
AM Best has affirmed the Financial Strength Rating of A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICRs) of &#34;aa&#34; (Superior) of Principal Life Insurance Company and Principal National Life Insurance

AM Best has affirmed the Financial Strength Rating of A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICRs) of "aa" (Superior) of Principal Life Insurance Company and Principal National Life Insurance Company. Both are life insurance operating companies of Principal Financial Group, Inc. (PFG) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/quote/PFG">PFG</a>) and collectively referred to as Principal. Concurrently, AM Best has affirmed the Long-Term ICRs of "a" (Excellent) of Principal Financial Services, Inc. and PFG, as well as the group's Long-Term Issue Credit Ratings (Long-Term IRs). In addition, AM Best has affirmed the group's Short-Term Issue Credit Rating (Short-Term IR). The outlook of these Credit Ratings (ratings) is stable. (Please see below for a detailed listing of the Long- and Short-Term IRs.) All companies are headquartered in Des Moines, IA.


The ratings reflect Principal's balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, favorable business profile and very strong enterprise risk management (ERM).


AM Best views Principal's risk-adjusted capitalization as strong, as measured by Best's Capital Adequacy Ratio (BCAR), although capital growth has been limited by dividends to the parent company. The group lowered its product risk with reinsurance in 2022, ceding its in-force retail fixed annuity and universal life insurance with secondary guarantee blocks. Since then, Principal has focused more toward fee-based products. The balance sheet strength assessment also benefits from continued favorable financial flexibility, strong liquidity profiles and significant excess capital and access to capital markets at the holding company level. AM Best's favorable view of the group's capital is offset somewhat by Principal's elevated allocations to mortgages and usage of its captive reinsurers.


Principal has reported favorable profitability consistently, and has benefited from its diverse lines of business, distribution channels and leading market positions. An increasing presence internationally provides additional earnings diversity. Principal has demonstrated strong ERM through continued enhancements to its capital and risk modeling, as well as its stress-testing capabilities.


The following Long-Term IRs have been affirmed with stable outlooks:


Principal Financial Group, Inc.—
 -- "a" (Excellent) on $500 million 3.70% senior unsecured notes, due 2029
 -- "a" (Excellent) on $350 million 3.1% senior unsecured notes, due 2026
 -- "a" (Excellent) on $600 million 2.125% senior secured notes, due 2030
 -- "a" (Excellent) on $505.6 million 6.05% senior unsecured notes, due 2036
 -- "a" (Excellent) on $400 million 5.375% senior unsecured notes, due 2033
 -- "a" (Excellent) on $300 million 4.625% senior unsecured notes, due 2042
 -- "a" (Excellent) on $300 million 4.35% senior unsecured notes, due 2043
 -- "a" (Excellent) on $300 million 4.30% senior unsecured notes, due 2046
 -- "a" (Excellent) on $300 million 5.5% senior unsecured notes, due 2053
 -- "a" (Excellent) on $400 million 4.111% senior unsecured notes, due 2028


Principal Life Global Funding I— "aa" (Superior) on program rating
 -- "aa" (Superior) on all outstanding notes issued under the program


Principal Life Global Funding II— "aa" (Superior) on program rating
 -- "aa" (Superior) on all outstanding notes issued under the program


Principal Financial Global Funding, LLC— "aa" (Superior) on program rating
 -- "aa" (Superior) on all outstanding notes issued under the program


Principal Financial Global Funding II LLC— "aa" (Superior) on program rating


Principal Life Income Funding Trusts— "aa" (Superior) on program rating


The following Short-Term IR has been affirmed:


Principal Life Insurance Company—
 -- AMB-1+ (Strongest) commercial paper rating


The following indicative Long-Term IRs on securities available under universal shelf registration have been affirmed with stable outlooks:


Principal Financial Group, Inc.—
 -- "a" (Excellent) on senior unsecured debt
 -- "a-" (Excellent) on subordinated debt
 -- "bbb+" (Good) on preferred stock


