Principal Financial Group

Principal Financial Group was founded on July 1, 1879, as the Bankers Life Association in Des Moines, Iowa. It started as an insurance company offering life insurance to men with lead careers in finance. This company was created by Edward Temple, a banker, who saw the potential for providing insurance services to a niche market focused on people who formed financial careers. Over time, Principal expanded its offerings beyond just life insurance, evolving into a diversified global financial institution providing a wide range of financial products and services.

In August 1985, Principal Financial Group expanded its financial service offerings by entering the mutual fund business. This marked a significant strategic move to diversify their financial products, allowing them to better serve a broader range of customers looking for investment options. Their entry into the mutual fund sector enabled them to capture a growing segment of the market interested in investment portfolios, thus solidifying their position as a comprehensive financial service provider.

On October 23, 2001, Principal Financial Group became a publicly traded company by listing its shares on the NASDAQ stock exchange under the ticker symbol 'PFG'. The initial public offering (IPO) was a milestone that came after more than a century of operating as a private entity. This move aimed at raising capital to fuel the company's growth ambitions, enabling Principal to expand its operations and enter new markets. Going public also provided the company with greater visibility and credibility in the financial community.

By the end of the third quarter of 2008, despite the turbulence in global financial markets, Principal Financial Group managed to report a record $300 billion assets under management (AUM). This was a notable achievement for the company, showcasing its resilience and ability to navigate through economic uncertainty. This success was attributed to their diversified financial service offerings and strategic management that allowed Principal to maintain steady growth even during a financial downturn.

On June 15, 2011, Principal Financial Group announced the completion of its acquisition of Clarica Life Insurance Company of Canada. This acquisition served to extend Principal's reach into the Canadian market, marking a significant international expansion. By integrating Clarica's operations, Principal consolidated its presence in North America and enhanced its product offerings, aiming to tap into new customer segments and achieve a broader geographical footprint.

In 2016, Principal Financial Group was ranked on the Fortune 500 list for the first time, reflecting its significant growth and standing in the financial services industry. Principal's inclusion on this prestigious list highlighted its financial strength and the successful execution of its strategic vision. Being part of the Fortune 500 gave Principal Financial Group enhanced recognition by validating its business model and performance in the competitive market.

In May 2018, Principal Financial Group increased its ownership stake in the CIMB-Principal Asset Management joint venture from 40% to 60%. This move further integrated Principal into the Asian markets, reflecting the company's strategy to strengthen its global presence in financial services. Increasing its stake allowed Principal to have greater influence and control in the joint venture, supporting its aim to capitalize on high-growth opportunities in the Asian investment sector.

In November 2019, Principal Financial Group launched a new comprehensive Global Inclusion Strategy aimed at fostering a diverse and inclusive workplace. This initiative focused on developing a culture that values diversity, enhances employee engagement, and strengthens the company's capacity for innovation. By prioritizing inclusion, Principal sought to improve its organizational performance and create opportunities for growth and development among its workforce, aligning its operations with modern social values.

On October 5, 2020, Principal Financial Group successfully acquired Wells Fargo's Institutional Retirement & Trust business. This acquisition, completed for a transaction value of $1.2 billion, was a strategic expansion move to broaden Principal's retirement business. By taking on Wells Fargo's retirement plan, Principal aimed to increase its assets under management and provide enhanced retirement services, thereby strengthening its position in the competitive retirement and pension industry.

On December 31, 2021, Principal Financial Group completed the sale of its U.S. retail fixed annuity and individual life insurance businesses to Talcott Resolution for $1.25 billion. This strategic divestiture was part of Principal's efforts to streamline its operations and focus on scalable retirement, global asset management, and U.S. benefits and protection sectors. By exiting this segment, Principal aimed to allocate its resources more effectively toward its core growth areas.