Principal Financial Group, a provider of retirement and investment services, and life and health insurance, said that it will exit the medical insurance business (insured and self-insured).
The company said that the decision will not impact other businesses including retirement, asset management, life insurance, wellness, disability, dental and vision.
Principal chairman, president and CEO Larry Zimpleman said that by making this decision, the company is positioned to focus its capital and resources on the strategic opportunities in asset accumulation and asset management businesses, both domestically and internationally
In addition, the company has entered into an agreement with UnitedHealthcare to renew medical insurance coverage for customers of The Principal as the business transitions within the next 36 months.
The sales will cease and renewal process with UnitedHealthcare will begin immediately, subject to applicable requirements of federal and state law.
The company expects the decision to negatively impact third quarter 2010 EPS operating results by $0.03-$0.04 and full-year 2010 EPS operating results by $0.18-$0.20.