Principal Financial Group, Inc. reports developments in financial services businesses that span retirement and income solutions, Principal Asset Management, and benefits and protection. Company news commonly covers quarterly earnings, common stock dividend actions, segment trends, assets under management, and credit rating actions tied to its life insurance operating subsidiaries.
Recurring updates also address workplace benefits administration, including enrollment technology integrations, and employer research such as the Principal Financial Well-Being Index. Other company-specific developments include governance and legal leadership changes, risk management commentary, and operating themes across retirement, insurance, asset management, and small-to-midsize business benefits markets.
Principal Financial Group announced the retirement of Renee Schaaf, president of Retirement and Income Solutions, after over 41 years. Chris Littlefield, previously executive vice president and general counsel, will succeed her starting April 1. Littlefield brings extensive experience from prior leadership roles at Fidelity & Guaranty Life Insurance and Aviva USA. Under Schaaf, Principal expanded its retirement business significantly, notably through the acquisition of Wells Fargo Institutional Retirement and Trust, establishing it as a top three retirement provider in the U.S.
Principal has partnered with the Premier Hockey Federation (PHF) as its exclusive financial services marketing partner, highlighting a commitment to women's sports. This partnership aims to enhance player salaries, with 50% of league revenue allocated for this purpose. The PHF has received a $25 million investment to improve player experiences and expand the league from six to eight teams. Principal's sponsorship includes significant advertising during PHF games and a campaign to promote female athletes, reflecting its dedication to gender equity in sports.
AM Best has maintained the Credit Ratings of Principal Financial Services, Inc. (PFG) and its subsidiaries following the January 31, 2022, announcement regarding the cession of in-force U.S. retail fixed annuities and universal life insurance with secondary guarantee blocks to Sutton Cayman, Ltd. This strategic shift aligns with Principal's June 2021 review, impacting statutory reserves of $16 billion (annuity) and $9 billion (ULSG). The transaction will close in Q2 2022, with Principal retaining administration responsibilities and appointing Principal Global Investors, LLC for asset management.
Principal Financial Group (PFG) announced a reinsurance agreement with an affiliate of Sixth Street covering approximately $16 billion and $9 billion in U.S. retail fixed annuity and universal life insurance blocks. This deal is expected to yield $800 million in deployable proceeds, enhancing the company's capital efficiency. Principal plans to return up to $4.6 billion to shareholders through share repurchases and dividends between 2021 and 2022, reflecting strong operating performance and market conditions. The transaction aims to bolster future earnings per share and return on equity.
Principal Alternative Credit, a direct lending business of Principal Global Investors, reported a more than eight-fold increase in committed capital at the end of 2021, with nearly 40 transactions closed, totaling over $750 million. The firm targets middle market companies with EBITDA of $5 million or more, with transaction sizes between $25 million and $200 million. Looking ahead to 2022, they aim to issue commitments of $1.5B and expand their team to enhance their lending capabilities.
Principal Financial Group (Nasdaq: PFG) will announce its fourth quarter and full year 2021 financial results on February 7, 2022, after U.S. market close. A conference call is scheduled for February 8, 2022, at 10 a.m. ET, featuring CEO Dan Houston and CFO Deanna Strable, providing insights into the results. Investors can listen to the live call via principal.com/investor or dial in at 833-875-0582 (U.S.) or 216-562-0095 (international). An audio replay will be available shortly after the call.
Principal Financial Group has been recognized as the No. 3 Best Place to Work in Money Management by Pensions & Investments for 2021, marking its 10th consecutive year on this list. This achievement places Principal Global Investors among only five firms to receive this recognition since the program began. With approximately $577.4 billion in assets under management, Principal Global Investors ranks as the 26th largest institutional asset manager globally.
The Principal Financial Well-Being Index indicates SMBs are increasingly hiring, with 42% reporting staff increases compared to 19% in November 2020. Financial health is improving, with 67% of businesses noting advancements, up from 44% last year. However, uncertainties remain, as only 46% of smaller businesses feel confident about their financial outlook for the next 12 months. Rising employee turnover is a challenge, with 67% of smaller business employees voluntarily leaving. Additionally, childcare support is now prioritized as a key benefit to attract talent.
Principal announced that its private equity and European core property strategies received 4-star ratings from GRESB for 2021, ranking in the top 40% of global participants. This marks the sixth consecutive year for the core strategies to achieve this rating, showcasing a commitment to ESG integration in investment practices. Of the eight submitted strategies, all outperformed peer averages in management categories. The GRESB benchmark saw a 24% growth in participation, covering $5.7 trillion in AUM, highlighting increasing investor interest in ESG standards.
In 2022, non-profit organizations are increasingly prioritizing 403(b) retirement plans focused on guaranteed income, with over double the plan sponsors emphasizing this compared to the previous year, per a survey by the Plan Sponsor Council of America. The survey of 139 organizations revealed a 45% rise in financial wellness tool prioritization. While 60% of sponsors aim to maintain existing plans, 89.1% have not changed employer contributions, demonstrating resilience amid financial uncertainties. Virtual education methods are also on the rise, suggesting lasting shifts in employee education strategies.