DES MOINES, Iowa–(BUSINESS WIRE)–Principal Financial Group® (Nasdaq: PFG) at this time introduced steps to reinforce shareholder worth by initiating a strategic evaluation of its enterprise combine, capital administration, and capital deployment choices. Principal® might be including two new unbiased administrators to its Board of Directors, Maliz Beams and a second director to be named at a later date. These actions, which observe a constructive dialogue with considered one of Principal’s largest buyers, Elliott Investment Management, LP (“Elliott”), construct on Principal’s ongoing efforts to drive progress and create worth.
“Our success is a product of our commitment to adapt our offerings and ensure alignment with company and shareholder goals, while continuing to meet the evolving needs and demands of our customers,” mentioned Dan Houston, chairman, president, and CEO of Principal. “This review builds on work Principal has consistently undertaken to enhance shareholder returns and will help ensure we remain well positioned for continued growth, future success, and value creation.”
Mark Cicirelli, U.S. Head of Insurance for Elliott, mentioned, “We believe the initiatives Principal announced today will further enhance the positioning of the company’s high-return businesses and drive meaningful shareholder value creation. We are pleased to reach this agreement with Principal, which reflects constructive and positive discussions we have had with the company’s Board and management team, and will result in a rigorous and independent exploration of its strategic options.”
Review of Capital Strategy
The present aggressive panorama and up to date transaction exercise within the life and annuity market counsel a supportive atmosphere for a evaluation. Principal will assess its capital technique, together with natural and inorganic investments, and return of capital to shareholders, with the objectives of enhancing shareholder worth and strengthening its place as an business chief. This evaluation additional builds upon the self-discipline and focus Principal has constantly demonstrated by means of the 2019 acquisition of the Wells Fargo Institutional Retirement and Trust enterprise, the current halt of recent gross sales of its lifetime assured common life merchandise, and the introduced exit from Principal’s retail funding and retirement enterprise in India.
The Finance Committee of the Principal Board, composed of unbiased administrators, together with the newly appointed unbiased director, will oversee the evaluation. In this effort, the Committee might be supported by monetary and authorized advisors, and can make its suggestions to the total Board. In conjunction with the announcement of this evaluation, the Finance Committee chair will rotate to Clare Richer.
The firm intends to announce the outcomes of this evaluation at its 2021 Investor Day.
Maliz Beams Joins Board of Directors
Principal introduced that it’s appointing Maliz Beams to the corporate’s Board of Directors as a brand new unbiased director. Beams served as CEO of Retirement Solutions of VOYA Financial, President and CEO of Individual and Institutional Services at TIAA-CREF, and Partner of Zurich Scudder Investments, amongst different management roles within the monetary providers business. Upon becoming a member of the board, Beams will serve on the Finance Committee.
“Maliz brings significant retirement and asset management expertise and proven leadership experience to our Board of Directors,” mentioned Houston. “We look forward to benefiting from her insights.”
Beams mentioned, “I am honored to join the Board of Principal, a company with a storied history and record of service to its customers and communities. I look forward to partnering with my fellow directors to build on the company’s strong foundation, capitalize on the significant opportunities ahead, and deliver continued value for its customers and shareholders.”
As a part of at this time’s bulletins, Principal and Elliott have entered right into a customary cooperation settlement, in addition to an data sharing settlement to facilitate continued dialogue in preparation for the corporate’s Investor Day.
Goldman Sachs & Co. LLC is serving as monetary advisor to Principal and Skadden, Arps, Slate, Meagher & Flom LLP is serving as authorized counsel.
About Maliz Beams
Most just lately, Maliz Beams served as a U.S. State Department Counselor, chargeable for technique and implementation of the redesign and restructuring of USAID and the State Department. From 2011 to 2015, Beams served as CEO of Retirement Solutions at Voya Financial, the place she aligned the methods and reorganized operations of 12 individually managed items to drive vital enhancements in efficiency. In 2013, she helped lead Voya’s spinoff from ING and subsequent IPO. Prior to Voya, Beams served as President and CEO of Individual and Institutional Services at TIAA-CREF from 2004 to 2010, the place, amongst different achievements, she developed and applied a technique that resulted in six years of file progress. Prior to TIAA-CREF, Beams held management positions at Zurich Scudder Investments, Fleet Investment Advisors, American Express, and Citigroup.
