What You Need to Know
- American Equity still is focusing on non-variable indexed annuities.
- Lincoln Financial prefers selling variable indexed annuities right now.
- Primerica executives think COVID-19 could provide long-lasting support for life insurance sales.
Principal Financial Group Inc. may come out of its strategic review with less life and annuity business on its books but with its current product strategy largely intact.
Ryan Krueger, a securities analyst at Keefe, Bruyette & Woods (KBW), talked about that possibility in a recent life and annuity market commentary. KBW is part of Stifel Financial Corp.
Krueger based the commentary on what he saw during an Association of Insurance and Financial Analysts virtual conference.
Principal has faced demands from activist investors for it to consider realigning its operations.
“Our sense is that [Principal] likes its current mix of businesses and believes they are complementary and strategically important, but is open to some changes that make sense long term,” Krueger writes.