Principal Financial Group Inc. is getting out of the medical insurance and self-insured plan administration businesses, and it has arranged for UnitedHealth Group Inc. to handle renewals.
Principal, Des Moines, Iowa (NYSE:PFG), will stop selling health coverage, and it will begin a 36-month process of transferring renewal business to UnitedHealth, Minnetonka, Minn. (NYSE:UNH), as soon as state and federal regulatory requirements permit it to do so, the company says.
The decision does not affect Principal’s wellness, dental or vision benefits businesses, and it also has no effect on the company’s retirement, asset management and life insurance businesses, the company says.
Principal generated $344 million in premium revenue by providing health coverage for about 725,000 people in the second quarter.
Principal has about 1,500 employees in its health insurance business. The decision to get out of the health insurance business will affect 150 employees immediately, the company says.
Principal hopes to place some of the affected employees
in other jobs at the company, the company says.