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Board comes to an agreement with Ontario High School Principal Jodi Elizondo Ontario Argus Observer
One of the cherished possessions in Dr. John Cappucci’s office at Assumption University is a plaque bearing Jeremiah 29:11:
“‘For I know the plans I have for you,’ declares the Lord, ‘plans to prosper you and not to harm you, plans to give you hope and a future.’ ”
Prospering is on the mind of the principal and vice-chancellor of this Catholic postsecondary institution federated with the University of Windsor. Very aware of Assumption High School and Our Lady of Assumption Parish boasting deep historical roots in the gateway city of Windsor, Ont., Cappucci is working to devise ways for the university to stand out.
“I really want to accomplish putting Assumption back on the map,” said Cappucci, who completed a doctorate at Carleton University, a Master of Arts at Queen’s University and a Bachelor of Arts from Windsor University. “There is sometimes confusion with Assumption Church and Assumption High School that are both well known. Assumption University is not as well known.”
Cappucci first assumed the interim principal role in September 2019. In June 2020, he was tapped as principal and vice-chancellor for a six-year term, becoming the 29th leader of the university. Assumption University — originally Assumption College — was founded in 1857.
Because of COVID-19 restrictions, an installation ceremony for Cappucci was not a possibility last autumn. Thanks to a brightening public health outlook in the Windsor-Essex region, the installation was celebrated Oct. 26 at Our Lady of Assumption. London Bishop Ronald Fabbro, chancellor of Assumption University, presided over the installation ceremony.
Reflecting on his two years as principal, Cappucci says there have been substantive steps made towards revitalization. He oversaw the updating of the school’s mission and vision statements, shepherded a revamped website and resurrected the Fr. Joe Quinn Social Justice Series, which earlier this year drew a record high 1,600 students and teachers to a presentation by environmentalist Simon Jackson, famed for preserving the habitat of the Kermode bear since he was 13.
Cappucci’s extensive work in reinvigorating Assumption University is complemented by his position as vice-chair of the Association of Catholic Colleges and Universities in Canada. He was immediately captivated by this organization from his very first meeting as an attendee.
“When I went into the room, there was probably the most positive energy, sense of friendship and solidarity that I had ever felt in a meeting before. And I said to myself, ‘this is a group I really want to be a part of.’ ”
While his administrative workload is robust, Cappucci continues to dive headfirst into academic research. A few of his research projects include The Persistent Prejudice: Contemporary Antisemitism in Canadian Region and Shi’ism: A Religion of Protest among others
Speaking about his own faith, Cappucci said he treasures the wholeness of Catholicism.
“What’s always struck me about Catholicism is the name Catholicism, which derives from the word universal,” he said. “Catholicism is not just about Catholicism — it is about a lot more. It is about Catholicism’s relationship to other religions and other Christian denominations.
“Throughout my term I stress that. My own research is on anti-Semitism, and you have people say that’s very unique for a Catholic university to study. Yes, because that is what we are called to do. We are trying to demonstrate to students that we are expanding our horizons to incorporate various Christian traditions and also other religious and spiritual traditions.”
Alluding to the plaque of Jeremiah 29:11 on his desk, Cappucci says it is purposeful.
“I keep it as a reminder that what I am doing is good and that God won’t lead me astray. I keep it close to my desk and I keep the words close to my heart.”
Published October 30, 2021 at 8:20 pm
A former Mississauga and Brampton high school principal, and arguably the greatest football player to come out of Canada, was honoured in his hometown of Hamilton today (Oct. 30).
Russ Jackson, 85, a star quarterback with the Ottawa Rough Riders for 12 years before hanging up his cleats and heading to the classroom, cut the ribbon to open a new football field named in his honour.
A standout athlete at Hamilton’s Westdale High School, the scholarly Jackson turned to the Canadian Football League (CFL) after graduating from McMaster University in 1958 and went on to a legendary career where he led the Rough Riders to three Grey Cups and earned several awards for his outstanding play.
When he retired from the game many considered him to be the country’s greatest player, an honour that some Canadian football watchers still would be hard pressed to deny.
After playing, Jackson coached the Toronto Argonauts in 1975 and 1976 before returning to the academic world where he continued to make his mark working his way up to principal at secondary schools Brampton Centennial and later in Mississauga at T. L. Kennedy then John Fraser where he became that high school’s first principal in 1990.
Since his retirement, Jackson has received several honours including the Order of Canada and induction into the CFL Hall of Fame and the Ontario Sports Hall of Fame.
Today’s official park naming is just another in a long-list of accolades for Jackson.
The long-delayed the field is located in Hamilton at West 5th St. between Stone Church Rd. and Rymal Rd.
insauga's Editorial Standards and Policies advertising/cloudfront-us-east-1.images.arcpublishing.com/gray/E266PFMAOFHR3CJ37GHLYVB5RQ.jpg)
PRESQUE ISLE, Maine (WAGM) - 22 years after the school’s tragic shooting, the former Columbine principal visits Caribou High School to talk about tragedy and coping during the pandemic
Frank DeAngelis was the principal at Columbine High School on April 20, 1999, when two students entered the school with guns, taking 13 lives along with their own. Since his retirement, he has traveled the US to share his experience recovering from trauma. Today, Caribou Middle and High School students heard his take on coping with the pandemic
“What I’ve been doing the last year is talking about recovery with the pandemic being the enemy,” said DeAngelis. “A lot of what people are going through now, we went through the same thing...What I tell people is, Columbine High School, it’ll be 23 years in April, is a stronger community now than it ever was, and I hope that happens and I hope this divisiveness doesn’t separate us.”
