Principal Financial Group Announces Exit from Medical Insurance Business
Principal Financial Group, Inc. (NYSE: PFG) announced on Sept. 30, 2010 that the company will exit the medical insurance business (insured and self-insured) and has entered into an agreement with UnitedHealthcare, a UnitedHealth Group Company (NYSE: UNH), to renew medical insurance coverage for customers of The Principal® as the business transitions within the next 36 months. The decision does not impact other businesses including retirement, asset management, life insurance, wellness, disability, dental, vision and HealthRisk Resource Group (HRGi), LLC, a wholly owned subsidiary.
Ron Gray, president and chief executive officer of HRGi, said "HRGi is not part of the agreement with UnitedHealthcare. We will continue to serve all our clients with the same quality and service we have provided over the past 20 years. As part of that commitment, HRGi will work closely with The Principal over the next three years as it implements its exit strategy from the medical insurance business."
Overseeing the transition for The Principal is Renee Schaaf, vice president of National Accounts. Commenting on the announcement, Schaaf said, "Prudent cost management will be a key component to a smooth transition from the medical insurance business over the next three years and we are very confident that HRGi can supply that need for us while properly serving their other customers."
