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     <TD align=center><B><FONT size=2 face="Times New Roman,Bold,Arial,Helvetica,sans-serif">UNITED STATES</FONT></B></TD></TR>
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     <TD align=center><B><FONT size=2 face="Times New Roman,Bold,Arial,Helvetica,sans-serif">SECURITIES AND EXCHANGE COMMISSION</FONT></B></TD></TR>
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     <TD align=center><B><FONT size=2 face="Times New Roman,Bold,Arial,Helvetica,sans-serif">Washington, D.C. 20549</FONT></B></TD></TR>
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     <TD align=center><B><FONT size=4 face="Times New Roman,Bold,Arial,Helvetica,sans-serif">FORM 8-K</FONT></B></TD></TR>
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     <TD>&nbsp;</TD></TR>
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     <TD align=center><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif">CURRENT REPORT</FONT></B></TD></TR>
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     <TD noWrap align=center><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif">Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934</FONT></B>&nbsp;</TD></TR>
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     <TD align=center><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">Date of Report (Date of earliest event reported): </FONT><B><FONT size=2 face="Times New Roman,Bold,Arial,Helvetica,sans-serif">September 30, 2010</FONT></B></TD></TR>
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     <TD align=center><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif">PRINCIPAL FINANCIAL GROUP, INC.</FONT></B></TD></TR>
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     <TD align=center><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">(Exact name of registrant as specified in its charter)</FONT></TD></TR></TABLE></DIV>
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     <TD noWrap align=center><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Delaware</FONT></B>&nbsp;</TD>
     <TD noWrap align=center><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif">1-16725</FONT></B>&nbsp;</TD>
     <TD noWrap align=center><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif">42-1520346</FONT></B>&nbsp;</TD></TR>
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     <TD noWrap align=center><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (State or other jurisdiction of</FONT>&nbsp;</TD>
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     <TD noWrap align=center><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;&nbsp; incorporation)</FONT>&nbsp;</TD>
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     <TD noWrap align=center><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif">711 High Street, Des Moines, Iowa 50392</FONT></B>&nbsp;</TD></TR>
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     <TD style="TEXT-INDENT: 6px" noWrap align=center><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">(Address of principal executive offices)</FONT>&nbsp;</TD></TR>
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     <TD align=center><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif">(515) 247-5111</FONT></B></TD></TR>
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     <TD noWrap align=center><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">(Registrant&#146;s telephone number, including area code)</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=center><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">(Former name or former address, if changed since last report.)</FONT>&nbsp;</TD></TR></TABLE></DIV>
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     <TD noWrap align=left><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">the registrant under any of the following provisions (</FONT><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">see </FONT><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">General Instruction A.2. below):</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">[&nbsp;&nbsp;&nbsp;&nbsp; ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">[&nbsp;&nbsp;&nbsp;&nbsp; ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">[&nbsp;&nbsp;&nbsp;&nbsp; ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">[&nbsp;&nbsp;&nbsp;&nbsp; ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</FONT>&nbsp;</TD></TR></TABLE></DIV>
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     <TD colSpan=3 noWrap align=left><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif">Item 8.01 Other Events.</FONT></B>&nbsp;</TD></TR>
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     <TD colSpan=3 noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif">On September 30, 2010, Principal Financial Group, Inc., a Delaware corporation (the</FONT>&nbsp;</TD></TR>
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     <TD colSpan=3 noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif">&#147;</FONT><FONT face="Times New Roman,Arial,Helvetica,sans-serif">Company</FONT><FONT face="Times New Roman,Arial,Helvetica,sans-serif">&#148;), issued a press release announcing that the Company will exit the medical insurance</FONT>&nbsp;</TD></TR>
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     <TD colSpan=3 noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif">business&nbsp;within the next thirty-six (36) months. A copy of the <FONT face="Times New Roman,Arial,Helvetica,sans-serif">press release, dated September 30,</FONT></FONT></TD></TR>
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     <TD colSpan=3 noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif">2010, is filed as Exhibit 99.1 to this Current Report on Form</FONT>&nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif">8-K and is incorporated herein by</FONT></TD></TR>
