Principal Financial Group Inc., based in Des Moines, announced Thursday it will no longer participate in the medical insurance business. This exit will eliminate around 1,500 positions, 650 of those coming from the Des Moines area.

Principal will renew medical insurance coverage for its customers for a 36-month transitional period. During this period, jobs will be eliminated, and 150 jobs are expected to be eradicated within the next month. However, the company will consider all of its employees for other positions within the company.

The company employees approximately 7,000 people in the Des Moines area.

“While a difficult decision, this is the right strategic decision for the Principal,” said Larry Zimpleman, chairman, president and CEO, in a news release. “While performing well financially, our medical business has been declining in relative size for a number of years, thanks to strong growth from our retirement and asset management business.”

As a result of the change, the company is estimating that third-quarter earnings will decrease by three to four cents a share, with full-year earnings declining by 18 to 20 cents.