Canadian Halal Investor.

NASDAQ Shariah screener · October 2026

Is Principal Financial Group, Inc. (PFG) Halal?

FAIL

Principal Financial Group, Inc. · NASDAQ: PFG · Financials

The short answer

Principal Financial Group fails the Shariah business-activity gate: it is a conventional insurer whose premiums of $6,780.4M are about 43% of revenue. Net investment income of $4,730.5M is 30.28% of revenue (far over the 5% ceiling), and interest-bearing debt of $3,954.0M is 16.29% of its ~$24.27 billion market cap.

Gate 1 — Business activity: FAIL

Gate 1 — business activity: FAIL. Principal Financial Group, Inc., per its FY2025 Form 10-K, is a global financial services company headquartered in Des Moines, Iowa (founded 1879; public since 2001 demutualization), providing employer-sponsored retirement plans, pension risk transfer solutions, investment management through Principal Asset Management, and insurance - group benefits, individual life insurance, and disability insurance. It acquired Beam Benefits (dental/vision/life/disability, about $175 million in premiums) on September 1, 2026, deepening its insurance franchise.

Insurance premiums were $6,780.4 million in FY2025, about 43% of total revenue. Conventional insurance is a core business, not an ancillary line. The business fails gate 1.

Gate 2 — Debt and cash: PASS

Gate 2 — interest-bearing debt: PASS (16.29%, ceiling 33%). Per Principal's FY2025 Form 10-K (MD&A), interest-bearing debt was about $3,954.0 million (short-term debt $27.7 million plus long-term debt $3,926.3 million).

$3,954.0 million against a market capitalization of about $24.27 billion (Finnhub, October 2, 2026; NASDAQ: PFG) is about 16.29%, under the 33% ceiling. The debt gate passes, but the result is moot given the business-gate failure.

Gate 3 — Non-compliant income: FAIL

Gate 3 — non-compliant income: FAIL (30.28%, ceiling 5%). Principal's FY2025 Form 10-K consolidated statement of operations reports net investment income of $4,730.5 million against total revenue of $15,625.5 million - about 30.28%, far over the 5% non-compliant income ceiling. (The company does not disclose a separate interest-income line; net investment income is the pipeline-consistent numerator for insurers.)

Investment income on policyholder and retirement assets is core to the insurance business model. Expected for a conventional insurer, and reported for the record.

Key figures used

Frequently asked questions

What does Principal Financial Group do?

Principal Financial Group, Inc. (NASDAQ: PFG) is a global financial services company headquartered in Des Moines, Iowa, founded in 1879 (public since its 2001 demutualization). Per its FY2025 Form 10-K, it provides retirement plans (defined contribution/defined benefit, pension risk transfer), investment management through Principal Asset Management, and insurance - group benefits, individual life insurance, and disability insurance. Deanna Strable is president and CEO (since January 2025).

Is Principal Financial Group's business Shariah compliant?

No - Principal Financial Group fails the business-activity gate. It is a conventional insurer and financial services company: insurance premiums were $6,780.4 million in FY2025, about 43% of total revenue, and its franchise centers on life insurance, annuities, and retirement products built on interest-bearing instruments. Conventional insurance is a core business, not an ancillary line. Assessed on the filed business description, the business fails this screener's first gate.

How much interest-bearing debt does Principal have?

Principal's FY2025 Form 10-K (MD&A) reports interest-bearing debt of about $3,954.0 million (short-term debt $27.7 million plus long-term debt $3,926.3 million). Against a market capitalization of about $24.27 billion (Finnhub, October 2, 2026), that is about 16.29% - under the 33% ceiling. The debt gate passes, but the result is moot given the business-gate failure.

How much interest income does Principal earn?

Principal's FY2025 Form 10-K reports net investment income of $4,730.5 million against total revenue of $15,625.5 million - about 30.28%, far over the 5% non-compliant income ceiling. (The company does not disclose a separate interest-income line; net investment income is the pipeline-consistent numerator for insurers.) Expected for a conventional insurer, and reported for the record.

What do third-party Shariah screeners say about Principal?

Zoya flags PFG as not Shariah-compliant, consistent with this page's FAIL. I could not verify a Musaffa rating page for PFG or a ShariaPortfolio rating from public sources. Third-party screeners apply different assumptions and update on different schedules - always check the latest screening before investing.

Sources

Screened 2026-10-02 from published company figures and market data. Figures change; this page is educational, not financial advice and not a religious ruling.

Screened with our two-gate Shariah screening methodology (business-activity gate, then AAOIFI-style financial ratios).