Principal Financial Group

What Principal Financial Group does

Principal Financial Group is a publicly traded (NASDAQ: PFG), 146-year-old global financial services company headquartered in Des Moines, Iowa, operating across retirement, asset management, and insurance/benefits businesses. The company serves over 75 million customers globally, including more than 90,000 small and midsize employers, and reaches customers through an affiliated independent financial professional network (Principal Financial Network), direct digital self-service via principal.com, enterprise field sales, and HR/payroll API integrations including Employee Navigator. Its product portfolio spans 401(k) and 403(b) retirement plans, IRAs, annuities, group benefits (dental, vision, life, disability, supplemental health), individual disability, estate planning, mutual funds, ETFs, private markets, and real estate investment management under Principal Asset Management and Principal Real Estate Investors (>$100B AUM).

The technology platform is a digitally transforming, API-ready benefits and retirement stack that unifies HR/payroll integrations, cross-product data aggregation, and a hybrid human-plus-digital service model. Core offerings include the Principal SimpleInvest digital investing platform, the Principal Fit four-fund fixed income ETF suite, evidence of insurability processing via Employee Navigator API, and digital tools such as the Retirement Wellness Planner and Income Protection Calculator. AI adoption has scaled to roughly 17,000 of its ~19,000 employees, with public demonstrations of AI agent implementations at the WSJ Technology Council Summit.

The business model combines recurring insurance premiums across dental, vision, life, disability, and supplemental health with fee-based revenue from $781B AUM in retirement, mutual funds, ETFs, and institutional mandates. Group benefits and retirement plans are priced on a customized quote basis for employers, with annual billing. Capital deployment of $1.5-$1.8B is targeted for 2026, supported by an AM Best A+ (Superior) Financial Strength Rating, 17 consecutive years of dividend increases, and a raised 15-17% ROE target. International pension operations span China, Brazil, Chile, and Mexico, with Asia Pacific offices across Hong Kong, Indonesia, India, Philippines, Thailand, Malaysia, and Singapore.

Name

Principal Financial Group

Legal name

Principal Financial Group, Inc.

Website

https://www.principal.com

Company type

Public

Founded year

1879

Operating status

Operating

Headcount range

5,001–10,000 employees

Short description

Principal Financial Group is a publicly traded global financial services company providing retirement, asset management, and group benefits products to over 75 million customers and 90,000+ small and midsize employers, distributed through an affiliated financial professional network, digital platform, and HR/payroll API integrations.

Ownership category

akta.pro rank

Product category

Financial Services — Retirement, Insurance, and Asset Management

NAICS

Portfolio Management and Investment Advice (523940), Pension Funds (525110), Funds, Trusts, and Other Financial Vehicles (525)

SIC

Investment Advice (6282), Life Insurance (6311), Security Brokers, Dealers & Flotation Companies (6211)

akta.pro primary industry

Retirement & Pension Wealth (401(k)/IRA/SIPP/Superannuation Retail) (FSAAAAAJ)

akta.pro secondary industries

Employer Retirement Plan Advisory (401(k)/Pension) (FSAEABAE), Full-Service Retail Brokerage & Wealth Platforms (FSAAAAAA), Insurance General Accounts (Institutional Asset Owners) (FSAAAGAG)

Keywords

• Retirement plans
• Group benefits insurance
• Asset management
• Investment management
• Annuity products

Headquarters

HQ city

Des Moines

HQ country

United States

HQ region

North America

Offices12 records

Markets served

GTM type

B2B and B2C

Offering type

Services

Cost components

Personnel, Operations, Technology or R&D, Marketing or Sales, Infrastructure

Revenue model

1. Asset Management / Investment Management Fees: Principal earns fee-based revenue from managing retirement assets, mutual funds, ETFs, and institutional investment mandates. AUM reached $781 billion as of year-end 2025, up 10% year-over-year, with record gross sales of $37 billion in Investment Management in Q1 2026, up 21%. Fee compression and net interest income pressure are ongoing concerns, but fee-based revenue is a key growth driver.
2. Insurance Premiums (Life, Retirement, Benefits & Protection): Principal collects insurance premiums from group benefits including dental, vision, life, disability, supplemental health, and annuity products. The company reported strong Q1 2026 with favorable underwriting in Benefits and Protection driving non-GAAP operating earnings of $456 million. Specialty Benefits delivered record sales up 24% year-over-year in Q1 2026.
3. Private Real Estate Equity / Data Center Funds: Principal Real Estate Investors, a top-10 global real estate manager with over $100 billion in AUM, raises and manages private equity and debt funds including data center vehicles. The company is seeking to raise $3 billion across two data center funds targeting 18-20% net IRR over eight years.

