Principal Financial Group, Inc. - PFG STOCK NEWS

Principal Financial Group has introduced Principal Strategic Income, a new Registered Index-Linked Annuity (RILA) designed to provide guaranteed lifetime income for retirees. The product comes amid a growing demand for annuities, driven by an aging U.S. population, volatile markets, and rising inflation. The Secure Income Protector rider offers two income options: a fixed annual amount or a tiered amount that adjusts based on account value. The annuity allows for a one-time change in income options before withdrawals begin. It is available through financial professionals and aims to help retirees manage their savings and ensure stable income regardless of market performance.

Principal Financial Group (Nasdaq: PFG) will release its Q2 2024 financial results on July 25, 2024, shortly after U.S. markets close. A conference call is scheduled for July 26, 2024, at 10 a.m. ET, where Chairman and CEO Dan Houston and CFO Deanna Strable will discuss the results. Additional details, including earnings releases and slides, will be available on the company's investor website.

The call can be accessed via webcast or phone, with options for U.S., Canadian, and international callers. Principal Financial Group is a global financial company with nearly 20,000 employees, serving over 62 million customers. Recognized for ethical practices and inclusion, Principal continues to focus on improving wealth and well-being while fostering community and workforce diversity.

According to the latest Principal Retirement Security Survey, 59% of employees not contributing to their 401(k) or workplace retirement plan mistakenly believe they are. Additionally, 77% of these workers thought they began saving as soon as they were eligible. Misconceptions, combined with inflation and high interest rates, hinder Americans' retirement goals. Among those not saving, top reasons are high expenses (39%), debt (36%), and insufficient income (34%). Principal advocates for automated features like auto enrollment to improve participation; 62% of employees would continue saving if auto-enrolled. Plans with auto enrollment show significantly higher participation rates. A third of employees haven't considered how much to save, though 44% who have think 10-25% is necessary.

Principal Asset Management has launched the Principal Private Credit Fund I, targeting lower and core middle market loans with over 90% exposure to private credit. This fund aims to provide enhanced yield and return potential through a disciplined credit investment process. Direct lending, which offers a yield premium and floating rate structure, has become attractive due to its strong performance in higher interest rate environments. The fund targets senior secured first lien loans with reasonable leverage levels and financial covenants. Principal Alternative Credit, the fund's management team, consists of over 30 experienced professionals and has surpassed $2 billion in borrower commitments as of December 31, 2023. This launch is designed to meet the needs of investors seeking income-driven returns and diversification.

Principal Financial Group has launched a 12-month immersive Apprentice Program aimed at recruiting individuals without a four-year degree. The program targets applicants from career readiness programs through community colleges, nonprofits, and organizations supporting military veterans. Apprentices will be hired for roles in operations, customer service, and sales administration at Principal's global headquarters in Des Moines, earning a full salary and benefits. This initiative aligns with Principal's commitment to expanding financial security and adapting to modern workforce trends. The program includes on-the-job training and peer group learning.

Principal Financial Group announced a definitive agreement to acquire Ascensus' employee stock ownership plan (ESOP) business. This acquisition will bring around 800 plans and over 165,000 participants to Principal's workplace savings and retirement solutions, solidifying its position as the top ESOP service provider in the U.S. The transaction, set to close by the end of Q2 2024, includes Ascensus' ESOP recordkeeping business, ESOP Economics consulting group, and Telescope™ software. Clients and employees will transition to Principal, benefiting from enhanced digital access, support tools, and audit process improvements. The acquisition aims to strengthen Principal's systems and capabilities, providing greater value and enhanced services to ESOP clients. The increased interest in ESOPs aligns with broader market trends, as the number of newly created ESOPs rose 39% from 2020 to 2021. Financial terms were not disclosed.

Principal Asset Management announced the launch of a new private infrastructure debt capability. This initiative aims to provide safety, stability, and enhanced returns for investors amidst constrained financing markets.

Mansi Patel, appointed as senior managing director and head of infrastructure debt, will lead the operations, growth, and strategy of this new venture. The new capability will invest in a diversified portfolio of private infrastructure debt focusing on globalization, decarbonization, and electrification.

This investment strategy promises higher risk premiums and lower default risk compared to public market sector equivalents. Patel will report to Todd Everett, global head of private markets at Principal Asset Management.

The Principal Financial Well-Being Index reveals businesses are poised for growth despite employee optimism lagging behind. The survey shows strong levels of growth and optimism among business owners and leaders, even in the face of high inflation. Businesses are looking to increase staff, invest in expansion, and upgrade infrastructure, signaling a positive economic outlook. However, employees are less positive about the economy, with only one-third feeling optimistic compared to two-thirds of employers.