Mission Statement, Vision, & Core Values (2024) of Principal Financial Group, Inc. (PFG).

An Overview of Principal Financial Group, Inc. (PFG)

General Summary of Principal Financial Group, Inc. (PFG)

Principal Financial Group, Inc. (PFG), founded in 1879, has evolved into a global leader in financial services, offering a wide array of products including retirement solutions, asset management, and insurance. As of 2024, PFG operates through three primary segments: Retirement and Income Solutions, Principal Asset Management, and Benefits and Protection.

In 2024, PFG reported total revenues of approximately $11.4 billion, driven by strong performance in its core segments. The company’s product offerings include:

• Retirement and pension plans
• Individual and group insurance products
• Investment management services
• Wealth management solutions

Principal’s assets under management (AUM) reached $541.0 billion as of September 30, 2024, demonstrating significant growth from previous periods.

Company's Financial Performance in the Latest Financial Reports

For the three months ending September 30, 2024, Principal Financial Group reported:

• Total revenues of $3.0 billion, a decrease from $4.6 billion year-over-year.
• Net income attributable to PFG of $(220.0) million, compared to $1.25 billion for the same period in 2023.
• Operating revenues from the Retirement and Income Solutions segment of $1.69 billion, primarily affected by a decrease in premiums and other considerations by $89.3 million.

Key financial highlights include:

The decline in net income is attributed to a significant loss in the change in fair value of the funds withheld embedded derivative, alongside increased operating expenses driven by growth initiatives.

Introduction to Company as a Leader in the Industry

Principal Financial Group is recognized as one of the leading companies in the financial services industry. The firm consistently ranks highly in various market segments, owing to its robust product offerings and commitment to customer service. PFG's strategic focus on retirement solutions and asset management positions it favorably amid market trends favoring sustainable financial planning and investment management.

The company has demonstrated resilience and adaptability in a competitive landscape, which is evident in its ability to manage over $611.6 million in total investments and maintain a strong balance sheet with total stockholders' equity of $11.3 billion as of September 30, 2024.

With a comprehensive suite of services and a dedicated approach to client engagement, Principal Financial Group continues to set benchmarks in the industry, making it a noteworthy player for investors and stakeholders alike.

Mission Statement of Principal Financial Group, Inc. (PFG)

Company's Mission Statement

The mission statement of Principal Financial Group, Inc. (PFG) emphasizes its commitment to empowering individuals and businesses to achieve financial security and well-being through innovative solutions and exceptional service. This mission serves as a guiding principle for the company's strategic initiatives and operational decisions.

Core Component 1: Empowering Financial Security

The first core component of PFG's mission is to empower financial security. This reflects the company's dedication to providing a range of financial products and services designed to meet the diverse needs of its clients. As of September 30, 2024, PFG reported total revenues of $11,375.7 million, demonstrating its robust financial performance and ability to support clients in achieving their financial goals.

Core Component 2: Innovative Solutions

The second core component focuses on delivering innovative solutions. PFG continually invests in technology and product development to enhance its offerings. In the nine months ended September 30, 2024, the company experienced an increase in fee revenue of $84.5 million, primarily due to a rise in average monthly account values, indicating the effectiveness of its innovative strategies in a favorable market.

Core Component 3: Exceptional Service

The final core component of the mission statement is the commitment to exceptional service. PFG aims to provide outstanding customer service through dedicated support and resources. For example, the company’s net income attributable to Principal Financial Group, Inc. for the nine months ended September 30, 2024, was $665.6 million, reflecting the successful implementation of its service-oriented approach.

Vision Statement of Principal Financial Group, Inc. (PFG)

Vision Statement of Principal Financial Group, Inc. (PFG)

The vision statement of Principal Financial Group, Inc. (PFG) emphasizes being a leader in financial services, focusing on empowering individuals and businesses to achieve financial security and success.

PFG envisions a future where individuals and businesses can achieve financial security through innovative solutions. As of September 30, 2024, PFG reported total assets of $322.9 billion, reflecting their commitment to providing comprehensive financial services.

