PRINCIPAL FINANCIAL GROUP INC FILES (8-K) Disclosing Other Events, Financial Statements and Exhibits
Item 8.01 Other Events.
On
life insurance company ("PLIC"), and
Master Transaction Agreement (the "MTA") with
company organized under the laws of the
affiliate of
Pursuant to the MTA, PLIC has agreed to cede, on behalf of itself and
National Life Insurance Company
Insurers"), the Principal Insurers' in-force
universal life insurance with secondary guarantee ("ULSG") blocks of business.
In connection with the MTA, the parties thereto have provided customary mutual
representations, warranties and indemnities.
The transaction will be structured through 100% coinsurance cessions and
retrocessions, each on a coinsurance with funds withheld basis, from PLIC
directly to Purchaser or indirectly through PRCV to Purchaser (the "Reinsurance
Cessions"). The net ceding commission due to Purchaser from PLIC and PRCV in
respect of the Reinsurance Cessions is
The Principal Insurers will retain the administration of the ceded business.
Additionally,
advisor on behalf of Purchaser with respect to the management of all transferred
commercial mortgage loans and private credit assets.
The agreements to be entered into in respect of the Reinsurance Cessions provide
several counterparty protections for the benefit of the Principal Insurers,
including a supplemental trust arrangement in respect of overcollateralization
in addition to the funds withheld (secured by a security and control agreement),
investments guidelines meeting the Principal Insurers' risk management
objectives, customary recapture rights, and restrictions on the release of
proceeds from certain Purchaser accounts upon Purchaser's inability to maintain
specified risk-based capital targets or to satisfy its obligations under the
reinsurance agreements. Principal has retained the responsibility for its yearly
renewable term mortality reinsurance arrangements ("YRT Treaties") across its
business portfolio, other than in respect of certain scheduled expenses under
the YRT Treaties for these agreements, which are being assumed by the Purchaser.
In addition, PRCV will receive future payments up to an agreed upon cap, subject
to certain limitations, in the event it finances reserves on behalf of the
Purchaser.
The transaction is subject to customary closing conditions, including required
regulatory approvals, and is anticipated to be completed in the second quarter
of 2022 with economics effective as of
approximately
through additional transactions designed to improve the capital efficiency of
its in-force individual life insurance blocks. The Company's Board of Directors
has approved a
under the Company's existing share repurchase authorization as of
2021
Company has increased its share repurchase target for 2022 from
million-$1.0 billion
the Company will make any such repurchases or the final terms thereof.
The forward-looking statements in this disclosure, such as "expects" and
"anticipated," are based on assumptions and expectations that involve risks and
uncertainties, including the "Risk Factors" that the Company describes in its
Company has no obligation to correct or update any of these statements.
Item 9.01 Financial Statements and Exhibits.
99.1 Press Release ofPrincipal Financial Group, Inc. datedJanuary 31, 2022 . 104 Cover Page Interactive Data File. The cover page XBRL tags are embedded within the inline XBRL document (contained in Exhibit 101). 2



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