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Principal Financial appoints new president and COO

Published 21/08/2024, 14:06
PFG
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DES MOINES, Iowa - Principal Financial Group (NASDAQ:PFG) announced the appointment of Deanna Strable as its new president and chief operating officer. Strable, who has been with the company since 1990 and served as its chief financial officer since 2017, will now oversee Principal's Retirement and Income Solutions, Benefits and Protection, and Asset Management businesses.

Dan Houston, who remains the CEO and Chairman of the Board, praised Strable's contributions to the company's strategic direction and financial results. He expressed enthusiasm about their continued partnership in leading the organization.

In conjunction with Strable's promotion, Joel Pitz, senior vice president and controller, will step in as interim chief financial officer. Pitz's tenure at Principal spans nearly three decades, during which he has held various senior finance roles, including CFO for the company's international pension and long-term savings business.

The leadership changes come as Principal Financial Group, a global financial company with a 145-year history, continues to focus on its mission of improving the wealth and well-being of people and businesses. The company, which serves over 64 million customers, has been recognized for its ethical practices, commitment to gender equality, and as a top workplace in money management.

Strable's new role is effective immediately, and she will be responsible for guiding the company through its next phase of growth and customer service.

This executive transition is based on a press release statement from Principal Financial Group.

"In other recent news, Principal Financial Group reported a 7% increase in earnings per share for the second quarter of 2024, reaching $1.63 per share, driven by a 6% rise in net revenue due to business expansion and favorable market conditions. Despite not meeting expectations for the second quarter, as noted by RBC Capital, the company reaffirmed its financial targets for 2024, including a projected earnings per share growth of 9% to 12%. RBC Capital also anticipates an improved performance in the second half of 2024, highlighting Principal Financial's active capital return strategy and robust sales in the pension risk transfer market.

In addition to these developments, Principal Financial also announced a dividend increase, marking the fifth consecutive quarter of such growth, and returned $415 million to shareholders through share repurchases and dividends. The firm's total assets under management now stand at a robust $699 billion. While there was a slight decrease in earnings for Principal Global Investors and Principal International units, the company remains confident in meeting its full-year guidance for 2024.

These recent developments indicate a period of growth and expansion for Principal Financial Group, as reflected in its earnings and revenue results, dividend increases, and strong asset management performance. The company's strategic moves, such as capital return initiatives and sales performance in the pension risk transfer market, have been recognized by analyst firms like RBC Capital. Despite facing some setbacks, Principal Financial's reaffirmation of its 2024 financial targets provides a steadying outlook for the company's future performance."

InvestingPro Insights

As Principal Financial Group (NASDAQ:PFG) welcomes Deanna Strable as its new president and chief operating officer, the company's financial stability and growth prospects remain a focal point for investors. With a market capitalization of $17.87 billion and a reputation for consistent dividend payments, Principal Financial Group stands as a solid player in the financial sector. An InvestingPro Tip highlights that the company has not only maintained dividend payments for 23 consecutive years but also has a track record of raising its dividend for 15 consecutive years, showcasing its commitment to shareholder returns.

The company's fundamentals reflect a positive outlook with a P/E ratio at 14.61 and a price to book ratio of 1.62, indicating a potentially undervalued stock relative to its assets. Furthermore, with net income expected to grow this year, as indicated by another InvestingPro Tip, and six analysts having revised their earnings upwards for the upcoming period, the future appears promising for Principal Financial Group.

InvestingPro Data also reveals that the company has experienced a revenue growth of 10.61% over the last twelve months as of Q2 2024, demonstrating its ability to increase its earnings. Moreover, the company's liquid assets surpass its short-term obligations, which is a reassuring sign of financial health and stability.

For those seeking more in-depth analysis, InvestingPro offers additional tips on Principal Financial Group, which can be found at https://www.investing.com/pro/PFG. These tips can provide investors with a more comprehensive understanding of the company's financial position and future prospects.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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