Principal Financial expects to deploy $900M-$1.3B of capital in 2018
Principal Financial Group announced certain business unit outlook metrics and an update on capital deployment plans for 2018. These metrics provide greater clarity around the key drivers of earnings growth for each of the business units. Below are the 2018 outlook metrics for each business: Retirement & Income Solutions - Fee: Net revenue growth of 2%-5%, Pre-tax return on net revenue of 30%-34%. Retirement & Income Solutions - Spread: Net revenue growth of 5%-10%, Pre-tax return on net revenue of 60% -65%. Principal Global Investors: Operating revenues less pass-through commissions growth of 4%-8%, Pre-tax return on operating revenues less pass-through commission of 34%-38%. Principal International: Combined net revenue growth of 11%-14%, Combined pre-tax return on net revenue of 38%-42%. Specialty Benefits:Premium and fees growth of 7%-9%, Pre-tax return on premium and fees of 10%-13% and Loss ratio of 62%-68%. Individual Life: Premium and fees growth of 3%-6%, pre-tax return on premium and fees of 14%-18%. Corporate:pre-tax operating losses of $190M-$210M.