Principal Financial Group, one of the biggest 401(k) services providers, and a life insurer, reported today that 92 percent of the Principal Mutual Holding Company’s eligible policyholders who voted approved its plan to convert into a stock company.
One of the requirements for the demutualization plan to become effective is approval by at least two-thirds of the policyholders who vote, according to a company release. The final vote was 260,850 in favor and 22,085 against.
Principal Mutual also needs the approval of the Iowa insurance commissioner before it can demutualize into a stock company. If the plan is approved, Principal expects the demutualization and the IPO of stock in Principal Life’s new holding company, Principal Financial Group, Inc., to occur in the latter part of 2001 or first part of 2002.