Close Close
Sign In
Newsletters
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards
Podcast Center Video Center Webcasts Resource Center Events
About ThinkAdvisor Contact Us Advertise With Us Asset & Logo Licensing Sitemap Terms of Service Privacy Policy Copyright © 2024 ALM Global, LLC. All Rights Reserved.
ThinkAdvisor

Portfolio > Mutual Funds

Iowa Commissioner Approves Principal Conversion

By Staff Writer

X
Your article was successfully shared with the contacts you provided.

NU Online News Service, Aug. 28, 6:05 p.m. – Iowa Insurance Commissioner Therese Vaughan today gave Principal Mutual Holding Company Inc., Des Moines, Iowa, permission to convert to a stock company.

Principal Mutual, a policyholder-owned life insurer, filed a conversion plan with state regulators in March.

The plan calls for Principal Financial Services Inc., a stock company, to become the parent company.

Principal Financial would then raise cash by selling 109 million shares of its stock to the public at a price of about $19 each.

Principal Financial would compensate the Principal Mutual policyholders for their loss of policy-based ownership by giving them 261 million shares of stock and $1.3 billion in cash and policy credits.

The demutualization plan “complies with all provisions of law, is fair and equitable to the company and its eligible policyholders, and the reorganized company will have the amount of capital and surplus deemed by the Commissioner to be reasonably necessary for its future solvency,” Vaughan writes in an explanation accompanying the approval order.

Principal Mutual President J. Barry Griswell welcomed the order.

“Today’s order is positive news for our policyholders and for the organization,” Grisswell said in a statement. “With Commissioner Vaughan’s approval, we are one step closer to becoming a public company.”

Iowa officials have posted a copy of the approval order and information about obtaining a transcript of the Aug. 3 demutualization hearing on the Iowa Insurance Division Web site, at http://www.iid.state.ia.us/whatsnew.asp

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.