Principal Financial Reports Q1 Growth Amid Market Volatility and Higher Mortality

Principal Financial Group reported robust growth in its specialty benefits division for the first quarter, with premiums and fees increasing by 5.6% to $3.29 billion amid an unpredictable economic climate. Despite experiencing higher-than-expected mortality rates primarily due to a significant single claim, the company maintained strong performance across its core business segments, including Retirement and Income Solutions, Principal Global Investors, Principal International, and Benefits & Protection. The Retirement and Income Solutions segment notably saw a 9% increase in recurring deposits, reaching $13.8 billion, alongside $800 million in pension risk transfer sales, underscoring Principal's leading market position based on 2024 LIMRA data.

The firm's leadership highlighted extreme market volatility in April, which poses challenges for forecasting future quarters, specifically affecting fee revenues in retirement and asset management. This volatility reflects broader policy shifts and market uncertainties influencing investor behavior and emphasizing resilience strategies. Additionally, the company reported that its exposure to international tariff-related risks remains minimal, as it closely monitors evolving U.S. trade policies.

Principal continues to focus strategically on asset management, plan sponsor services, and group benefits to capitalize on market momentum and sustain long-term growth. Strong fundamentals such as recurring deposits, deferrals, employer matches, and employment wage growth contribute to the company's financial stability amid economic fluctuations. The company’s disciplined operational approach and diversified portfolio position it to navigate multiple market cycles effectively.