“I’m very glad frank spoke to that because the kids need to feel that people are recognizing what they’re going through, they’re not going through it alone,” said Rani Mehta, a counselor at RSU 39.
She met DeAngelis two years ago at a conference, and wanted him to share his experience with the students, as well as the need, now more than ever, to look for support.
Copyright 2021 WAGM. All rights reserved.
The principal of a Kentucky high school under fire over photos appearing to depict students performing lap dances for staff is also embroiled in a sexual assault lawsuit.
The suit was filed in 2019 by a former Hazard High School student and alleges that she was physically and sexually assaulted on a school trip when she was 16. The girl, who NBC News is not naming because she's the victim of a sexual assault, accused principal Donald "Happy" Mobelini and two teachers of failing to properly monitor the children during the trip.
The school district, Mobelini, and the two teachers, Luke Glaser and Sheena Breeding, did not immediately respond to a request for comment on Friday. Mobelini is also the mayor of Hazard.
The alleged incident occurred while students were on a "Junior Trip" to New York City and Washington, D.C., between Oct. 26 and Oct. 31, 2017, according to the lawsuit. Around 60 people were on the trip including Mobelini, Glaser and Breeding. The suit claims that the principal and teachers were the only adult chaperones.
The students were allowed to walk around Times Square unsupervised for hours, according to the lawsuit.
Several students allegedly purchased alcohol and marijuana and brought the items back to their hotel rooms. The suit says that Mobelini and the teachers did not check the students' belongings prior to them arriving at the hotel and did not monitor them throughout the night.
Some of the students had a party in their room, which the victim attended. According to the suit, around a dozen students were in the room drinking alcohol. The victim "took several drinks of the alcohol," it says.
Around 4 or 5 a.m. a male student escorted the victim to her room where he "physically and sexually assaulted" her, the lawsuit alleges.
“During the assault, [the victim] told the student to stop but he did not,” it states. “At no time after the return to the hotel ... did the Hazard chaperones Mobelini, Breeding and Glaser, check on students in their care, despite the noise going on in the students’ rooms and in the hallway.”
The victim reported the assault to Mobelini the following day, according to the suit. Chaperones made "numerous offensive comments" including blaming her for the assault and discouraging her from filing charges, the lawsuit states.
The victim and the male student were also brought into the same room and were forced "to confront each other," according to the lawsuit. Once the victim returned home, her mother allegedly took her to the hospital for an evaluation.
The girl transferred from Hazard High School following the assault. The suit says that the victim suffered emotional and mental distress and she is seeking compensation.
"The negligence of Defendants Mobelini, Breeding and Glaser in carrying out their functions of supervision resulted in the physical and sexual assault of the Plaintiff," the suit says.
The lawsuit remains ongoing in Perry County Circuit Court. Online records show that a pretrial conference is scheduled for August 2022.
Hazard High School faced backlash this week after photos posted to social media showed students appearing to give lap dances to staff members during homecoming festivities. According to the Louisville Courier-Journal, Mobelini was involved and is pictured in one of the images.
Hazard Independent School District Superintendent Sondra Combs said in a statement that disciplinary action was taken but did not provide further details.
"I found photos of inappropriate student-led activities that had since surfaced on social media. The district has the responsibility to address these issues that arise out of school-based activities. As a district, we are doing exactly that," Combs said.
Mobelini has not publicly commented on the homecoming festivities.
DES MOINES, Iowa--(BUSINESS WIRE)--Principal Financial Group® (Nasdaq: PFG) announced results for third quarter 2021.
“Principal delivered strong non-GAAP operating earnings of $458 million in the third quarter and over $1.3 billion year-to-date, a 41% increase compared to a year ago,” said Dan Houston, chairman, president, and CEO of Principal®. “We’ve returned over $1 billion to shareholders through the first nine months of the year through share repurchases and common stock dividends; and we remain committed to returning $3 billion to shareholders between 2021 and 2022, excluding proceeds from any transactions resulting from our strategic review. Additionally, we announced a $0.64 dividend payable in the fourth quarter, a 14% increase over the dividend paid in the year ago quarter.”
“During the quarter, we continued to execute on our long-term strategy that puts the customer at the center and positions us to win and grow,” said Houston. “With a sharp focus on our growth drivers, which are retirement in the U.S. and select emerging markets, global asset management, and U.S. benefits and protection, we’re poised to continue to create shareholder value.”