Pricing tiers

Go-to-market motion2 records

Distribution channels5 records

Marketing channels6 records

Core offering

Principal Financial Group provides retirement, investment, and insurance products and services. Its core offerings include employer-sponsored 401(k) and 403(b) retirement plans, individual retirement accounts (IRAs), annuities, group benefits (dental, vision, life, disability, accident, critical illness, hospital indemnity, paid family and medical leave), and asset management services through Principal Asset Management. The company serves over 90,000 small and midsize U.S. employers, individuals, and institutional investors, distributing solutions via a nationwide affiliated independent financial professional network, direct digital self-service, and HR/payroll API integrations.

Product overview

Principal Financial Group operates as a comprehensive financial services platform offering retirement solutions, group benefits, and wealth management products. The core platform includes 401(k) and 403(b) retirement plans, IRAs, annuities, and the Principal® SimpleInvest digital investment platform. The group benefits portfolio encompasses dental, vision, life, disability, accident, critical illness, and hospital indemnity insurance. Principal Asset Management provides investment management including the recently launched Principal Fit four-fund fixed income ETF suite. The company serves over 90,000 small and midsize employers and millions of individual customers through a digital-first approach with HR/payroll integrations and an Employee Navigator API for benefits enrollment. Recent acquisitions include DentaNet (dental network) and Ascensus ESOP business to expand specialty benefits and retirement service offerings.

Differentiator

Problem solved

Functional benefit

Brands

• Principal SimpleInvest: Digital investing platform with automated portfolio management
• Principal Fit
• Principal Spectrum Preferred Securities Active ETF (PREF)
• Principal Active High Yield ETF (YLD)

Products and services

• Principal SimpleInvest Automated digital investment platform offering managed portfolios comprised primarily of Principal-affiliated mutual funds and ETFs, with algorithm-driven asset allocation based on stated goals and risk preference. Targets individual investors seeking low-cost, hands-off investing.
• Principal Fit Fixed Income ETF Suite A four-fund fixed income ETF suite launched by Principal Asset Management offering targeted exposure to inflation protection, securitized credit, long duration, and collateralized loan obligations. For institutional and retail investors seeking fixed income portfolio construction.
• 401(k) Retirement Plans Employer-sponsored retirement savings plans enabling employees to save for retirement with tax advantages, including plan administration and investment management services. Targeted at U.S. employers of all sizes, with primary focus on small and midsize businesses.
• 403(b) Retirement Plans Tax-advantaged retirement savings plans for employees of public schools and certain nonprofit organizations, including plan administration and investment management services.
• Individual Retirement Accounts (IRAs) Tax-advantaged retirement savings accounts available for individuals to save independently, including traditional and Roth IRA options. For individual investors planning for retirement.
• Annuities Insurance products providing guaranteed income streams to help diversify retirement options and fill retirement income gaps. For individuals seeking predictable retirement income.
• Group Dental Insurance Group dental insurance including access to one of the largest PPO networks in the nation, covering over 60,000 employer dental plans and nearly 2.8 million participants. For employers offering employee benefits.
• Group Vision Insurance Vision insurance coverage providing access to eye care providers and benefits for eyewear. For employers offering employee benefits.
• Group Term Life Insurance Employer-sponsored life insurance coverage providing financial protection for employees' beneficiaries. For employers offering group life benefits.
• Short-Term and Long-Term Disability Insurance Group disability insurance providing income replacement for employees unable to work due to short-term or long-term disabilities. For employers offering income protection benefits.
• Individual Disability Insurance Disability income insurance providing personal income protection independent of employer-sponsored coverage. For individuals seeking personal income protection.
• Critical Illness Insurance Supplemental insurance providing lump-sum benefits upon diagnosis of specified critical illnesses. For employers offering voluntary benefits and individuals seeking additional protection.
• Accident Insurance Supplemental insurance covering accident-related medical expenses and lost income. For employers offering voluntary benefits.
• Hospital Indemnity Insurance Supplemental insurance helping cover costs during accidents, illness, or maternity care, including hospital stays. For employers offering voluntary benefits and individuals seeking additional protection.
• Paid Family and Medical Leave & State Disability Insurance Insurance coverage for paid family and medical leave as more U.S. states mandate such coverage, including state disability insurance programs. For employers needing state-mandated coverage.
• Estate Planning Services Services and products including estate planning and irrevocable life insurance trusts to help individuals leave a legacy for loved ones. For individuals with estate planning needs.
• DentaNet Dental Network Alabama's largest dental network with approximately 1,500 providers, acquired by Principal to strengthen its dental network portfolio and expand presence in the Southeast U.S. Enhances group dental insurance offerings.

