Principal Financial Group has made known that it will be acquiring Beam Benefits. A company offering employee benefits to over 25,000 small firms. The acquisition will enhance Principal’s Employee Benefits service and provide better support for small and mid-sized businesses.
Principal is still dedicated to working towards the protection of business firms and their employees. Additionally, the acquisition will enable the firm to grow faster within the SMB market segment.
Beam Benefits offers dental, vision, and ancillary benefits via a cloud-native technology platform. The firm uses AI-based technology for improving the experience of employees regarding their benefits. Moreover, Beam has grown significantly in the small business sector.
“Beam Benefits is purpose-built to transform the employee benefits experience by combining intuitive, cloud-native technology with an unwavering focus on expanding access to vital employee benefits for small business employers, employees, and their families. Joining forces with Principal is the natural next step in our journey,” said Tolithia Kornweibel, CEO of Beam Benefits.
Principal Expands Employee Benefits Capabilities Through Beam Acquisition
The premium for the company stands at about $175 million in the year 2025. Hence, Beam will add some strengths to the benefits offerings of Principal. The total number of clients that the firm serves stands at 180,000 and includes retirement, benefits, and business owner solutions.
This deal will further enhance Principal’s SMB strategy. Beam’s expertise and technology platform will support Principal’s growth in the expanding workplace benefits market. This transaction is anticipated to close in the second half of 2026. Nevertheless, the closing of the deal will be contingent upon certain closing conditions.
According to the principal, the deal is anticipated to speed up fee and premium increases for Specialty Benefits. Specialty Benefits expects growth to reach or exceed the upper end of its medium-term target range. The target range is 5% to 9% in 2027. Perella Weinberg Partners acted as a financial adviser to Principal. On the other hand, Skadden, Arps, Slate, Meagher & Flom LLP served as a legal adviser to Principal.
“Beam has built a meaningful customer base that generates strong premium volume,” said Friedrich. “Its digital-first model brings scalable capabilities that can complement our platform, support continued growth, and enhance the customer experience. Beam’s talent and deep expertise in the small business marketplace will be additive to our SMB strategy.”
Overall, the acquisition highlights Principal’s continued investment in Workplace Benefits solutions. It also reflects the company’s focus on delivering technology-driven benefits experiences for businesses and employees.
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News Source: Businesswire.com
