SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                               ------------------



                                    FORM 8-K

                                 CURRENT REPORT



                     PURSUANT TO SECTION 13 OR 15(D) OF THE
                         SECURITIES EXCHANGE ACT OF 1934


                           Date of Report: May 7, 2003
                        (Date of earliest event reported)





                         PRINCIPAL FINANCIAL GROUP, INC.
             (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)


      Delaware                     1-16725                     42-1520346
(State or other jurisdiction    Commission file number       (I.R.S. Employer
    of incorporation)                                     Identification Number)


                     711 High Street, Des Moines, Iowa 50392
                    (Address of principal executive offices)


              (Registrant's telephone number, including area code)
                                 (515) 247-5111

                               ------------------


<PAGE>

ITEM 7.  EXHIBITS

99.1 Table of realized  capital  gains and losses on a pre-tax basis for various
reporting periods.

ITEM 9.  REGULATION FD DISCLOSURE

Investors have asked for additional  information  regarding  Principal Financial
Group,  Inc.'s  exposure  to  investments  in the airline  industry,  as well as
Realized Capital Gains and Losses.  In order for investors to better  understand
these two subjects, we are providing the following information:

1.   Total airline  industry  holdings as of March 31, 2003 were $463 million in
     book value. Of that, $115 million relates to Southwest Airlines and Federal
     Express,  two high quality  companies.  Approximately half of the remaining
     exposure is invested in Enhanced Equipment Trust Certificates, which are of
     a higher quality.

     There has been no  material change in the amount of our  airline  exposure
     since December 31, 2002.

2.   Exhibit  99.1,  attached,  shows our  Realized  Capital  Gains  and  Losses
     (including  unrealized  gains and losses on derivatives and seed money) for
     various reporting periods, including the three months ended March 31, 2003.
     The format is essentially  the same as the required  footnote  contained in
     our most recent annual report on Form 10-K for the year ended  December 31,
     2002, filed by the company with the Securities and Exchange Commission.




                                    SIGNATURE

         Pursuant to the  requirements  of the Securities  Exchange Act of 1934,
the  registrant  has duly  caused  this report to be signed on its behalf by the
undersigned thereunto duly authorized.


                            PRINCIPAL FINANCIAL GROUP, INC.


                            By:    /S/ THOMAS J. GRAF
                            ----------------------------------------------------
                            Name:  Thomas J. Graf
                            Title: Senior Vice President - Investor Relations



Date:  May 7, 2003


                                       2
<PAGE>

                                                                  Exhibit 99.1
<TABLE>
<CAPTION>

Principal Financial Group, Inc.
Pre-tax Realized Capital Gains and Losses
In $ millions


                                                                                                YEARS ENDED
                                                                                -----------------------------------------
                                        3 MONTHS ENDED       3 MONTHS ENDED           2002          2001          2000
                                        MARCH 31, 2003       MARCH 31, 2002
                                     --------------------- -------------------- ------------- ------------ --------------

Fixed Maturity Securities
<S>                                        <C>                   <C>                 <C>           <C>          <C>
Gross Gains                                 19.9                  20.6                176.3          76.7         29.1
Gross Losses                               (98.2)                (95.3)              (538.6)       (408.9)      (155.0)

Equity Securities
Gross Gains                                  0.1                   0.6                  4.1           9.4         84.2
Gross Losses                                (1.1)                 (7.6)               (32.8)        (76.9)        (5.0)

Commercial Mortgages                        (0.7)                 (7.0)               (10.3)         10.7          8.6

Real Estate                                  0.0                  (1.0)                 9.3           (19)        82.3

Seed Money                                  (3.6)                  -                  (83.5)          -            -

Derivatives                                  6.1                  10.5                (73.2)        (45.2)        (1.1)

Other                                        0.8                 177.3                193.9         (60.8)        96.5

                                     --------------------- -------------------- ------------- ------------ --------------
                                     --------------------- -------------------- ------------- ------------ --------------
Net Realized Capital
  Gains (Losses)                           (76.7)                 98.1               (354.8)       (514.0)       139.6
                                           ======                 ====               =======       =======       =====
</TABLE>

