Profile: Principal Financial Group Inc (PFG)
5 Dec 2016
Principal Financial Group, Inc., incorporated on April 18, 2001, is an investment management company. The Company offers a range of financial products and services, including retirement, asset management and insurance services. The Company's segments include Retirement and Income Solutions; Principal Global Investors, Principal International, and U.S. Insurance Solutions. The Company focuses on small and medium-sized businesses, providing a range of retirement and employee benefit solutions, and individual insurance solutions to meet the needs of the business owner and their employees. The Company offer services to the individuals and institutional clients.
Retirement and Income Solutions Segment
The Company offers portfolio of products and services for retirement savings and retirement income. To businesses of all sizes with a concentration on small and medium-sized businesses, it offer products and services for defined contribution plans, including 401(k) and 403(b) plans, defined benefit pension plans, non-qualified executive benefit plans and employee stock ownership plan (ESOP) services. For more basic retirement services, it offers SIMPLE Individual Retirement Accounts (IRA) and payroll deduction plans. To large institutional clients, it also offers investment-only products, including investment only guaranteed investment contracts (GICs), and to employees of businesses and other individuals, the Company offers the ability to accumulate savings for retirement and other purposes through mutual funds, individual annuities and bank products.
The Company organizes its Retirement and Investor Services (RIS) operations into two business groupings: Retirement and Income Solutions-Fee, which includes full service accumulation, trust services and individual variable annuities, and Retirement and Income Solutions-Spread that includes individual fixed annuities, investment only, full service payout and banking services. The Company's individual fixed deferred annuities consist of both single premium deferred annuity contracts and flexible premium deferred annuity contracts (FPDAs). The Company's individual fixed income annuities consist of single premium immediate annuity contracts (SPIAs) and deferred income annuity contracts (DIAs). SPIAs and DIAs are products where the customer pays a premium in return for periodic benefit payments. The Company provides investment only services for GICs and funding agreements.
Principal Global Investors Segment
The Company's Principal Global Investors segment manages assets for investors around the world, using a multi-boutique strategy that provides diverse investment capabilities, including equity, fixed income, real estate and other alternative investments. The Company focuses on providing services to its other segments in addition to its retail mutual fund and third party institutional clients. It maintains offices in Australia, Beijing, Brazil, Dubai, Germany, Hong Kong, Japan, the Netherlands, Singapore, the United Kingdom and the United States. The Company deliver its products and services through its network of specialized investment groups and boutiques, including Principal Global Equities; Principal Global Fixed Income; Aligned Investors; Principal Real Estate Investors, LLC; Principal Enterprise Capital, LLC; Spectrum Asset Management, Inc.; Post Advisory Group, LLC; Columbus Circle Investors; Edge Asset Management, Inc.; Morley Financial Services, Inc.; Macro Currency Group; Finisterre Capital LLP; Origin Asset Management LLP, and Principal Portfolio Strategies. The Company offers mutual funds to individuals, businesses and institutional investors for use within variable life contracts, variable annuity contracts and employer-sponsored pension plans, as a rollover investment option and for general investment purposes. It also maintains various other domestic and global fund platforms, separately managed accounts and segregated accounts for some larger institutional and retail investors.
The Company's multi-boutique strategy is diversified across the primary asset classes and service delivery options, including Equity Investments, Fixed Income Investments, Alternative Investments and Principal Portfolio Strategies. Products offered by the Principal Global Investors segment include individually managed accounts, separately managed accounts for high net worth individuals and several fund platforms for retail and institutional investors, such as Principal Funds, Inc (PFI), Principal Variable Contracts Funds, Inc and Other Principal Global Investors Funds. PFI is a series mutual fund that offers over 84 investment options for defined contribution plans, individuals, institutional investors, adviser fee-based programs, and other retirement plan clients. Principal Variable Contracts Funds, Inc. is a series mutual fund that provides investment options for variable annuity and variable life insurance contracts issued by the Principal Life Insurance Company (Principal Life) and other insurance companies not affiliated with Principal Life. Principal Global Investors maintains various fund platforms, including Qualifying Investor Alternative Fund and Undertaking for Collective Investment in Transferable Securities funds domiciled in Dublin, Collective Investment Trusts, Business Trusts and other boutique sponsored funds.
