Principal Financial Group, Inc. (NasdaqGS:PFG) is in advanced talks to sell two of its units, with capital reserves totaling $25 billion, to peer Talcott Resolution Life Insurance Co, according to people familiar with the matter. The deal would be the culmination of a strategic review that Principal launched last year after coming under pressure from activist investment firm Elliott Management Corp. to shed its low-growth and capital-intensive businesses. Principal has said it will use part of the proceeds to fund an increase in its share buyback program. An agreement for Talcott to acquire Principal’s U.S. retail fixed annuity business and its unit for universal life insurance with secondary guarantees (ULSG), could be announced as early as this week, the sources said. It is possible that negotiations will fail at the last minute, added the sources, requesting anonymity because the matter is confidential. Talcott Resolution is owned by investment firm Sixth Street, which declined to comment. Principal Financial also declined to comment. The price Talcott would pay could not be learned, but the transaction is expected to generate significant benefits for Principal through a combination of sale proceeds, released capital and other financial enhancements.