DES MOINES, Iowa--(BUSINESS WIRE)--
Principal Financial Group, Inc. (NYSE: PFG) today announced that its board of directors has approved a new authorization for the repurchase of up to $250 million of the company’s outstanding common stock. As of March 31, 2017, approximately $100 million remained under the company’s February 23, 2016 $400 million authorization.
The repurchases will be made in the open market or through privately-negotiated transactions, from time to time, depending on market conditions. The stock repurchase program may be modified, extended or terminated at any time by the board of directors. Principal Financial Group, Inc. had 288.2 million shares of common stock outstanding as of April 26, 2017, per the company’s quarterly report on Form 10-Q for the quarter ended March 31, 2017.
“This action reflects our continued confidence in the underlying strength of our diversified and integrated business model,” says Dan Houston, chairman, president and chief executive officer. “This authorization supports our continued balanced approach to capital deployment to create long-term value for our shareholders - through common stock dividends, share repurchases, and strategic acquisitions. As we previously announced on our 2017 outlook call, we anticipate deploying $800 million to $1.1 billion of capital in 2017.”
Forward looking and cautionary statements
Certain statements
made by the company which are not historical facts may be considered
forward-looking statements, including, without limitation, statements as
to operating earnings, net income available to common stockholders, net
cash flows, realized and unrealized gains and losses, capital and
liquidity positions, sales and earnings trends, and management’s
beliefs, expectations, goals and opinions. The company does not
undertake to update these statements, which are based on a number of
assumptions concerning future conditions that may ultimately prove to be
inaccurate. Future events and their effects on the company may not be
those anticipated, and actual results may differ materially from the
results anticipated in these forward-looking statements. The risks,
uncertainties and factors that could cause or contribute to such
material differences are discussed in the company’s annual report on
Form 10-K for the year ended Dec. 31, 2016 and in the company’s
quarterly report on Form 10-Q for the quarter ended Mar. 31, 2017, filed
by the company with the U.S. Securities and Exchange Commission, as
updated or supplemented from time to time in subsequent filings. These
risks and uncertainties include, without limitation: adverse capital and
credit market conditions may significantly affect the company’s ability
to meet liquidity needs, access to capital and cost of capital;
conditions in the global capital markets and the economy generally;
volatility or declines in the equity, bond or real estate markets;
changes in interest rates or credit spreads or a sustained low interest
rate environment; the company’s investment portfolio is subject to
several risks that may diminish the value of its invested assets and the
investment returns credited to customers; the company’s valuation of
investments and the determination of the amount of allowances and
impairments taken on such investments may include methodologies,
estimations and assumptions that are subject to differing
interpretations; any impairments of or valuation allowances against the
company’s deferred tax assets; the company’s actual experience could
differ significantly from its pricing and reserving assumptions; the
pattern of amortizing the company’s DAC and other actuarial balances on
its universal life-type insurance contracts, participating life
insurance policies and certain investment contracts may change; the
company may not be able to protect its intellectual property and may be
subject to infringement claims; the company’s ability to pay stockholder
dividends and meet its obligations may be constrained by the limitations
on dividends or distributions Iowa insurance laws impose on Principal
Life; changes in laws, regulations or accounting standards; results of
litigation and regulatory investigations; from time to time the company
may become subject to tax audits, tax litigation or similar proceedings,
and as a result it may owe additional taxes, interest and penalties in
amounts that may be material; applicable laws and the company’s
certificate of incorporation and by-laws may discourage takeovers and
business combinations that some stockholders might consider in their
best interests; competition from companies that may have greater
financial resources, broader arrays of products, higher ratings and
stronger financial performance; a downgrade in the company’s financial
strength or credit ratings; changes in investor preferences; inability
to attract and retain qualified employees and sales representatives and
develop new distribution sources; international business risks;
fluctuations in foreign currency exchange rates; the company may need to
fund deficiencies in its “Closed Block” assets that support
participating ordinary life insurance policies that had a dividend scale
in force at the time of Principal Life’s 1998 conversion into a stock
life insurance company; the company’s reinsurers could default on their
obligations or increase their rates; risks arising from acquisitions of
businesses; and a computer system failure or security breach could
disrupt the company’s business and damage its reputation.
Principal helps people and companies around the world build, protect and advance their financial well-being through retirement, insurance and asset management solutions that fit their lives. Our employees are passionate about helping clients of all income and portfolio sizes achieve their goals – offering innovative ideas, investment expertise and real-life solutions to make financial progress possible. To find out more, visit us at principal.com.
Principal, Principal and symbol design and Principal Financial Group are trademarks and service marks of Principal Financial Services, Inc., a member of the Principal Financial Group.
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