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Principal Financial Group, Inc. (PFG) is a global financial services company that provides a diverse range of financial products and services through several key segments . The company offers retirement products, investment solutions, and insurance services, primarily targeting businesses and their employees . PFG's comprehensive suite of offerings allows it to maintain a strong market position and leverage synergies across its segments .
- Retirement and Income Solutions - Provides retirement products and services, including defined contribution plans, pension risk transfer, and individual annuities, primarily to businesses and their employees .
- Principal Asset Management - Offers global investment solutions across various asset classes to institutional, retirement, retail, and high net worth investors .
- Benefits and Protection - Focuses on insurance solutions, providing group dental, life, disability insurance, and supplemental health products, primarily targeting small-to-mid-sized businesses .
- Corporate - Manages capital not allocated to other segments and includes results from Principal Securities, Inc. .
| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Daniel J. Houston ExecutiveBoard | Chairman, President, and CEO | Member of boards: Iowa Business Council, Greater Des Moines Partnership, Employee Benefits Research Institute, Partnership for a Healthier America, Community Foundation of Greater Des Moines. | Joined PFG in 1984; CEO since 2015; led transformation into a global investment management leader. | |
Amy Friedrich Executive | President, Benefits and Protection | None listed. | Joined PFG in 2000; oversees insurance businesses; expanded PFG's footprint in small and midsized workplace markets. | |
Christopher Littlefield Executive | President, Retirement and Income Solutions | None listed. | Joined PFG in 2020; previously EVP and General Counsel; led significant growth in Pension Risk Transfer business. | |
Deanna Strable Executive | President and COO (CEO effective Jan 2025) | None listed. | Joined PFG in 1990; previously EVP and CFO; instrumental in driving strategy and growth; set to become CEO in January 2025. | |
Joel Pitz Executive | Interim CFO | None listed. | Joined PFG in 1995; previously SVP and Controller; extensive experience in financial management and strategy execution. | |
Kamal Bhatia Executive | President and CEO, Principal Asset Management | None listed. | Joined PFG in 2019; previously COO of asset management; extensive leadership in asset management and private credit. | |
Kenneth McCullum Executive | EVP and Chief Risk Officer | None listed. | Joined PFG in 2015; previously SVP and Chief Risk Officer; extensive experience in risk management and actuarial leadership. | |
Natalie Lamarque Executive | EVP, General Counsel, and Secretary | None listed. | Joined PFG in 2022; previously General Counsel at New York Life; extensive legal and compliance expertise. | |
Thomas Cheong Executive | EVP and President, Principal Asia | None listed. | Joined PFG in 2015; oversees operations in Asia; extensive leadership in North Asia markets. | |
Vivek Agrawal Executive | EVP and Chief Growth Officer | None listed. | Joined PFG in 2023; previously Senior Partner at McKinsey; focuses on driving growth in retirement, asset management, and benefits. | |
Blair C. Pickerell Board | Board Member | Member of boards: Link REIT, Dah Sing Banking Group, First Pacific Company; Member of Tracker Fund of Hong Kong Supervisory Committee. | Director since 2015; extensive leadership in asset management and Asia-Pacific markets; fluent in Mandarin. | |
Clare S. Richer Board | Board Member | Member of boards: Bain Capital Specialty Finance, State Street Global Advisors SPDR ETF Funds; Trustee at University of Notre Dame. | Director since 2020; former CFO of Putnam Investments; extensive expertise in finance and governance. | |
Claudio N. Muruzabal Board | Board Member | Chief Business Officer at SAP; Member of Harvard Business School Association of Hong Kong. | Director since 2021; extensive leadership in technology and international operations; recognized as a top Hispanic IT professional. | |
Diane C. Nordin Board | Board Member | Member of boards: Fannie Mae, Antares Capital, Wellington Trust Company; Trustee at Financial Analysts Foundation and Financial Accounting Foundation. | Director since 2017; extensive experience in asset management and governance; former partner at Wellington Management. | |
Jocelyn Carter-Miller Board | Board Member | Member of boards: Arlo Technologies, Interpublic Group, Backblaze; involved in nonprofit boards. | Director since 2001; extensive marketing and operational leadership experience; recognized as a top corporate director. | |
Mary E. Beams Board | Board Member | CEO of Long-Term Stock Exchange; Member of Salesforce Global Advisory Board. | Director since 2021; extensive experience in financial services and ESG; former board member of BrightSphere Investment Group. | |
Scott M. Mills Board | Lead Director | None listed. | Director since 2016; Lead Director since 2020; President and CEO of BET Media Group; extensive experience in media and finance. |
- Can you elaborate on the measures you're taking to address the outflows in PGI, especially from lower fee and yield products, and how you plan to reverse this trend to improve net cash flows?