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     <TD colSpan=3 noWrap align=left><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif">Item 9.01. Financial Statements and Exhibits</FONT></B>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif">(d)</FONT>&nbsp;</TD>
     <TD style="TEXT-INDENT: 6px" colSpan=2 noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif">Exhibits. The following exhibits are being filed herewith:</FONT>&nbsp;</TD></TR>
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     <TD colSpan=2 noWrap align=left>&nbsp;&nbsp; <FONT face="Times New Roman,Arial,Helvetica,sans-serif">99.1</FONT>&nbsp;</TD>
     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif">Principal Financial Group, Inc. press release dated September 30, 2010.</FONT>&nbsp;</TD></TR></TABLE></DIV>
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     <TD colSpan=3 noWrap align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif">SIGNATURE</FONT></B>&nbsp;</TD></TR>
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     <TD colSpan=3 noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has</FONT>&nbsp;</TD></TR>
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     <TD colSpan=3 noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif">duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.</FONT>&nbsp;</TD></TR>
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     <TD style="TEXT-INDENT: 11px" colSpan=2 noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif">PRINCIPAL FINANCIAL GROUP, INC.</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif">Date: September 30, 2010</FONT>&nbsp;</TD>
     <TD colSpan=2 noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif">&nbsp;&nbsp; By:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&nbsp;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><FONT face="Times New Roman,Arial,Helvetica,sans-serif"><U>/s/ Terrance J. Lillis&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT><U>&nbsp;</U></TD></TR>
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     <TD style="TEXT-INDENT: 11px" colSpan=2 noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif">Name:&nbsp;&nbsp;&nbsp;Terrance J. Lillis</FONT>&nbsp;</TD></TR>
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     <TD style="TEXT-INDENT: 11px" colSpan=2 noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif">Title:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Senior Vice President and Chief</FONT>&nbsp;</TD></TR>
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     <TD colSpan=2 noWrap align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman,Arial,Helvetica,sans-serif">Financial Officer</FONT>&nbsp;</TD></TR></TABLE></DIV>
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     <TD style="TEXT-INDENT: 49px" noWrap align=left><B><FONT size=2 face="Times New Roman,Bold,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; EXHIBIT 99.1</FONT></B>&nbsp;</TD></TR>
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     <TD noWrap align=left><B><FONT size=2 face="Times New Roman,Bold,Arial,Helvetica,sans-serif">RELEASE:</FONT></B>&nbsp;</TD>
     <TD noWrap align=left><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">On receipt, Sept. 30, 2010</FONT>&nbsp;</TD>
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     <TD colSpan=3 noWrap align=left><B><FONT size=2 face="Times New Roman,Bold,Arial,Helvetica,sans-serif">MEDIA CONTACT:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B>&nbsp;<FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">Susan Houser, 515.248.2268, </FONT><FONT color=#0000ff size=2 face="Times New Roman,Arial,Helvetica,sans-serif">houser.susan@principal.com</FONT>&nbsp;</TD></TR>
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     <TD colSpan=3 noWrap align=left><B><FONT size=2 face="Times New Roman,Bold,Arial,Helvetica,sans-serif">INVESTOR CONTACT</FONT></B><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">:</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">John Egan, 515.235.9500, </FONT><FONT color=#0000ff size=2 face="Times New Roman,Arial,Helvetica,sans-serif">egan.john@principal.com</FONT>&nbsp;</TD></TR></TABLE></DIV>
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     <TD noWrap align=left><B><I><FONT size=4 face="Times New Roman,BoldItalic,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Principal Financial Group to Exit Medical Insurance Business</FONT></I></B>&nbsp;</TD></TR>
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     <TD noWrap align=left><B><I><FONT size=2 face="Times New Roman,BoldItalic,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Agreement with UnitedHealthcare to renew medical insurance coverage for customers</FONT></I></B>&nbsp;</TD></TR></TABLE></DIV>
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     <TD noWrap align=left><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">(Des Moines, Iowa) &#150; Principal Financial Group, Inc. (NYSE: PFG) today announced the company will</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">exit the medical insurance business (insured and self-insured) and has entered into an agreement with</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">UnitedHealthcare<FONT size=2 face="Times New Roman">,&nbsp;a UnitedHealth Group Company&nbsp;</FONT>(NYSE: UNH)<FONT size=2 face="Times New Roman">,</FONT> to renew medical insurance coverage</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif"><FONT size=2 face="Times New Roman">for customers of&nbsp;<FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">The Principal</FONT><SUP><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">&#174;</FONT></SUP>&nbsp;as </FONT>the business transitions within the next 36 months. The decision does</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif"><FONT size=2 face="Times New Roman">not impact other businesses </FONT>including retirement, asset management, life insurance, wellness, disability,</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT size=2 face="Times New Roman">dental and vision.</FONT></TD></TR>
