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Principal Financial Group inc (PFG) |
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Principal Financial Group Inc's Customers Performance
PFG
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PFG's Source of Revenues |
Principal Financial Group Inc's Corporate Customers have recorded an advance in their cost of revenue by 7.54 % in the 4 quarter 2023 year on year, sequentially costs of revenue were trimmed by -4.84 %. During the corresponding time, Principal Financial Group Inc revenue deteriorated by -13.81 % year on year, sequentially revenue fell by -41.49 %. While revenue at the Principal Financial Group Inc's corporate clients recorded rose by 10.39 % year on year, sequentially revenue fell by -3.14 %.
• List of PFG Customers
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Principal Financial Group Inc's Customers have recorded an advance in their cost of revenue by 7.54 % in the 4 quarter 2023 year on year, sequentially costs of revenue were trimmed by -4.84 %, for the same period Principal Financial Group Inc revnue deteriorated by -13.81 % year on year, sequentially revnue fell by -41.49 %.
• List of PFG Customers
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Select the Relationship:
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Select the Category:
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Customers Net Income fell in Q4 by |
Customers Net margin fell to % |
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-90.85 % |
0.32 % |
Principal Financial Group Inc's Comment on Sales, Marketing and Customers
We offer our full service accumulation products and services to employer-sponsored
pension plans, including qualified and nonqualified defined contribution plans
and defined benefit plans. Our primary target market is plans sponsored by small
and medium-sized businesses, which we believe remains under-penetrated. According
to Spectrem Group, only 22% of businesses with between 10 and 49 employees, 52%
of businesses with between 50 and 99 employees, 54% of businesses with between
100 and 249 employees and 72% of businesses with between 250 and 500 employees
offered a 401(k) plan. The same study indicates that 75% of employers with between
500 and 1,000 employees, 82% of employers with between 1,000 and 5,000 employees
and 83% of employers with 5,000 or more employees offered a 401(k) plan in 2012.
We distribute our full service accumulation products and services nationally,
primarily through a captive retirement services sales force. We have 117 retirement
services sales representatives in 42 offices, operating as a wholesale distribution
network, maintained relationships with over 13,500 independent brokers, consultants
and agents. Retirement services sales representatives are an integral part of
the sales process alongside the referring consultant or independent broker.
We compensate retirement services sales representatives through a blend of salary
and production-based incentives, while we pay independent brokers, consultants
and agents a commission or fee.
We had a separate staff of over 280 service and education specialists located
in the sales offices who play a key role in the ongoing servicing of pension
plans by providing local services to our customers, such as reviewing plan performance,
investment options and plan design; communicating the customers needs and feedback
to us and helping employees understand the benefits of their pension plans.
The following summarizes our distribution channels:
We distribute our annuity-based products through sales representatives, agents
and brokers who are primarily state licensed individuals.
Principal Advantage, our mutual fund-based product, is targeted at defined contribution
plans through broker-dealer distribution channels. Principal Advantage gives
us access to Financial Industry Regulatory Authority-registered distributors
who are not traditional sellers of annuity-based products and broadens opportunities
for us in the investment advisor and broker-dealer distribution channels.
Principal Retirement Income Edge® is designed to create a coordinated experience
from accumulation to income management for advisors to use with their individual
clients and plan participants who are nearing or enjoying retirement. The Principal
Retirement Income Edge® program provides education and planning tools as
well as a wide variety of products such as annuities, mutual funds and bank
products to provide personalized income management solutions.
Through our Retire Secure strategy we provide financial education and assistance
to individual investors who are participants/members of employer-based accumulation
solutions to help them achieve financial security.
We believe our approach to full service accumulation plan services distribution
gives us a local sales and service presence that differentiates us from many
of our competitors. We have also established a number of marketing and distribution
relationships to increase the sales of our accumulation products.
Our target markets for individual annuities include owners, executives and
employees of small and medium-sized businesses and individuals seeking to accumulate
and/or eventually receive distributions of assets for retirement. We market
both fixed and variable annuities to individuals for both qualified and nonqualified
retirement savings.
We sell our individual annuity products through our affiliated financial representatives.
