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.