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About Us News room News releases Principal® to acquire ESOP business from
Ascensus
May 16, 2024


PRINCIPAL® TO ACQUIRE ESOP BUSINESS FROM ASCENSUS

(DES MOINES, Iowa) – Today, Principal Financial Group® announced a definitive
agreement with Ascensus to acquire its employee stock ownership plan (ESOP)
business. At closing, Principal® will add approximately 800 plans and more than
165,000 participants to its workplace savings and retirement solutions business
that ranks as the No. 1 ESOP service provider in the U.S.

“Growth is an integral part of our retirement strategy at Principal, and we’re
excited to add scale and deepen our expertise with the addition of experienced
talent and solutions from Ascensus,” said Teresa Hassara, senior vice president
of workplace savings and retirement solutions at Principal. “This acquisition
strengthens the systems and capabilities that have made Principal a leader in
retirement.”

Through this acquisition, Principal will gain full ownership of the ESOP
recordkeeping business from Ascensus, along with its ESOP Economics consulting
group and Telescope™ software. All products, clients, and employees will
transition to Principal at the time of close, which is anticipated around the
end of the second quarter of 2024. As Ascensus ESOP clients and participants are
transitioned, they will be exposed to enhancements on the Principal
recordkeeping platform such as digital access, support, and account management
tools as well as audit process improvements to reduce time.

“After getting the opportunity to review Ascensus’ ESOP business more
intimately, we found it to be very complementary to the expertise Principal has
as a total retirement solutions provider,” said Andrew Matos, head of stock plan
services for Retirement and Income Solutions at Principal. “The acquisition
positions us to offer greater value, enhanced services, and stronger products to
our ESOP clients, and the integration of strong talent from Ascensus will be
essential to support the growth of our ESOP business.”

Commenting on the agreement, Ascensus president Nick Good said, “We have great
respect for Principal, their expertise, and their commitment to serving their
clients with excellence. We’re confident that the valued client relationships
and associates transitioning through this transaction will benefit greatly from
the leadership, capabilities, and continued investment Principal has in the ESOP
marketplace.”

Interest in ESOPs has grown in recent years as owners look to transition their
businesses or become more competitive with talent recruitment and retention. In
total, there are approximately 6,500 ESOPs in the U.S. after the number of newly
created ESOPs increased 39% from 2020 to 2021. As of December 31, 2023,
Principal and Ascensus were collectively serving more than 2,000 employee stock
ownership plans and approximately 765,000 participants.

Perella Weinberg Partners served as financial advisor to Principal, with
Skadden, Arps, Slate, Meagher & Flom LLP acting as legal counsel. Terms of the
transaction are not being disclosed.

About Principal Financial Group®
Principal Financial Group® (Nasdaq: PFG) is a global financial company with
nearly 20,000 employees passionate about improving the wealth and well-being of
people and businesses. In business for more than 140 years, we’re helping
approximately 62 million customers plan, protect, invest, and retire, while
working to support the communities where we do business, and build a diverse,
inclusive workforce. Principal® is proud to be recognized as one of the 2024
World’s Most Ethical Companies® by Ethisphere , a member of the Bloomberg Gender
Equality Index, and a “Best Place to Work in Money Management .” Learn more
about Principal and our commitment to building a better future at principal.com.

About Ascensus
Ascensus is a market-leading enabler of tax-advantaged savings—providing
technology, services, and expertise that help millions of people save for a
better future.

The company is a premier savings program service provider, third-party
administrator, and government savings facilitator. Its platforms, industry
knowledge, and data-based insights enhance the growth and success of its
partners, their clients, and savers through co-branded, private-labeled, and
governmental partnerships.

Ascensus offers comprehensive qualified and nonqualified retirement plan
solutions, third-party retirement plan administration, 529 education and ABLE
savings program administration, corporate- and bank-owned life insurance
solutions, and fiduciary and total rewards services.

The company's brands include Ascensus; Newport, an Ascensus company; and
FuturePlan by Ascensus. Ascensus has more than $808 billion in assets under
administration and employs more than 5,500 associates as of March 31, 2024.

For more information, visit ascensus.com and newportgroup.com.


NEWS RELEASE CONTACT

US retirement

Phillip Nicolino, 515-362-0239

--------------------------------------------------------------------------------


FOOTNOTES

Based upon number of plans, 2023 PlanSponsor Recordkeeping Survey, July 2023.
National Center for Employee Ownership, Employee Ownership by the Numbers. As of
March 31, 2024. As of March 31, 2024. Ethisphere, 2024. Pensions & Investments,
2023.

Insurance products issued by Principal National Life Insurance Co (except in NY)
and Principal Life Insurance Company®. Plan administrative services offered by
Principal Life. Principal Funds, Inc. is distributed by Principal Funds
Distributor, Inc. Securities offered through Principal Securities, Inc., member
SIPC and/or independent broker/-dealers. Principal Global Investors leads global
asset management. Referenced companies are members of the Principal Financial
Group®, Des Moines, Iowa 50392.

© 2024 Principal Financial Services, Inc. Principal®, Principal Financial
Group®, and Principal and the logomark design are registered trademarks of
Principal Financial Services, Inc., a Principal Financial Group company, in the
United States and are trademarks and services marks of Principal Financial
Services, Inc., in various countries around the world.

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