Principal Financial Group’s Reinsurance Transaction

Skadden, Arps, Slate, Meagher & Flom advised Principal Financial Group on the deal.

Principal Financial Group has entered into an agreement with an affiliate of Sixth Street and its insurance platform, Talcott Resolution, to reinsure the company’s in-force U.S. retail fixed annuity and universal life insurance with secondary guarantee (“ULSG”) blocks of business.

Principal expects deployable proceeds of approximately $800 million upon closing of this reinsurance transaction and through additional transactions designed to improve the capital efficiency of its in-force individual life insurance business. The company plans to return the proceeds to shareholders through share repurchases.

Principal Financial Group (Nasdaq: PFG) is a global financial company with 18,600 employees passionate about improving the wealth and well-being of people and businesses.

The Skadden team included M&A and Financial Institutions partners Elena Coyle (Picture), Todd Freed, Chris Ulery (Washington, D.C.) and associate Liana-Marie Lien. 

Involved fees earner: Elena Coyle – Skadden; Todd Freed – Skadden; Liana-Marie Lien – Skadden; Christopher Ulery – Skadden;

Law Firms: Skadden;

Clients: Principal Financial Group;