Principal Financial Group: Model Update Following 2Q26 AUM Disclosure

Research evidence excerpt

Principal Financial Group: Model Update Following 2Q26 AUM Disclosure

Equity Research

North America Insurance/Life

20 July 2026

Principal Financial Group

Model Update Following 2Q26 AUM

Disclosure

Following Principal's 8-K disclosing end of quarter AUM in PFG UNDERWEIGHT

Investment Management and International Pension, we Unchanged

North America Insurance/

update our flows and account value estimates. Overall, lower Life POSITIVE

Unchanged

AUM results in IM imply material net outflows this quarter. Price Target USD 92.00

PFG pre-released Asset Management ending AUM this afternoon. Within the release, the Price (20-Jul-26) USD 112.06

company stated total assets under management were $808.0 billion, including $601.9 billion in Potential Upside/Downside -17.9%

Investment Management and $168.5 billion managed by International Pension. Additionally, Source: Bloomberg, Barclays Research

management indicated that the combination of market performance, foreign currency

translation, and other items had a ~6.4% positive impact as a percentage of beginning quarter Market Cap (USD mn) 24206

AUM. Overall, while we believe the 6.4% positive impact stems largely from market appreciation Shares Outstanding (mn) 216.01

this quarter, the disclosure around end of quarter AUM implies that substantial outflows more Free Float (%) 98.85

than offset this benefit. 52 Wk Avg Daily Volume (mn) 1.4

Dividend Yield (%) 2.93

We update our model to incorporate these dynamics across market performance, net flows, and Return on Equity TTM (%) 13.56

FX. As a result, we now expect Investment Management AUM to come in below our prior forecast Current BVPS (USD) 54.59

of $610.9 billion, driven predominantly by notably weaker net outflows of roughly $14 billion. By Source: Bloomberg