Principal Financial Group jumps after FY22 outlook report

• Principal Financial Group (NASDAQ:PFG) is up 2% in premarket trading after releasing FY2022 guidance.
• The company expects strong growth in Non-GAAP Operating EPS of 10-13% Y/Y.
• This, however, excludes an estimated (4)-(5)% impact due to lost earnings and stranded costs from the transactions partially offset by a benefit from additional share repurchases from the net proceeds, resulting in an estimated 6-8% growth in EPS post-transactions and excluding anticipated significant variances.
• The reinsurance transaction is expected to close in Q2 2022.
• Segment-Wise: RIS Free net revenue is projected to grow at 3-6% Y/Y with pre-tax return expected at 25-29%; RIS-Spread revenue is to decline 20-25% with margin expected around 75-80%.
• Corporate segment pre-tax operating losses is expected to range between $(370)-$(400)M in FY22.
• The company plans to return $2.5-$3B of capital to shareholders in 2022, including $2.0-$2.3B of share repurchases and a 40% dividend payout ratio.
• To discuss additional details, the company has scheduled a conference call for Mar. 2, 2022 at 10 AM EST.