NU Online News Service, July 25, 12:10 p.m. – Principal Mutual Holding Company, Des Moines, Iowa, says 92% of the eligible policyholders who voted approved its plan to convert to a stock charter.
The final vote was 260,850 in favor of the conversion and 22,085 against.
Principal is a policyholder-owned holding company. The company wants to convert to ownership by public shareholders by giving all of the value of the existing company to shareholders, in the form of stock, cash and policy credits, and selling some new stock to the public through an initial public offering by mid-2002.
Under Iowa law, Principal had to get the approval of two-thirds of the policyholders who voted on the proposal before it could proceed.
Principal still needs to get the approval of the Iowa insurance commissioner before it can complete the proposed demutualization.