Leading the industry in helping more U.S.-based clients save enough for and have enough in retirement—working together with advisors and plan sponsors.
PRODUCTS AND SERVICES
Full service accumulation products and services:
Defined contribution retirement plans (including 401(k) and 403(b) plans)
Defined benefit pension plans
Employee stock ownership plans
Nonqualified executive benefit plans
Annuities and payout solutions
Bank and trust services
Investment only
2015 FINANCIAL HIGHLIGHTS
Full-year pre-tax operating earnings of $740 million
Retirement and Income Solutions total account value was $210 billion as of Dec. 31, 2015.
RIS-Fee1 full-year recurring deposits grew $1.1 billion in 2015, up 7 percent over 2014.
Pension closeout sales were a record $1.8 billion for the full year.
RECOGNITION AND ACCOMPLISHMENTS
PLANADVISER, a leading retirement industry magazine for financial professionals, has recognized Principal as a top-rated defined contribution provider for advisor support post-sale in its Advisers' Choice Awards. (March 2015)
Principal received strong industry ratings in the 2015 Retirement Plan Advisor Survey conducted by PLANADVISER. We ranked as a top 10 provider for service to micro, small, mid and large plans. Principal was also ranked No. 3 in best overall service to micro plans, value added advisor services and plan participant support. (October 2015)
Principal is ranked third in unaided consideration, behind Fidelity and American Funds in the 2015 Cogent Retirement Plan Advisor study. (October 2015)
1
RIS-Fee = Retirement and Income Solutions Fee, which includes Full Services Accumulation and Individual Variable Annuities.
SEGMENT OVERVIEW
Provide investment management capabilities to institutional and retail investors through a network of specialized boutique asset managers. More than 500 investment professionals around the world with clients in more than 70 countries.
PRODUCTS AND SERVICES
Equities
Growth, core and value U.S. equities
Small-, mid- and large-cap U.S. equities
Global, international, developed and emerging markets equities
Fixed income
U.S. fixed income
Global/Emerging markets fixed income
Specialty credit
Structured
Preferred Securities
Real estate
Private real estate equity
Real estate investment trust securities
Commercial mortgage backed securities
Commercial mortgages, bridge and mezzanine loans
Asset allocation
Alternatives and currency management
Mutual Funds
2015 FINANCIAL HIGHLIGHTS
2015 pre-tax operating earnings of $389 million.
Total assets under management of $361 billion at the end of 2015 and full-year net cash flows of $16 billion.
Full-year 2015 pre-tax margin increased to 34 percent.
RECOGNITION AND ACCOMPLISHMENTS
Principal earned the top spot in its category for the fourth year in a row in Pension & Investments’ annual survey of Best Places to Work in Money Management.* (December 2015)
Principal Real Estate Investors is a Top 10 manager of real estate. Managers ranked by U.S. institutional, tax-exempt assets managed internally (net of leverage). “The Largest Real Estate Managers,” Pensions & Investments, data as of Dec. 31, 2014. (May 2015)
Principal Funds named the No. 6 fund company in the U.S. by Barron’s magazine in 2015. (February 2016)
Principal Funds is No. 15 on the list of top advisor-sold mutual fund companies in the United States, based on assets under management, according to Strategic Insights. (December 2015)
Principal Global Investors named the 15th largest manager of high yield securities, out of 90 managers profiled. Managers ranked by U.S. institutional, tax-exempt assets managed internally, as of Dec. 31, 2014. “Largest Money Managers,” Pensions & Investments, Online Research Center. (May 2015)
Principal Global Investors named the 31st largest manager of institutional assets, out of 652 managers profiled. Managers ranked by total worldwide institutional assets as of Dec. 31, 2014. “Largest Money Managers,” Pensions & Investments. (May 2015)
*
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SEGMENT OVERVIEW
Offer long-term savings, asset management and retirement solutions in select Latin American and Asian emerging markets:
Brazil
Chile
China
Hong Kong, SAR
India
Indonesia
Malaysia
Mexico
Singapore
Thailand
PRODUCTS AND SERVICES
Annuities
Asset management
Islamic asset management
Islamic mutual funds
Mutual funds
Pensions
Retirement advisory services
Joint venture partners
Banco do Brasil (Brazil)
China Construction Bank (China)
CIMB Group (Southeast Asia)
Punjab National Bank (India)
Mutual fund/asset management boutique
Claritas (Brazil)
2015 FINANCIAL HIGHLIGHTS
Full-year pre-tax operating earnings of $271 million.
