Principal Financial Group announced an agreement to acquire Beam Benefits, a digitally native employee benefits company serving more than 25,000 small businesses. The acquisition is designed to strengthen Principal’s position in the small and mid-sized business (SMB) market by expanding its specialty benefits offerings and enhancing its technology capabilities.
Beam Benefits provides dental, vision, life, disability, supplemental health, and other ancillary insurance products through a cloud-native platform built with artificial intelligence at its core. The company has experienced rapid growth in the SMB market, generating approximately $175 million in premiums during 2025.
Principal currently serves approximately 180,000 employers with retirement, employee benefits, and business owner solutions. By integrating Beam’s digital-first platform and expertise, Principal expects to further accelerate growth in its Specialty Benefits business while improving the customer experience for employers and employees.
The transaction is expected to close during the second half of 2026, subject to customary closing conditions and regulatory approvals. Principal said the acquisition will not change its 2026 capital deployment or earnings per share growth targets, but is expected to help accelerate Specialty Benefits premium and fee growth to at or above the high end of its 5% to 9% medium-term target range beginning in 2027.
Support: Perella Weinberg Partners served as financial advisor to Principal, with Skadden, Arps, Slate, Meagher & Flom LLP acting as legal counsel. Beam Benefits was advised by Ardea Partners LP, with Wilson Sonsini Goodrich & Rosati, P.C. serving as legal counsel.
KEY QUOTES:
“Beam Benefits’ focus on serving the small business market aligns directly with our commitment to helping small and midsized businesses (SMBs) protect their businesses and their employees. This acquisition strengthens our momentum and delivery of above-market growth in that segment. Beam has built a meaningful customer base that generates strong premium volume. 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.”
Amy Friedrich, president of Benefits and Protection at Principal
“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.”
Tolithia Kornweibel, CEO of Beam Benefits
