Principal Financial Group

History

PFG was first founded under the name Bankers Life Insurance Company. Bankers Life Insurance Company was founded by wealthy Des Moines bankers, including Edward Temple, Simon Casady, and Phineas M. Casady. The bank was founded in 1879 with Temple as president and Phineas Casady as vice president.

In 2019, Principal purchased Wells Fargo's institutional retirement and trust business (including 401k, pension, executive deferred compensation, employee stock ownership plans and asset advice business) for $1.2 billion. The deal was financed with cash and senior debt financing.

In 2021, activist investor firm Elliott Investment Management took a stake in Principal, saying it will push for changes at the company. Talks with Elliott resulted in the February 2021 announcement of two new independent directors to its board of directors.

In 2024, Principal agreed to acquire the employee stock-option plan (ESOP) business from Ascensus. The transaction was expected to add 800 plans and over 165,000 participants to Principal's book of business.

Business operations

Four segments comprise the company: Retirement and Income Solutions, Principal Global Investors, Principal International, and Benefits & Protection.

As of December 2021, Principal employed 18,600 employees worldwide, with 7,100 of those based outside the U.S. and houses many other companies in addition to Principal. Its Global Delivery center, Principal Global Services, in Pune, Maharashtra, India.

Principal also has a lobbyist registered in the Iowa Legislature since December 2016. He is designated to lobby the Executive Branch of the Government of Iowa.

Eddie

Eddie was the lead and central character in the marketing campaign of the Principal Financial Group from 2005 to 2015. Eddie's television and print ads often depicted him facing challenges and using the Principal Edge logo to solve his financial, business, and everyday life problems. Eddie retired in 2015 in preparation for the company's new logo that debuted in 2016.

Naming rights

Principal owns the naming rights to Principal Riverwalk, Principal Park and The Principal Charity Classic in Des Moines.

Management

On August 20, 2020, the company announced that Ken McCullum would become the new chief risk officer, following the retirement of Julia Lawler.

In January 2025, Deanna Strable succeeded Dan Houston as the firm's President and CEO. Previously Strable had served as President and Chief Operating Officer. As part of the transition, Houston was named Executive Chair of the Board of Directors.

References

References

1. (February 11, 2022). "Principal Financial Group 2021 Annual Report Results".
2. "A bedrock of dependability will be reborn". [[Des Moines Register]].
3. "Community News". [[Des Moines Register]].
4. "Temple, Edward Ames". [[The Biographical Dictionary of Iowa]].
5. "Principal closes $1.2 billion deal to buy Wells Fargo retirement business".
6. (February 22, 2021). "Activist investor Elliott to buy stake in insurer Principal Financial: Bloomberg News". Reuters.
7. (February 22, 2021). "Principal Financial Group Announces Shareholder Value Initiatives".
8. "Principal to Expand ESOP Business Via Acquisition from Ascensus {{!}} PLANADVISER".
9. (November 8, 2004). "801 Grand, Des Moines".
10. "2012 Company Profile".
11. "Registered Lobbyist: Matthew Ahmann".
12. "Even Cartoon Guys Plan for Retirement: The Principal Financial Group Bids Farewell to "Eddie" with Launch of #SeeYourRetirement Campaign". Principal Financial Group.
13. (August 20, 2020). "Principal Financial Group Appoints New Head of Global Risk".
14. (November 13, 2024). "Principal Financial Group names Deanna Strable as next CEO". Corridor Business Journal.