Principal Financial Group recently concluded a strategic review initiated in February and has decided to prioritize fee-based businesses and focus on three key areas: retirement in the U.S. and select emerging markets, global asset management and U.S. specialty benefits and protection in the small-to-medium-sized business market. With this new focus, Principal will be exiting both the fixed annuity and the “individual” life insurance marketplaces. Principal will continue to offer life insurance solutions in the business environment (keyperson, buy/sell, NQDC, COLI) focusing on small/medium-sized businesses.
Principal will continue to accept all life insurance applications through September 30, 2021. After this date, only business-related life insurance applications will be accepted. Principal’s Disability protection portfolio remains unchanged with no foreseen changes coming.
While we are disappointed by this decision, we are not surprised. This is just another in a continuing trend of activist investors compelling publicly traded companies to exit the life insurance marketplace. This strategy enriches their coffers, often at the expense of existing policyowners.
Please contact us if you or your clients have any questions or concerns regarding this announcement or if you would like us review any Principal fixed annuity or life insurance cases yet to be submitted. | more