The financial company on Monday said it will pursue strategic alternatives, including divestiture, of in-force blocks related to U.S. retail fixed annuities, as well as the in-force universal life insurance with secondary guarantees block.
The company said the changes follow a review that was part of a cooperation agreement with Elliott Investment Management LP, one of Principal's largest investors.
Principal said its board has approved a new authorization for the repurchase of up to $1.2 billion in its stock, adding to the roughly $675 million that remains under its prior authorization as of March 31.
In its bid to be more capital-efficient, Principal said it plans to focus on its higher-growth retirement, global asset management and U.S. benefits and protection businesses.