This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

A.M. Best Affirms Ratings Of Principal Financial Group, Inc. And Its Subsidiaries

Stocks in this article: PFG

A.M. Best Co. has affirmed the financial strength rating (FSR) of A+ (Superior) and issuer credit ratings (ICR) of “aa-” of Principal Life Insurance Company and Principal National Life Insurance Company (together referred to as Principal Life). Both are life insurance operating companies of Principal Financial Group, Inc. (PFG) [NYSE: PFG]. The outlook for these ratings is stable.

A.M. Best also has affirmed the ICR of “a-” of PFG as well as all existing debt ratings. Concurrently, A.M. Best has assigned debt ratings of “a-” to each of the three senior unsecured notes recently issued by PFG. The outlook assigned to these ratings is stable. All companies are domiciled in Des Moines, IA. (Please see link below for a detailed listing of the companies and ratings.)

Principal Life’s ratings reflect its diversified operating earnings, record assets under management, solid risk-adjusted capitalization and its continued performance improvement within its investment portfolio. The ratings also reflect the strong enterprise risk management (ERM) capabilities of PFG.

PFG continues to generate favorable operating earnings across its multiple business segments. The group's expanded product diversification, controlled distribution strategy and ongoing expense management have contributed to its consistent earnings. Additionally, the composition of PFG's business is less reliant on its spread-based products relative to its fee-based products. PFG continues to generate significant improvement in net flows, primarily from its Full Service Accumulation and Principal Funds businesses within the Retirement and Investor Services segment, in addition to positive net flows within the Principal International and Principal Global Investors business segments, where its assets under management (AUM) has continued to grow. The fee income generated from the organization's record AUM has been able to offset the decline in its net investment income for the year. Net income also has benefited from the improved performance of its investment portfolio. PFG's net realized losses have decreased considerably since the recent economic crisis. However, A.M. Best expects realized losses to continue in 2013 as more of its commercial mortgage-backed securities portfolio continues to mature. A.M. Best notes PFG's ERM has been an area of strength for a number of years. A.M. Best believes that PFG’s recent independent review from an outside audit company will only enhance the risk management capabilities of an already strong program.

1 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs