Principal Financial Stock Price, News & Analysis

Principal Financial Group has introduced the Principal® Intelligent QDIA, a hybrid qualified default investment alternative, aimed at enhancing personalized investment strategies for employer-sponsored retirement plans. This solution combines target date strategies and managed account services to cater to participants' evolving needs. Younger participants will default into target date funds, while individuals aged 45 and above will shift to a managed account for customized strategies. Research indicates that personalized advice significantly boosts investment confidence. With a growing trend of hybrid QDIAs, 86% of plan sponsors project target date funds with managed accounts will dominate by 2030.

AM Best has affirmed the Financial Strength Rating of A+ (Superior) and Long-Term Issuer Credit Ratings of 'aa' (Superior) for Principal Life Insurance Company and Principal National Life Insurance Company, both operating under Principal Financial Group, Inc. (PFG). The ratings reflect Principal's very strong balance sheet, strong operating performance, and robust risk management. Risk-adjusted capitalization is rated very strong, though limited capital growth due to parent company dividends is noted. The outlook remains stable despite potential political and macroeconomic risks in international markets.

Principal Financial Group aims to enhance financial equity for women, addressing the growing number of women-owned businesses, which now total 1.24 million. Despite rising ownership, women still experience worse financial outcomes than men due to limited access to financial products and capital. Committed to doubling support for women and minority-owned businesses by 2025, Principal provides access to capital through partnerships like the First Women's Bank. The company also emphasizes pay equity and has ranked best in class for managing pay equity among financial services firms. With 54% of its workforce being women, Principal supports initiatives for women's empowerment and inclusion.

Principal Financial Group (Nasdaq: PFG) announced its 2023 and long-term financial guidance, highlighting a projected non-GAAP operating earnings per share (EPS) growth of 3-6% for 2023. Key updates include a reorganization of reporting segments, with Retirement and Income Solutions and Principal Asset Management as focal points. The company anticipates macroeconomic challenges affecting assets under management, while long-term targets include an annual EPS growth of 9-12% and a 14-16% return on equity (ROE). Guidance for various segments indicates expected revenue growth, with notable variations in operating margins.

Principal Financial Group (Nasdaq: PFG) announced the integration of its global asset management and international pension businesses under Principal Asset Management. This restructuring aims to enhance global and local investment capabilities, delivering better client support across over 80 markets. Patrick Halter will lead the integrated unit, supported by a global leadership team with heads for private, public, and multi-asset investments. This move is expected to drive growth in asset management, aligning client needs with global offerings. Financial reporting changes will begin in Q1 2023, with additional insights on the company's outlook provided on March 2.