Principal Financial Group

Methodology

Principal Financial's earnings can be volatile from investment returns, actuarial adjustments, and market-level impacts on assets under management. The specialty benefits and retirement services mix creates more stability than pure life insurance. Focus on operating earnings and normalize for market-driven fluctuations rather than GAAP EPS.

Methodology

PEG analysis is challenging for Principal given earnings volatility from investment marks and reserve changes. Life insurance companies are better evaluated using price-to-book value combined with ROE analysis. If using PEG, focus on operating earnings trends excluding market-driven noise and compare to diversified insurance peers.

Methodology

Principal offers an attractive dividend supported by insurance and retirement cash flows. The yield adds meaningful value to total returns for this diversified financial services company. For insurers, dividend sustainability and book value growth matter more than traditional earnings metrics in assessing shareholder returns.