Other third quarter highlights
Continued strong financial position at the end of the third quarter
Segment Results
Retirement and Income Solutions - Fee
|
(in millions except percentages or otherwise noted) |
Quarter |
Trailing Twelve Months
|
||||||||
|
3Q21 |
3Q20 |
% Change |
|
3Q21 |
3Q20 |
% Change |
||||
|
Pre-tax operating earnings5 |
$45.9 |
$134.7 |
(66) % |
|
$389.6 |
$455.4 |
(14)% |
|||
|
|
|
|
|
|
|
|||||
|
Net revenue6 |
$448.2 |
$530.2 |
(15)% |
|
$1,993.3 |
$1,995.1 |
0% |
|||
|
Pre-tax return on net revenue7 |
10.2% |
25.4% |
|
|
19.5%* |
22.8%* |
|
|||
*Pre-tax return on net revenue – Excluding the third quarter actuarial assumption reviews and other significant variances, the trailing twelve-month pre-tax return on net revenue was 24.1% for third quarter 2021 and 24.2% for third quarter 2020.
Retirement and Income Solutions - Spread
|
(in millions except percentages or otherwise noted) |
Quarter |
Trailing Twelve Months |
|||||||||||
|
3Q21 |
|
3Q20 |
|
% Change |
|
3Q21 |
|
3Q20 |
|
% Change |
|||
|
Pre-tax operating earnings |
$197.3 |
|
$146.4 |
|
35% |
|
$688.6 |
|
$452.2 |
|
52% |
||
|
|
|
|
|
|
|
|
|
||||||
|
Net revenue |
$240.5 |
|
$166.4 |
|
45% |
|
$876.5 |
|
$608.5 |
|
44% |
||
|
Pre-tax return on net revenue |
82.0% |
|
88.0% |
|
|
|
78.6%* |
|
74.3%* |
|
|
||
*Pre-tax return on net revenue – Excluding the third quarter actuarial assumption reviews and other significant variances, the trailing twelve-month pre-tax return on net revenue was 71.6% for third quarter 2021 and 70.8% for third quarter 2020.
Principal Global Investors
|
(in millions except percentages or otherwise noted) |
Quarter |
Trailing Twelve Months |
|||||||||||
|
3Q21 |
|
3Q20 |
|
% Change |
|
3Q21 |
3Q20 |
|
% Change |
||||
|
Pre-tax operating earnings |
$190.1 |
|
$140.9 |
|
35% |
|
$667.5 |
$505.0 |
|
32% |
|||
|
|
|
|
|
|
|
|
|
||||||
|
Operating revenues less pass-through expenses8 |
$424.6 |
|
$345.6 |
|
23% |
|
$1,588.7 |
|
$1,394.3 |
|
14% |
||
|
Pre-tax return on operating revenues less pass-through expenses |
45.2% |
|
41.2% |
|
|
|
42.4% |
|
36.7%* |
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Total PGI assets under management (billions)
|
$535.4 |
|
$468.4 |
|
14% |
|
|
|
|
|
|
||
|
PGI sourced assets under management (billions) |
$265.2 |
|
$226.3 |
|
17% |
|
|
|
|
|
|
||
*Pre-tax return on operating revenues less pass-through expenses – Excluding impact of significant variances, the trailing twelve-month pre-tax return on operating revenues less pass-through expenses was 35.8% for third quarter 2020.
Principal International
|
(in millions except percentages or otherwise noted) |
Quarter |
Trailing Twelve Months |
||||||||||
|
3Q21 |
|
3Q20 |
|
% Change |
|
3Q21 |
|
3Q20 |
|
% Change |
||
|
Pre-tax operating earnings |
$81.0 |
|
$58.7 |
|
38% |
|
$263.4 |
|
$261.5 |
|
1% |
|
|
Combined net revenue (at PFG share) |
$244.8 |
|
$200.4 |
|
22% |
|
$903.3 |
|
$851.3 |
|
6% |
|
|
Pre-tax return on combined net revenue (at PFG share) |
33.1% |
|
29.3% |
|
|
|
29.2%* |
|
30.7%* |
|
|
|
|
Assets under management (billions) |
$155.8 |
|
$147.0 |
|
6% |
|
|
|
|
|
|
|
*Pre-tax return on combined net revenue (at PFG share) – Excluding the third quarter actuarial assumption reviews and other significant variances, the trailing twelve month combined pre-tax return on net revenue (at PFG share) was 31.4% for third quarter 2021 and 33.5% for third quarter 2020.
Specialty Benefits Insurance
|
(in millions except percentages or otherwise noted) |
Quarter |
Trailing Twelve Months |
||||||||||
|
3Q21 |
|
3Q20 |
|
% Change |
|
3Q21 |
|
3Q20 |
|
% Change |
||
|
Pre-tax operating earnings |
$69.9 |
|
$31.4 |
|
123% |
|
$235.9 |
|
$345.2 |
|
(32)% |
|
|
|
|
|
|
|
|
|
|
|||||
|
Premium and fees9 |
$638.9 |
|
$579.7 |
|
10% |
|
$2,475.4 |
|
$2,362.4 |
|
5% |
|
|
Pre-tax return on premium and fees |
10.9% |
|
5.4% |
|
|
|
9.5%* |
|
14.6%* |
|
|
|
|
Incurred loss ratio |
64.9% |
|
69.0% |
|
|
|
65.6% |
|
60.0% |
|
|
|
*Pre-tax return on premium and fees – Excluding the third quarter actuarial assumption review and other significant variances, the trailing twelve-month pre-tax return on premium and fees was 12.7% for third quarter 2021 and 14.5% for third quarter 2020.
