According to Principal Financial, it has decided not to participate in the capital purchase program (CPP) due to the stabilization of the credit and financial systems in the US and the further strengthening of its already solid financial and capital position.

Larry Zimpleman, chairman, president and CEO, said: "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 US 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."

A service of YellowBrix, Inc.