Model Rebuild: Adjusting for Company Commentary

Research evidence excerpt

Model Rebuild: Adjusting for Company Commentary

C O M PA N Y N O T E

J u n e 2 4 , 2 0 2 6

Principal Financial Group, Inc. (PFG) Overweight

CONCLUSION PRICE: US$112.36

We restructured our earnings model to improve how we model Principal Asset Management TARGET: US$125.00

(PAM) and other items. While the structure changed in our new model, our previous full- Our $125 PT is based on a multiple of ~12x our

year estimates remain unchanged. forward (2027E) earnings estimate of $10.25.

Paul Newsome, CFA, CPCU• We are keeping our annual EPS estimates unchanged. Our EPS estimates remain Managing Director, Piper Sandler & Co.

unchanged, as we reflected the company's Corporate segment guidance for 2026 of a 312 281-3445, paul.newsome@psc.com

pre-tax operating loss of $375M-$425M. These changes were offset by updates in the Cam Bianchi

Specialty Benefits segment, reflecting lower underwriting income. The updated model Research Analyst, Piper Sandler & Co.

improves our structuring of line items within the segments. 612 456-9841, cam.bianchi@psc.com

Eleanor Nentl

• Valuation: Our new $125 price target is based on a multiple of ~12x our forward (2027E) Research Analyst, Piper Sandler & Co. 612 398-1846, eleanor.nentl@psc.com

earnings estimate of $10.25. Our higher price target reflects higher peer multiples. Our

old $113 price target was based on a multiple of 11.0x our forward (2027E) earnings Changes Previous Current

estimate of $10.25. Rating — Overweight

Price Tgt US$113.00 US$125.00

RISKS TO ACHIEVEMENT OF PT & RECOMMENDATION FY26E EPS — US$9.30

Credit, equity markets, FX & interest rates, changes in mortality & morbidity & regulation. FY27E EPS — US$10.25

COMPANY DESCRIPTION Market Cap. (mil) US$24,314.7