Individual Life Insurance
|
(in millions except percentages or otherwise noted) |
Quarter |
Trailing Twelve Months |
||||||||||
|
3Q21 |
|
3Q20 |
|
% Change |
|
3Q21 |
|
3Q20 |
|
% Change |
||
|
Pre-tax operating earnings (losses) |
$81.7 |
|
$(165.5) |
|
NM |
|
$227.0 |
|
$(50.3) |
|
NM |
|
|
Premium and fees |
$302.1 |
|
$323.6 |
|
(7)% |
|
$1,247.7 |
$1,206.8 |
|
3% |
||
|
Pre-tax return on premium and fees |
27.0% |
|
(51.1)% |
|
|
|
18.2%* |
|
(4.2)%* |
|
|
|
*Pre-tax return on premium and fees – Excluding the third quarter actuarial assumption reviews and other significant variances, the trailing twelve-month pre-tax return on premium and fees was 15.9% for third quarter 2021 and 16.2% for third quarter 2020.
Corporate
|
(in millions except percentages or otherwise noted) |
Quarter |
Trailing Twelve Months |
|||||||||||
|
3Q21 |
|
3Q20 |
|
% Change |
|
3Q21 |
|
3Q20 |
|
% Change |
|||
|
Pre-tax operating losses |
$(97.1) |
|
$(69.7) |
|
(39)% |
|
$(355.2) |
|
$(340.5) |
|
(4)% |
||
Exhibit 1
|
Principal Financial Group Impact of 3Q 2021 and 3Q 2020 significant variances on quarterly net income attributable to PFG and non-GAAP operating earnings (in millions, except per share data) |
|||||||||||||||
|
Impacts of 3Q 2021 significant variances |
Impacts of 3Q 2020 significant variances |
||||||||||||||
|
Actuarial |
Other |
Total 3Q21 |
Actuarial |
Other |
Total 3Q20 |
||||||||||
|
Net income attributable to PFG |
$ |
(14.2) |
$ |
40.1 |
$ |
25.9 |
|
$ |
(118.2) |
$ |
(69.1) |
$ |
(187.3) |
||
|
Net realized capital (gains) losses, as adjusted |
|
(11.6) |
|
- |
|
(11.6) |
|
|
5.1 |
|
- |
|
5.1 |
||
|
Non-GAAP operating earnings |
|
(25.8) |
|
40.1 |
|
14.3 |
|
|
(113.1) |
|
(69.1) |
|
(182.2) |
||
|
Income taxes |
|
(6.9) |
|
10.3 |
|
3.4 |
|
|
(29.2) |
|
(21.8) |
|
(51.0) |
||
|
Non-GAAP pre-tax operating earnings |
$ |
(32.7) |
$ |
50.4 |
$ |
17.7 |
|
$ |
(142.3) |
$ |
(90.9) |
$ |
(233.2) |
||
|
|
|
|
|
|
|
|
|
||||||||
|
Per diluted share: |
|
|
|
|
|
|
|
||||||||
|
Net income |
$ |
(0.05) |
$ |
0.14 |
$ |
0.09 |
|
$ |
(0.43) |
$ |
(0.25) |
$ |
(0.68) |
||
|
Net realized capital (gains) losses, as adjusted |
|
(0.04) |
|
- |
|
(0.04) |
|
|
0.02 |
|
- |
|
0.02 |
||
|
Non-GAAP operating earnings |
$ |
(0.09) |
$ |
0.14 |
$ |
0.05 |
|
$ |
(0.41) |
$ |
(0.25) |
$ |
(0.66) |
||
|
Weighted average diluted common shares outstanding |
|
271.9 |
|
271.9 |
|
271.9 |
|
|
276.8 |
|
276.8 |
|
276.8 |
||
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|||||||
|
Segment pre-tax operating earnings (losses): |
|
|
|
|
|||||||||||
|
RIS-Fee |
$ |
(67.3) |
$ |
(10.0) |
$ |
(77.3) |
$ |
36.8 |
$ |
(25.0) |
$ |
11.8 |
|||
|
RIS-Spread |
|
- |
|
76.0 |
|
76.0 |
|
33.3 |
|
5.0 |
|
38.3 |
|||
|
Retirement and Income Solutions |
|
(67.3) |
|
66.0 |
|
(1.3) |
|
70.1 |
|
(20.0) |
|
50.1 |
|||
|
|
|
|
|
||||||||||||
|
Principal Global Investors |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|||
|
|
|
|
|
||||||||||||
|
Principal International |
|
- |
|
5.1 |
|
5.1 |
|
2.7 |
|
(20.1) |
|
(17.4) |
|||
|
|
|
|
|
||||||||||||
|
Specialty Benefits |
|
2.5 |
|
(18.0) |
|
(15.5) |
|
- |
|
(44.8) |
|
(44.8) |
|||
|
Individual Life |
|
32.1 |
|
1.3 |
|
33.4 |
|
(215.1) |
|
(6.0) |
|
(221.1) |
|||
|
U.S. Insurance Solutions |
|
34.6 |
|
(16.7) |
|
17.9 |
|
(215.1) |
|
(50.8) |
|
(265.9) |
|||
|
|
|
|
|
||||||||||||
|
Corporate |
|
- |
|
(4.0) |
|
(4.0) |
|
- |
|
- |
|
- |
|||
|
Total segment pre-tax operating earnings |
$ |
(32.7) |
$ |
50.4 |
$ |
17.7 |
$ |
(142.3) |
$ |
(90.9) |
$ |
(233.2) |
|||
Income statement line item details of the 3Q21 and 3Q20 significant variances are available in our earnings conference call presentation on our website.
