Principal Financial Stock Price, News & Analysis

Principal Financial's latest Well-Being Index reveals a significant decline in U.S. business confidence, dropping to 6.02 out of 10 in H1 2025, the lowest since November 2020. The small-to-midsized business index fell 14% to 5.69, marking the steepest decline on record. Only 16% of employers believe the U.S. economy is growing, down 24 points from June 2024. Despite economic concerns, 56% report individual business growth, and 90% are maintaining or growing their workforce. Top concerns include inflation (55%), economic stability (55%), and recession fears (49%). Business optimism dropped to 36% from 59% in November 2024. Companies are focusing on operational efficiency and cost control measures while preserving staffing and benefits, with 95% affected by supply chain disruptions.

Principal Financial Group (Nasdaq: PFG) has appointed Joel Pitz as executive vice president and chief financial officer, effective immediately. Pitz, a 30-year veteran of Principal, succeeds Deanna Strable, who became president and CEO in January 2025. Prior to this appointment, Pitz served as senior vice president and controller, and interim CFO since August 2024. His previous roles include CFO for international businesses, overseeing global finance and strategy for emerging market operations, and chief accounting officer.

Deriva Energy has secured a $127 million debt financing for two operational energy projects. The financing, provided by Principal Asset Management and MetLife Investment Management, covers the 207 MW Ledyard Wind facility in Iowa and the 250 MW Pisgah Ridge Solar facility in Texas. Both facilities, operational since 2022, have long-term power purchase agreements with corporate buyers.

The deal represents Deriva's second financing arrangement with these firms since Brookfield's acquisition of Deriva in October 2023, following a $207 million transaction in October 2024. The financing was completed despite market challenges related to tariffs and international trade policy uncertainties.

Principal Financial Group has been named one of the 2025 World's Most Ethical Companies® by Ethisphere, marking its 14th recognition for ethical business excellence. This prestigious acknowledgment highlights Principal's commitment to integrity and corporate responsibility.

Under the leadership of CEO Deanna Strable, Principal demonstrates its dedication to ethical practices through robust governance, compliance programs, and employee engagement initiatives. The company joins an elite group of 136 organizations across 19 countries and 44 industries.

Notable achievements include:

• Outperformance of comparable global companies by 7.8 percentage points (Jan 2020-Jan 2025)
• Evaluation through Ethisphere's Ethics Quotient®, requiring over 240 proof points
• Assessment of ethics, compliance, governance, environmental and social impact

This recognition reinforces Principal's focus on building trust with customers and communities while pursuing its mission to expand access to financial security.

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.