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     <TD style="TEXT-INDENT: 10px" noWrap align=left><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Larry D. Zimpleman, chairman, president and chief executive officer, said, &#147;While a difficult</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">decision, this is the right strategic decision for The Principal. While performing well financially, our</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">medical business has been declining in relative size for a number of years, thanks to strong growth from</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">our retirement and asset management businesses. The medical business continues to be one that</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">undergoes rapid change, which would mean investing additional capital into the business to be able to</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">offer competitive products. For us, that just does not make sense.&#148;</FONT>&nbsp;</TD></TR>
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     <TD style="TEXT-INDENT: 10px" noWrap align=left><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; According to Dan Houston, president &#150; Retirement, Insurance &amp; Financial Services,</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">&#147;UnitedHealthcare provides a broad range of coverage options to meet customers&#146; needs. By working</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">with UnitedHealthcare, a proven leader and long-term player in the business with an extensive local and</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">national network, we will ensure a smooth transition for customers and brokers.&#148;</FONT>&nbsp;</TD></TR>
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     <TD style="TEXT-INDENT: 10px" noWrap align=left><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sales will cease and the renewal process with UnitedHealthcare will begin immediately to be</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">completed within 36 months, subject to applicable requirements of federal and state law. Employees will</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">be needed throughout that period to continue to serve customers during the transition. As the business</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">transfers, positions will be eliminated. As much as possible the company will place qualified employees</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">in open positions that become available through attrition and growth in other businesses, Houston said.</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">There are approximately 1,500 employees in the medical insurance area. Initially, approximately 150 (of</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">the 1,500) positions will be impacted as some functions cease more quickly. Impacted employees will be</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">considered for other positions and will be given severance and outplacement assistance if they are unable</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">to find a position within the company.</FONT>&nbsp;</TD></TR>
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     <TD style="TEXT-INDENT: 10px" noWrap align=left><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &#147;By making this decision, we are positioned to focus our capital and our resources on the</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">strategic opportunities in the asset accumulation and asset management businesses, both domestically and</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">internationally,&#148; Zimpleman said. &#147;And it allows us to continue the growth in our risk businesses, which</FONT>&nbsp;</TD></TR></TABLE></DIV>
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     <TD width="100%"></TD></TR>
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     <TD noWrap align=left><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">is important to our overall diversification as well as maintaining our leadership among small- and</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">medium-sized businesses.&#148;</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Principal estimates this action will negatively impact third quarter 2010 EPS operating</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">results by $0.03-$0.04 and full-year 2010 EPS operating results by $0.18-$0.20 due to the exclusion of</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">the business from operating earnings. However, the company expects to release between $100 million</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">and $120 million of capital (which primarily reflects the capital allocated to the medical insurance</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">business less a reduction in the diversification benefit that will result from the exit of this business) over</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">the next 36 months as a result of this change.