Announces Reinsurance Transaction, Increases Share Repurchase Authorization by $1.6 Billion
Earlier today, Principal® announced a reinsurance transaction for our universal life insurance with secondary guarantee (ULSG) and in-force U.S. retail fixed annuity blocks. We initially shared our intention to exit these markets in June 2021 following a strategic review of our portfolio.
As a part of this agreement, Principal will retain the servicing and policy administration for both blocks. This was a crucial effort for us, ensuring we could continue to deliver the same level of service our customers and you, our distribution partners, have come to expect from us.
The companies we’re working with are well recognized in our industry. Sixth Street is a global investment manager and its insurance platform, Talcott Resolution, is well-capitalized, stable, and mature, with a legacy dating back to 1902. We are confident the promises made to our customers through these policies will be fulfilled under the agreement.
Looking ahead, we’re focused on executing against our life business market strategy. We’re leaders in this market, with an unmatched set of capabilities, and a truly unique understanding of the business and business owner segment.
For retail annuities and retirement income, we’re fully committed to the variable annuity marketplace. We have the experience, expertise, and scale to continue investing in and grow this business.
Thank you for your business and the relationships we have built. We’re excited about what we can do together in 2022. Please share this information with your financial professionals.