Beams presently serves as an Advisory Board member of Vestigo Ventures LLC and Cannabis Investment Network. She beforehand served on the boards of administrators of Brightsphere Investment Group Inc. from 2018 to 2020 and Port Financial Corporation from 2002 to 2003. She has additionally served on the boards of administrators and advisory boards of plenty of personal firms and non-profits.
Beams earned an MBA from Columbia University, a CSS from Harvard University, and a BA from Boston College.
Principal (Nasdaq: PFG) helps folks and firms around the globe construct, shield and advance their monetary well-being by means of retirement, insurance coverage and asset administration options that match their lives. Our staff are obsessed with serving to purchasers of all earnings and portfolio sizes obtain their objectives – providing progressive concepts, funding experience and real-life options to make monetary progress potential. To discover out extra, go to us at principal.com.
This information launch incorporates statements that represent forward-looking statements inside the that means of the Private Securities Litigation Reform Act of 1995. The phrases “believe,” “expect,” “anticipate,” “project,” “estimate,” “budget,” “continue,” “could,” “intend,” “may,” “plan,” “potential,” “predict,” “seek,” “should,” “will,” “would,” “objective,” “forecast,” “goal,” “guidance,” “outlook,” “effort,” “strategy,” “target,” and related expressions, amongst others, usually determine forward-looking statements, which communicate solely as of the date the statements had been made. Forward-looking statements are made primarily based upon administration’s present expectations and beliefs regarding future developments and their potential results on us. Such forward-looking statements aren’t ensures of future efficiency. Actual outcomes could differ materially from these included within the forward-looking statements because of dangers and uncertainties. Those dangers and uncertainties embody, however aren’t restricted to, the chance components listed in Item 1A, “Risk Factors,” in our Annual Report on Form 10-Ok for the fiscal 12 months ended December 31, 2020, and the opposite filings we make with the U.S. Securities and Exchange Commission (the “SEC”). We disclaim any intention or obligation to replace or revise any forward-looking statements, whether or not because of new data, future occasions or in any other case, besides as required by legislation.
Important Additional Information and Where to Find It
Principal plans to file a proxy assertion (the “2021 Proxy Statement”) with the SEC in reference to the solicitation of proxies for Principal’s 2021 annual assembly of stockholders (the “Annual Meeting”), along with a proxy card. STOCKHOLDERS ARE URGED TO READ THE 2021 PROXY STATEMENT (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO) AND ANY OTHER RELEVANT DOCUMENTS THAT PRINCIPAL FILES WITH THE SEC CAREFULLY IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION.
Stockholders will have the ability to receive, freed from cost, copies of the 2021 Proxy Statement, any amendments or dietary supplements thereto and every other paperwork (together with the proxy card) when filed by Principal with the SEC in reference to the Annual Meeting on the SEC’s web site (http://www.sec.gov), at Principal’s web site (https://investors.principal.com/investor-relations) or by contacting Innisfree M&A Incorporated by cellphone at (888) 750-5834, by electronic mail at email@example.com or by mail at 501 Madison Avenue, 20th Floor, New York, NY 10022.
Participants within the Solicitation
Principal, its administrators and sure of its govt officers and staff could also be deemed to be members within the solicitation of proxies from stockholders in reference to the Annual Meeting. Additional data concerning the identification of those potential members, none of whom owns in extra of 1 p.c (1%) of Principal’s shares, and their direct or oblique pursuits, by safety holdings or in any other case, might be set forth within the 2021 Proxy Statement and different supplies to be filed with the SEC in reference to the Annual Meeting. Information referring to the foregoing will also be present in Principal’s definitive proxy assertion for its 2020 annual assembly of stockholders (the “2020 Proxy Statement”), filed with the SEC on April 6, 2020. To the extent holdings of Principal’s securities by such potential members (or the identification of such members) have modified because the data printed within the 2020 Proxy Statement, such data has been or might be mirrored on Statements of Ownership and Change in Ownership on Forms three and four filed with the SEC.
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