Principal Capital I, II and III—
 -- "aa" (Superior) on preferred securities


This press release relates to Credit Ratings that have been published on AM 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 see AM Best's <a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=http%3A%2F%2Fratings.ambest.com%2Fratingeventdisclosures.aspx&amp;esheet=54524880&amp;newsitemid=20260428904698&amp;lan=en-US&amp;anchor=Recent+Rating+Activity&amp;index=1&amp;md5=b041c0ba0780f010114d8f6547a782a1" shape="rect">Recent Rating Activity</a> web page. For additional information regarding the use and limitations of Credit Rating opinions, please view <a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=http%3A%2F%2Fwww3.ambest.com%2Fambv%2Fratingmethodology%2FOpenPDF.aspx%3Fri%3D1901&amp;esheet=54524880&amp;newsitemid=20260428904698&amp;lan=en-US&amp;anchor=Guide+to+Best%27s+Credit+Ratings&amp;index=2&amp;md5=5af6b1e701487abfee60591dab126cc0" shape="rect">Guide to Best&#39;s Credit Ratings</a>. For information on the proper use of Best's Credit Ratings, Best's Performance Assessments, Best's Preliminary Credit Assessments and AM Best press releases, please view <a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=https%3A%2F%2Fwww.ambest.com%2Fratings%2Fguidetouse.pdf&amp;esheet=54524880&amp;newsitemid=20260428904698&amp;lan=en-US&amp;anchor=Guide+to+Proper+Use+of+Best%26%238217%3Bs+Ratings+%26amp%3B+Assessments&amp;index=3&amp;md5=ecd1ca10b05bf0f1958406ed62d642a8" shape="rect">Guide to Proper Use of Best's Ratings &amp; Assessments</a>.


AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit <a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=http%3A%2F%2Fwww.ambest.com%2F&amp;esheet=54524880&amp;newsitemid=20260428904698&amp;lan=en-US&amp;anchor=www.ambest.com&amp;index=4&amp;md5=bad30859960da50abf56ca44441cef18" shape="rect">www.ambest.com</a>.


Copyright &#xA9; 2026 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

<img xmlns="http://www.w3.org/1999/xhtml" alt="" src="https://cts.businesswire.com/ct/CT?id=bwnews&amp;sty=20260428904698r1&amp;sid=benz2&amp;distro=nx&amp;lang=en" style="width:0;height:0"></img>View source version on businesswire.com: <a xmlns="http://www.w3.org/1999/xhtml" href="https://www.businesswire.com/news/home/20260428904698/en/" rel="nofollow">https://www.businesswire.com/news/home/20260428904698/en/</a>
David Marek 
 Associate Director 
 +1 908 882 1924 
 <a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="mailto:david.marek@ambest.com" shape="rect">david.marek@ambest.com 
</a> 
 Louis Silvers 
 Senior Financial Analyst 
 +1 908 882 2316 
 <a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="mailto:louis.silvers@ambest.com" shape="rect">louis.silvers@ambest.com 
</a> 
 Christopher Sharkey 
 Associate Director, Public Relations 
 +1 908 882 2310 
 <a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="mailto:christopher.sharkey@ambest.com" shape="rect">christopher.sharkey@ambest.com 
</a> 
 Al Slavin 
 Senior Public Relations Specialist 
 +1 908 882 2318 
 <a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="mailto:al.slavin@ambest.com" shape="rect">al.slavin@ambest.com</a>

AM Best Affirms Credit Ratings of Principal Financial Group, Inc. and Its Subsidiaries

PFG Receives Stable Credit Ratings Boost from AM Best

<section class="insight" data-version="1">
 <section data-block="information">
 <h3>Information</h3>
 AM Best has affirmed the Financial Strength Rating of A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICRs) of &amp;#34;aa&amp;#34; (Superior) of Principal Life Insurance Company and Principal National Life Insurance
 </section>

 <section data-block="ai-summary-paragraph">
 <h3>AI Summary</h3>
 AM Best has reaffirmed Principal Financial Group&#039;s A+ and &#039;aa&#039; ratings, underscoring its strong financial stability and effective risk management. This rating bolsters investor confidence and aligns with PFG&#039;s shift towards fee-based products, enhancing profitability and market position.
 </section>

 <section data-block="ai-summary-bullets">
 <h3>Key Points</h3>
 <ul><li>AM Best affirms PFG&#039;s A+ rating, highlighting strong financial stability.</li><li>Principal&#039;s overall balance sheet strength is assessed as very strong.</li><li>Stable outlooks for various credit ratings enhance investor confidence.</li><li>Continued focus on fee-based products post-reinsurance improves profitability.</li><li>Principal maintains significant capital access, supporting financial flexibility.</li></ul>
 </section>

 <section data-block="companies-mentioned">
 <h3>Companies Mentioned</h3>
 <ul><li>Principal Life Insurance Company (PFG): Key subsidiary reaffirmed with A+ rating, indicating robust financial health.</li><li>Principal National Life Insurance Company (PFG): Also rated A+, contributing positively to PFG&#039;s overall financial strength.</li></ul>
 </section>

