Acquisition includes Wells Fargo’s defined contribution, defined benefit, executive deferred compensation, employee stock ownership plans, institutional trust and custody and institutional asset advisory businesses
Doubles Principal U.S. retirement businessi and expands on its trust & custody and discretionary asset allocation capabilities
July 01, 2019 — DES MOINES, Iowa–(BUSINESS WIRE)–Today, Principal Financial Group® (Nasdaq: PFG) announced the closing of its acquisition of the Wells Fargo & Company (NYSE: WFC) Institutional Retirement & Trust business. Principal® will now begin the integration of Wells Fargo’s defined contribution, defined benefit, executive deferred compensation, employee stock ownership plans, institutional trust and custody and institutional asset advisory businesses.
“With this acquisition, we are broadening our offerings and deepening our ability to serve customers with unmatched capabilities across retirement, asset management and protection solutions,” said Dan Houston, chairman, president and CEO of Principal. “As a top-three leader in the U.S. retirement industry, we will be well-positioned to invest and grow our business to the benefit of our customers, employees and shareholders.i” Through this acquisition, Principal will double the size of its U.S. retirement businessi, while bringing on attractive institutional trust and custody offerings for the non-retirement market and expanding its discretionary asset management footprint.
Live Your Best Life
“Principal is committed to helping people live their best lives through our holistic financial solutions,” said Renee Schaaf, president of Retirement & Income Solutions at Principal. “Together with the Wells Fargo Institutional Retirement & Trust business, our customers can expect a powerful combination of passion, talent and expertise to help empower them to reach their financial goals.”
Last month, Principal announced its progress toward a unified retirement leadership team to help guide the integration and future organization, including appointing several executives from Wells Fargo Institutional Retirement & Trust. The company has also committed to retaining locations in: Charlotte, N.C.; Minneapolis/Roseville, Minn.; Waco, Texas; Winston-Salem, N.C.; and Manila, Philippines.
As of December 31, 2018, the respective Wells Fargo retirement businesses had $827 billion in assets under administrationii served by approximately 2,500 employees in locations across the U.S., Philippines and India.
Principal announced its intention to purchase Wells Fargo Institutional Retirement & Trust in April. The terms of the transaction remain consistent with what was previously announced.
iPro-Forma calculations based upon data as of December 31, 2017 provided by PLANSPONSOR 2018 Recordkeeping Survey and inclusive of shock lapse and new sales assumptions.
ii Source: Wells Fargo; Data as of 12/31/18
Visit www.principal.com/BetterRetirement for more information.
About Principal®
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.
