Business Context and Reporting Period
This Form 8-K Current Report was filed by Principal Financial Group, Inc. on February 28, 2023. The filing primarily serves to disclose a Regulation FD announcement regarding the company's 2023 and long-term financial outlook, issued on March 1, 2023. Additionally, the report details significant changes to the company's segment reporting structure and the adoption of new accounting guidance.
Key Financial Metrics
The filing text does not provide specific numerical values for revenue, profit, cash flow, margins, debt, or liquidity for the current period. Instead, it references Exhibit 99.2, which contains recast unaudited supplemental historical consolidated financial information for the years ended December 31, 2021, and 2022, adjusted for the new accounting standards.
Material Changes
- Accounting Standard Adoption: The company is adopting the Long-Duration Targeted Improvements (LDTI) accounting guidance effective January 1, 2023. This will result in a recast of financial statements for 2021 and 2022.
- Segment Restructuring:
- Global asset management and international pension businesses are integrated into a new reportable segment: Principal Asset Management.
- The Retirement and Income Solutions segment will now be reported in total, removing the previous separation into Fee and Spread components.
- The U.S. Insurance Solutions segment has been renamed Benefits and Protection.
Guidance, Outlook, and Risks
On March 1, 2023, the company announced its 2023 and long-term financial outlook. The text of this announcement is included as Exhibit 99.1. The outlook reflects the aforementioned changes in accounting guidance and segment reporting. The filing notes that the information provided under Item 7.01 is not deemed "filed" for purposes of Section 18 of the Exchange Act and is not incorporated by reference unless expressly stated.
Investor Verification Checklist
- Review Exhibit 99.1 for the specific details of the 2023 and long-term financial outlook.
- Examine Exhibit 99.2 for the recast historical financial data consistent with LDTI adoption.
- Monitor the upcoming Form 10-Q for the period ended March 31, 2023, to see the official application of the new segment structure and accounting standards.
- Verify how the integration of Principal Global Investors and Principal International into the new Principal Asset Management segment impacts future performance reporting.