Forward looking and cautionary statements
Certain statements made by the company which are not historical facts may be considered forward-looking statements, including, without limitation, statements as to non-GAAP operating earnings, net income attributable to PFG, net cash flow, realized and unrealized gains and losses, capital and liquidity positions, sales and earnings trends, and management’s beliefs, expectations, goals and opinions. The company does not undertake to update these statements, which are based on a number of assumptions concerning future conditions that may ultimately prove to be inaccurate. Future events and their effects on the company may not be those anticipated, and actual results may differ materially from the results anticipated in these forward-looking statements. The risks, uncertainties and factors that could cause or contribute to such material differences are discussed in the company’s annual report on Form 10-K for the year ended Dec. 31, 2020, and in the company’s quarterly report on Form 10-Q for the quarter ended June 30, 2021, filed by the company with the U.S. Securities and Exchange Commission, as updated or supplemented from time to time in subsequent filings. These risks and uncertainties include, without limitation: adverse capital and credit market conditions may significantly affect the company’s ability to meet liquidity needs, access to capital and cost of capital; conditions in the global capital markets and the economy generally; volatility or declines in the equity, bond or real estate markets; changes in interest rates or credit spreads or a sustained low interest rate environment; the elimination of the London Inter-Bank Offered Rate (“LIBOR”); the company’s investment portfolio is subject to several risks that may diminish the value of its invested assets and the investment returns credited to customers; the company’s valuation of investments and the determination of the amount of allowances and impairments taken on such investments may include methodologies, estimations and assumptions that are subject to differing interpretations; any impairments of or valuation allowances against the company’s deferred tax assets; the company’s actual experience for insurance and annuity products could differ significantly from its pricing and reserving assumptions; the pattern of amortizing the company’s DAC asset and other actuarial balances on its universal life-type insurance contracts, participating life insurance policies and certain investment contracts may change; changes in laws, regulations or accounting standards; the company may not be able to protect its intellectual property and may be subject to infringement claims; the company’s ability to pay stockholder dividends and meet its obligations may be constrained by the limitations on dividends Iowa insurance laws impose on Principal Life; litigation and regulatory investigations; from time to time the company may become subject to tax audits, tax litigation or similar proceedings, and as a result it may owe additional taxes, interest and penalties in amounts that may be material; applicable laws and the company’s certificate of incorporation and by-laws may discourage takeovers and business combinations that some stockholders might consider in their best interests; competition, including from companies that may have greater financial resources, broader arrays of products, higher ratings and stronger financial performance; technological and societal changes may disrupt the company’s business model and impair its ability to retain existing customers, attract new customers and maintain its profitability; damage to the company’s reputation; a downgrade in the company’s financial strength or credit ratings; client terminations, withdrawals or changes in investor preferences; the company’s hedging or risk management strategies prove ineffective or insufficient; inability to attract, develop and retain qualified employees and sales representatives and develop new distribution sources; an interruption in information technology, infrastructure or other internal or external systems used for business operations, or a failure to maintain the confidentiality, integrity or availability of data residing on such systems; international business risks including changes to mandatory pension schemes; risks arising from participation in joint ventures; the company may need to fund deficiencies in its “Closed Block” assets; a pandemic, terrorist attack, military action or other catastrophic event; the ongoing COVID-19 pandemic and the resulting financial market impacts; the company’s reinsurers could default on their obligations or increase their rates; risks arising from acquisitions of businesses; risks related to the company’s acquisition of Wells Fargo Bank, N.A.’s IRT business; loss of key vendor relationships or failure of a vendor to protect information of our customers or employees; the company’s enterprise risk management framework may not be fully effective in identifying or mitigating all of the risks to which the company is exposed; and global climate change.
Use of Non-GAAP financial measures
The company uses a number of non-GAAP financial measures that management believes are useful to investors because they illustrate the performance of normal, ongoing operations, which is important in understanding and evaluating the company’s financial condition and results of operations. They are not, however, a substitute for U.S. GAAP financial measures. Therefore, the company has provided reconciliations of the non-GAAP measures to the most directly comparable U.S. GAAP measure at the end of the release. The company adjusts U.S. GAAP measures for items not directly related to ongoing operations. However, it is possible these adjusting items have occurred in the past and could recur in future reporting periods. Management also uses non-GAAP measures for goal setting, as a basis for determining employee and senior management awards and compensation and evaluating performance on a basis comparable to that used by investors and securities analysts.