Quantifiable outcome

• Assets under management grew 10% year-over-year to $781 billion as of year-end 2025
• +6 more outcomes

Named customers2 records

Segments3 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

Yes

API docs

API detail

Core technology

AI maturity

App detail

Integration1 record

AI capability4 records

Feature2 records

Partnerships

Four partnerships are on record, tiered core and minor.

• State Street CorporationcoreTechnology or Integration · 4 June 2026Principal Financial Group selected State Street Corporation to provide expanded custody, fund accounting, and administration services for Principal Funds, extending a partnership spanning more than a decade. The mandate covers approximately $215 million in assets under management and adds mutual fund services to an existing arrangement for ETFs and collective investment trusts. Principal frames the deal as a strategic shift toward outsourcing non-core infrastructure functions for scalable, long-term profitable growth.
• Southland Benefit Solutions (Collateral Holdings, LLC)coreOthers · 3 March 2026Principal Financial Group acquired DentaNet, Alabama's largest dental network with approximately 1,500 providers, from Southland Benefit Solutions (a subsidiary of Collateral Holdings, LLC). Principal also obtained renewal rights for a block of group insurance contracts through Canopy Insurance. The transaction strengthens Principal's dental network portfolio and expands its group benefits presence in the Southeast, adding to its existing portfolio of over 60,000 employer dental plans and nearly 2.8 million participants.
• Ascensus (ESOP Business)coreOthers · 16 May 2024Principal Financial Group agreed to acquire the employee stock ownership plan (ESOP) business of Ascensus, including approximately 800 plans and over 165,000 participants, expected to close by mid-2024. The acquisition aims to enhance Principal's market position in retirement solutions.
• Debevoise & Plimpton LLPminorOthers · 6 March 2023Debevoise & Plimpton LLP advised Principal Financial Group in its March 6, 2023 offering of $700 million of senior notes, including $400 million of 5.375% notes due 2033 and $300 million of 5.500% notes due 2053.

Scale indicators12 records

Recent moves6 records

Expansion highlights5 records

Broad incumbents

• Vanguard:
• Fidelity Investments: Fidelity is the largest U.S. retirement recordkeeper and a broader incumbent across asset management, brokerage, and benefits administration. It overlaps with Principal across nearly every product line—401(k), IRAs, mutual funds, ETFs, and group benefits—but at significantly larger scale and with a stronger retail brand.

Direct peers

• Empower Retirement: Empower is the second-largest U.S. retirement plan recordkeeper, directly competing with Principal in 401(k)/403(b) administration, participant services, and SMB retirement plans. Both target employer-sponsored retirement with integrated investment menus and bundled administration—Principal's SMB focus and Empower's scale make them the closest head-to-head competitors.
• Voya Financial: Voya competes directly with Principal across retirement plans (401(k)/403(b)), group benefits (disability, life), and institutional investment management. Both firms serve mid-market employers, share a similar product portfolio, and have undergone strategic divestitures to focus on retirement and benefits—making them near-mirror peers.
• Lincoln National (Lincoln Financial Group): Lincoln Financial competes with Principal across retirement annuities, life insurance, and employer-sponsored group benefits. Both target the mid-market employer segment with bundled retirement and protection solutions, and both manage meaningful general account investment portfolios.
• Securian Financial: Securian is a closely held mutual insurance company competing with Principal in group life, group disability, and retirement plan administration, particularly in the SMB and public/nonprofit 403(b) segments where Principal is also strong. Comparable customer base and product mix make it a direct peer.
• T. Rowe Price: T. Rowe Price is a peer in Principal Asset Management's core business—mutual funds, ETFs, and institutional investment management for retirement plans. Both serve defined contribution plans and individual investors through retirement-oriented product suites, and both have been launching active ETFs to defend share against passive pressure.
• Nationwide Mutual Insurance: Nationwide competes with Principal across retirement plans (401(k), annuities), group benefits, and individual life insurance. Both target SMB and mid-market employers with integrated protection-and-retirement solutions, and both operate affiliated financial professional distribution networks.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat6 records

Key risks5 records

Key highlights7 records

Customer concentration

• Xx.com/ThePrincipal
• YouTubeyoutube.com/user/PrincipalFinancial
• Facebookfacebook.com/PrincipalFinancial
• LinkedInlinkedin.com/company/principal-financial-group
• Instagraminstagram.com/principal

Compliance2 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles10 records

Subsidiaries8 records

Funding overview

Funding rounds2 records

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A6 records

Investments6 records

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Principal Financial Group