Company Overview

Principal Financial Group is a global financial company with approximately 20,000 employees dedicated to improving the wealth and well-being of people and businesses. With a history spanning 145 years, the company assists approximately 70 million customers worldwide in planning, insuring, investing, and retiring.

Business Overview and Segments

Principal Financial Group, Inc. offers a broad range of retirement, asset management, and insurance products and services to businesses, individuals, and institutional clients globally. The company's operations are organized into three primary segments: Retirement and Income Solutions, Principal Asset Management, and Benefits and Protection.

Key Business Segments

- Retirement and Income Solutions: This segment provides a comprehensive suite of products and services designed for retirement savings and income generation. In 2023, it achieved recurring deposit growth of 7% and transfer deposit growth of 16%.

- Principal Asset Management: This segment delivers global investment solutions to institutional, retirement, retail, and high-net-worth investors across the U.S. and select emerging markets. Total Assets Under Management (AUM) grew by 6% to $741 billion, boosted by strong market performance and a 5% increase in net revenue.

- Benefits and Protection: This segment encompasses the sale of individual life insurance products. Specialty Benefits, within this segment, experienced over 6% growth in premiums and fees.

Financial Performance and Market Position

Principal Financial Group demonstrates strong financial performance, with significant growth in revenue and earnings. The company maintains a substantial asset base and a commitment to returning value to shareholders.

Recent Financial Highlights

- Revenue Growth (2024): Total revenue reached $16.13 billion, an increase of 18.02% year-over-year from $13.67 billion. Earnings saw a substantial increase of 152.09% to $1.57 billion.

- Assets Under Management (AUM): Total AUM grew by 6% quarter-over-quarter to $741 billion.

- Earnings Per Share (EPS): Adjusted EPS rose by 12% year-over-year to $2.05.

- Capital Returns: The company distributed $416 million to shareholders through dividends and share repurchases.

Market Capitalization and Trading Metrics

- Market Capitalization: $18.187 billion (as of September 2024).

- Shares Outstanding: 222.77 million.

- Dividend Yield: 3.70%.

- Beta: 1.03.

Leadership and Corporate Structure

As of January 2025, Deanna Strable assumed the role of President and CEO, succeeding Dan Houston. Strable previously served as President and Chief Operating Officer. The company employs approximately 9,000 individuals, with a significant presence in Des Moines, Iowa, where it owns and operates several notable buildings, including the 45-story 801 Grand.

Strategic Growth Initiatives

Principal Financial Group actively pursues strategic acquisitions and business development. In 2024, the company agreed to acquire the employee stock-option plan (ESOP) business from Ascensus, a move expected to add 800 plans and over 165,000 participants. The company also reports significant momentum in new retirement plan sales, with an increased pipeline across all segments, positioning it for continued growth in 2025.

Market Recognition and Performance Outlook

Principal Financial Group is recognized for its commitment to ethical practices and its workplace culture, having been named one of the 2024 World's Most Ethical Companies, a member of the Bloomberg Gender Equality Index, and a "Best Place to Work in Money Management."

The company projects full-year EPS growth of 9% to 12%, consistent with 2024 guidance. Principal remains on track to achieve its target of a 14% to 16% return on equity by 2025.

Founded in 1879 and headquartered in Des Moines, Iowa, Principal Financial Group leverages its diversified business model and global presence to serve clients across various financial services segments. Its robust financial performance, strategic growth initiatives, and focus on core areas like retirement and asset management solidify its position as a key player in the financial services industry.