reached to sell our annuities business in Chile, subject to regulatory approvals.Business (Item 1)
Hazards
Earthquakes
concentrated innamed as a riskEarthquake insurance is required for those California assets with a high-risk scenario expected loss percentage as determined by an engineering report we obtain for each property.Risk factors (Item 1A)
Also named by AAPL, AMKR, AN, ANET, APP, BRO, CDNS, CEG and 37 more
Commodities and inputs
Foreign currency exchange rates
exposed to its price · $275.1 million, or 7%named as a riskFor our international operations, we estimate a 10% immediate unfavorable change in each of the foreign currency exchange rates to which we were exposed would have resulted in a $275.1 million, or 7%, reduction in the total equity excluding noncontrolling interests of our international operations as of December 31, 2025, as compared to an estimated $277.0 million, or 7%, reduction as of December 31, 2024.Market risk (Item 7A)
Also named by ADP, AMT, CPAY, DPZ, DVA, GLW, HLIO, LNN and 1 more
Equity markets
exposed to its price · approximately 5% to 8%named as a riskWe estimate an immediate 10% downward equity shock, followed by a 2% per quarter increase would reduce our annual segment pre-tax operating earnings by approximately 5% to 8% over the next twelve months.Market risk (Item 7A)
Commercial mortgage loans
insures or lends to · approximately 41% of the value of our total invested assetsnamed as a riskThese asset classes represented approximately 41% of the value of our total invested assets as of December 31, 2025.Risk factors (Item 1A)
Also named by LNC
Regulators
National Association of Insurance Commissioners (NAIC)
subject tonamed as a riskChanges to these requirements may increase the amount of reserves and capital our U.S. insurance companies are required to hold and may adversely impact Principal Life’s ability to pay dividends or other distributions to its parent.Risk factors (Item 1A)
Also named by ALL, ARES, BX, FNF, KKR, MET, OWL, PGR and 3 more
U.S. Department of Labor
subject tonamed as a riskChanges to fiduciary rules, including regulations for fiduciary investment advice, may require modifications to our business practices, compensation structures, systems, and compliance programs.Risk factors (Item 1A)
Also named by ADP, AMG, BBSI, FLO, HCC, MRSH, PAYX, TROW and 1 more
Iowa Insurance Division
subject tonamed as a riskIowa insurance laws impose limitations on the ability of Principal Life to pay dividends or make other distributions to its parent.Risk factors (Item 1A)
Office of the Comptroller of the Currency
subject toPrincipal Bank, a wholly owned subsidiary, is a U.S. federal savings bank regulated by the Office of the Comptroller of the Currency.Business (Item 1)
Also named by ADP, AMP, AXP, BAC, BLK, C, CASH, CFG and 22 more
FINRA
subject toPrincipal Advantage gives us access to Financial Industry Regulatory Authority (“FINRA”) registered distributors who are not traditional sellers of annuity-based products and broadens opportunities for us in the investment advisor and broker-dealer distribution channels.Business (Item 1)
Also named by AJG, ARES, BGC, CBOE, CG, GLXY, JXN, KKR and 7 more
FDIC
subject toPrincipal Bank’s depositors are insured by the FDIC up to specified limits, making Principal Bank subject to certain of the FDIC’s regulations.Business (Item 1)
SEC
subject toWe operate registered broker-dealers that are subject to SEC and FINRA oversight as well as entities that are registered as investment advisors which are subject to the requirements of the Investment Advisors Act of 1940.Business (Item 1)
Delaware Office of the State Bank Commissioner
subject toDelaware Charter Guarantee & Trust Company conducting business as Principal Trust Company, a wholly owned subsidiary, is a Delaware state-chartered trust company regulated by the State of Delaware Office of the State Bank Commissioner.Business (Item 1)
Laws and programs
Comprehensive Environmental Response, Compensation and Liability Act (CERCLA)
subject tonamed as a riskIn addition, under the laws of some states and under the U.S. Comprehensive Environmental Response, Compensation and Liability Act of 1980, we may be liable for costs of addressing releases or threatened releases of hazardous substances that require remedy at a property securing a mortgage loan held by us, if our agents or employees have become sufficiently involved in the hazardous waste aspects of the operations of the related obligor on that loan, regardless of whether or not the environmental damage or threat was caused by the obligor.Risk factors (Item 1A)
Also named by ALSN, AME, BRK/B, BWA, CLH, CMI, DD, GIS and 10 more
Employee Retirement Income Security Act (ERISA)
subject tonamed as a riskAs we provide products and services for U.S. and Puerto Rico employee benefit plans, we are subject to regulation under the Employee Retirement Income Security Act (“ERISA”).Business (Item 1)
OECD base erosion and profit shifting
subject tonamed as a riskOur profitability could be negatively impacted as legislation is adopted by participating countries.Risk factors (Item 1A)
Chile pension reform
subject tonamed as a riskThe Chilean government is taking its first steps to reform the country’s pension system, which includes a proposed increase in contributions and modification of pension fund administration.Risk factors (Item 1A)
Also named by MET
NAIC principle-based reserving
subject tonamed as a riskThe ultimate financial impact of these changes is uncertain, but they could result in more volatile and less predictable reserve and capital levels for these products.Risk factors (Item 1A)
Mexico mandatory privatized social security system
earns fromWe manage and administer individual retirement accounts under the mandatory privatized social security system for formal employees in Mexico.Business (Item 1)