The company’s vision includes a commitment to inclusivity in financial services, ensuring that a diverse range of clients can access their offerings. In 2024, PFG's Retirement and Income Solutions segment reported a premium increase of $473.8 million, driven by higher sales of single premium group annuities, indicating their reach to a broader audience.

PFG aims for sustainable growth that aligns with environmental, social, and governance (ESG) principles. Their net investment income for the nine months ended September 30, 2024, was $3.33 billion, showcasing their ability to generate revenue while adhering to sustainable practices.

Innovation is at the core of PFG’s vision. The firm invests heavily in technology to enhance customer experiences. In 2024, the company reported $1.09 billion in fees and other revenues, a significant portion attributed to technological advancements in their service delivery.

PFG's vision includes expanding their global footprint. As of September 30, 2024, the company managed over $36.9 billion in assets through its international ventures, reflecting its ambition to serve clients worldwide.

PFG's vision for 2024 reflects a strong focus on empowering financial security, inclusivity, sustainable growth, innovation, and global reach, supported by robust financial metrics that illustrate their strategic goals.

Core Values of Principal Financial Group, Inc. (PFG)

Integrity

Integrity is a fundamental core value at Principal Financial Group, Inc. (PFG), emphasizing ethical behavior and transparency in all business dealings. This value is critical for maintaining trust with clients, employees, and stakeholders.

PFG demonstrates its commitment to integrity through several initiatives:

• Implementation of a comprehensive Code of Ethics that mandates ethical conduct across all levels of the organization.
• Regular training programs for employees on ethical decision-making and compliance with regulatory standards.
• Establishment of a whistleblower policy that encourages employees to report unethical behavior without fear of retaliation.

Excellence

Excellence at PFG reflects the company’s dedication to delivering high-quality products and services to its clients. This value drives continuous improvement and innovation within the organization.

Examples include:

• Investment in advanced technology to enhance customer service and streamline operations, resulting in improved client satisfaction scores.
• Recognition programs for employees who exemplify excellence in their work, fostering a culture of high performance.
• Regular assessments and updates of products and services to ensure they meet the evolving needs of clients.

Teamwork

PFG believes that teamwork is essential for achieving success and fostering a collaborative environment. This core value promotes cooperation among employees, departments, and stakeholders.

Key initiatives supporting teamwork include:

• Cross-functional project teams that bring together diverse skills and perspectives to tackle complex challenges.
• Employee engagement surveys that solicit feedback on teamwork and collaboration, leading to actionable improvements.
• Team-building activities designed to strengthen relationships and enhance communication within teams.

Social Responsibility

Social responsibility is a core value that underscores PFG's commitment to making a positive impact on society and the environment. The company actively engages in initiatives that benefit communities and promote sustainability.

Demonstrations of this commitment include:

• Investment of over $10 million in community development programs and initiatives aimed at financial literacy and wellness.
• Partnerships with non-profit organizations to support causes such as education, health, and environmental sustainability.
• Implementation of sustainable business practices that reduce the company's carbon footprint, including a goal to achieve carbon neutrality by 2030.

Diversity and Inclusion

PFG prioritizes diversity and inclusion, recognizing that a diverse workforce enhances creativity and problem-solving. This core value fosters an environment where all employees feel valued and empowered.

Specific actions taken to uphold this value include:

• Establishment of Employee Resource Groups (ERGs) to support various demographics and foster inclusion within the workplace.
• Commitment to increasing representation of underrepresented groups in leadership roles, with a target of 30% by 2025.
• Regular diversity training sessions that promote awareness and understanding of different perspectives and backgrounds.

Article updated on 8 Nov 2024

Resources:

• Principal Financial Group, Inc. (PFG) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Principal Financial Group, Inc. (PFG)' financial performance, including balance sheets, income statements, and cash flow statements.
• SEC Filings – View Principal Financial Group, Inc. (PFG)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.