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: NOVEMBER 13, 2007
                        (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)

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

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:

[ ]  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))

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


<PAGE>


ITEM 7.01  REGULATION FD DISCLOSURE

The  following  information  is provided in response to  inquiries  by investors
about  exposure to subprime  mortgage  lending.  The following is an overview of
Principal Financial Group,  Inc.'s ("PFG") investment in residential  mortgages,
mortgage  backed   securities   ("MBS")   (including   collateralized   mortgage
obligations  ("CMO") and commercial  mortgage backed securities  ("CMBS")),  and
asset backed  securities  ("ABS")  (including  collateralized  debt  obligations
("CDO")). All values are as of September 30, 2007.

RESIDENTIAL  MORTGAGES.  PFG owned  approximately  $1.8  billion  of whole  loan
residential mortgages.  This $1.8 billion was comprised of $1.3 billion of first
and  second  lien  mortgages  to  prime  borrowers  at  Principal  Bank.   PFG's
subsidiary,  Principal  International  de Chile S.A., owned  approximately  $500
million of first mortgages to prime Chilean borrowers.

MBS.  PFG  owned  approximately  $7.0  billion  of MBS.  This $7.0  billion  was
comprised of (i) $1.4 billion of AAA rated mortgage pass-through certificates in
which the underlying  mortgages were conforming loans backed by U.S.  government
agencies or instrumentalities; (ii) $969 million of CMO which were backed by 92%
prime  mortgages  and 8% Alt A  mortgages  (94%  rated AAA and 6% rated AA;  79%
issued in 2005 or before, 16% in 2006 and 5% in 2007); and (iii) $4.7 billion of
CMBS, 98% of which were investment grade, with 73% rated A- or better.

ABS. PFG owned approximately $2.8 billion of ABS. This included (i) $591 million
of subprime first lien  mortgages,  99% of which were rated AA or better and 87%
of which  were  issued in 2005 or  before;  (ii) $108  million  of CDO backed by
subprime  mortgages  (61% rated AA, and 36% rated A or A-; 33% issued in 2005 or
before, and 67% in 2006 and 2007); and (iii) $1.01 billion of CDO backed by cash
or  synthetic  corporate  debt  (73%) or CMBS (27%)  (100% of the CDO  corporate
securities  were  investment  grade  and 87% of the  CMBS  CDO  securities  were
investment  grade).  The  remaining  $1.1 billion of ABS portfolio was backed by
credit card, auto or consumer loan receivables.

To  summarize,  PFG's  total  exposure  to  subprime  residential  mortgages  at
September 30, 2007 was $699 million, or 1.1% of invested assets. Almost all such
exposure was in highly rated traunches of asset backed securities, most of which
were issued in 2005 or earlier.

                                    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:    November 13, 2007
[{"type": "8-K", "sequence": "1", "filename": "subprimeexposure110907.txt", "description": "SUBPRIME EXPOSURE 8-K", "secsgml_size_bytes": 4834}]
{"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": "071235234"}, "business-address": {"street1": "711 HIGH STREET", "city": "DES MOINES", "state": "IA", "zip": "50392", "phone": "5152475111"}, "mail-address": {"street1": "711 HIGH STREET", "city": "DES MOINES", "state": "IA", "zip": "50392"}}
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: NOVEMBER 13, 2007
                        (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)

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

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:

[ ]  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 7.01  REGULATION FD DISCLOSURE

The  following  information  is provided in response to  inquiries  by investors
about  exposure to subprime  mortgage  lending.  The following is an overview of
Principal Financial Group,  Inc.'s ("PFG") investment in residential  mortgages,
mortgage  backed   securities   ("MBS")   (including   collateralized   mortgage
obligations  ("CMO") and commercial  mortgage backed securities  ("CMBS")),  and
asset backed  securities  ("ABS")  (including  collateralized  debt  obligations
("CDO")). All values are as of September 30, 2007.

RESIDENTIAL  MORTGAGES.  PFG owned  approximately  $1.8  billion  of whole  loan
residential mortgages.  This $1.8 billion was comprised of $1.3 billion of first
and  second  lien  mortgages  to  prime  borrowers  at  Principal  Bank.   PFG's
subsidiary,  Principal  International  de Chile S.A., owned  approximately  $500
million of first mortgages to prime Chilean borrowers.

MBS.  PFG  owned  approximately  $7.0  billion  of MBS.  This $7.0  billion  was
comprised of (i) $1.4 billion of AAA rated mortgage pass-through certificates in
which the underlying  mortgages were conforming loans backed by U.S.  government
agencies or instrumentalities; (ii) $969 million of CMO which were backed by 92%
prime  mortgages  and 8% Alt A  mortgages  (94%  rated AAA and 6% rated AA;  79%
issued in 2005 or before, 16% in 2006 and 5% in 2007); and (iii) $4.7 billion of
CMBS, 98% of which were investment grade, with 73% rated A- or better.

ABS. PFG owned approximately $2.8 billion of ABS. This included (i) $591 million
of subprime first lien  mortgages,  99% of which were rated AA or better and 87%
of which  were  issued in 2005 or  before;  (ii) $108  million  of CDO backed by
subprime  mortgages  (61% rated AA, and 36% rated A or A-; 33% issued in 2005 or
before, and 67% in 2006 and 2007); and (iii) $1.01 billion of CDO backed by cash
or  synthetic  corporate  debt  (73%) or CMBS (27%)  (100% of the CDO  corporate
securities  were  investment  grade  and 87% of the  CMBS  CDO  securities  were
investment  grade).  The  remaining  $1.1 billion of ABS portfolio was backed by
credit card, auto or consumer loan receivables.

To  summarize,  PFG's  total  exposure  to  subprime  residential  mortgages  at
September 30, 2007 was $699 million, or 1.1% of invested assets. Almost all such
exposure was in highly rated traunches of asset backed securities, most of which
were issued in 2005 or earlier.

                                    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:    November 13, 2007