Principal Financial Group
|Traded as||NYSE: PFG
S&P 500 Component
|Industry||Finance and Insurance|
|Founded||Des Moines, Iowa USA, (1879)|
|Headquarters||Des Moines, Iowa USA|
|Key people||Larry Zimpleman Chairman & CEO; Edward Temple -- founder|
|Revenue||US$ 9.2 billion (2012)|
|Operating income||US$ 959.40 Million (2012)|
|Net income||US$ 805.90 Million (2012)|
|Total assets||US$ 367.1 billion (2010)|
|Total equity||US$ 10.01 billion (2010)|
The Principal Financial Group (The Principal) offers businesses individuals and institutional clients, a wide range of financial products and services including retirement, asset management and insurance,through its diverse family of financial services companies. The Principal has offices in 18 countries throughout Asia, Australia, Europe, Latin America and North America. As of March 31, 2014, The Principal Financial Group has $496 billion in assets under management and serves some 19.2 million customers worldwide.
In 2014, The Principal was ranked 298th on Fortune magazine’s list of the 500 largest U.S. corporations (May 2014). In 2013, The Principal Financial Group earned the top spot in its category for the second year in a row of Pensions & Investments' annual survey of Best Places to Work in Money Management. In 2013, The Principal ranked 528th on the Forbes Global 2000 list, which recognizes the world's biggest and most powerful companies, as measured by a composite ranking for sales profits, assets and market value (as of April 2013).
Founding and early history
- 1879 - Bankers Life Association was founded on July 1, 1879 by Edward Temple, a banker from Chariton, Iowa, and five other colleagues. At first, Bankers Life Association provided life insurance (in the form of memberships) to men between the ages of 22 and 55. They had to be in good health and not be employed in any occupation that was considered high-risk. Insurance benefits would also not be awarded if unintentional death was caused by harmful consumption of alcoholic beverages, or the irresponsible use of drugs.
- 1882 - The number of memberships required the hiring of the association's first employee, John Tibbs, who acted as a General Agent.
- 1889 - Bankers Life Association had $29 million of life insurance memberships in effect. This required the association to relocate their operations to the Equitable Building in Des Moines, Iowa. Costs were kept at frugal standards. Temple's salary increased to $6,000 in 1890, which was considerably lower than salaries offered by similar businesses.
- 1909 - After the death of Edward Temple, the Board of Directors voted to reorganize the business into a mutual life insurance company. George Kuhns became president of the company. He employed the use of direct-mail advertising to reach new markets. This brought in $3 million in new sales within the first year.
- 1925 - The company acquired a small, 500-watt radio station, WHO, with a broadcast range of 150 miles (240 km). George Kuhns saw this tool as a way to increase sales. Bankers Life ran WHO until 1930.
- 1930 - Prior to the Great Depression, the company was closing in on the $1 billion landmark. The 50th anniversary, which was scheduled to take place on June 1929, was postponed until January 6, 1930. President Gerard Nollen gave a $10 gold piece to every person in attendance, as a token of his optimism about the future of the economy.
- 1939 - Continued growth required the company to relocate its operations to a larger facility. A building was constructed on 711 High Street to house the offices. It was the first building in Des Moines to be fully air-conditioned.
- 1941 - The company issued its first group health insurance contract. Within the next five years, group health insurance accounted for a third of the business.
- 1962 - The company ended its policy of terminating new mothers, instead offering them part-time work. They could now work from 9AM to 3PM between the months of September to June, while their kids were at school.
Name Change and Expansion
- 1985 - The Bankers Life Company became Principal Financial Group (PFG).
- 1990s - The company expanded to markets outside of the United States,including Brazil, China, Chile, Hong Kong, India, and Mexico.
- October 23, 2001 - The company filed their initial public offering and became a publicly traded corporation.
- February 28, 2008 - Nippon Life Insurance announced that it would increase its stake in Principal from 4.3% (11.29 million shares) to 7%, making it the largest single stakeholder. The move was said to reduce the likelihood of a hostile takeover.
Four segments comprise the company: Retirement and INvestor Services, Principal Global Investors, Principal International,and U.S. Insurance Solutions.
The company is composed of six business units: 'International Operations', 'Retirement & Investments', 'Global Asset Management', 'Insurance', 'Wellness', and 'Banking'.
The company has was named one of the FORTUNE 100 Best Companies to Work For from 2003–2009, and has also received the following recognition:
- Named to the Information Week Elite 100 (formerly the Information Week 500)recognizing the top business technology innovators for the 17th consecutive year. (April 2013)
- Recognized as a Platinum Well Workplace by the Wellness Councils of America
- Named a Healthy Iowa award winner in the large business category by the Healthiest State Initiative for leading Iowa's change in advancing well-being (April 2014)
- Recognized by IDG's Computerworld as one of its 100 Best Places to Work in IT for 13 consecutive years,ranking 27th(June 2014)
- Noted as one of the Top 50 Companies for Executive Women in the 12th consecutive year by the National Association of Female Executives (February 2014)
- Named among Working Mother magazine's 100 Best Companies for Working Mothers for the 12 year. (September 2013)
The company employs roughly 9,000 people in Des Moines, Iowa, and owns and operates several buildings in the downtown area. The tallest, known as 801 Grand, is 45 stories tall (192m/630 ft), and houses many other companies in addition to The Principal.
The Principal has a deep commitment to the Des Moines community and encourages employees to be community leaders. Their community leadership culture has warranted recognition and awards:
- The 19th company to receive United Way of America's Spirit of America Award for corporate community involvement.
- Winner of the Spirit of Central Iowa Award from United Way of Central Iowa-its highest honor for excellence in the three categories of Give, Advocate and Volunteer. (April 2014)
- Named a 2020 Women on Boards Winning Company for the third straight year, recognizing companies with 20 percent or more female directos. (March 2014)
- Received the Above and Beyond award from the Iowa Employer Support of the Guard and Reserve, honoring employers that provide extraordinary patriotic support and cooperation to employees serving in the military. (May 2013)
- Named a CDP Climate Performance Leader for our commitment to improving our impact on the environment. (September 2013)
Eddie is the lead and central character in the current marketing campaign of the Principal Financial Group. Eddie’s television and print ads often depict him facing challenges and using the Principal Edge to solve his financial, business, and everyday life problems.
- "2010 Form 10-K, PRINCIPAL FINANCIAL GROUP". United States Securities and Exchange Commission.
- "2012 Company Profile". The Principal Financial Group Company profile. Retrieved 21 May 2012.
- Emporis Building Listing for 801 Grand. http://www.emporis.com/en/wm/bu/?id=123036
- "Hello, Hi We'd like you to meet someone.". Principal Financial Group. Retrieved 2007-09-18.
- The Principal Financial Group Official Website
- Read The Principal's Blog
- Official YouTube Channel
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