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PFG Q1 Earnings Top Estimates, Revenues Decline Y/Y, Dividend Up
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Key Takeaways
PFG Q1 EPS beat estimates, with net income up 14% year over year.
PFG earnings grew on strong fee income, AUM growth and underwriting gains.
PFG revenues fell 4.5% YoY, while lower expenses and margin expansion boosted profits.
Principal Financial Group, Inc.’s (PFG - Free Report) first-quarter 2026 operating net income of $2.07 per share beat the Zacks Consensus Estimate by 2.9%. The bottom line increased 14% year over year.
Total revenues decreased 4.5% year over year to $3.5 billion, missing the Zacks Consensus Estimate by 14.5%
Principal Financial witnessed operating earnings rising on strong fee income, assets under management ("AUM") growth and improved underwriting across segments. Despite a modest decline in total revenues, lower expenses and margin expansion led to a significant increase in the bottom line.
Behind the Headlines
Total expenses decreased 8.2% year over year to $3 billion due to lower benefits, claims and settlement expenses as well as operating expenses.
Principal Financial Group, Inc. Price, Consensus and EPS Surprise
As of March 31, 2026, Principal Financial’s AUM were $770.2 billion, included within assets under administration of $1.8 trillion.
Q1 Segment Update
Retirement and Income Solution: Revenues increased 4% year over year to $750 million due to higher premiums and other considerations, fees and other revenues, and net investment income.
Pre-Tax operating earnings increased 6% year over year to $302.1 million, primarily due to higher net revenues and disciplined expense management.
Investment Management: Revenues of $426 million were up 2% from the prior-year quarter due to higher fees and other revenues and net investment income.
Pre-Tax operating earnings increased 8% year over year to $125.1 million, primarily due to higher operating revenues less pass-through expenses. The operating margin has increased 100 bps year over year to 30%.
International Pension: Revenues increased 15% year over year to $169.3 million, owing to lower premiums and other considerations, fees and other revenues, and net investment income.
Pre-Tax operating earnings of $83.4 million increased 17% year over year, driven by higher net revenues and disciplined expense management.
Specialty Benefits: Premiums and fees increased 4% year over year to $861.4 million, owing to higher premiums and other considerations as well as net investment income.
Pre-tax operating earnings of $136.8 million increased 29% year over year, primarily due to more favorable underwriting.
Life Insurance: Revenues increased 1% year over year to $238.6 million, owing to higher premiums and other considerations, fees and other revenues, and net investment income.
Pre-tax operating earnings of $33.2 million surged more than threefold year over year, driven by growth in the business, expense management discipline and improved mortality experience.
Corporate: Pre-tax operating loss of $122.1 million was wider than the year-ago loss of $105.6 million.
Financial Update
As of March. 31, 2026, cash and cash equivalents were $3.5 billion, which decreased 12.4% from the 2025-end level.
In the first quarter of 2026, long-term debt was $4.2 billion, which remained flat from the 2025 end level. As of March 31, 2026, book value per share (excluding cumulative change in fair value of funds withheld, embedded derivative and AOCI other than foreign currency translation adjustment) was $60.30, up 10% from the 2025-end level.
Dividend and Share Repurchase Update
Principal Financial returned $374 million of capital to its shareholders in the first quarter of 2026, including $200 million of share repurchases and $174 million of dividends.
Board of directors raised the second-quarter dividend by 8% to 82 cents per share. The dividend will be payable on June 27, 2026, to its shareholders of record as of June 2.
The Travelers Companies, Inc. (TRV - Free Report) reported first-quarter 2026 core income of $7.71 per share, which beat the Zacks Consensus Estimate by 10.5%. The bottom line surged fourfold year over year. Travelers’ total revenues of $11.9 billion remain flat compared with the year-ago quarter. The top-line figure, however, missed the Zacks Consensus Estimate by 3.7%.
Net written premiums increased 2% year over year to a record $10.3 billion, driven by strong growth across Business Insurance and Bond & Specialty Insurance segments. Net investment income increased 8.4% year over year to $1 billion. The figure matched the Zacks Consensus Estimate.
The Progressive Corporation’s (PGR - Free Report) first-quarter 2026 earnings per share of $4.96 beat the Zacks Consensus Estimate by 2.5%. The bottom line increased 6.7% year over year.
Operating revenues grew 8.2% year over year to $22.3 billion driven by 8% higher net premiums earned, a 12.7% increase in net investment income, a 3.5% rise in fees and other revenues, and 13.5% higher service revenues. The top line missed the Zacks Consensus Estimate by 1.2%. Net premiums earned grew 8% to $20.9 billion. The reported figure beat the Zacks Consensus Estimate by 1.5%.
RLI Corp. (RLI - Free Report) reported first-quarter 2026 operating earnings of 83 cents per share, which missed the Zacks Consensus Estimate by 2.3%. The bottom line decreased 13.2% from the prior-year quarter.
Operating revenues for the reported quarter were $454 million, up 4.4% year over year, driven by higher net premiums earned and net investment income. The top line beat the Zacks Consensus Estimate by 1%.Gross premiums written increased 3% year over year to $503.9 million. Net investment income increased 15.2% year over year to $42.3 million. The Zacks Consensus Estimate for the metric was pegged at $40.2 million, while our estimate was $38.3 million.