- With the slight uptick in participant withdrawal rates among older cohorts, particularly as the baby boomer generation enters peak retirement years, how do you anticipate this impacting your retirement business, and what strategies are you implementing to mitigate potential negative effects?
- Given the elevated severance costs in the RIS and PI segments during the quarter, should we anticipate further restructuring expenses in the near future, and how will this impact your operating margins and expense management initiatives?
- Despite the strong net cash flows in Principal International this quarter, can you discuss the sustainability of this performance considering potential FX headwinds and macroeconomic challenges in key markets like China and Southeast Asia?
- Since you expect lower real estate-related performance fees this year due to the nature of the current real estate cycle, how do you plan to compensate for this decrease to maintain earnings growth in Principal Asset Management?
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
Institutional Retirement & Trust (IRT) | 2019 | Completed acquisition for $1.2 billion in cash at closing with an additional earn-out of up to $150 million contingent on fee revenue retention through 2020, funded partly by $500 million of senior notes at 3.7% maturing in 2029. This strategic deal doubled Principal's U.S. retirement business by acquiring key capabilities in defined contribution, defined benefit, executive deferred compensation, and related services, also transitioning approximately 2,500 employees. |
Recent press releases and 8-K filings for PFG.
- 8-K filing details the annual shareholders meeting held on May 20, 2025, where director nominees were elected and advisory votes conducted.
- The report includes voting results for director elections, an executive compensation advisory vote, and the ratification of the independent auditor's appointment.
- Joel Pitz has been named Executive Vice President and Chief Financial Officer, effective immediately, succeeding Deanna Strable, as announced in the 8-K release.
- Pitz, a Principal veteran since 1995, most recently served as interim CFO and held roles including Senior Vice President, Controller, and CFO for international businesses.
- His compensation includes a base salary of $552,500, a target annual incentive of 200% of base salary, and a long-term incentive target of $2,348,125 in restricted stock units.
- Principal Financial Group reported Q1 2025 non‐GAAP operating earnings of $439 million ( ) versus $415M (), with EPS of $1.92 compared to $1.81, reflecting a 10% increase year-over-year.
- Capital returns totaled $370 million, including $200 million in share repurchases and $170–200 million in dividends, with the dividend raised to $0.76 for Q2 2025 ( ).
- Total company-managed AUM reached $718 billion, aided by a positive foreign exchange impact of $8 billion ().
- Strong performance in retirement and asset management segments was highlighted by $800 million in pension risk transfer volume and robust cash flows ().
- Additional key metrics included a 14.0% ROE, 84% TTM free cash flow, and deposit growth in core segments of 9%-12% ( ).
- 8-K filing dated April 17, 2025 by Principal Financial Group provides key updates on the company’s financial status.
- The report discloses $717.9 billion in assets under management as of March 31, 2025, with $555.8 billion managed domestically and $133.5 billion managed internationally.
- It highlights that a combination of foreign currency translation, market performance, and other factors contributed an approximate 1.4% positive impact on AUM.
- Principal Financial Group, Inc. exercised its put option on March 19, 2025, exchanging a portfolio of U.S. Treasury securities for $400M of 2028 Senior Notes, as part of its contingent liquidity funding arrangement.
- The company waived its right to repurchase the notes and oversaw the dissolution of High Street Funding Trust I on March 20, 2025, with the 2028 Notes subsequently delivered to the beneficial holders of the 2028 P-Caps.