The remaining sales were made through banks, brokerage general agencies, mutual
fund companies, Principal Connection and unaffiliated broker-dealer firms. Affiliated
financial representatives continued to be the primary distribution channel of
our variable deferred annuities. The majority of overall annuity sales, however,
were from non-affiliated distribution channels, as a result of focused efforts
to increase fixed annuity sales through non-affiliated distribution channels.
Bank employees pursue asset retention strategies by offering our bank products
and services to participants of qualified retirement plans, with a primary focus
on helping customers understand their retirement options and accumulate savings
for retirement. Principal Bank services customers through the telephone, mail
and Internet.
We deliver our directed trust services and collective investment funds to
customers through our PFG affiliates and affiliated financial representatives.
Administrative trust services for self-directed tax-advantaged savings accounts
are sold through non-affiliated brokerage firms, clearing firms, financial advisors
and asset managers.
We market GICs and funding agreements primarily to pension plan sponsors and
other institutions. We also offer them as part of our full service accumulation
products. We sell our GICs primarily to plan sponsors for funding of tax-qualified
retirement plans. We sell our funding agreements directly to institutions that
may or may not be pension funds and unconsolidated special purpose vehicles
domiciled either in the U.S. or offshore for funding agreement-backed note programs.
The funding agreements sold as part of these funding agreement-backed note programs
work by having investors purchase debt obligations from the special purpose
vehicle which, in turn, purchases the funding agreement from us with terms similar
to those of the debt obligations. The strength of this market is dependent on
debt capital market conditions. As a result, our sales through this channel
can vary widely from one quarter to another. In addition to the special purpose
vehicle selling the funding agreement-backed notes to U.S. and foreign institutional
investors, the special purpose vehicle may also sell notes to U.S. retail investors
through a SEC-registered shelf debt issuance program.
Our primary distribution channel for full service payout products is comprised
of several specialized home office sales consultants working through consultants
and brokers that specialize in this type of business. Our sales consultants
also make sales directly to institutions. Our nationally dispersed retirement
services sales representatives act as a secondary distribution channel for these
products. Principal Connection also distributes full service payout products
to participants in plans we service who are terminating employment or retiring.
We employed 144 institutional sales, relationship management and client service
professionals, who worked with consultants and directly with large investors
to acquire and retain third-party institutional clients. Principal Global Investors
and its boutiques had approximately 797 third-party institutional clients of
AUM in 37 countries.
For each of our products, administration and distribution channels are customized
to meet customer needs and expectations for that product.
We sell our individual life and individual disability income products in all
50 states and the District of Columbia, primarily targeting owners and executives
of small and medium-sized businesses. Small and medium-sized business sales
represented 57% of individual life sales and 63% of individual disability sales.
Much of our life insurance sales efforts focus on the Business Owner & Executive
Solutions market. This strategy offers solutions to address business owner financial
challenges such as exiting the business, business transition, retaining key
employees and retirement planning. Key employees also have needs to supplement
retirement income, survivor income, and business protection. We believe the
Business Owner & Executive Solutions segment offers growth opportunities
and we will continue to develop strategies to capitalize on this expanding market.
We distribute our individual life and individual disability insurance products
through our affiliated financial representatives and independent brokers, as
well as other marketing and distribution alliances. Affiliated financial representatives
were responsible for 23% of individual life insurance sales based on first year
annualized premium and 14% of individual disability sales. We had 1,121 affiliated
financial representatives in 31 offices. Although they are independent contractors,
we have a close tie with affiliated financial representatives and we offer them
benefits, training and access to tools and expertise. To meet the needs of the
various marketing channels, particularly the independent brokers, we employ
wholesale distributors — Regional Vice Presidents for individual life
and Regional Vice Presidents for individual disability. A key differentiator
in the nonqualified executive benefit sale is our Regional Vice Presidents-Nonqualified
Plans, who are not only wholesalers but also consultants and subject-matter
experts providing point-of-sale support in closing cases.
We market our group life, disability, dental and vision insurance products
to small and medium-sized businesses, primarily targeting our sales toward owners
and human resources professionals. We sell our group life, disability, dental
and vision products in all 50 states and the District of Columbia. We continually
adapt our products and pricing to meet local market conditions. We market our
fee-for-service capabilities to employers that self-insure their employees
dental, disability and vision benefits. We market our fee-for-service businesses
in all 50 states and the District of Columbia.
