Principal Financial Group, Inc. provides retirement, asset management, and insurance products and services to businesses, individuals, and institutional clients worldwide. The company operates through Retirement and Income Solutions, Principal Global Investors, Principal International, and U.S. Insurance Solutions segments. The Retirement and Income Solutions segment provides a portfolio of asset accumulation products and services for retirement savings and income. It offers products and services for defined contribution plans, including 401(k) and 403(b) plans, defined benefit pension plans, nonqualified executive benefit plans, employee stock ownership plans, equity compensation, and pension risk transfer services; individual retirement accounts; investment only products; and mutual funds, individual variable annuities, and bank products. The Principal Global Investors segment provides equity, fixed income, real estate, and other alternative investments, as well as asset allocation, stable value management, and other structured investment strategies. The Principal International segment offers pension accumulation products and services, mutual funds, asset management, income annuities, and life insurance accumulation products, as well as voluntary savings plans in Brazil, Chile, Mexico, China, Hong Kong Special Administrative Region, India, and Southeast Asia. The U.S. Insurance Solutions segment provides specialty benefits, such as group dental and vision insurance, group life insurance, and group and individual disability insurance, as well as administers group dental, disability, and vision benefits; and individual life insurance products comprising universal, variable universal, indexed universal, and term life insurance products in the United States. It also offers insurance solutions for small and medium-sized businesses and their owners, as well as executives. Principal Financial Group, Inc. was founded in 1879 and is based in Des Moines, Iowa.
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Here are 1-3 brief analogies for Principal Financial (PFG):
- A blend of Fidelity's retirement services and Prudential's insurance offerings.
- Essentially MetLife, providing a broad range of retirement, investment, and insurance solutions.
- Think T. Rowe Price for investment and retirement, plus Lincoln Financial for insurance.
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Principal Financial Group (PFG) offers a range of financial products and services, primarily categorized as:
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Retirement Plans: Services helping businesses offer and manage various defined contribution and defined benefit retirement plans for their employees.
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Annuities: Financial contracts that provide a steady stream of income, often used for retirement, for a specified period or for life.
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Life Insurance: Products offering financial protection to beneficiaries upon the death of the insured, safeguarding families and businesses.
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Group Benefits: Services providing employers with various employee benefits such as dental, vision, short-term and long-term disability insurance.
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Asset Management: Investment management services for institutional clients, mutual funds, and other investment solutions across various asset classes.
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Principal Financial Group (symbol: PFG) primarily sells its financial products and services to other companies and institutional clients, although individuals are often the ultimate beneficiaries or participants in the plans managed by Principal. Its major customers, therefore, are typically businesses and institutions rather than direct individual consumers.
The categories of major customers for Principal Financial include:
- Employers (Small, Mid-Market, and Large Corporations): These companies engage Principal to provide a wide range of employee benefits, including workplace retirement plans (such as 401(k) and 403(b)), group life insurance, disability insurance, and other voluntary benefits like dental and vision insurance for their employees.
- Institutional Investors: This category includes corporate and public pension funds, endowments, foundations, sovereign wealth funds, and other financial institutions that utilize Principal Global Investors for various asset management and investment solutions.
- Financial Intermediaries and Advisors: Principal partners with independent financial advisors, broker-dealers, and consultants who then offer Principal's investment products (e.g., mutual funds, annuities) and insurance solutions to their own individual and business clients. While not the end-user, these intermediaries are crucial B2B customers for product distribution.
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- IBM (NYSE: IBM)
- Ernst & Young LLP
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Deanna D. Strable, Chair, President and Chief Executive Officer
Deanna D. Strable became Chair, President, and Chief Executive Officer of Principal Financial Group in January 2025. She previously served as President and Chief Operating Officer, a role she assumed in August 2024, and before that, she was the Executive Vice President and Chief Financial Officer. Her career at Principal Financial Group demonstrates a long tenure and progression through various senior leadership positions.
Joel M. Pitz, Executive Vice President and Chief Financial Officer
Joel M. Pitz was appointed Executive Vice President and Chief Financial Officer in May 2025. He has a career spanning three decades with Principal Financial Group. Prior to his current role, he served as Senior Vice President and Controller, and also as interim CFO starting in August 2024. His experience at Principal includes serving as CFO for international businesses, where he was responsible for global finance and strategy for emerging market operations, and he has also held the position of chief accounting officer.
Daniel J. Houston, Executive Chair of the Board of Directors
Daniel J. Houston transitioned to Executive Chair of the Board of Directors in January 2025. He previously held the positions of Chairman, President, and Chief Executive Officer of Principal Financial Group, a role he took on in 2015. Mr. Houston joined Principal in 1984 and has held several management positions, including senior vice president in 2000, executive vice president in 2006, and president of Retirement and Income Solutions in 2008. He was named president and chief operating officer in 2014.
Amy C. Friedrich, President, Benefits and Protection
Amy C. Friedrich serves as the President of Benefits and Protection, also referred to as President of U.S. Insurance Solutions, at Principal Financial Group.
Christopher J. Littlefield, President, Retirement and Income Solutions
Christopher J. Littlefield is the President of Retirement and Income Solutions for Principal Financial Group.
