Layoffs expected as Principal Financial Group announces changes – KCCI Des Moines

https://www.kcci.com/article/layoffs-expected-as-principal-financial-group-announces-changes-des-moines-iowa/36865849


0

ANNOUNCED THIS MORNGNI AT DES MOINES-BASED PRINCIPAL FINANCIAL GROUP. THE COMPANY SAYS IT WILL NO LOERNG OFFER INDIVIDUAL LIFE INSURANCE FOR THE RETAIL MARKET, BUT WILL CTIONNUE TO SELL INDIVIDUAL PLANS FOR THE BUSINESS MARKET PRINCIPAL WILL ALSO FULLY EXIT US RETAIL FIXED ANNUITIES THE COMPANY TELLS KCCI THESE CHANGES WILL IMPACT UP TO FIVE PERCENT OF ITS POSITIONS ACROSS THE COUNTRY. SOME PEOPLE WILL BE LAID OFF BUT

Layoffs expected as Principal Financial Group announces changes

Big changes are coming to Des Moines-based Principal Financial Group.The company said Monday it will no longer offer individual life insurance for the retail market – but will continue to sell individual plans for the business market.Principal will also fully exit U.S. retail fixed annuities. The company tells KCCI these changes will impact up to 5% of its positions across the country.“This thorough and intensive review considered strategic fit, client needs, financial impact, and the risk profile of our business lines. The outcome will result in a more focused portfolio and stronger capital management strategy that we believe positions Principal for strengthened leadership in higher growth markets and greater capital efficiency, leading to higher expected shareholder returns,” said Dan Houston, chairman, president, and CEO of Principal. “We identified opportunities to reduce complexity and risk, improve our return profile, and increase our cash flow conversion to better enable us to execute on our strategy, reinvest in growth, and support our financial strength. We’ve also announced a new $1.2 billion share repurchase authorization, which underscores our commitment to return excess capital to shareholders. I am confident that as we move forward, we’ll be positioned to win and grow in meaningful ways for our shareholders, customers, and employees, both today and into the future.”Some people will be laid off, but company officials said plans have not been finalized yet. The company employs 18,000 people globally.

Big changes are coming to Des Moines-based Principal Financial Group.

The company said Monday it will no longer offer individual life insurance for the retail market – but will continue to sell individual plans for the business market.

Principal will also fully exit U.S. retail fixed annuities. The company tells KCCI these changes will impact up to 5% of its positions across the country.

“This thorough and intensive review considered strategic fit, client needs, financial impact, and the risk profile of our business lines. The outcome will result in a more focused portfolio and stronger capital management strategy that we believe positions Principal for strengthened leadership in higher growth markets and greater capital efficiency, leading to higher expected shareholder returns,” said Dan Houston, chairman, president, and CEO of Principal. “We identified opportunities to reduce complexity and risk, improve our return profile, and increase our cash flow conversion to better enable us to execute on our strategy, reinvest in growth, and support our financial strength. We’ve also announced a new $1.2 billion share repurchase authorization, which underscores our commitment to return excess capital to shareholders. I am confident that as we move forward, we’ll be positioned to win and grow in meaningful ways for our shareholders, customers, and employees, both today and into the future.”

Some people will be laid off, but company officials said plans have not been finalized yet. The company employs 18,000 people globally.


Like it? Share with your friends!

0

0 Comments

Your email address will not be published. Required fields are marked *

Choose A Format
Personality quiz
Series of questions that intends to reveal something about the personality
Trivia quiz
Series of questions with right and wrong answers that intends to check knowledge
Poll
Voting to make decisions or determine opinions
Story
Formatted Text with Embeds and Visuals
List
The Classic Internet Listicles
Countdown
The Classic Internet Countdowns
Open List
Submit your own item and vote up for the best submission
Ranked List
Upvote or downvote to decide the best list item
Meme
Upload your own images to make custom memes
Video
Youtube, Vimeo or Vine Embeds
Audio
Soundcloud or Mixcloud Embeds
Image
Photo or GIF
Gif
GIF format