The group insurance market continues to see a shift to voluntary/worksite
products due to various pressures on employers. In keeping with this market
change, which shifts the funding of such products from the employer to the employee,
we continue to place an enhanced focus on our voluntary benefits platform. We
believe the voluntary/worksite market presents growth opportunities, and we
will continue to develop strategies to capitalize on this expanding market.
We had 108 sales representatives and 131 service representatives in 28 offices.
Our sales representatives accounted for 97% of our group insurance sale. The
group sales force plays a key role in the ongoing servicing of the case by providing
local, responsive services to our customers and their brokers, such as renewing
contracts, revising plans and solving any administrative issues; communicating
the customers needs and feedback to us and helping employees understand the
benefits of their plans.
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Principal Financial Group Inc's Comment on Sales, Marketing and Customers
We offer our full service accumulation products and services to employer-sponsored
pension plans, including qualified and nonqualified defined contribution plans
and defined benefit plans. Our primary target market is plans sponsored by small
and medium-sized businesses, which we believe remains under-penetrated. According
to Spectrem Group, only 22% of businesses with between 10 and 49 employees, 52%
of businesses with between 50 and 99 employees, 54% of businesses with between
100 and 249 employees and 72% of businesses with between 250 and 500 employees
offered a 401(k) plan. The same study indicates that 75% of employers with between
500 and 1,000 employees, 82% of employers with between 1,000 and 5,000 employees
and 83% of employers with 5,000 or more employees offered a 401(k) plan in 2012.
We distribute our full service accumulation products and services nationally,
primarily through a captive retirement services sales force. We have 117 retirement
services sales representatives in 42 offices, operating as a wholesale distribution
network, maintained relationships with over 13,500 independent brokers, consultants
and agents. Retirement services sales representatives are an integral part of
the sales process alongside the referring consultant or independent broker.
We compensate retirement services sales representatives through a blend of salary
and production-based incentives, while we pay independent brokers, consultants
and agents a commission or fee.
We had a separate staff of over 280 service and education specialists located
in the sales offices who play a key role in the ongoing servicing of pension
plans by providing local services to our customers, such as reviewing plan performance,
investment options and plan design; communicating the customers needs and feedback
to us and helping employees understand the benefits of their pension plans.
The following summarizes our distribution channels:
We distribute our annuity-based products through sales representatives, agents
and brokers who are primarily state licensed individuals.
Principal Advantage, our mutual fund-based product, is targeted at defined contribution
plans through broker-dealer distribution channels. Principal Advantage gives
us access to Financial Industry Regulatory Authority-registered distributors
who are not traditional sellers of annuity-based products and broadens opportunities
for us in the investment advisor and broker-dealer distribution channels.
Principal Retirement Income Edge® is designed to create a coordinated experience
from accumulation to income management for advisors to use with their individual
clients and plan participants who are nearing or enjoying retirement. The Principal
Retirement Income Edge® program provides education and planning tools as
well as a wide variety of products such as annuities, mutual funds and bank
products to provide personalized income management solutions.
Through our Retire Secure strategy we provide financial education and assistance
to individual investors who are participants/members of employer-based accumulation
solutions to help them achieve financial security.
We believe our approach to full service accumulation plan services distribution
gives us a local sales and service presence that differentiates us from many
of our competitors. We have also established a number of marketing and distribution
relationships to increase the sales of our accumulation products.
Our target markets for individual annuities include owners, executives and
employees of small and medium-sized businesses and individuals seeking to accumulate
and/or eventually receive distributions of assets for retirement. We market
both fixed and variable annuities to individuals for both qualified and nonqualified
retirement savings.
We sell our individual annuity products through our affiliated financial representatives.
The remaining sales were made through banks, brokerage general agencies, mutual
fund companies, Principal Connection and unaffiliated broker-dealer firms. Affiliated
financial representatives continued to be the primary distribution channel of
our variable deferred annuities. The majority of overall annuity sales, however,
were from non-affiliated distribution channels, as a result of focused efforts
to increase fixed annuity sales through non-affiliated distribution channels.
