Is Principal Financial Group (PFG) stock halal?
Screened against AAOIFI Shari’ah Standard 21
No. Principal Financial Group (PFG) does not pass the AAOIFI Shari’ah Standard 21 screen. Its main business is conventional banking, lending or insurance (SEC industry code 6321 (Accident & Health Insurance)), which AAOIFI Shari’ah Standard 21 excludes (3/4/1). Last checked 17 September 2026.
Principal Financial Group is not compliant under Halal / Islamic guidelines
AAOIFI Shari’ah Standard 21 Financial Audit
Figures from the latest annual report (the SEC filing or, for European companies, the ESEF annual report, where one exists, checked against Yahoo Finance) and a 36-month average market value.
| Test | Standard Limit | Actual Figure | Status |
|---|---|---|---|
| Main business | — | — | Fail |
| Interest-bearing debt | 30% | 21.55% | Pass |
| Cash and interest-bearing investments | 30% | 588.35% | Review |
| Prohibited income | 5% | 2.84% | Pass |
| Not just cash and debts | 90% | 38.66% | Pass |
Key Findings & Observations
- Its main business is conventional banking, lending or insurance (SEC industry code 6321 (Accident & Health Insurance)), which AAOIFI Shari’ah Standard 21 excludes (3/4/1).Source: Business check
- The cash and interest-bearing investments test couldn’t be settled: The figures give 23.9% and 588.3%, on either side of the limit. Includes long-term investments that may be shares in other companies.Source: AAOIFI Shari'ah Standard 21
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Frequently Asked Questions about Principal Financial Group, Inc. (PFG)
Is Principal Financial Group (PFG) stock halal?▾
No. Principal Financial Group (PFG) does not pass the AAOIFI Shari’ah Standard 21 screen. Its main business is conventional banking, lending or insurance (SEC industry code 6321 (Accident & Health Insurance)), which AAOIFI Shari’ah Standard 21 excludes (3/4/1). Last checked 17 September 2026.
What is Principal Financial Group's debt ratio under Islamic finance standards?▾
Under AAOIFI Shari’ah Standard 21, interest-bearing debt must stay under 30% of a company's 36-month average market value. Principal Financial Group's ratio is about 21.6%.
How much dividend purification is required for Principal Financial Group (PFG) stock?▾
Principal Financial Group does not pass the screen, so purification does not apply: the standard does not permit holding it.
Does Principal Financial Group operate in prohibited business activities?▾
AAOIFI Shari’ah Standard 21 excludes companies whose main business is prohibited, such as alcohol, pork, gambling, conventional interest-based finance and adult entertainment. Principal Financial Group's main business is checked against these. For companies that file with the US SEC, revenue by division is also read from the filing, so a division in a prohibited business is counted. Where the check cannot be settled, the result is shown as Needs Review rather than guessed.
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