Earnings conference call
On Wednesday, Oct. 27, 2021, at 10:00 a.m. (ET), Chairman, President and Chief Executive Officer Dan Houston and Executive Vice President and Chief Financial Officer Deanna Strable will lead a discussion of results and the impacts on future prospects, asset quality and capital adequacy during a live conference call, which can be accessed as follows:
The company’s financial supplement and slide presentation is currently available at principal.com/investor, and may be referred to during the call.
Principal Financial Group® (Nasdaq: PFG) is a global financial company with 18,000 employees13 passionate about improving the wealth and well-being of people and businesses. In business for more than 140 years, we’re helping more than 49 million customers14 plan, insure, invest, and retire, while working to improve our planet, support the communities where we do business, and build a diverse, inclusive workforce. Principal® is proud to be recognized as one of the World’s Most Ethical Companies14, a member of the Bloomberg Gender Equality Index, and a Top 10 “Best Places to Work in Money Management15.” Learn more about Principal and our commitment to sustainability, inclusion, and purpose at principal.com.
###
Summary of Principal Financial Group, Inc., and Segment Results
|
Principal Financial Group, Inc. Results: |
(in millions) |
|||||||||
|
Three Months Ended, |
Trailing Twelve Months, |
|||||||||
|
9/30/21 |
9/30/20 |
9/30/21 |
9/30/20 |
|||||||
|
Net income attributable to PFG |
$ |
359.9 |
$ |
236.0 |
$ |
1,711.4 |
$ |
1,224.1 |
||
|
Net realized capital (gains) losses, as adjusted |
|
98.5 |
|
(1.5) |
|
47.4 |
|
129.1 |
||
|
Non-GAAP Operating Earnings* |
$ |
458.4 |
$ |
234.5 |
$ |
1,758.8 |
$ |
1,353.2 |
||
|
Income taxes |
|
110.4 |
|
42.4 |
|
358.0 |
|
275.3 |
||
|
Non-GAAP Pre-Tax Operating Earnings |
$ |
568.8 |
$ |
276.9 |
$ |
2,116.8 |
$ |
1,628.5 |
||
|
|
|
|
|
|
||||||
|
Segment Pre-Tax Operating Earnings (Losses): |
|
|
|
|
||||||
|
Retirement and Income Solutions |
$ |
243.2 |
$ |
281.1 |
$ |
1,078.2 |
$ |
907.6 |
||
|
Principal Global Investors |
|
190.1 |
|
140.9 |
|
667.5 |
|
505.0 |
||
|
Principal International |
|
81.0 |
|
58.7 |
|
263.4 |
|
261.5 |
||
|
U.S. Insurance Solutions |
|
151.6 |
|
(134.1) |
|
462.9 |
|
294.9 |
||
|
Corporate |
|
(97.1) |
|
(69.7) |
|
(355.2) |
|
(340.5) |
||
|
Total Segment Pre-Tax Operating Earnings |
$ |
568.8 |
$ |
276.9 |
$ |
2,116.8 |
$ |
1,628.5 |
||
|
|
Per Diluted Share |
|||||||||
|
Three Months Ended, |
Nine Months Ended, |
|||||||||
|
9/30/21 |
9/30/20 |
9/30/21 |
9/30/20 |
|||||||
|
Net income |
$ |
1.32 |
$ |
0.85 |
$ |
4.51 |
$ |
3.34 |
||
|
Net realized capital (gains) losses, as adjusted |
|
0.37 |
|
0.00 |
|
0.41 |
|
0.12 |
||
|
Non-GAAP Operating Earnings |
$ |
1.69 |
$ |
0.85 |
$ |
4.92 |
$ |
3.46 |
||
|
Weighted-average diluted common shares outstanding (in millions) |
|
271.9 |
|
276.8 |
|
274.4 |
|
276.4 |
||
*U.S. GAAP (GAAP) net income attributable to PFG versus non-GAAP operating earnings
Management uses non-GAAP operating earnings, which is a financial measure that excludes the effect of net realized capital gains and losses, as adjusted, and other after-tax adjustments the company believes are not indicative of overall operating trends, for goal setting, as a basis for determining employee and senior management awards and compensation and evaluating performance on a basis comparable to that used by investors and securities analysts. Note: it is possible these adjusting items have occurred in the past and could recur in future reporting periods. While these items may be significant components in understanding and assessing our consolidated financial performance, management believes the presentation of non-GAAP operating earnings enhances the understanding of results of operations by highlighting earnings attributable to the normal, ongoing operations of the company’s businesses.
