In U.S. retail annuities, Principal will continue to sell variable annuities, Pension Risk Transfer, and Principal Pension Builder.
Principal will exit U.S. retail fixed annuities—discontinuing new sales of its deferred annuities, individual payout annuities, and indexed annuities by the end of the third quarter 2021—and will pursue strategic transactions, including divestiture, of the related in-force blocks.
In U.S. life insurance, their product portfolio remains largely the same. What’s different is they’ll focus exclusively on the business market—particularly small to medium-sized businesses (SMBs). They’ll look to further invest and build even more differentiating capabilities to serve this customer segment. Their nonqualified deferred compensation business will continue to be a critical component of this strategy.
In U.S. individual life insurance, the company will discontinue new sales of its products to retail customers by the end of the third quarter 2021. Additionally, Principal will pursue strategic transactions for the in-force universal life with secondary guarantee (ULSG) block, as well as other related in-force blocks.
It’s important to note:
- Changes to their future offerings do not impact policies, contracts, or agreements currently in place with Principal. They will continue to support the needs of their customers and partners.
- Pending applications or contracts will still be processed and honored. This announcement does not halt anything that is currently in flight.
- Ensuring that their high standards for customer-centricity are met and will be a cornerstone as they pursue strategic alternatives for those blocks of business.