Principal Financial - PFG STOCK NEWS

The Longevity Project, in collaboration with Principal Financial Group, has released a study focusing on retirement income strategies amid increased life expectancies. The study highlights the struggle of retirees in balancing spending and saving, revealing that most retirees rely on Social Security while underestimating the need for guaranteed income sources like annuities. Addressing these challenges is essential for financial security in retirement. The report suggests industry-wide collaboration to improve access to income solutions, especially as the retirement landscape evolves with rising living costs and longer lifespans.

Principal has been awarded the Corporate Innovation Award by Plug and Play at the Virtual Winter Summit 2020 for its commitment to fostering innovation within the Fintech sector. The award recognizes corporations that enhance their innovation culture by collaborating with startups and industry leaders. Principal has effectively utilized its partnership with Plug and Play to address customer needs amid the COVID-19 pandemic, leveraging technology for solutions in areas like electronic health records and digital payments. As part of its strategy, Principal aims to continue enhancing its innovation capabilities.

Principal Financial Group has won eight major awards at the Investment Management Education Alliance's STAR Awards, including the Overall Retirement Communications award for the second consecutive year. These awards celebrate the best practices in marketing and communications within the investment management sector. Principal achieved recognition across various categories such as crisis communications, digital education, and thought leadership, showcasing their commitment to financial education and customer engagement. The firm is focused on enhancing digital solutions and customer care moving forward.

According to the Principal Retirement Security Survey for Q3 2020, retirees are maintaining their financial strategies amid COVID-19 and the upcoming U.S. elections. Over 60% express concern about the economic outlook, with a notable drop in those feeling happy in retirement (from 51% to 41%). While nearly 50% refuse to alter investment strategies due to election results, 77% are reducing expenses. Many retirees are consolidating financial accounts, with 50% of deferred annuity holders reporting increased confidence during market volatility. The survey included over 630 participants.

Principal Financial Group (Nasdaq: PFG) reported third quarter 2020 results, showing net income of $236 million, down from $277 million in 2019. The decrease was largely influenced by $187.3 million in significant variances linked to actuarial assumptions. Non-GAAP operating earnings were $234.5 million, lower than $345.3 million in the previous year. Despite challenges from COVID-19 claims and integration costs, core earnings improved by 10% when excluding variances. The company maintained a strong financial position, with total assets under management at $731.3 billion and a quarterly dividend of $0.56 per share.

For the first time, the 12th annual 403(b) Plan Survey by the Plan Sponsor Council of America shows that retirement planning has surpassed participation as the primary focus for employee education among 403(b) providers, with 34.8% citing it as their top goal. Additionally, employee contributions have risen to 7.2%, and average plan sponsor contributions increased to 6.3%. However, 30% of organizations reported a need for better cybersecurity education amid the COVID-19 pandemic, reflecting a growing concern for employee security.

Principal has launched the Business Needs Assessment, a digital tool aimed at supporting small and medium-sized businesses in financial planning and management. This innovation comes in response to business owners' optimism about future growth despite economic challenges. The assessment consists of three modules that evaluate business, employee, and personal needs, and can be completed in under 15 minutes. This resource is part of Principal's commitment to enhancing financial well-being through integrated services tailored for diverse business types.