Bank employees pursue asset retention strategies by offering our bank products
and services to participants of qualified retirement plans, with a primary focus
on helping customers understand their retirement options and accumulate savings
for retirement. Principal Bank services customers through the telephone, mail
and Internet.
We deliver our directed trust services and collective investment funds to
customers through our PFG affiliates and affiliated financial representatives.
Administrative trust services for self-directed tax-advantaged savings accounts
are sold through non-affiliated brokerage firms, clearing firms, financial advisors
and asset managers.
We market GICs and funding agreements primarily to pension plan sponsors and
other institutions. We also offer them as part of our full service accumulation
products. We sell our GICs primarily to plan sponsors for funding of tax-qualified
retirement plans. We sell our funding agreements directly to institutions that
may or may not be pension funds and unconsolidated special purpose vehicles
domiciled either in the U.S. or offshore for funding agreement-backed note programs.
The funding agreements sold as part of these funding agreement-backed note programs
work by having investors purchase debt obligations from the special purpose
vehicle which, in turn, purchases the funding agreement from us with terms similar
to those of the debt obligations. The strength of this market is dependent on
debt capital market conditions. As a result, our sales through this channel
can vary widely from one quarter to another. In addition to the special purpose
vehicle selling the funding agreement-backed notes to U.S. and foreign institutional
investors, the special purpose vehicle may also sell notes to U.S. retail investors
through a SEC-registered shelf debt issuance program.
Our primary distribution channel for full service payout products is comprised
of several specialized home office sales consultants working through consultants
and brokers that specialize in this type of business. Our sales consultants
also make sales directly to institutions. Our nationally dispersed retirement
services sales representatives act as a secondary distribution channel for these
products. Principal Connection also distributes full service payout products
to participants in plans we service who are terminating employment or retiring.
We employed 144 institutional sales, relationship management and client service
professionals, who worked with consultants and directly with large investors
to acquire and retain third-party institutional clients. Principal Global Investors
and its boutiques had approximately 797 third-party institutional clients of
AUM in 37 countries.
For each of our products, administration and distribution channels are customized
to meet customer needs and expectations for that product.
We sell our individual life and individual disability income products in all
50 states and the District of Columbia, primarily targeting owners and executives
of small and medium-sized businesses. Small and medium-sized business sales
represented 57% of individual life sales and 63% of individual disability sales.
Much of our life insurance sales efforts focus on the Business Owner & Executive
Solutions market. This strategy offers solutions to address business owner financial
challenges such as exiting the business, business transition, retaining key
employees and retirement planning. Key employees also have needs to supplement
retirement income, survivor income, and business protection. We believe the
Business Owner & Executive Solutions segment offers growth opportunities
and we will continue to develop strategies to capitalize on this expanding market.
We distribute our individual life and individual disability insurance products
through our affiliated financial representatives and independent brokers, as
well as other marketing and distribution alliances. Affiliated financial representatives
were responsible for 23% of individual life insurance sales based on first year
annualized premium and 14% of individual disability sales. We had 1,121 affiliated
financial representatives in 31 offices. Although they are independent contractors,
we have a close tie with affiliated financial representatives and we offer them
benefits, training and access to tools and expertise. To meet the needs of the
various marketing channels, particularly the independent brokers, we employ
wholesale distributors — Regional Vice Presidents for individual life
and Regional Vice Presidents for individual disability. A key differentiator
in the nonqualified executive benefit sale is our Regional Vice Presidents-Nonqualified
Plans, who are not only wholesalers but also consultants and subject-matter
experts providing point-of-sale support in closing cases.
We market our group life, disability, dental and vision insurance products
to small and medium-sized businesses, primarily targeting our sales toward owners
and human resources professionals. We sell our group life, disability, dental
and vision products in all 50 states and the District of Columbia. We continually
adapt our products and pricing to meet local market conditions. We market our
fee-for-service capabilities to employers that self-insure their employees
dental, disability and vision benefits. We market our fee-for-service businesses
in all 50 states and the District of Columbia.