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The key risks to Principal Financial's business are:
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Sensitivity to Market Conditions and Interest Rates: Principal Financial's financial performance is significantly influenced by broader market conditions, economic downturns, and changes in interest rates. Fluctuations in these areas can impact the company's investment portfolio, leading to variations in financial results. Specifically, a sustained low interest rate environment or sudden shifts in interest rates can adversely affect profitability, financial condition, and liquidity. Periods of rising interest rates may necessitate offering more competitive crediting rates on insurance and annuity products, potentially narrowing profit margins if returns on invested assets do not keep pace. Furthermore, rapid increases in interest rates can trigger higher policy surrenders, withdrawals, and requests for policy loans.
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Net Outflows and Underperformance in Asset Management: The company faces ongoing challenges with persistent net outflows, particularly within its fee-focused businesses, such as Retirement and Income Solutions (RIS) and Principal Asset Management. These outflows can directly reduce assets under management (AUM) and subsequently impact fee-based revenue, posing a challenge to long-term growth prospects and market share in competitive segments. Mixed fund performance, with a relatively low percentage of funds outperforming benchmarks, further contributes to these outflows and raises concerns about future earnings growth.
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Cybersecurity Incidents and Technology Disruption: Principal Financial is exposed to the costs and risks associated with potential cybersecurity incidents or other technology disruptions. Given the company's reliance on technology, any disruption or delay in the implementation of new technological solutions, including artificial intelligence, could also pose significant risks to its operations.
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Proliferation of low-cost, AI-driven robo-advisors and direct-to-consumer investment platforms: These platforms offer automated investment management and financial advice at significantly lower costs, often with superior digital user experiences. This directly threatens Principal's traditional advisory services, wealth management, and retirement solutions by attracting younger investors, smaller plans, and individuals seeking more accessible, digital-first solutions, leading to fee compression and potential market share erosion.
Rapid growth and innovation of Insurtech companies: These digital-first insurance providers leverage advanced data analytics, AI, and streamlined online processes to offer life, disability, and annuity products that are often more personalized, quicker to underwrite, and potentially lower-cost than traditional offerings. This challenges Principal's U.S. Insurance Solutions segment by disrupting traditional distribution channels, accelerating customer expectations for digital experiences, and introducing new competitive pricing models.
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Principal Financial Group (PFG) operates within substantial addressable markets for its core products and services, primarily encompassing retirement solutions, asset management, and various insurance offerings, including group benefits.
Addressable Markets for Principal Financial Group's Main Products and Services:
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Principal Financial Group (PFG) is expected to drive future revenue growth over the next 2-3 years through several key strategic initiatives and market opportunities:
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Expansion within the Retirement Ecosystem: Principal Financial is strategically focused on leveraging its leadership in recordkeeping to grow its Retirement Ecosystem. This includes increasing Workplace Savings and Retirement Solutions (WSRS) transfer deposits and overall Retirement and Income Solutions (RIS) sales. The company has observed strong growth in WSRS transfer deposits and recurring deposits from small and mid-sized businesses (SMBs), indicating continued expansion in this segment.
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Growth in Global Asset Management: A significant driver of future revenue is anticipated from Principal Asset Management. This involves increasing gross sales in Investment Management, attracting net inflows into its ETF business, and expanding in private markets. The company plans to leverage privileged partnerships to scale its global asset management capabilities.
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Strength in Specialty Benefits Business: The Specialty Benefits segment is expected to continue contributing to revenue growth through favorable underwriting results and overall business expansion. Principal Financial emphasizes pricing discipline, which has led to strong underwriting performance and margin expansion in this area.
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Strategic Focus on Higher-Growth, Capital-Efficient Businesses: Following a strategic review, Principal Financial has sharpened its focus on its higher-growth, more capital-efficient businesses, specifically retirement in the U.S. and select emerging markets, global asset management, and U.S. specialty benefits and protection for small-to-medium-sized businesses. This refined portfolio and capital management strategy are designed to drive profitable growth and generate long-term value.
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Positive Market Performance and Fee-Based Revenue: While not directly controlled by the company, a favorable market environment, particularly stronger equity markets, is expected to increase customer account values. This, in turn, can lead to improved fee-based revenue for Principal Financial, as a significant portion of its income is tied to assets under management (AUM).
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The capital allocation decisions of Principal Financial (PFG) over the last 3-5 years have primarily focused on returning capital to shareholders through repurchases and dividends, alongside strategic investments in high-growth areas.
Share Repurchases
- In February 2024, the board authorized a share repurchase program of up to $1.5 billion, which has no expiration date.
- Principal Financial expects to conduct $800 million to $1.1 billion in share repurchases in 2024, as part of a total capital deployment target of $1.5 billion to $1.8 billion for the year.
- For the full year 2025, the company targets $700 million to $1 billion in share repurchases, within a total capital return goal of $1.4 billion to $1.7 billion.
Share Issuance
- The number of outstanding shares for Principal Financial has consistently decreased over the last few years, indicating net share repurchases rather than issuances. For instance, shares outstanding decreased from 0.27 billion in 2020 to 0.22 billion in 2025.
Outbound Investments
- Principal Financial is strategically expanding its investments in data centers, having raised $3.64 billion in capital for its Data Center Growth & Income Fund in March 2025, with the fund expected to capitalize more than $8 billion of hyperscale development assets.
- In October 2025, Principal partnered with Barings on a new $1 billion portfolio finance initiative to strengthen its private credit platform.
