DES MOINES, Iowa--(BUSINESS WIRE)--Jun. 11, 2009--
The Principal Financial Group® (NYSE: PFG) today announced
that the company has decided to decline participation in the U.S.
Treasury Department’s Capital Purchase Program (CPP). The Principal®
announced on May 15 that its application had received preliminary
approval.
“We have decided not to participate in the CPP due to the stabilization
of the credit and financial systems in the U.S. and the further
strengthening of our already solid financial and capital position,” said
Larry Zimpleman, chairman, president and chief executive officer. “We
applied for the program in November 2008, when credit markets were
inactive. CPP was intended to boost capital among healthy banks and
insurance companies to encourage lending, but the economic conditions
have now changed. We’re seeing the capital markets in the U.S. returning
to more normal functioning. In addition, The Principal has taken a
number of important steps to strengthen its capital base, including our
recent $1.15 billion secondary equity offering and $750 million debt
offering. Continued prudent management of the business through
challenging economic times has allowed us to continue to deliver solid
business performance, achieve a strong liquidity and capital position,
maintain strong financial ratings and sustain a high quality investment
portfolio.”
About the Principal Financial Group
The Principal Financial
Group® (The Principal ®)1 is a leader
in offering businesses, individuals and institutional clients a wide
range of financial products and services, including retirement and
investment services, life and health insurance, and banking through its
diverse family of financial services companies. A member of the Fortune
500, the Principal Financial Group has $236.6 billion in assets under
management2 and serves some 18.8 million customers worldwide
from offices in Asia, Australia, Europe, Latin America and the United
States. Principal Financial Group, Inc. is traded on the New York Stock
Exchange under the ticker symbol PFG. For more information, visit www.principal.com.
1 "The Principal Financial Group" and “The Principal” are
registered service marks of Principal Financial Services, Inc., a member
of the Principal Financial Group.
2 As of March 31, 2009
Source: Principal Financial Group
Principal Financial Group
Media Contact:
Susan
Houser, 515-248-2268
houser.susan@principal.com
or
Investor
Relations Contact:
Tom Graf, 515-235-9500
investor-relations@principal.com
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