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���������ֳ� views Principal Financial Group, Inc.’s (PFG) agreement to cede its in-force U.S. retail fixed annuity and universal life insurance with secondary guarantee (ULSG) blocks to Sutton Cayman, Ltd., an affiliate of Talcott Resolution Life, Inc., earlier this year as neutral to the rating. The incremental decline in business diversification is largely offset by the lower business risk profile due to the divestiture of the ULSG block. Very Strong Operating Performance: PFG exhibited very strong operating performance in 2021. Reported operating earnings of $1.8 billion was driven by favorable market conditions, generating higher than expected variable investment income. Additionally, assets under management (AUM) and account balances increased yoy, leading to higher spreads and management fee income on AUM. Given the less favorable market environment, earnings are expected to deteriorate in 2022, but to remain aligned with rating expectations. PFG’s earnings are viewed as less interest-sensitive than peers, given its material proportion of fee-based earnings.