</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><B><FONT size=2 face="Times New Roman,Bold,Arial,Helvetica,sans-serif">About the Principal Financial Group</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">The Principal Financial Group</FONT><SUP><FONT size=2 face=Symbol,Symbol>&#210; </FONT></SUP><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">(The Principal </FONT><SUP><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">&#174; </FONT></SUP><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">)</FONT><B><SUP><FONT size=2 face="Times New Roman,Bold,Arial,Helvetica,sans-serif">1 </FONT></SUP></B><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">is a leader in offering businesses, individuals and</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">institutional clients a wide range of financial products and services, including retirement and investment</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">services, life and health insurance, and banking through its diverse family of financial services</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">companies. A member of the Fortune 500, the Principal Financial Group has $284.7 billion in assets</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">under management</FONT><B><SUP><FONT size=2 face="Times New Roman,Bold,Arial,Helvetica,sans-serif">2 </FONT></SUP></B><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">and serves some 18.9 million customers worldwide from offices in Asia, Australia,</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">Europe, Latin America and the United States. Principal Financial Group, Inc. is traded on the New York</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">Stock Exchange under the ticker symbol PFG. For more information, visit </FONT><FONT color=#0000ff size=2 face="Times New Roman,Arial,Helvetica,sans-serif">www.principal.com</FONT><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">. For more</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">news and insights from The Principal, connect with us on Twitter at: </FONT><FONT color=#0000ff size=2 face="Times New Roman,Arial,Helvetica,sans-serif">http://twitter.com/ThePrincipal</FONT><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">.</FONT>&nbsp;</TD></TR></TABLE></DIV>
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<DIV align=left>
<TABLE style="WIDTH: 80%" border=0 cellSpacing=0 cellPadding=0>
<TR>
     <TD width="100%"></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><B><FONT size=2 face="Times New Roman,Bold,Arial,Helvetica,sans-serif">Forward looking and cautionary statements</FONT></B>&nbsp;</TD></TR>
<TR>
     <TD>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">This press release contains forward-looking statements, including, without limitation, statements as to</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">operating earnings, net income available to common stockholders, net cash flows, realized and unrealized</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">losses, capital and liquidity positions, sales and earnings trends, and management's beliefs, expectations, goals</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">and opinions. The company does not undertake to update or revise these statements, which are based on a</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">number of assumptions concerning future conditions that may ultimately prove to be inaccurate. Future events</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">and their effects on the company may not be those anticipated, and actual results may differ materially from</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">the results anticipated in these forward-looking statements. The risks, uncertainties and factors that could cause</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">or contribute to such material differences are discussed in the company's annual report on Form 10-K for the</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">year ended December 31, 2009, and in the company&#146;s quarterly report on Form 10-Q for the quarter ended</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">June 30, 2010, filed by the company with the Securities and Exchange Commission, as updated or</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">supplemented from time to time in subsequent filings. These risks and uncertainties include, without</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">limitation: adverse capital and credit market conditions that may significantly affect the company&#146;s ability to</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">meet liquidity needs, access to capital and cost of capital; a continuation of difficult conditions in the global</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">capital markets and the general economy that may materially adversely affect the company&#146;s business and</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">results of operations; the actions of the U.S. government, Federal Reserve and other governmental and</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">regulatory bodies for purposes of stabilizing the financial markets might not achieve the intended effect; the</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">risk from acquiring new businesses, which could result in the impairment of goodwill and/or intangible assets</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">recognized at the time of acquisition; impairment of other financial institutions that could adversely affect the</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">company; investment risks which may diminish the value of the company&#146;s invested assets and the investment</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">returns credited to customers, which could reduce sales, revenues, assets under management and net income;</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">requirements to post collateral or make payments related to declines in market value of specified assets may</FONT>&nbsp;</TD></TR>
<TR>
     <TD>&nbsp;</TD></TR>
<TR>
