Principal Financial Stock Price, News & Analysis

Principal Financial Group (Nasdaq: PFG) has successfully completed a reinsurance transaction involving its U.S. retail fixed annuity and universal life insurance blocks with an affiliate of Sixth Street. This deal reinsures approximately $25 billion of in-force statutory reserves, generating deployable proceeds of about $800 million. The transaction aims to enhance capital efficiency, allow for increased share repurchases of $2.0 billion-$2.3 billion, and improve future financial performance, including a target return on equity of 15% by 2023.

Principal Global Investors has launched the Principal Real Estate Active Opportunities ETF (Ticker: BYRE), its first semi-transparent ETF, now available on the New York Stock Exchange. This actively managed ETF focuses on non-traditional REIT sectors such as data centers and life sciences, aiming for total returns and enhancing portfolio resilience. As non-traditional sectors represent 64% of the public REIT market and have shown better performance over the past decade, the ETF targets investors seeking growth amid inflation.

Principal Financial Group (NASDAQ: PFG) has appointed H. Elizabeth Mitchell to its Board of Directors. Mitchell, who previously served as President and CEO of Renaissance Reinsurance, brings extensive operational experience and leadership from the insurance sector. Her background includes tenures at Platinum Underwriters Reinsurance and St. Paul Companies. Mitchell has been recognized as a leader in the industry, earning multiple accolades throughout her career, including being named Insurance Woman of the Year in 2007. Her addition is expected to enhance Principal's strategic focus on capital efficiency and growth initiatives.

Principal Financial Group has appointed Owais Rana as the head of liability-driven investing (LDI) within Principal Global Investors. This newly created role aims to enhance the firm’s pension servicing capabilities, managing $21.5 billion in liability-oriented investment portfolios. With over 20 years of experience, Rana’s expertise is expected to address pressing pension management needs. Principal is a leader in defined benefit pension plans and is focused on expanding its LDI segment.

Principal Financial Group reveals an encouraging trend in the latest Principal Financial Well-Being Index, showing that 68% of U.S. businesses report financial improvement compared to last year. Notably, 53% of businesses are increasing hiring, significantly up from 32% last year. Employers are also enhancing wages and benefits to attract talent. However, challenges such as inflation and recruitment difficulties persist. Moreover, 27% of employees left their jobs due to retirement, indicating potential staffing impacts from an aging workforce.

Principal Global Investors announced an expansion of its model portfolio offerings, featuring 37 new portfolios aimed at enhancing customization, efficiency, and scalability for financial advisors. The portfolios are categorized into four risk-based suites, integrating mutual funds, ETFs, and direct index options. Collaboration with Smartleaf Asset Management has resulted in a fintech-enabled platform that automates tax management and meets ESG preferences. Principal now offers 62 model portfolios, managing approximately $579.4 billion in assets across various client bases.

Principal Financial Group® (PFG) reported a net income of $376 million for Q1 2022, down from $517 million in Q1 2021. Non-GAAP operating earnings increased to $429 million from $424 million, with diluted EPS of $1.43 compared to $1.87 last year. The company returned $891 million to shareholders, including $724 million in buybacks. A $0.64 dividend per share was declared for Q2 2022, marking an 11% annual increase. PFG's assets under management totaled $714 billion. Despite market volatility, the results reflect strong operational performance and positive cash flow.

Principal Financial Group has announced the launch of the Global Financial Inclusion Index, set to debut in September. This inaugural Index, conducted in partnership with the Centre for Economics and Business Research, will analyze key factors influencing financial inclusion across over 40 markets. With a focus on understanding consumer perceptions and government initiatives, the Index aims to provide actionable insights to address financial gaps. The initiative aligns with Principal's commitment to enhancing financial security and will assess barriers to access in financial products and services.