Principal International Segment
The Company's Principal International segment has operations in Brazil, Chile, China, Hong Kong Special Administrative Region (SAR), India, Mexico and Southeast Asia. The Company offers pension accumulation products and services, mutual funds, asset management, income annuities and life insurance accumulation products. In Brazil, it offers a range of pension accumulation and income annuity products. It also offers mutual fund, asset management services and life insurance accumulation products. It offers mutual fund and asset management services through Claritas Administracao de Recursos Ltda. (Claritas), an independent Brazilian mutual fund and asset management company. In Chile, it offers pension accumulation and income annuity products, and also mutual fund, asset management services and life insurance accumulation products. The Company offers offer mandatory employee-funded pension and voluntary savings plans through Administradora de Fondos de Pensiones Cuprum S.A. (Cuprum). The Company offers income annuity and life insurance accumulation products through Principal Compania de Seguros de Vida Chile S.A., its life insurance company. The Company offers voluntary savings plans and mutual funds through Principal Administradora General de Fondos S.A., its mutual fund company. The Company offers asset management services through Principal Asset Management Chile S.A. In China, the Company offers mutual funds and asset management services to individuals and institutions through a joint venture, CCB Principal Asset Management Co., Ltd. In Hong Kong SAR, it offers both pension accumulation and mutual fund products to corporate and retail clients through its subsidiaries. The Company offers approximately two types of schemes, including Mandatory Provident Fund (MPF) to serve the mandatory retirement market and Occupational Retirement Schemes Ordinance (ORSO) to serve the voluntary retirement market. The Company sells mutual funds to retail customers seeking to accumulate assets for retirement and other long-term investment needs. In India, it offers mutual funds and asset management services to both retail and corporate customers through its joint venture Principal Pnb Asset Management Company Private Limited. The Company also has a distribution company, Principal Retirement Advisors Private Limited, which focuses on promoting and advising on retirement and long-term investment products in the India market. In Mexico, it offers pension accumulation, mutual funds, income annuities and asset management services through its companies. The Company offers mandatory pension plans through Principal Afore, S.A. de C.V., Principal Grupo Financiero. The Company offers mutual funds and asset management services through Principal Fondos de Inversion, S.A. de C.V., Operadora de Fondos de Inversion, Principal Grupo Financiero. In Southeast Asia, it offers mutual funds, asset management services and pension accumulation products through its joint venture CIMB-Principal Asset Management Berhad (CPAM). CPAM has subsidiaries in Singapore (CIMB-Principal Asset Management (S) Pte. Ltd.), Indonesia (PT CIMB-Principal Asset Management) and Thailand (CIMB-Principal Asset Management Company Limited).
U.S. Insurance Solutions Segment
The Company's U.S. Insurance Solutions segment provides group and individual insurance solutions. It focuses on providing insurance solutions for small and medium-sized businesses and their owners and executives. It organizes its operations into two divisions: Specialty Benefits Insurance and Individual Life Insurance. Specialty benefits insurance, which includes group dental, vision, life and disability insurance and individual disability insurance, is a component of the employee benefit offering at small and medium-sized businesses. It offers traditional employer sponsored and voluntary products for group dental, vision, life and disability. It also offers group dental, vision and disability on a fee-for-service basis. Its individual disability insurance is also sold on an individual or multi-life basis. Its individual disability insurance products provide income protection to the insured member and/or business in the event of disability. It specializes in providing solutions for small to medium-sized companies to protect against risk and loss, assist with succession planning and wealth transfer and to build and protect wealth for retirement. It also provides solutions to meet the personal needs of business owners, executives and affluent individuals. Its products include Universal and Variable Universal Life Insurance and Traditional Life Insurance.
Principal Financial Group Inc
711 High St
DES MOINES IA 50392-0300
Company Web Links
- BRIEF-Principal Financial Group announces pricing of 6.05 pct tender offer
- BRIEF-Principal Financial says issued $350 mln aggregate principal amount of its 3.100 pct senior notes due 2026 - SEC filing
- BRIEF-Principal Financial announces pricing and expiration of tender offers
- Fitch Rates Principal Financial Group's Senior Unsecured Notes 'A-'
- Correction: Fitch Affirms Principal Financial Group's IDR at 'A'; Outlook Stable