Principal Financial Group stands as a reputable financial services provider, consistently earning high customer ratings. It has a long-standing history of financial strength and stability, with robust solvency ratios. Principal offers a comprehensive suite of products, including retirement planning, investments, insurance, and banking solutions. Its commitment to sustainability and corporate social responsibility sets it apart as a responsible corporate citizen. Additionally, the company’s strong investment performance and competitive fees make it a desirable choice for investors.
Financial Strength and Stability
Principal Financial Group has a long track record of financial strength and stability. The company has been in business for over 140 years and has weathered numerous economic downturns. Principal has a strong capital position, with a total risk-based capital ratio of 443% as of December 31, 2022. This ratio is well above the regulatory minimum of 100%.
- Received an “A” financial strength rating from A.M. Best
- Received an “A1” financial strength rating from Moody’s Investors Service
- Received an “A+” financial strength rating from Standard & Poor’s
Principal also has a strong track record of profitability. The company has generated positive operating income for over 20 consecutive years. In 2022, Principal reported net income of $2.1 billion.
| Year | Net Income ($ billions) |
|---|---|
| 2022 | 2.1 |
| 2021 | 2.3 |
| 2020 | 1.9 |
Investment Performance and Returns
Principal Financial Group has a long history of providing competitive investment returns to its clients. The company’s investment team has a proven track record of success in managing a wide range of investment portfolios, including stocks, bonds, and mutual funds.
Here are some highlights of Principal Financial Group’s investment performance:
- The company’s actively managed equity funds have outperformed their benchmarks over the past 5 and 10 years.
- Principal Financial Group’s fixed income funds have consistently generated high yields, with low volatility.
- The company’s mutual funds have received numerous awards and accolades from independent rating agencies, including Morningstar and Lipper.
| Investment Type | 5-Year Annualized Return | 10-Year Annualized Return |
|---|---|---|
| Large Cap Stocks | 10.2% | 12.5% |
| Small Cap Stocks | 12.8% | 15.3% |
| International Stocks | 8.5% | 10.1% |
| Bonds | 4.2% | 5.1% |
| Mutual Funds | 7.8% | 9.4% |
Customer Service and Satisfaction
Principal Financial Group has consistently received high ratings for its customer service. In the J.D. Power 2023 U.S. Customer Service Index Study, Principal ranked among the top performers in the life insurance industry.
- Multiple channels of support: Principal offers customer service through phone, online chat, email, and in-person appointments.
- Responsive and knowledgeable agents: Customers praise Principal’s agents for their quick response times and ability to resolve inquiries efficiently.
- Positive customer feedback: Principal has a strong customer satisfaction rating, with many policyholders reporting positive experiences.
| Rating | Source |
|---|---|
| 4.5 out of 5 | J.D. Power 2023 U.S. Customer Service Index Study |
| 4.7 out of 5 | Trustpilot (based on over 1,000 reviews) |
Ethical and Environmental Record
Principal Financial Group (PFG) is committed to ethical and environmental sustainability in its operations. The company has received several awards and certifications for its efforts, such as:
- Ethisphere’s World’s Most Ethical Companies
- Dow Jones Sustainability Index North America
- CDP (formerly Carbon Disclosure Project) A-List for Climate Change
PFG’s ethical practices include:
- Adhering to ethical guidelines and codes of conduct
- Promoting transparency and disclosure
- Respecting human rights and diversity
In terms of environmental sustainability, PFG has implemented several initiatives to reduce its carbon footprint, such as:
| Initiative | Description |
|---|---|
| Renewable Energy | Switching to renewable energy sources like wind and solar |
| Energy Efficiency | Adopting energy-efficient technologies and practices |
| Waste Reduction | Minimizing waste and promoting recycling |
| Paper Conservation | Reducing paper consumption through digital initiatives and responsible printing |
Well, there you have it, folks! We’ve taken a closer look at Principal Financial Group, and we’ve come away pretty impressed. They seem to have a lot going for them, including a strong financial foundation, a commitment to customer service, and a wide range of products and services. Of course, no company is perfect, but Principal Financial Group seems to be doing a lot of things right. Thanks for reading, and be sure to stop by again for more financial insights and advice. We always appreciate your company!