Elliott to Take Stake in Insurer Principal Financial
- Company said it will appoint two directors in settlement pact
- Principal offers life insurance and asset management services
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Principal Financial Group Inc. said it plans to launch a strategic review and appoint two new independent directors as part of a settlement agreement with activist investor Elliott Investment Management.
The New York-based hedge fund has been pushing the company to explore selling or spinning off its more capital-intensive life insurance business to focus on its more profitable wealth management operations, according to people familiar with the matter, who asked to not be identified because the matter isn’t public. The company said in a statement Monday as part of the deal with Elliott it had struck a committee to initiate a strategic review of its business mix, capital management, and capital deployment options.