|
Selected Balance Sheet Statistics |
||||||
|
|
Period Ended, |
|||||
|
9/30/21 |
12/31/20 |
|||||
|
Total assets (in billions) |
$ |
298.9 |
$ |
296.6 |
||
|
Stockholders’ equity (in millions) |
$ |
16,129.2 |
$ |
16,617.3 |
||
|
Total common equity (in millions) |
$ |
16,070.7 |
$ |
16,558.9 |
||
|
Total common equity excluding accumulated other comprehensive income (AOCI) other than foreign currency translation adjustment (in millions) |
$ |
12,927.2 |
$ |
12,862.9 |
||
|
End of period common shares outstanding (in millions) |
|
266.1 |
|
273.3 |
||
|
Book value per common share |
$ |
60.39 |
$ |
60.59 |
||
|
Book value per common share excluding AOCI other than foreign currency translation adjustment |
$ |
48.58 |
$ |
47.07 |
||
|
Principal Financial Group, Inc. Reconciliation of U.S. GAAP to Non-GAAP Financial Measures (in millions, except as indicated) |
||||||
|
|
Period Ended, |
|||||
|
|
9/30/21 |
12/31/20 |
||||
|
Stockholders’ Equity, Excluding AOCI Other Than Foreign Currency Translation Adjustment, Available to Common Stockholders: |
|
|
||||
|
Stockholders’ equity |
$ |
16,129.2 |
$ |
16,617.3 |
||
|
Noncontrolling interest |
|
(58.5) |
|
(58.4) |
||
|
Stockholders’ equity available to common stockholders |
|
16,070.7 |
|
16,558.9 |
||
|
Net unrealized capital (gains) losses |
|
(3,582.8) |
|
(4,156.5) |
||
|
Net unrecognized postretirement benefit obligation |
|
439.3 |
|
460.5 |
||
|
Stockholders’ equity, excluding AOCI other than foreign currency translation adjustment, available to common stockholders |
$ |
12,927.2 |
$ |
12,862.9 |
||
|
|
|
|
||||
|
|
|
|
||||
|
|
|
|
||||
|
Book Value Per Common Share, Excluding AOCI Other Than Foreign Currency Translation Adjustment: |
|
|
||||
|
Book value per common share |
$ |
60.39 |
$ |
60.59 |
||
|
Net unrealized capital (gains) losses |
|
(13.46) |
|
(15.20) |
||
|
Net unrecognized postretirement benefit obligation |
|
1.65 |
|
1.68 |
||
|
Book value per common share, excluding AOCI other than foreign currency translation adjustment |
$ |
48.58 |
$ |
47.07 |
||
|
|
|
|
||||
|
Principal Financial Group, Inc. |
||||||||||||
|
Reconciliation of U.S. GAAP to Non-GAAP Financial Measures |
||||||||||||
|
(in millions) |
||||||||||||
|
|
||||||||||||
|
|
Three Months Ended, |
Trailing Twelve Months, |
||||||||||
|
|
9/30/21 |
9/30/20 |
9/30/21 |
9/30/20 |
||||||||
|
Income Taxes: |
|
|
|
|
||||||||
|
Total GAAP income taxes |
$ |
63.8 |
$ |
39.2 |
$ |
322.5 |
$ |
220.9 |
||||
|
Net realized capital gains (losses) tax adjustments |
|
36.6 |
|
(10.2) |
|
13.2 |
|
5.5 |
||||
|
Income taxes related to equity method investments and noncontrolling interest |
|
10.0 |
|
13.4 |
22.3 |
|
48.9 |
|||||
|
Income taxes |
$ |
110.4 |
$ |
42.4 |
$ |
358.0 |
$ |
275.3 |
||||
|
|
|
|
|
|
||||||||
|
Net Realized Capital Gains (Losses): |
|
|
|
|
||||||||
|
GAAP net realized capital gains (losses) |
$ |
(152.0) |
$ |
65.5 |
$ |
91.4 |
$ |
78.6 |
||||
|
|
|
|
|
|
||||||||
|
Recognition of front-end fee revenues |
|
(0.4) |
|
(2.2) |
|
(6.5) |
|
9.4 |
||||
|
Market value adjustments to fee revenues |
|
(0.2) |
|
- |
|
(2.2) |
|
- |
||||
|
Net realized capital gains (losses) related to equity method investments |
|
(10.8) |
|
0.2 |
|
(14.9) |
|
(4.8) |
||||
|
Derivative and hedging-related revenue adjustments |
|
(30.6) |
|
(37.0) |
|
(155.6) |
|
(115.3) |
||||
|
Sponsored investment fund adjustments |
|
5.8 |
|
5.1 |
|
20.7 |
|
15.1 |
||||
|
Amortization of deferred acquisition costs |
|
7.2 |
|
51.1 |
|
40.5 |
|
(7.7) |
||||
|
Capital gains distributed – operating expenses |
|
(19.6) |
|
(39.1) |
|
(90.0) |
|
(34.7) |
||||
|
Amortization of other actuarial balances |
|
2.7 |
|
11.0 |
|
23.2 |
|
(20.7) |
||||
|
Market value adjustments of embedded derivatives |
|
77.8 |
|
(40.1) |
|
86.9 |
|
(63.4) |
||||
|
Capital gains distributed – cost of interest credited |
|
(13.4) |
|
(4.6) |
|
(30.5) |
|
4.7 |
||||
|
Net realized capital gains (losses) tax adjustments |
|
36.6 |
|
(10.2) |
|
13.2 |
|
5.5 |
||||
|
Net realized capital gains (losses) attributable to noncontrolling interest, after-tax |
|
(1.6) |
|
1.8 |
|
(23.6) |
|
4.2 |
||||
|
Total net realized capital gains (losses) after-tax adjustments |
|
53.5 |
|
(64.0) |
|
(138.8) |
|
(207.7) |
||||
|
|
|
|
|
|
||||||||
|
Net realized capital gains (losses), as adjusted |
$ |
(98.5) |
$ |
1.5 |
$ |
(47.4) |
$ |
(129.1) |
||||
|
Principal Financial Group, Inc. |
||||||||
|
