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

Based on our AAOIFI-standard shariah screening, PFG is Not Halal (Haram) and is not considered permissible for Muslim investors. It failed 2 of 4 compliance screens. Principal Financial Group, Inc.'s core business activity was found to be non-compliant. Its cash & securities ratio of 154.93% exceeds the ≤33% threshold.

Principal Financial Group, Inc. is a major global financial services provider specializing in retirement, asset management, and insurance products. The company offers a wide portfolio of defined contribution plans like 401(k)s, defined benefit pensions, and conventional life insurance to individual and institutional clients worldwide. For Muslim investors, PFG is classified as Not Halal (Haram) because its core business model relies on conventional, interest-based financial services and non-takaful insurance. Under AAOIFI standards, the stock fails both the primary business activity screen and the financial ratio screen for cash and securities, making it entirely impermissible for Islamic portfolios. From an Islamic finance perspective, PFG's balance sheet presents major compliance issues. Although its debt-to-market cap ratio is acceptable at 19.4%, its cash and interest-bearing securities account for a massive 154.9% of its market capitalization, completely breaching the strict 33% threshold allowed by AAOIFI. Because conventional insurance involves elements of riba (interest), gharar (excessive uncertainty), and maysir (gambling), scholars universally agree that conventional insurance providers like PFG are strictly non-compliant. Halal investors should instead look toward dedicated takaful (Islamic insurance) operators for compliant alternatives in the financial sector. Principal Financial Group, Inc. operates in the Financial Services sector under the Insurance - Diversified industry and is headquartered in Des Moines, IA, US. The company is led by CEO Deanna Dawnette Strable-Soethout and employs approximately 19,700 people.

PFG was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. PFG passed 2 of these 4 screens.

PFG was last screened on 2026-04-29. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.