 <section data-block="category">
 <h3>Corporate Developments</h3>
 This falls under &#039;Corporate Developments&#039; as it addresses substantial updates on credit ratings that reflect PFG&#039;s financial stability and risk management, highly relevant for investors assessing the company&#039;s operational health.
 </section>

 <section data-block="market-moving">
 <h3>Market-Moving</h3>
 <ul><li>AM Best&#039;s stable rating can boost investor confidence in PFG&#039;s stock.</li><li>Increased capital access supports PFG&#039;s growth potential and operational flexibility.</li><li>Focus on profitable fee-based products may improve revenue streams.</li><li>Stable outlook mitigates investor risk perception, potentially enhancing share price.</li></ul>
 </section>

 <section data-block="key-facts">
 <h3>Key Facts</h3>
 <ul><li>PFG&#039;s Financial Strength Rating is maintained at A+ by AM Best.</li><li>Long-term issuer credit ratings of &#039;aa&#039; for PFG and subsidiaries affirmed.</li><li>AM Best views PFG&#039;s risk-adjusted capitalization as strong.</li><li>Stable outlook reflects ongoing positive financial flexibility and liquidity.</li><li>PFG is transitioning towards more fee-based products following reinsurance actions.</li></ul>
 </section>

 <section data-block="trading-thesis">
 <h3>Trading Thesis</h3>
 PFG is a strong buy due to reinforced financial ratings and growth strategy.
 </section>
</section>



AM Best has affirmed the Financial Strength Rating of A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICRs) of "aa" (Superior) of Principal Life Insurance Company and Principal National Life Insurance Company. Both are life insurance operating companies of Principal Financial Group, Inc. (PFG) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/quote/PFG">PFG</a>) and collectively referred to as Principal. Concurrently, AM Best has affirmed the Long-Term ICRs of "a" (Excellent) of Principal Financial Services, Inc. and PFG, as well as the group's Long-Term Issue Credit Ratings (Long-Term IRs). In addition, AM Best has affirmed the group's Short-Term Issue Credit Rating (Short-Term IR). The outlook of these Credit Ratings (ratings) is stable. (Please see below for a detailed listing of the Long- and Short-Term IRs.) All companies are headquartered in Des Moines, IA.


The ratings reflect Principal's balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, favorable business profile and very strong enterprise risk management (ERM).


AM Best views Principal's risk-adjusted capitalization as strong, as measured by Best's Capital Adequacy Ratio (BCAR), although capital growth has been limited by dividends to the parent company. The group lowered its product risk with reinsurance in 2022, ceding its in-force retail fixed annuity and universal life insurance with secondary guarantee blocks. Since then, Principal has focused more toward fee-based products. The balance sheet strength assessment also benefits from continued favorable financial flexibility, strong liquidity profiles and significant excess capital and access to capital markets at the holding company level. AM Best's favorable view of the group's capital is offset somewhat by Principal's elevated allocations to mortgages and usage of its captive reinsurers.


Principal has reported favorable profitability consistently, and has benefited from its diverse lines of business, distribution channels and leading market positions. An increasing presence internationally provides additional earnings diversity. Principal has demonstrated strong ERM through continued enhancements to its capital and risk modeling, as well as its stress-testing capabilities.


The following Long-Term IRs have been affirmed with stable outlooks:


Principal Financial Group, Inc.—
 -- "a" (Excellent) on $500 million 3.70% senior unsecured notes, due 2029
 -- "a" (Excellent) on $350 million 3.1% senior unsecured notes, due 2026
 -- "a" (Excellent) on $600 million 2.125% senior secured notes, due 2030
 -- "a" (Excellent) on $505.6 million 6.05% senior unsecured notes, due 2036
 -- "a" (Excellent) on $400 million 5.375% senior unsecured notes, due 2033
 -- "a" (Excellent) on $300 million 4.625% senior unsecured notes, due 2042
 -- "a" (Excellent) on $300 million 4.35% senior unsecured notes, due 2043
 -- "a" (Excellent) on $300 million 4.30% senior unsecured notes, due 2046
 -- "a" (Excellent) on $300 million 5.5% senior unsecured notes, due 2053
 -- "a" (Excellent) on $400 million 4.111% senior unsecured notes, due 2028


Principal Life Global Funding I— "aa" (Superior) on program rating
 -- "aa" (Superior) on all outstanding notes issued under the program


Principal Life Global Funding II— "aa" (Superior) on program rating
 -- "aa" (Superior) on all outstanding notes issued under the program


