Risk Sleuth
PFG · 10-K filed 18 Feb 2026 · year to 31 Dec 2025

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 sales
Small 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 shares
Brasilprev 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 interest
We 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% ownership
China 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 risk
We 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)

Also named by APO, CASH

Talcott Life & Annuity Re, Ltd.

depends onnamed as a risk
We 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 on
The 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 risk
As 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 risk
Our 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 risk
Our 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 risk
For 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 in
In 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 risk
Earthquake 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 risk
For 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 risk
We 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)

Also named by AMP, JXN

Commercial mortgage loans

insures or lends to · approximately 41% of the value of our total invested assetsnamed as a risk
These 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 risk
Changes 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 risk
Changes 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 risk
Iowa insurance laws impose limitations on the ability of Principal Life to pay dividends or make other distributions to its parent.Risk factors (Item 1A)

Also named by APO, FNF

Office of the Comptroller of the Currency

subject to
Principal 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 to
Principal 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 to
Principal 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)

Also named by ALLY, EFSC, HBAN

SEC

subject to
We 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 to
Delaware 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 risk
In 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 risk
As 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)

Also named by CI, CVS, DY, FSS, PRU, SNA, UNH, UNM

OECD base erosion and profit shifting

subject tonamed as a risk
Our profitability could be negatively impacted as legislation is adopted by participating countries.Risk factors (Item 1A)

Also named by TXN, VLTO

Chile pension reform

subject tonamed as a risk
The 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 risk
The 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 from
We manage and administer individual retirement accounts under the mandatory privatized social security system for formal employees in Mexico.Business (Item 1)