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PFG Q1 Earnings Top Estimates, Revenues Decline Y/Y, Dividend Up
Key Takeaways
Principal Financial Group, Inc.’s (PFG - Free Report) first-quarter 2026 operating net income of $2.07 per share beat the Zacks Consensus Estimate by 2.9%. The bottom line increased 14% year over year.
Total revenues decreased 4.5% year over year to $3.5 billion, missing the Zacks Consensus Estimate by 14.5%
Principal Financial witnessed operating earnings rising on strong fee income, assets under management ("AUM") growth and improved underwriting across segments. Despite a modest decline in total revenues, lower expenses and margin expansion led to a significant increase in the bottom line.
Behind the Headlines
Total expenses decreased 8.2% year over year to $3 billion due to lower benefits, claims and settlement expenses as well as operating expenses.
Principal Financial Group, Inc. Price, Consensus and EPS Surprise
Principal Financial Group, Inc. price-consensus-eps-surprise-chart | Principal Financial Group, Inc. Quote
As of March 31, 2026, Principal Financial’s AUM were $770.2 billion, included within assets under administration of $1.8 trillion.
Q1 Segment Update
Retirement and Income Solution: Revenues increased 4% year over year to $750 million due to higher premiums and other considerations, fees and other revenues, and net investment income.
Pre-Tax operating earnings increased 6% year over year to $302.1 million, primarily due to higher net revenues and disciplined expense management.
Investment Management: Revenues of $426 million were up 2% from the prior-year quarter due to higher fees and other revenues and net investment income.
Pre-Tax operating earnings increased 8% year over year to $125.1 million, primarily due to higher operating revenues less pass-through expenses. The operating margin has increased 100 bps year over year to 30%.
International Pension: Revenues increased 15% year over year to $169.3 million, owing to lower premiums and other considerations, fees and other revenues, and net investment income.
Pre-Tax operating earnings of $83.4 million increased 17% year over year, driven by higher net revenues and disciplined expense management.
Specialty Benefits: Premiums and fees increased 4% year over year to $861.4 million, owing to higher premiums and other considerations as well as net investment income.
Pre-tax operating earnings of $136.8 million increased 29% year over year, primarily due to more favorable underwriting.
Life Insurance: Revenues increased 1% year over year to $238.6 million, owing to higher premiums and other considerations, fees and other revenues, and net investment income.
Pre-tax operating earnings of $33.2 million surged more than threefold year over year, driven by growth in the business, expense management discipline and improved mortality experience.
Corporate: Pre-tax operating loss of $122.1 million was wider than the year-ago loss of $105.6 million.
Financial Update
As of March. 31, 2026, cash and cash equivalents were $3.5 billion, which decreased 12.4% from the 2025-end level.
In the first quarter of 2026, long-term debt was $4.2 billion, which remained flat from the 2025 end level. As of March 31, 2026, book value per share (excluding cumulative change in fair value of funds withheld, embedded derivative and AOCI other than foreign currency translation adjustment) was $60.30, up 10% from the 2025-end level.
Dividend and Share Repurchase Update
Principal Financial returned $374 million of capital to its shareholders in the first quarter of 2026, including $200 million of share repurchases and $174 million of dividends.
Board of directors raised the second-quarter dividend by 8% to 82 cents per share. The dividend will be payable on June 27, 2026, to its shareholders of record as of June 2.
Zacks Rank
Principal Financial currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Insurers
The Travelers Companies, Inc. (TRV - Free Report) reported first-quarter 2026 core income of $7.71 per share, which beat the Zacks Consensus Estimate by 10.5%. The bottom line surged fourfold year over year. Travelers’ total revenues of $11.9 billion remain flat compared with the year-ago quarter. The top-line figure, however, missed the Zacks Consensus Estimate by 3.7%.
Net written premiums increased 2% year over year to a record $10.3 billion, driven by strong growth across Business Insurance and Bond & Specialty Insurance segments. Net investment income increased 8.4% year over year to $1 billion. The figure matched the Zacks Consensus Estimate.
The Progressive Corporation’s (PGR - Free Report) first-quarter 2026 earnings per share of $4.96 beat the Zacks Consensus Estimate by 2.5%. The bottom line increased 6.7% year over year.
Operating revenues grew 8.2% year over year to $22.3 billion driven by 8% higher net premiums earned, a 12.7% increase in net investment income, a 3.5% rise in fees and other revenues, and 13.5% higher service revenues. The top line missed the Zacks Consensus Estimate by 1.2%. Net premiums earned grew 8% to $20.9 billion. The reported figure beat the Zacks Consensus Estimate by 1.5%.
RLI Corp. (RLI - Free Report) reported first-quarter 2026 operating earnings of 83 cents per share, which missed the Zacks Consensus Estimate by 2.3%. The bottom line decreased 13.2% from the prior-year quarter.
Operating revenues for the reported quarter were $454 million, up 4.4% year over year, driven by higher net premiums earned and net investment income. The top line beat the Zacks Consensus Estimate by 1%.Gross premiums written increased 3% year over year to $503.9 million. Net investment income increased 15.2% year over year to $42.3 million. The Zacks Consensus Estimate for the metric was pegged at $40.2 million, while our estimate was $38.3 million.