Dear Most Valued Partner,
Earlier today, Principal® announced their intent to discontinue sales of U.S. retail fixed annuities and consumer life insurance products; pursue strategic alternatives for related in-force blocks.
These changes are expected to take place by end of Q3 2021 at which time, Principal will have fully exited the retail fixed annuity and individual life insurance markets to prioritize their 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.
Today’s announcement comes following a communication earlier in the year whereby Principal announced that they were ceasing the sale of universal life insurance with secondary guarantees (“ULSG”) and pursuing strategic alternatives, including divestiture, of their in-force ULSG block (approximately $7 billion of policy reserves) as well as other related in-force blocks.
The changes announced today have been approved by the Principal Board of Directors and are the result of a comprehensive review of the company’s business mix and capital management options that was undertaken as a part of a cooperation agreement with one of Principal’s largest investors.
IMPORTANT NOTES:
- These changes do not impact policies, contracts, or agreements currently in place with Principal.
- This announcement does not halt any applications currently in underwriting. Pending business will still be processed and honored.
- A final deadline for submitting new applications for individual life and annuity policies has not been communicated yet.
Click here for Principal’s full press release that includes additional details and information.
Principal is assuring all of us that their top priority is to ensure the best outcome for all stakeholders, including their distribution partners, contracted producers, and your clients.
Here are some additional resources that Principal has provided to assist in communicating with your clients.
We understand that you’re likely to have questions and we will continue to share updates with you as they’re made available. In the meantime, feel free to contact us at MVP Financial Services.
Regards,
MVP Financial Services, Inc.
If you have any immediate concerns that need to be addressed,
please call our offices.