     <TD>&nbsp;_________________________</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><SUP><FONT size=1 face="Times New Roman,Arial,Helvetica,sans-serif">1 </FONT></SUP><FONT size=1 face="Times New Roman,Arial,Helvetica,sans-serif">"The Principal Financial Group" and &#147;The Principal&#148; are registered service marks of Principal Financial Services, Inc., a member of the</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT size=1 face="Times New Roman,Arial,Helvetica,sans-serif">Principal Financial Group.</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><SUP><FONT size=1 face="Times New Roman,Arial,Helvetica,sans-serif">2 </FONT></SUP><FONT size=1 face="Times New Roman,Arial,Helvetica,sans-serif">As of June 30, 2010.</FONT>&nbsp;</TD></TR></TABLE></DIV>
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     <TD noWrap align=left><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">adversely affect company liquidity and expose the company to counterparty credit risk; changes in laws,</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">regulations or accounting standards that may reduce company profitability; fluctuations in foreign currency</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">exchange rates that could reduce company profitability; Principal Financial Group, Inc.&#146;s primary reliance, as a</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">holding company, on dividends from its subsidiaries to meet debt payment obligations and regulatory</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">restrictions on the ability of subsidiaries to pay such dividends; competitive factors; volatility of financial</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">markets; decrease in ratings; interest rate changes; inability to attract and retain sales representatives;</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">international business risks; a pandemic, terrorist attack or other catastrophic event; and default of the</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">company&#146;s re-insurers.</FONT>&nbsp;</TD></TR>
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     <TD align=left><FONT size=2 face="Times New Roman,Arial,Helvetica,sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ###</FONT></TD></TR></TABLE></DIV>
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pfg8k.htm - Generated by SEC Publisher for SEC Filing
UNITED STATES
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 (Date of earliest event reported):
September 30, 2010
PRINCIPAL FINANCIAL GROUP, INC.
(Exact name of registrant as specified in its charter)
Delaware
1-16725
42-1520346
(State or other jurisdiction of
(Commission File Number)
(IRS Employer Identification No.)
incorporation)
711 High Street, Des Moines, Iowa 50392
(Address of principal executive offices)
(515) 247-5111
(Registrant's telephone number, including area code)
Not applicable
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of
the registrant under any of the following provisions (
see
General Instruction A.2. below):
[     ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[     ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[     ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[     ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 8.01 Other Events.
On September 30, 2010, Principal Financial Group, Inc., a Delaware corporation (the
"
Company
"), issued a press release announcing that the Company will exit the medical insurance
business within the next thirty-six (36) months. A copy of the
press release, dated September 30,
2010, is filed as Exhibit 99.1 to this Current Report on Form
8-K and is incorporated herein by
reference.
Item 9.01. Financial Statements and Exhibits
(d)
Exhibits. The following exhibits are being filed herewith:
Exhibit
Description
No.
99.1
Principal Financial Group, Inc. press release dated September 30, 2010.
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 hereunto duly authorized.
PRINCIPAL FINANCIAL GROUP, INC.
Date: September 30, 2010
By:
/s/ Terrance J. Lillis
Name:   Terrance J. Lillis
Title:      Senior Vice President and Chief
Financial Officer
EXHIBIT 99.1
RELEASE:
On receipt, Sept. 30, 2010
MEDIA CONTACT:
Susan Houser, 515.248.2268,
houser.susan@principal.com
INVESTOR CONTACT
:
John Egan, 515.235.9500,
egan.john@principal.com
The Principal Financial Group to Exit Medical Insurance Business
Agreement with UnitedHealthcare to renew medical insurance coverage for customers
(Des Moines, Iowa) – Principal Financial Group, Inc. (NYSE: PFG) today announced the company will
exit the medical insurance business (insured and self-insured) and has entered into an agreement with
UnitedHealthcare
, a UnitedHealth Group Company
(NYSE: UNH)
,
to renew medical insurance coverage
for customers of
The Principal
®
as
the business transitions within the next 36 months. The decision does
not impact other businesses
including retirement, asset management, life insurance, wellness, disability,
dental and vision.
Larry D. Zimpleman, chairman, president and chief executive officer, said, "While a difficult
decision, this is the right strategic decision for The Principal. 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 businesses. The medical business continues to be one that
undergoes rapid change, which would mean investing additional capital into the business to be able to
offer competitive products. For us, that just does not make sense."
According to Dan Houston, president – Retirement, Insurance & Financial Services,
"UnitedHealthcare provides a broad range of coverage options to meet customers' needs. By working
with UnitedHealthcare, a proven leader and long-term player in the business with an extensive local and
national network, we will ensure a smooth transition for customers and brokers."
