Principal Financial Group CEO Details Growth Focus on Retirement, Small Business Benefits

Deanna Strable, who joined Principal Financial Group as an intern 36 years ago, now leads the company focusing on retirement, asset management, benefits, and business owner solutions tailored primarily for small to medium-sized businesses. Principal Financial Group, originating as a life insurance company 145 years ago in Des Moines, Iowa, has evolved into a global financial services firm with a presence in 80 countries. The firm prioritizes comprehensive retirement solutions, including 401(k) plans, defined benefit plans, employee stock ownership plans, nonqualified plans, and pension risk transfers, addressing both employer and employee needs with integrated asset management and recordkeeping services. Principal targets small to medium-sized employers, typically those with up to 1,000 employees, focusing on simplifying benefits management for organizations that may lack dedicated human resources expertise. Their solutions encompass retirement plans, employee benefits, life and disability insurance, and business owner needs such as succession planning and key person insurance. The company’s asset management strategy extends beyond traditional real estate investments into infrastructure and private credit, aiming to serve institutional and retirement investors globally. Strable emphasizes a growth strategy grounded in differentiation and market leadership, particularly noting the company’s expansion in Retirement Income Lifetime Annuities (RILA) and variable annuity products, which serve retirement income planning effectively. Principal exited the retail fixed annuity market but continues to innovate in annuity offerings tied to retirement plans, focusing on embedding annuity products within qualified default investment alternatives to simplify adoption among plan participants. The company refocused its life insurance strategy towards employee benefits rather than retail individual policies, utilizing term, variable, and indexed life insurance primarily to fund nonqualified deferred compensation and support succession planning for business owners. This refocus aligns with Principal's commitment to business-oriented insurance solutions. Technology plays a critical role in Principal’s operations, with advanced initiatives such as accelerated underwriting 2.0 enhancing application processing efficiency and AI-driven tools improving customer engagement, claims processing, and IT productivity. The company prioritizes technology that solves business challenges and supports advisors, employees, and clients effectively. Strable highlights the continuing importance of professional advisors and agents in navigating complex retirement and insurance products, noting a need for adaptation through digital tools and personalized services to meet evolving customer expectations. Both industry relevance and customer engagement are central concerns, with the ongoing challenge of attracting and retaining talent in the advisory sector. Looking forward, Principal aims to embed more seamless annuity solutions within retirement plans, enhancing retirement income security while addressing demographic shifts and market demands. The firm also focuses on educating and recruiting future industry talent through university programs and industry partnerships to sustain growth and innovation. Overall, Principal Financial Group’s strategy centers on providing integrated, differentiated financial solutions for the retirement and benefits markets, leveraging technology, tailored offerings, and advisor collaboration to maintain competitiveness and meet customer needs effectively.