Principal Financial Complete Strategic Review As Part Of Deal With Elliott - Quick Facts

(RTTNews) - Principal Financial Group (PFG) announced Monday changes to its portfolio and capital management strategy to drive profitable growth, reduce capital intensity, sharpen its strategic focus, and generate long-term value for shareholders.

These changes were approved by the Principal Board of Directors following 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, Elliott Investment Management, L.P.

The company said it identified opportunities to reduce complexity and risk, improve its return profile, and increase cash flow conversion to better enable it to execute on strategy, reinvest in growth, and support financial strength. The company also announced a new $1.2 billion share repurchase authorization.

The new initiatives focus on its higher-growth retirement, global asset management and U.S. benefits and protection businesses, making it a more capital-efficient company. It has also decided to discontinue sales of all U.S. retail fixed annuities and consumer life insurance products and to pursue strategic alternatives for related in-force blocks.

On implementation of these initiatives, Principal will become increasingly well positioned as a capital-efficient company, producing higher expected shareholder returns, and poised to lead in higher-growth markets

The review, initiated in February 2021, was led by the independent Finance Committee of the Principal Board of Directors.