Principal Financial Global Funding, LLC— "aa" (Superior) on program rating
 -- "aa" (Superior) on all outstanding notes issued under the program


Principal Financial Global Funding II LLC— "aa" (Superior) on program rating


Principal Life Income Funding Trusts— "aa" (Superior) on program rating


The following Short-Term IR has been affirmed:


Principal Life Insurance Company—
 -- AMB-1+ (Strongest) commercial paper rating


The following indicative Long-Term IRs on securities available under universal shelf registration have been affirmed with stable outlooks:


Principal Financial Group, Inc.—
 -- "a" (Excellent) on senior unsecured debt
 -- "a-" (Excellent) on subordinated debt
 -- "bbb+" (Good) on preferred stock


Principal Capital I, II and III—
 -- "aa" (Superior) on preferred securities


This press release relates to Credit Ratings that have been published on AM 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 see AM Best's <a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=http%3A%2F%2Fratings.ambest.com%2Fratingeventdisclosures.aspx&amp;esheet=54524880&amp;newsitemid=20260428904698&amp;lan=en-US&amp;anchor=Recent+Rating+Activity&amp;index=1&amp;md5=b041c0ba0780f010114d8f6547a782a1" shape="rect">Recent Rating Activity</a> web page. For additional information regarding the use and limitations of Credit Rating opinions, please view <a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=http%3A%2F%2Fwww3.ambest.com%2Fambv%2Fratingmethodology%2FOpenPDF.aspx%3Fri%3D1901&amp;esheet=54524880&amp;newsitemid=20260428904698&amp;lan=en-US&amp;anchor=Guide+to+Best%27s+Credit+Ratings&amp;index=2&amp;md5=5af6b1e701487abfee60591dab126cc0" shape="rect">Guide to Best&#39;s Credit Ratings</a>. For information on the proper use of Best's Credit Ratings, Best's Performance Assessments, Best's Preliminary Credit Assessments and AM Best press releases, please view <a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=https%3A%2F%2Fwww.ambest.com%2Fratings%2Fguidetouse.pdf&amp;esheet=54524880&amp;newsitemid=20260428904698&amp;lan=en-US&amp;anchor=Guide+to+Proper+Use+of+Best%26%238217%3Bs+Ratings+%26amp%3B+Assessments&amp;index=3&amp;md5=ecd1ca10b05bf0f1958406ed62d642a8" shape="rect">Guide to Proper Use of Best's Ratings &amp; Assessments</a>.


AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit <a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=http%3A%2F%2Fwww.ambest.com%2F&amp;esheet=54524880&amp;newsitemid=20260428904698&amp;lan=en-US&amp;anchor=www.ambest.com&amp;index=4&amp;md5=bad30859960da50abf56ca44441cef18" shape="rect">www.ambest.com</a>.


Copyright &#xA9; 2026 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

<img xmlns="http://www.w3.org/1999/xhtml" alt="" src="https://cts.businesswire.com/ct/CT?id=bwnews&amp;sty=20260428904698r1&amp;sid=benz2&amp;distro=nx&amp;lang=en" style="width:0;height:0"></img>View source version on businesswire.com: <a xmlns="http://www.w3.org/1999/xhtml" href="https://www.businesswire.com/news/home/20260428904698/en/" rel="nofollow">https://www.businesswire.com/news/home/20260428904698/en/</a>
David Marek 
 Associate Director 
 +1 908 882 1924 
 <a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="mailto:david.marek@ambest.com" shape="rect">david.marek@ambest.com 
</a> 
 Louis Silvers 
 Senior Financial Analyst 
 +1 908 882 2316 
 <a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="mailto:louis.silvers@ambest.com" shape="rect">louis.silvers@ambest.com 
</a> 
 Christopher Sharkey 
 Associate Director, Public Relations 
 +1 908 882 2310 
 <a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="mailto:christopher.sharkey@ambest.com" shape="rect">christopher.sharkey@ambest.com 
</a> 
 Al Slavin 
 Senior Public Relations Specialist 
 +1 908 882 2318 
 <a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="mailto:al.slavin@ambest.com" shape="rect">al.slavin@ambest.com</a>

AM Best has reaffirmed Principal Financial Group's A+ and 'aa' ratings, underscoring its strong financial stability and effective risk management. This rating bolsters investor confidence and aligns with PFG's shift towards fee-based products, enhancing profitability and market position.

AM Best Affirms Credit Ratings of Principal Financial Group, Inc. and Its Subsidiaries

AI Summary

Sentiment Rationale

Trading Thesis

Market-Moving

Key Facts

Companies Mentioned

Corporate Developments

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