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Principal closes Beam Benefits deal to expand small business coverage
The acquisition adds Beam’s 25,000-plus small business clients and is expected to lift Principal’s specialty benefits premium and fee growth into the 2027 high end of its 5.0% to 9.0% target range.
Principal Financial Group has completed its acquisition of Beam Benefits, adding a cloud-native dental, vision, and ancillary benefits platform to its small business portfolio, Insurance Business reported. The deal, announced July 7, did not disclose financial terms at signing.
Beam brings more than 25,000 small business clients and over 200 employees into Principal’s benefits and protection unit. Beam generated about $175 million in premiums in 2025, and Principal said it expects the purchase to support specialty benefits premium and fee growth at or above the high end of its 5.0% to 9.0% medium-term target range in 2027.
The rationale centers on how the benefits are delivered, with Beam’s platform using AI to automate quoting, underwriting, and onboarding, functions that traditional group carriers often handle through manual processes at higher cost for small employer scale. Beam’s CEO also emphasized faster quoting, streamlined onboarding, and a simpler experience for employers and brokers.
Principal said Beam’s distribution model depends on broker relationships and signaled that those relationships should carry over as the companies work toward a unified offering. Both firms said existing customers and brokers should see the same service level during integration, and the development of that offering will determine whether carrier relationships shift at renewal.