Principal Financial Group’s A+ Strength Rating and ‘a’ Issuer Ratings Affirmed on $500M-$600M Senior Notes
AM Best affirmed Principal’s A+ Financial Strength Rating and ‘aa’ Long-Term Issuer Credit Ratings for its life insurance units, alongside ‘a’ ratings on senior unsecured notes including $500 million 3.70% due 2029 and $350 million 3.10% due 2026. Ratings carry a stable outlook, citing very strong balance sheet and ERM.
1. Ratings Overview
Principal Financial Group received affirmation of its A+ Financial Strength Rating and ‘aa’ Long-Term Issuer Credit Ratings across its life insurance subsidiaries, with all ratings carrying a stable outlook. The group’s Short-Term IR and multiple program ratings were also reaffirmed at the highest tiers.
2. Balance Sheet Strength
AM Best cited Principal’s very strong balance sheet, strong operating performance, favorable business profile and very strong enterprise risk management. The firm’s BCAR-based risk-adjusted capitalization remains robust despite parent dividends, supported by significant liquidity, financial flexibility and excess capital at the holding level.
3. Senior Note Affirmations
The affirmation includes ‘a’ ratings on senior unsecured notes totaling over $4.5 billion, including $500 million 3.70% due 2029, $350 million 3.10% due 2026, and other tranches maturing between 2028 and 2053. Superior ‘aa’ program ratings cover all outstanding funded debt structures.