We would love to hear from you. Click on the ‘Contact Us’ link to the right and choose your favorite way to reach-out!

wscdsdc

media/speaking contact

Jamie Johnson

business contact

Victoria Peterson

Contact Us

855.ask.wink

Close [x]
pattern

Industry News

Categories

  • Industry Articles (21,155)
  • Industry Conferences (2)
  • Industry Job Openings (35)
  • Moore on the Market (414)
  • Negative Media (144)
  • Positive Media (73)
  • Sheryl's Articles (800)
  • Wink's Articles (353)
  • Wink's Inside Story (274)
  • Wink's Press Releases (123)
  • Blog Archives

  • March 2024
  • February 2024
  • January 2024
  • December 2023
  • November 2023
  • October 2023
  • September 2023
  • August 2023
  • July 2023
  • June 2023
  • May 2023
  • April 2023
  • March 2023
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • November 2011
  • October 2011
  • September 2011
  • August 2011
  • July 2011
  • June 2011
  • May 2011
  • April 2011
  • March 2011
  • February 2011
  • January 2011
  • December 2010
  • November 2010
  • October 2010
  • September 2010
  • August 2010
  • July 2010
  • June 2010
  • May 2010
  • April 2010
  • March 2010
  • February 2010
  • January 2010
  • December 2009
  • November 2009
  • October 2009
  • August 2009
  • June 2009
  • May 2009
  • April 2009
  • March 2009
  • November 2008
  • September 2008
  • May 2008
  • February 2008
  • August 2006
  • A.M. Best Affirms Ratings of Principal Financial Group, Inc. and Its Subsidiaries

    January 19, 2015 by A. M. Best

    Oldwick – A.M. Best has affirmed the financial strength rating (FSR) of A+ (Superior) and the issuer credit ratings (ICR) of “aa-” of Principal Life Insurance Company (PLIC) and Principal National Life Insurance Company. Both are life insurance operating companies of Principal Financial Group, Inc. (PFG) (collectively referred to as Principal) [NYSE: PFG], which is headquartered in Des Moines, IA. Concurrently, A.M. Best has affirmed the ICR of “a-” of PFG as well as the group’s existing debt ratings. The outlook for all ratings is stable. (Please see link below for a detailed listing of the companies and ratings.)

    Principal’s ratings reflect the group’s diversified revenue sources, consistent operating earnings, solid balance sheet and positive net flows across most business segments. The ratings also reflect Principal’s position as a leading provider of defined contribution plans, defined benefit plans, plan termination annuities and nonqualified plans in the United States. Partially offsetting these strengths are the group’s lower risk-adjusted capitalization relative to similarly rated peers, augmented country risk due to the rapid expansion of its international operations and notable exposure to higher-risk assets within its investment portfolio.

    Principal continues to generate favorable operating earnings across its multiple business segments. The group’s controlled distribution strategy, expanded product diversification and ongoing expense management have contributed to its consistent results. The continued shift of Principal’s business to fee-based products versus spread-based products should facilitate organic earnings growth as assets under management trend upward. Additionally, the fee-based model is likely to facilitate higher returns and greater free cash flow for the organization. Principal continues to generate strong net flows, primarily from its Full Service Accumulation and Principal Funds businesses within the Retirement & Investor Services segment. The Principal International and Principal Global Investors business segments also continue to produce positive net flows despite significant surrender activity and volatile economic conditions in certain international markets. The group’s expertise serving small to medium-size businesses is also demonstrated through its solid market positions in group life, disability, dental and vision, as well as individual disability insurance. Moreover, A.M. Best notes that Principal’s investment portfolio has exhibited favorable performance over the past few years as the number of asset impairments continues to decline.

    Despite consistent operating earnings, A.M. Best notes the lack of growth in Principal’s risk-adjusted capitalization, which remains at a somewhat lower level compared with similarly rated groups. Over the past few years, the organization has upstreamed substantial dividends from PLIC to fund acquisitions, share repurchase and stockholder dividends. Although its recent acquisition of AFP Cuprum, S.A., a leading Chilean mandatory pension provider, was mainly funded with new debt, a sizable amount of excess capital was utilized. A.M. Best believes Principal’s financial leverage is manageable at approximately 21% with strong interest coverage and good overall financial flexibility.

    A.M. Best will continue to monitor the organization’s capital deployments to ensure it maintains sound capitalization at its operating entities. A.M. Best will also consider Principal’s increased exposure to country risk due to the number of significant international acquisitions completed in recent years, consistent with the group’s strategy to reinforce and expand its international footprint. Although several of the countries Principal operates in possess moderate levels of political and financial risk, A.M. Best believes the demographics are favorable and the group has established defensible market positions in Latin America and Asia. Finally, A.M. Best has observed that Principal’s investment portfolio maintains above-average exposure to real estate-related assets such as commercial mortgages and commercial mortgage-backed securities (CMBS). However, A.M. Best notes the organization’s direct loan portfolio is fairly well diversified and that its CMBS portfolio is performing better than some of its peers with respect to problem loans and delinquencies.

    A.M. Best believes that a positive rating action for Principal is unlikely in the near to medium term. Factors that could lead to a negative rating action include erosion of its competitive position in key markets or a material decline in operating performance and/or risk-adjusted capitalization relative to A.M. Best’s expectations.

    For a complete listing of Principal Financial Group, Inc. and its subsidiaries’ FSRs, ICRs and debt ratings, please visit Principal Financial Group, Inc.

    The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.

    Key insurance criteria reports utilized:
    •Analyzing Insurance Holding Company Liquidity

    •A.M. Best’s Liquidity Model for U.S. Life Insurers

    •A.M. Best’s Perspective on Operating Leverage

    •Equity Credit For Hybrid Securities

    •Evaluating Country Risk

    •Insurance Holding Company and Debt Ratings

    •Rating Funding Agreement-Backed Securities

    •Rating Members of Insurance Groups

    •Risk Management and the Rating Process for Insurance Companies

    •Understanding BCAR for U.S. and Canadian Life/Health Insurers
    This press release relates to rating(s) that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please visit A.M. Best’s Ratings & Criteria Center.

    A.M. Best Company is the world’s oldest and most authoritative insurance rating and information source.

    Originally Posted at A.M. Best on January 16, 2015 by A. M. Best.

    Categories: Industry Articles
    currency