Principal Financial Group Inc. revealed its business unit outlook metrics and capital deployment plans for full year 2020 and updated its long-term guidance.
For the long term, the company is targeting 9% to 12% annual growth in non-GAAP operating earnings and non-GAAP operating earnings per share. It also aims to achieve a 15% to 17% return on equity, excluding accumulated other comprehensive income other than foreign-currency translation.
The company expects net revenue to grow 10% to 15% for the retirement and income solutions fee segment, and climb 5% to 15% for the retirement and income solutions spread business. Long-term growth in the former segment is anticipated to be 1% to 5%, while the latter business is slated to increase 5% to 15%.
Operating revenue, less pass-through expenses growth, is projected to grow 4% to 10% in 2020 and 4% to 7% in the long term for the Principal Global Investors segment. For the Principal International segment, the company expects combined net revenue growth of 3% to 7% in 2020 and 9% to 12% in the long run.
Principal anticipates premium and fees to grow 6% to 9% in 2020 and 7% to 9% over the long term for its specialty benefits segment. The company also projects 4% to 8% premium and fees growth in 2020 and over the long run for its individual life segment.
The company expects pretax operating losses of $360 million to $390 million in its corporate unit for full year 2020.