Reported assets under management of $110 billion at year end (excluding $42 billion of AUM in our joint venture in China, which is not reported in AUM or net cash flows).
Reported full-year net cash flows of $9.3 billion.
Strong investment performance with 87% and 83% of AUM ranked in the top 2 quartiles for one and five-year performance, respectively.
RECOGNITION AND ACCOMPLISHMENTS
Completed acquisition of AXA’s MPF and ORSO business in Hong Kong, which includes exclusive 15 year distribution agreement. (September 2015)
Brasilprev ranked No. 1 in market share and net deposits in individual pension savings plans. (December 2015)
Principal Chile:
Largest APV in terms of AUM according to the Asociación de Adminstradoras de Fondos Mutuos de Chile. APV is a voluntary pension product that complements the mandatory pension system in Chile. (December 2015)
Cuprum recognized as the leader in customer experience within the mandatory pension market according to the Praxis Xperience Index (PXI). (October 2015)
Southeast Asia
CIMB-Principal Islamic Asset Management recognized as Most Outstanding Islamic Financial Institution at the 2015 KLIFF Islamic Finance Awards. (December 2015)
CIMB-Principal Asset Management was named the Best Asset Manager in Southeast Asia by Alpha Southeast Asia in its “Best Financial Institutions Awards” (Marquee Awards). (June 2015)
Principal Hong Kong received Gold Ratings for two Mandatory Provident Funds (Scheme Series 600 and 800) at the 2015 MPF Awards. (March 2015)
SEGMENT OVERVIEW
Protect employers, business owners, employees, and individuals against risk and loss during working years and beyond, while building and protecting wealth for retirement.
PRODUCTS AND SERVICES
Individual Life: Protection, accumulation, and deferred compensation solutions
Business planning services
Retail universal, variable universal, indexed universal and term life insurance
Nonqualified deferred compensation
Specialty Benefits: Employer-paid and voluntary work-site solutions
Group life insurance
Group dental and vision
Individual discount dental
Group and multi-life disability income
Individual disability insurance
Critical illness
2015 FINANCIAL HIGHLIGHTS
Full-year pre-tax operating earnings were $430 million.
Record full-year earnings for Specialty Benefits, with record sales and retention, as well as 9 percent growth in premiums and fees.
Individual Life normalized premiums and fees grew 4 percent over 2014, and business market sales were 60 percent of 2015 total sales.
RECOGNITION AND ACCOMPLISHMENTS
Recognized by PLANSPONSOR magazine as the No. 1 nonqualified deferred compensation provider based on number of plans. (July 2015)
Ranked as the No. 4 provider of group benefit (dental, life and disability) insurance based on 2014 LIMRA data on fully insured employer contracts in force.
Ranked as the No. 5 provider of non-cancelable individual disability income insurance based on 2015 LIMRA data of annualized new sale premium.
Ranked as the No. 19 provider of life insurance based on 2014 LIMRA data on total life new sales premium.
Delivered a series of innovative products and solutions in 2015, including an innovative, patent-pending enrollment tool for group voluntary products and Principal Universal Life Provider Edge, a versatile, low-cost product featuring cash value accumulation and attractive target premium .
Introduced a new communication and education approach to nonqualified plan participants and expanded online self-service capability on principal.com for Individual Life customers.
