Principal Financial - PFG STOCK NEWS

AM Best has affirmed the Financial Strength Rating of A+ (Superior) and Long-Term Issuer Credit Ratings of 'aa' for Principal Financial Group's (PFG) main insurance subsidiaries. The outlook remains stable.

The ratings reflect Principal's very strong balance sheet, strong operating performance, favorable business profile, and robust enterprise risk management. The company's risk-adjusted capitalization remains strong, though capital growth has been by parent company dividends. In 2022, PFG reduced product risk by reinsuring its retail fixed annuity and universal life insurance blocks, shifting focus to fee-based products.

The assessment highlights PFG's strong financial flexibility, liquidity profiles, and significant excess capital. However, AM Best notes higher allocations to commercial mortgages compared to peers and potential impacts from political and macroeconomic risks in key international markets.

Principal Financial Group (PFG) reported first quarter 2025 results with non-GAAP operating earnings per diluted share of $1.81, a 10% increase over the prior year quarter. The company achieved $718 billion in assets under management and $1.7 trillion in assets under administration.

Key highlights include returning $369 million of capital to shareholders through $200 million in share repurchases and $169 million in dividends. The company raised its Q2 2025 common stock dividend to $0.76 per share, representing a 7% increase over Q2 2024.

Segment performance showed mixed results: Retirement and Income Solutions saw recurring deposits up 9% to $13.8 billion, Principal Asset Management reported positive net cash flow in Mexico and SE Asia, Specialty Benefits improved its incurred loss ratio by 40 basis points, and Life Insurance business market premium increased 20%. However, total AUM net cash flow was negative at $(4.4) billion.

Principal Financial Group (Nasdaq: PFG) has scheduled the release of its first quarter 2025 financial results after U.S. markets close on Thursday, April 24, 2025. The company will host a conference call on Friday, April 25, 2025, at 10 a.m. ET, featuring Deanna Strable, president and CEO, and Joel Pitz, interim CFO, to discuss the results.

The earnings release, financial supplement, and presentation slides will be available on investors.principal.com. Principal Financial Group, a global financial company with a 145-year history, serves approximately 70 million customers and employs nearly 20,000 people as of December 31, 2024, focusing on improving wealth and well-being for people and businesses.

Principal Asset Management has appointed Matthew Peron as Deputy CIO of Equities and Portfolio Manager in a newly created position. Peron will work alongside George Maris, chief investment officer and global head of equities, to strengthen the firm's equities platform and drive innovation across global equity strategies.

In his role, Peron will serve as co-portfolio manager for the firm's international equity strategies, including international equity, diversified international, and European portfolios, which collectively manage $26 billion in assets. His responsibilities include shaping the overall strategy for the equities platform globally, ensuring alignment with client objectives, and enhancing risk-adjusted returns.

Principal Asset Management has launched the Principal Capital Appreciation Select ETF (LCAP), expanding its active ETF lineup to 12 funds with combined AUM of $5.9 billion. The new ETF will be managed by Principal Edge, which oversees $21.1 billion in AUM.

The launch comes amid growing interest in active ETFs, which saw net inflows exceeding $27.9 billion in 2024. The fund aims to invest in high-quality U.S. companies with competitive advantages and growing cash flows, managed by portfolio managers Toby Jayne and Dan Coleman.

The ETF is designed to provide investors with stability and long-term capital growth, offering active management flexibility to navigate market uncertainty, identify undervalued opportunities, and mitigate downside risks.

SS&C Technologies Holdings (Nasdaq: SSNC) has announced the extension of its transfer agency relationship with Principal Asset Management, the investment management division of Principal Financial Group (Nasdaq: PFG). SS&C will continue providing comprehensive fund services to Principal's portfolio of 114 mutual funds, encompassing 467 mutual and retail alternatives share classes, managing approximately $160 billion in assets.

Through SS&C Global Investor & Distribution Solutions (GIDS), the company will deliver transfer agency and digital investor services, including investor communications, document processing, and anti-money laundering services. Principal's diverse investment offerings span over 50 fund types across equity, fixed income, real estate, and alternative strategies, serving both individual and institutional investors.

Principal Financial Group has been named one of the 2025 World's Most Ethical Companies® by Ethisphere, marking its 14th recognition for ethical business practices. The company joins an elite group of 136 companies across 19 countries and 44 industries worldwide.

President and CEO Deanna Stable emphasized that ethical business practices are important for building customer trust and contributing to long-term success. Companies recognized on the 2025 list outperformed a comparable index of global companies by 7.8 percentage points from January 2020 to January 2025.

The selection process utilizes Ethisphere's Ethics Quotient® framework, requiring companies to provide over 240 proof points on various aspects including ethics and compliance, governance, culture, environmental and social impact, and value chain initiatives.

Principal Financial Group reveals that 60% of retirement savers have reduced, stopped, or withdrawn contributions at some point, according to a recent survey. Despite these setbacks, 50% managed to catch up to their original savings trajectory. 78% of those who paused contributions eventually resumed saving.

The survey identified key reasons for reducing savings, including high monthly expenses, lower income, unexpected life events, and debt repayment. Essential expenses, house down payments, and job loss were primary drivers for withdrawals. Three-quarters of respondents felt they had no alternative when modifying their retirement contributions.

Among top savers (those contributing 15%+ of annual income), 65% also utilized IRAs compared to 39% of lower-contribution savers, indicating a trend toward diversifying retirement investment vehicles beyond 401(k) plans. Notably, 40% of these high-contribution savers had previously paused or modified their retirement savings at some point.

Principal Asset Management has successfully closed its Principal Data Center Growth & Income Fund with a substantial $3.64 billion capital raise, exceeding the target from a diverse global investor base. The fund, which represents Principal's third discretionary data center-focused vehicle, is expected to capitalize over $8 billion of hyperscale development assets across the United States in partnership with Stream Data Centers.

The fund closure strengthens Principal's position in digital infrastructure investments, with Principal Real Estate managing over $100 billion in global real estate assets. As a top 10 global real estate manager, Principal Real Estate has been investing in data centers since 2007, currently maintaining data center assets under management and a construction pipeline valued at $11 billion.