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June 12, 2009 (FinancialWire) -- The Principal Financial Group (NYSE: PFG) said it has decided to decline participation in the U.S. Treasury Department's Capital Purchase Program. The Principal said on May 15 that its application had received preliminary approval.

Company CEO Larry Zimpleman said that Principal 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."

Principal applied for the program in November 2008, when credit markets were inactive, but the economic conditions have now changed. Zimpleman said, "We're seeing the capital markets in the U.S. returning to more normal functioning."

He added that The Principal has taken "a number of important steps" to strengthen its capital base, including the company's recent $1.15 billion secondary equity offering and $750 million debt offering.


Des Moines, Iowa-based The Principal Financial Group offers a range of financial products and services, including retirement and investment services, life and health insurance, and banking through its various financial services companies.

Principal Financial posts $236.6 billion in assets under management and serves around 18.8 million customers worldwide from offices in Asia, Australia, Europe, Latin America and the United States.

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