PRINCIPAL FINANCIAL GROUP INC (PFG) Risk Factors

Recent key developments

Concrete developments — dated events, named agreements and instruments, legal proceedings — that PRINCIPAL FINANCIAL GROUP INC surfaced in its latest filing.

• As of December 31, 2025, the international investment operations of our fully consolidated subsidiaries held $2.6 billion of fixed maturities, or 40%, of total international invested assets, of which 7% are government bonds.December 31, 2025
• Privately placed fixed maturities, mortgage loans, and real estate represented approximately 41% of total invested assets as of December 31, 2025.December 31, 2025
• We are required to post collateral in connection with funding agreements with the FHLB Des Moines.
• Under the U.S. Comprehensive Environmental Response, Compensation and Liability Act of 1980, we may be liable for hazardous substance releases at a property securing our mortgage loan if our agents or employees become sufficiently involved in the obligor's hazardous waste operations.
• Regulators implemented a new economic scenario generator for use in PBR models as of 2026.2026
• PBR for non-variable annuities may be implemented as early as 2026 and is mandatory in 2029.2026
• The NAIC has adopted a group capital calculation, which will be used by regulators in their supervisory process.
• The International Association of Insurance Supervisors has adopted its common framework for the supervision of Internationally Active Insurance Groups (IAIGs). If we were designated as an IAIG, we may be subject to supervision and capital requirements beyond those applicable to any competitors without those designations.
• New York Department of Financial Services Part 500 cybersecurity requirements for financial services companies.
• California Consumer Privacy Act and California Privacy Rights Act.
• China's Cybersecurity Law.
• EU GDPR.
• China Personal Information Protection Law.
• EU AI Act.
• Colorado AI Act.
• Proposed OECD policies on base erosion and profit shifting and global tax system modernization may negatively impact our profitability as participating countries adopt legislation.
• Iowa insurance laws impose limitations on dividends or other distributions from Principal Life, potentially constraining our ability to pay stockholder dividends, make share repurchases, or meet obligations.
• Board may issue one or more series of preferred stock.
• Section 203 of the Delaware General Corporation Law restricts business combinations with an interested stockholder owning 15% or more of our outstanding voting stock.
• A.M. Best, Fitch, Moody's and S&P publish ratings on Principal Financial Group and some of its international insurance companies. PFG and Principal Financial Services, Inc. are assigned credit ratings by these agencies.
• Principal Life established a Closed Block in connection with its 1998 conversion into a stock life insurance company, for participating ordinary life policies with a dividend scale in force on July 1, 1998. Assets were allocated to the Closed Block as of July 1, 1998.July 1, 1998
• Coinsurance with funds withheld reinsurance agreements with Talcott Life & Annuity Re, Ltd. Ceded in-force U.S. retail fixed annuity and ULSG blocks of business to Talcott Life & Annuity Re, Ltd.