AM Best comments on the credit ratings of Principal Financial Group, Inc. and its subsidiaries following reinsurance announcement

OLDWICK, NJ–(BUSINESS WIRE)–
AM Best at noted that the credit ratings (ratings) of Principal Financial Services, Inc. (Main) [NASDAQ: PFG] (head office at Des Moines, Iowa) and its insurance subsidiaries remain unchanged after the January 31, 2022, announces that Main life insurance company and Main national life insurance company have entered into an agreement to transfer their current we retail fixed annuities and universal life insurance packages with secondary guarantee (ULSG) at Sutton Cayman, Ltd., affiliate Talcott Resolution Life, Inc.

Divestitures of Retail Fixed Annuity and ULSG In-force Blocks Consistent with Results of Principal’s Strategic Review Announced in June 2021. The retail fixed annuity and ULSG statutory reserves are $16 billion and $9 billion, respectively. The transaction will be structured through 100% coinsurance cessions and retrocessions, each on a coinsurance or funds withheld coinsurance basis. There are several counterparty protections for the benefit of the principal. The principal will retain all responsibility for the administration of the transferred business, and Leading Global Investors, LLC will be appointed investment advisor to manage transferred commercial mortgages and private credit assets. The transaction is expected to close in the second quarter of 2022.

This press release relates to credit ratings that have been published on AM Best’s website. For all rating information relating to the release and relevant disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Assessment Activity Web page. For more information on the use and limitations of credit rating opinions, please see Best Credit Score Guide. For more information on the proper use of Best’s credit scores, Best’s preliminary credit assessments, and AM Best’s press releases, please see Guide to Proper Use of Best’s Ratings and Reviews.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Based at United States, the company does business in more than 100 countries with regional offices in London, amsterdam, dubai, hong kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2022 by AM Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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Source: AM Best