                                       3
<PAGE>
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{"company-data": {"conformed-name": "PRINCIPAL FINANCIAL GROUP INC", "cik": "0001126328", "assigned-sic": "6321", "irs-number": "421520346", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-16725", "film-number": "03686729"}, "business-address": {"street1": "711 HIGH STREET", "city": "DES MOINES", "state": "IA", "zip": "50392", "phone": "5152475111"}}
SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                               ------------------

                                    FORM 8-K

                                 CURRENT REPORT

                     PURSUANT TO SECTION 13 OR 15(D) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

                           Date of Report: May 7, 2003
                        (Date of earliest event reported)

                         PRINCIPAL FINANCIAL GROUP, INC.
             (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)

      Delaware                     1-16725                     42-1520346
(State or other jurisdiction    Commission file number       (I.R.S. Employer
    of incorporation)                                     Identification Number)

                     711 High Street, Des Moines, Iowa 50392
                    (Address of principal executive offices)

              (Registrant's telephone number, including area code)
                                 (515) 247-5111

                               ------------------
ITEM 7.  EXHIBITS

99.1 Table of realized  capital  gains and losses on a pre-tax basis for various
reporting periods.

ITEM 9.  REGULATION FD DISCLOSURE

Investors have asked for additional  information  regarding  Principal Financial
Group,  Inc.'s  exposure  to  investments  in the airline  industry,  as well as
Realized Capital Gains and Losses.  In order for investors to better  understand
these two subjects, we are providing the following information:

1.   Total airline  industry  holdings as of March 31, 2003 were $463 million in
     book value. Of that, $115 million relates to Southwest Airlines and Federal
     Express,  two high quality  companies.  Approximately half of the remaining
     exposure is invested in Enhanced Equipment Trust Certificates, which are of
     a higher quality.

     There has been no  material change in the amount of our  airline  exposure
     since December 31, 2002.

2.   Exhibit  99.1,  attached,  shows our  Realized  Capital  Gains  and  Losses
     (including  unrealized  gains and losses on derivatives and seed money) for
     various reporting periods, including the three months ended March 31, 2003.
     The format is essentially  the same as the required  footnote  contained in
     our most recent annual report on Form 10-K for the year ended  December 31,
     2002, filed by the company with the Securities and Exchange Commission.

                                    SIGNATURE

         Pursuant to the  requirements  of the Securities  Exchange Act of 1934,
the  registrant  has duly  caused  this report to be signed on its behalf by the
undersigned thereunto duly authorized.

                            PRINCIPAL FINANCIAL GROUP, INC.

                            By:    /S/ THOMAS J. GRAF
                            ----------------------------------------------------
                            Name:  Thomas J. Graf
                            Title: Senior Vice President - Investor Relations

Date:  May 7, 2003

                                       2
Exhibit 99.1
Principal Financial Group, Inc.
Pre-tax Realized Capital Gains and Losses
In $ millions

                                                                                                YEARS ENDED
                                                                                -----------------------------------------
                                        3 MONTHS ENDED       3 MONTHS ENDED           2002          2001          2000
                                        MARCH 31, 2003       MARCH 31, 2002
                                     --------------------- -------------------- ------------- ------------ --------------

Fixed Maturity Securities
Gross Gains                                 19.9                  20.6                176.3          76.7         29.1
Gross Losses                               (98.2)                (95.3)              (538.6)       (408.9)      (155.0)

Equity Securities
Gross Gains                                  0.1                   0.6                  4.1           9.4         84.2
Gross Losses                                (1.1)                 (7.6)               (32.8)        (76.9)        (5.0)

Commercial Mortgages                        (0.7)                 (7.0)               (10.3)         10.7          8.6

Real Estate                                  0.0                  (1.0)                 9.3           (19)        82.3

Seed Money                                  (3.6)                  -                  (83.5)          -            -

Derivatives                                  6.1                  10.5                (73.2)        (45.2)        (1.1)

Other                                        0.8                 177.3                193.9         (60.8)        96.5

                                     --------------------- -------------------- ------------- ------------ --------------
                                     --------------------- -------------------- ------------- ------------ --------------
Net Realized Capital
  Gains (Losses)                           (76.7)                 98.1               (354.8)       (514.0)       139.6
                                           ======                 ====               =======       =======       =====
3