Reconciliation of U.S. GAAP to Non-GAAP Financial Measures |
||||||||
|
(in millions) |
||||||||
|
|
Three Months Ended, |
|
Trailing Twelve Months, |
|||||
|
|
9/30/21 |
|
9/30/20 |
|
9/30/21 |
|
9/30/20 |
|
|
Principal Global Investors Operating Revenues Less Pass-Through Expenses: |
|
|
|
|
||||
|
Operating revenues |
$ 465.2 |
$ 382.8 |
$ 1,746.7 |
$ 1,563.9 |
||||
|
Commissions and other expenses |
(40.6) |
(37.2) |
(158.0) |
(169.6) |
||||
|
Operating revenues less pass-through expenses |
$ 424.6 |
$ 345.6 |
$ 1,588.7 |
$ 1,394.3 |
||||
|
|
|
|
|
|
||||
|
|
|
|
|
|
||||
|
Principal International Combined Net Revenue (at PFG Share) |
|
|
|
|
||||
|
Pre-tax operating earnings |
$ 81.0 |
$ 58.7 |
$ 263.4 |
$ 261.5 |
||||
|
Combined operating expenses other than pass-through commissions (at PFG share) |
163.8 |
141.7 |
639.9 |
589.8 |
||||
|
Combined net revenue (at PFG share) |
$ 244.8 |
$ 200.4 |
$ 903.3 |
$ 851.3 |
||||
|
1 |
Use of non-GAAP financial measures is discussed in this release after segment results. Non-GAAP operating earnings for total company is after tax. The total company impacts of significant variances, including the actuarial assumption review, are also after tax. |
|
|
|
|
|
|
2 |
Includes only funds with ratings assigned by Morningstar; non-rated funds excluded (88 total, 81 are ranked). |
|
|
|
|
|
|
3 |
Pre-tax return on operating revenues less pass-through expenses = pre-tax operating earnings, adjusted for noncontrolling interest divided by operating revenues less pass-through expenses. |
|
|
|
|
|
|
4 |
Combined net revenue (a non-GAAP financial measure): net revenue for all PI companies at 100% less pass-through commissions. The company has determined combined net revenue (at PFG share) is more representative of underlying net revenue growth for PI as it reflects our proportionate share of consolidated and equity method subsidiaries. In addition, using this net revenue metric provides a more meaningful representation of our profit margins. |
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|
|
|
|
|
5 |
Pre-tax operating earnings = operating earnings before income taxes and after noncontrolling interest. |
|
|
|
|
|
|
6 |
Net revenue = operating revenues less benefits, claims and settlement expenses less dividends to policyholders. |
|
|
|
|
|
|
7 |
Pre-tax return on net revenue = pre-tax operating earnings divided by net revenue. |
|
|
|
|
|
|
8 |
The company has provided reconciliations of the non-GAAP measures to the most directly comparable U.S. GAAP measures at the end of the release. The company has determined this measure is more representative of underlying operating revenues growth for PGI as it removes commissions and other expenses that are collected through fee revenue and passed through expenses with no impact to pre-tax operating earnings. |
|
|
|
|
|
|
9 |
Premium and fees = premiums and other considerations plus fees and other revenues. Pre-tax return on premium and fees = pre-tax operating earnings divided by premium and fees. |
|
|
|
|
|
|
10 |
Other significant variances in 3Q21 include 1) higher than expected variable investment income in RIS-Spread, Principal International, Specialty Benefits and Individual Life, partially offset by lower variable investment income in Corporate; 2) COVID-19 related claims in RIS-Spread, Specialty Benefits and Individual Life; 3) IRT integration costs in RIS-Fee; and 4) lower than expected encaje performance in Principal International. |
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11 |
Other significant variances in 3Q20 include 1) COVID-19 related impacts in RIS-Fee, RIS-Spread, Specialty Benefits and Individual Life; 2) IRT integration costs in RIS-Fee; 3) lower than expected variable investment income in Principal International, Specialty Benefits and Individual Life; and 4) lower than expected encaje performance and lower than expected inflation in Principal International. |
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12 |
Principal, Principal and symbol design and Principal Financial Group are trademarks and service marks of Principal Financial Services, Inc., a member of the Principal Financial Group. |
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13 |
As of September 30, 2021 |
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14 |
Ethisphere Institute, 2021 |
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15 |
Pensions & Investments, 2020 |
