Principal Sets Dividend Target at 40% of Net Income for 2018

Principal Financial Inc., the seller of life insurance and retirement products, expects about 40 percent of net income to be paid to shareholders through dividends in 2018 as less capital is needed for organic growth.

The 2018 projection calls for 30 percent to be invested in organic growth with the remaining 30 percent available for acquisitions and share buybacks, the Des Moines, Iowa-based insurer said today in a presentation. Currently, the company devotes about a third to each of the categories.

To contact the reporter on this story: Marci Jacobs in New York at Mjacobs63@bloomberg.net

To contact the editor responsible for this story: Dan Kraut at dkraut2@bloomberg.net

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