PFGNasdaqAccident & Health InsuranceUS GAAP · USD

Principal Financial Group Inc

Principal Financial Group is a U.S.-based financial services company organized around retirement, asset management, and insurance businesses. Its operating platform includes retirement plan services, investment management, individual life and disability insurance, annuities, trust and custody services, and banking products through affiliated entities and subsidiaries.

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Revenue15.6bn USD
−3.1 %y/y
Net income1,185m USD
−24.6 %y/y

Fiscal year 2025 · change from previous year

Development 2020–2025

05101520bn USD2020: 3.8 bn USD20202021: 14.3 bn USD20212022: 17.5 bn USD20222023: 13.7 bn USD20232024: 16.1 bn USD20242025: 15.6 bn USD202515.6
RevenueOperating profit (EBIT)
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Business

Share of revenue
Retirement and Income Solutions35 %

Retirement plan services, annuities, and related income products for employers and individuals.

Principal Asset Management25 %

Fee-based investment management and advisory services across public and private asset classes.

Benefits and Protection15 %

Individual life, disability, and specialty benefits insurance products.

Principal Bank and Trust Services15 %

Banking, custody, trustee, and cash management services tied to retirement and institutional clients.

Corporate and Other10 %

Corporate investments, broker-dealer activities, and exited or non-core businesses.

Customers

Principal Financial Group serves employers sponsoring retirement plans, individual savers, and institutional investors that need investment management or custody services. It also sells protection products to individuals and distributes many products through financial representatives, brokers, broker-dealers, and affiliated channels. Its trust and banking services are used by retirement participants, plan sponsors, and institutional clients that need administration, custody, or cash solutions.

Employer-sponsored retirement plans

Buy recordkeeping, administration, and participant services for defined contribution and other plans

Individual retirement savers

Buy IRAs, annuities, and rollover-oriented cash solutions for retirement accumulation and income

Institutional and retail asset management clients

Buy investment management across equity, fixed income, real estate, and alternatives

Insurance policyholders

Buy individual life, disability, and specialty benefits protection products

Trust and custody clients

Buy trustee, custodial, and administrative services for retirement and non-retirement assets

Strategy

Principal Financial Group’s strategy centers on growing retirement-related assets and fee-based businesses while using insurance and banking capabilities to support customer retention. It emphasizes distribution through affiliated representatives, independent brokers, broker-dealers, and institutional relationships, while managing investment risk through asset-liability matching and diversified portfolios. The company also seeks to expand internationally where its retirement and asset management capabilities can be adapted to local market structures.

Increase retirement and rollover asset gatheringMedium term

Retirement assets create recurring fees, deposits, and cross-sell opportunities

Expand fee-based asset managementMedium term

AUM-driven fees diversify earnings away from pure insurance risk

Strengthen distribution partnershipsShort term

Access to brokers, advisers, and broker-dealers broadens product reach

Maintain investment and liquidity discipline

Insurance and retirement liabilities require stable asset returns and liquidity

Geography

Principal Financial Group is headquartered in the United States and generates most of its business there through retirement, insurance, and asset management operations. It also operates internationally, including businesses in select emerging markets such as Chile and Mexico, which adds foreign currency and local regulatory exposure. The company’s investment management platform serves clients in the U.S. and abroad, while some products and fee structures differ by market, such as Chile’s mandatory retirement system.

Risks

Principal Financial Group is exposed to market, credit, interest-rate, and insurance underwriting risk because many products depend on investment performance, policyholder behavior, and long-duration liabilities. It also faces cybersecurity, vendor, fraud, and international regulatory risks, with foreign operations adding currency, political, and legal uncertainty. Changes in capital markets, claim experience, or reserve assumptions can materially affect reported results and capital needs.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Interest rate and credit spread risk1Cybersecurity and technology disruption2Insurance reserve and claim experience risk3International political and regulatory risk4Fraud and vendor dependency5
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. Interest rate and credit spread riskImpact: HighLikelihood: Medium

    Insurance and retirement products rely on investment income and asset-liability matching

    Exposure: Investment portfolio and policy liabilities

  2. Cybersecurity and technology disruptionImpact: HighLikelihood: Medium

    The company stores sensitive customer and plan data across internal and third-party systems

    ExposureCustomer recordsPaymentsService continuity
  3. Insurance reserve and claim experience riskImpact: HighLikelihood: Low

    Benefits, claims, and policyholder behavior depend on actuarial assumptions and experience

    ExposureLifeDisabilityAnnuityClosed blocks
  4. International political and regulatory riskImpact: MediumLikelihood: Medium

    Emerging-market operations can be affected by local reforms, capital controls, and legal changes

    ExposureChileMexicoOther non-U.S. businesses
  5. Fraud and vendor dependencyImpact: MediumLikelihood: Medium

    Third-party service providers and fraudsters can create losses, delays, and reputational damage

    ExposureClaims processingAdministrationCustomer support
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Accounting

Judgemental items
Insurance reserves and policy benefit liabilities

Reserve estimates affect reported earnings and can change with mortality, lapse, and claim experience

Impact: Life, disability, annuity, and long-term policy liabilities

Fair value of funds withheld embedded derivative

Changes in fair value can create earnings volatility in reinsurance-related balances

Impact: Net realized gains/losses and net income

Goodwill and intangible asset impairment

Acquired businesses and reporting units must be tested for impairment using fair value estimates

Impact: Balance sheet carrying values and impairment charges

Deferred tax asset valuation allowance

Recoverability depends on future taxable income and tax planning strategies

Impact: Income tax expense and equity

Credit loss allowance on fixed income investments

Management judgment on issuer quality and recovery prospects affects investment carrying values

Impact: Investment income and capital position

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Last updated: 24/09/2026

Principal Financial Group Inc (Nasdaq) – Accident & Health Insurance | Financial Analysis – Clarifo