Today, Principal Financial Group announced it has completed the integration of the Wells Fargo Institutional Retirement business, which it acquired in July 2019.
Through the acquisition and new business wins, Des Moines, Iowa-based Principal said in a statement it currently serves over 10 million eligible participants and individual account holders, representing more than $537 billion in total account value.
Principal also said it has added to and upgraded its retirement service offerings with Principal® Total Retirement Solutions and including top-tier investment, income and financial wellness offerings.
“Our teams worked hard to ensure a successful integration for plan sponsors, participants, and financial professionals. Their dedication to our combined organization has positioned our business for continued growth,” said Renee Schaaf, president, Retirement and Income Solutions at Principal. “We remain committed to our customers and dedicated to advancing our services to deliver flexible, efficient, and personalized options to help more people feel secure in their retirement.”
As a result of the acquisition Principal added 4.3 million eligible participants, approximately $150 billion dollars in account value and welcomed 1,500 new employees. The company onboarded clients in a series of structured waves through the end of June 2021, resulting in what the company says has been the successful integration of thousands of plan sponsors.
Enhanced offerings, improved savings rates
The integration of the Wells Fargo Institutional Retirement and Trust business along with strategic investment and initiatives has enhanced and expanded the retirement offerings Principal provides to both participants and plan sponsors.
In October of 2020 Principal started welcoming participants through Principal® Real Start, a simplified and highly personalized onboarding experience available in both English and Spanish. This platform has helped increase savings rates for participants to an average of about 9%, and nearly 40% of participants are deferring 10% or more, the company said.
Participants are also benefitting from a more robust financial wellness experience through online tools and resources backed by specialized teams of education professionals and contact center licensed financial professionals.
For plan sponsors, enhancements include more robust plan sponsor reporting and participant engagement dashboards.Sponsors also have access to new managed and self-directed brokerage account capabilities.
The retirement business expanded Principal Total Retirement Solutions, which provides what the company calls “unmatched breadth, depth, and expertise for plan sponsors of all sizes and needs.” These solutions include defined contribution plans, defined benefit plans, nonqualified deferred compensation plans, and stock plans including the recently added Principal Equity Compensation Solutions.
“We are already seeing our expanded capabilities receive rave reviews from existing clients as well as attract new business,” Schaaf said. “We’re glad to now hold industry-leading market positions in all of the key retirement plan types with the ability and expertise to serve small, medium and large-sized plans. We look forward to more innovation and growth in the months and years ahead.”
Principal also said in the statement it continues to integrate the Wells Fargo Trust & Custody business from the acquisition, which will enhance and add new capabilities to Principal Custody Solutions and increases assets under custody to over $1 trillion. The company plans for completion of that integration by March 2022.
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