Company profile

Future of Principal Financial

#
Rank
483
| Quantumrun Global 1000

The Principal Financial Group is a worldwide financial investment management leader headquartered in Des Moines, Iowa. The Principal Financial Group (also known as Principal) provides institutional clients and business individuals a wide variety of financial products and services including asset management, retirement management, and insurance, through its various family of financial services companies. It has offices in other countries throughout Australia, Latin America, Asia, Europe, and North America. As of March 31, 2014, the company serves some 19.2 million customers globally.

Home Country:
Sector:
Industry:
Insurance - Life, Health (stock)
Founded:
1879
Global employee count:
14854
Domestic employee count:
Number of domestic locations:
1

Financial Health

Revenue:
$12394100000 USD
3y average revenue:
$11612033333 USD
Operating expenses:
$10802400000 USD
3y average expenses:
$10106233333 USD
Funds in reserve:
$2719600000 USD

Asset Performance

  1. Product/Service/Dept. name
    Retirement and income solutions
    Product/Service revenue
    6150700000
  2. Product/Service/Dept. name
    US insurance solutions
    Product/Service revenue
    3637300000
  3. Product/Service/Dept. name
    Principal global investors
    Product/Service revenue
    1387100000

Innovation assets and Pipeline

Total patents held:
1

All company data collected from its 2016 annual report and other public sources. The accuracy of this data and the conclusions derived from them depend on this publicly accessible data. If a data point listed above is discovered to be inaccurate, Quantumrun will make the necessary corrections to this live page. 

DISRUPTION VULNERABILITY

Belonging to the financial sector means this company will be affected directly and indirectly by a number of disruptive opportunities and challenges over the coming decades. While described in detail within Quantumrun’s special reports, these disruptive trends can be summarized along the following broad points:

*First off, the shrinking cost and increasing computational capacity of artificial intelligence systems will lead to its greater use across a number of applications within the financial world—from AI trading, wealth management, accounting, financial forensics, and more. All regimented or codified tasks and professions will see greater automation, leading to dramatically reduced operating costs and sizeable layoffs of white-collar employees.

*Blockchain technology will be co-opted and integrated into the established banking system, significantly reducing transaction costs and automating complex contract agreements.

*Financial technology (FinTech) companies that operate entirely online and offer specialized and cost-effective services to consumer and business clients will continue to erode the client base of larger institutional banks.

*Physical currency will disappear in much of Asia and Africa first due to each region’s limited exposure to credit card systems and early adoption of internet and mobile payment technologies. Western countries will gradually follow suit. Select financial institutions will act as intermediaries for mobile transactions, but will see increasing competition from tech companies who operate mobile platforms—they will see an opportunity to offer payment and banking services to their mobile users, thereby cutting out traditional banks.

*Growing income inequality throughout the 2020s will lead to an increase in fringe political parties winning elections and encouraging stricter financial regulations.

COMPANY’S FUTURE PROSPECTS

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