Sales will cease and the renewal process with UnitedHealthcare will begin immediately to be
completed within 36 months, subject to applicable requirements of federal and state law. Employees will
be needed throughout that period to continue to serve customers during the transition. As the business
transfers, positions will be eliminated. As much as possible the company will place qualified employees
in open positions that become available through attrition and growth in other businesses, Houston said.
There are approximately 1,500 employees in the medical insurance area. Initially, approximately 150 (of
the 1,500) positions will be impacted as some functions cease more quickly. Impacted employees will be
considered for other positions and will be given severance and outplacement assistance if they are unable
to find a position within the company.
"By making this decision, we are positioned to focus our capital and our resources on the
strategic opportunities in the asset accumulation and asset management businesses, both domestically and
internationally," Zimpleman said. "And it allows us to continue the growth in our risk businesses, which
is important to our overall diversification as well as maintaining our leadership among small- and
medium-sized businesses."
The Principal estimates this action will negatively impact third quarter 2010 EPS operating
results by $0.03-$0.04 and full-year 2010 EPS operating results by $0.18-$0.20 due to the exclusion of
the business from operating earnings. However, the company expects to release between $100 million
and $120 million of capital (which primarily reflects the capital allocated to the medical insurance
business less a reduction in the diversification benefit that will result from the exit of this business) over
the next 36 months as a result of this change.
About the Principal Financial Group
The Principal Financial Group
Ò
(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 $284.7 billion in assets
under management
2
and serves some 18.9 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
. For more
news and insights from The Principal, connect with us on Twitter at:
http://twitter.com/ThePrincipal
.
Forward looking and cautionary statements
This press release contains forward-looking statements, including, without limitation, statements as to
operating earnings, net income available to common stockholders, net cash flows, realized and unrealized
losses, capital and liquidity positions, sales and earnings trends, and management's beliefs, expectations, goals
and opinions. The company does not undertake to update or revise these statements, which are based on a
number of assumptions concerning future conditions that may ultimately prove to be inaccurate. Future events
and their effects on the company may not be those anticipated, and actual results may differ materially from
the results anticipated in these forward-looking statements. The risks, uncertainties and factors that could cause
or contribute to such material differences are discussed in the company's annual report on Form 10-K for the
year ended December 31, 2009, and in the company's quarterly report on Form 10-Q for the quarter ended
June 30, 2010, filed by the company with the Securities and Exchange Commission, as updated or
supplemented from time to time in subsequent filings. These risks and uncertainties include, without
limitation: adverse capital and credit market conditions that may significantly affect the company's ability to
meet liquidity needs, access to capital and cost of capital; a continuation of difficult conditions in the global
capital markets and the general economy that may materially adversely affect the company's business and
results of operations; the actions of the U.S. government, Federal Reserve and other governmental and
regulatory bodies for purposes of stabilizing the financial markets might not achieve the intended effect; the
risk from acquiring new businesses, which could result in the impairment of goodwill and/or intangible assets
recognized at the time of acquisition; impairment of other financial institutions that could adversely affect the
company; investment risks which may diminish the value of the company's invested assets and the investment
returns credited to customers, which could reduce sales, revenues, assets under management and net income;
requirements to post collateral or make payments related to declines in market value of specified assets may
_________________________
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 June 30, 2010.
adversely affect company liquidity and expose the company to counterparty credit risk; changes in laws,
regulations or accounting standards that may reduce company profitability; fluctuations in foreign currency
exchange rates that could reduce company profitability; Principal Financial Group, Inc.'s primary reliance, as a
holding company, on dividends from its subsidiaries to meet debt payment obligations and regulatory
restrictions on the ability of subsidiaries to pay such dividends; competitive factors; volatility of financial
markets; decrease in ratings; interest rate changes; inability to attract and retain sales representatives;
international business risks; a pandemic, terrorist attack or other catastrophic event; and default of the
company's re-insurers.
###