Principal Financial Group Inc (NASDAQ: PFG)

Principal Financial Group, Inc. is a leader in global financial services providing retirement asset management workplace benefits and protection solutions to businesses individuals and institutional clients.

As of December 31 2025 the company reported 1,814.6 billion dollars in assets under administration and 781.0 billion dollars in assets under management.

Its global asset management businesses serve institutional retirement high net worth and retail investors worldwide.

The company generates revenue primarily through investment management fees mortality and expense fees on annuity and insurance products and premiums from life and disability insurance policies.

Additional income comes from fees for trust and custody services banking services and fee based administrative services for employee benefits.

Revenue is also derived from the spread between investment income earned on assets supporting contractual promises and amounts credited to customers in products such as guaranteed investment contracts funding agreements and pension risk transfer arrangements.

The company operates through the following segments: Retirement and Income Solutions Principal Asset Management and Benefits and Protection.

• The Retirement and Income Solutions segment offers workplace savings and retirement products including defined contribution and defined benefit plan services individual annuities investment only products pension risk transfer and bank and trust services.

• Through its Workplace Savings and Retirement Solutions platform it provides administrative and investment services for over 42,000 defined contribution plans and over 1,600 defined benefit plans as of December 31 2025.

• The segment also offers individual variable annuities and registered index linked annuities to individuals seeking retirement savings and provides guaranteed investment contracts funding agreements and pension risk transfer products to institutional clients.

• Bank and trust services are delivered through Principal Bank and Principal Trust Company offering savings accounts money market accounts certificates of deposit trust and custodial services to retirement plans and personal trusts.

• The Principal Asset Management segment delivers global investment solutions to institutional retirement retail and high net worth investors.

• Its investment capabilities span equity fixed income asset allocation real estate and other alternative investments managed by global and local investment teams.

• The segment serves the company's other segments as well as retail mutual fund and third party institutional clients charging fees based on assets under management.

• Distribution is conducted through global institutional advisory services global wealth advisory services local investment teams in regions such as Chile Mexico China Hong Kong Southeast Asia and through partnerships with independent broker dealers.

• The Benefits and Protection segment consists of Specialty Benefits and Life Insurance divisions offering group dental life disability supplemental health individual disability fee based services and a range of life insurance products.

• Specialty Benefits serves approximately 103,000 employer groups providing coverage to more than 3,300,000 employees through products such as group dental group life short term disability long term disability vision critical illness accident hospital indemnity and individual disability insurance.

• Life Insurance focuses on business owner solutions nonqualified deferred compensation and individual life insurance policies including term whole and adjustable life interest sensitive and traditional products primarily for small and medium sized businesses.

• The segment distributes its products through affiliated financial representatives independent brokers and various marketing alliances targeting owners executives and key employees of small and medium sized firms.

Principal Financial Group holds a strong position in the retirement savings workplace benefits and asset management markets leveraging its privileged access to small and midsized businesses its integrated product ecosystem and its focus on attractive growth segments.

The company competes with banks mutual funds insurers asset managers wealth managers and record keepers but differentiates itself through comprehensive solutions that span retirement accumulation income management protection and trust services.

Its financial strength ratings from A. M. Best Fitch Moody's and S&P Global are viewed as a competitive advantage in marketing its insurance and annuity products.

The firm's emphasis on serving the retirement ecosystem and delivering customized solutions across its segments helps it maintain a distinct edge versus peers.

The company serves businesses of all sizes including small and medium sized employers large institutional clients retirement plan sponsors and individual investors seeking retirement savings investment protection and insurance coverage.

Its retirement and workplace benefits products are directed toward plan sponsors employees and owners while its asset management business targets institutional retail high net worth and international investors.