Principal to Drop Fixed Annuities and Retail Life, Keep Variable Annuities
June 29, 2021 by Allison Bell
Principal Financial Group Inc. is joining the list of life insurers that’s trying to minimize its exposure to life insurance and annuity interest rate risk.
The Des Moines, Iowa-based life insurer announced Monday that it to plans to continue to sell individual variable annuities in the United States, but that it plans to end U.S. retail sales of individual fixed annuities and individual retail life insurance.
Principal will continue to sell group life insurance to businesses, and it will continue to sell both individual and group life products aimed at business executives.
The exit from the retail fixed annuity market will include payout annuities and non-variable indexed annuities as well as traditional deferred fixed annuities, Principal said.