The group insurance market continues to see a shift to voluntary/worksite
products due to various pressures on employers. In keeping with this market
change, which shifts the funding of such products from the employer to the employee,
we continue to place an enhanced focus on our voluntary benefits platform. We
believe the voluntary/worksite market presents growth opportunities, and we
will continue to develop strategies to capitalize on this expanding market.
We had 108 sales representatives and 131 service representatives in 28 offices.
Our sales representatives accounted for 97% of our group insurance sale. The
group sales force plays a key role in the ongoing servicing of the case by providing
local, responsive services to our customers and their brokers, such as renewing
contracts, revising plans and solving any administrative issues; communicating
the customers needs and feedback to us and helping employees understand the
benefits of their plans.
PFG's vs. Customers, Data
(Revenue and Income for Trailing 12 Months, in Millions of $, except Employees)
| COMPANY NAME |
MARKET CAP |
REVENUES |
INCOME |
EMPLOYEES |
| Principal Financial Group inc |
19,297.20 |
13,665.80 |
670.10 |
18,600 |
| Lpl Financial Holdings Inc |
20,180.86 |
10,052.85 |
1,066.25 |
3,410 |
| Security National Financial Corporation |
150.16 |
318.50 |
14.50 |
1,271 |
| Atlantic American Corp |
37.24 |
186.79 |
-0.17 |
147 |
| American National Group Inc |
5,108.64 |
4,299.31 |
639.89 |
4,736 |
| Citizens Inc |
100.80 |
240.68 |
24.44 |
620 |
| First Trinity Financial Corp |
0.00 |
75.76 |
7.92 |
9 |
| National Security Group Inc. |
41.46 |
66.13 |
0.82 |
1 |
| National Western Life Group Inc |
1,721.76 |
639.35 |
128.42 |
261 |
| Utg Inc |
96.38 |
25.42 |
2.07 |
42 |
| Voya Financial Inc |
7,330.99 |
7,348.00 |
729.00 |
0 |
| China United Insurance Service Inc |
46.04 |
134.74 |
15.91 |
2,239 |
| Horace Mann Educators Corporation |
1,423.49 |
1,491.90 |
45.00 |
1,350 |
| United Fire Group Inc |
552.77 |
1,174.22 |
36.38 |
1,057 |
| Midwest Holding Inc |
102.33 |
37.47 |
1.06 |
0 |
| Heartland Media Acquisition Corp |
202.86 |
0.00 |
4.01 |
0 |
| Cvs Health Corporation |
89,488.43 |
357,776.00 |
8,368.00 |
300,000 |
| Tenet Healthcare Corp |
9,746.04 |
20,548.00 |
1,311.00 |
108,000 |
| The Kroger Co |
40,626.18 |
148,258.00 |
2,249.00 |
420,000 |
| Davita Inc |
11,753.30 |
12,140.15 |
956.98 |
69,000 |
| Truist Financial Corporation |
47,503.05 |
21,281.00 |
-1,047.00 |
52,641 |
| Primerica Inc |
7,581.37 |
2,776.29 |
553.51 |
1,764 |
| Sundance Strategies Inc |
42.24 |
0.00 |
-2.49 |
3 |
| Arthur J Gallagher and Co |
50,552.32 |
19,196.90 |
1,141.10 |
39,000 |
| Brown and Brown Inc |
23,017.37 |
4,132.40 |
747.00 |
12,023 |
| Crawford and Co |
384.85 |
1,338.22 |
-9.39 |
8,941 |
| Erie Indemnity Company |
19,776.77 |
3,297.91 |
446.06 |
4,800 |
| Corvel Corporation |
4,029.48 |
749.96 |
74.72 |
3,508 |
| Amerisafe Inc |
935.23 |
306.50 |
63.71 |
449 |
| Employers Holdings Inc |
1,127.39 |
850.90 |
118.10 |
716 |
| Assured Guaranty Ltd |
4,632.27 |
1,373.00 |
761.00 |
300 |
| Fresenius Medical Care Ag |
5,566.05 |
21,788.05 |
820.35 |
1,254 |
| Rite Aid Corp |
35.86 |
23,475.49 |
-1,635.20 |
50,000 |
| SUBTOTAL |
353,893.94 |
665,379.87 |
17,631.93 |
1,087,542 |
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1139.64 % 