DES MOINES, Iowa - Principal Financial Group (NASDAQ:PFG) announced Monday that Deanna Strable will take over as president and chief executive officer effective January 7, 2025. Strable, who currently serves as the president and chief operating officer, will succeed Dan Houston, who is set to continue as executive chair of the Board.
Strable's career with Principal spans 35 years, during which she has held various leadership roles, including CFO from 2017 to 2024 and president of the workplace benefits and insurance business. Her appointment to CEO also comes with a seat on the Principal Board of Directors.
Houston, who has been with Principal for 40 years and served as CEO since 2015, expressed confidence in Strable's leadership and business acumen. Under his tenure, the company's market capitalization expanded from $13 billion to over $20 billion.
Scott M. Mills, lead independent director of the Principal Board, commended Strable for her strategic vision and extensive understanding of the company's business units. He attributed the company's growth phase to her leadership, particularly noting her role in building the Benefits and Protection business and integrating it with the life insurance division.
Strable acknowledged the strong foundation laid by Houston and expressed her commitment to innovation, inclusion, and service to meet customer needs and drive growth.
Principal Financial Group, with a history of 145 years, operates globally with nearly 19,000 employees and serves approximately 68 million customers. The company has been recognized for its ethical practices, gender equality efforts, and as a top workplace in money management.
This leadership transition is based on a press release statement from Principal Financial Group.
In other recent news, Principal Financial Group reported steady growth for Q3 2024. The company's non-GAAP operating earnings were $412 million, showing a 12% increase from the same period last year. Additionally, Principal Financial Group's total assets under management (AUM) rose by 6% to $741 billion, accompanied by a 5% increase in net revenue.
The firm returned $416 million to shareholders via dividends and share repurchases, and announced a dividend increase. Despite reporting a net loss of $220 million for Q3, the company maintains a positive outlook for the remainder of the year.
Analysts from Principal Financial Group expect a full-year EPS growth of 9% to 12%, aligned with 2024 guidance. The company also anticipates strong cash flow in Q4, contributing to the full-year target. These recent developments suggest a robust financial performance for Principal Financial Group.
InvestingPro Insights
As Principal Financial Group prepares for this significant leadership transition, InvestingPro data offers valuable insights into the company's current financial position and future prospects.
Despite recent challenges, Principal Financial Group maintains a strong market presence with a market capitalization of $19.95 billion. The company's commitment to shareholder value is evident in its dividend policy. According to InvestingPro Tips, Principal has raised its dividend for 16 consecutive years and has maintained dividend payments for 23 consecutive years. This consistency is particularly noteworthy given the company's current dividend yield of 3.35%.
Looking ahead, there are positive indicators for Principal's future performance. An InvestingPro Tip reveals that net income is expected to grow this year, and analysts predict the company will return to profitability. This aligns with the company's strategic vision and the confidence expressed in Deanna Strable's leadership.
However, investors should note that Principal's recent financial performance has been mixed. The company's revenue growth in the last twelve months as of Q3 2024 was -0.42%, with a more significant quarterly decline of -34.51%. Despite these challenges, Principal has shown resilience, with a strong return of 18.28% over the last three months.
For those interested in a deeper analysis, InvestingPro offers 8 additional tips for Principal Financial Group, providing a comprehensive view of the company's financial health and future prospects.
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