DES MOINES -- The Principal Financial Group® strongly endorses the recently introduced bipartisan House version (H.R. 3200) of the 2007 National Insurance Act, and commends United States Representatives Melissa Bean (D-IL) and Ed Royce (R-CA) for their leadership. The companion legislation to S.40, authored by Senators Tim Johnson (D-SD) and John Sununu (R-NH), would allow insurers and agents the choice between exclusive federal or state regulation and provide a modernized regulatory structure with consistent laws, regulations and consumer protections.

“The Principal is very pleased that there is now a bill in the House and Senate that would modernize the insurance regulatory model,” said J. Barry Griswell, chairman and CEO of the Principal Financial Group. “In order for insurance organizations to be competitive, innovative and responsive to financial service needs in the United States and abroad, an optional federal charter should be seriously considered. The Principal looks forward to ongoing discussion – and action – surrounding this issue.”

2007 National Insurance Act: Uniformity, Efficiency and Innovation

The Principal Financial Group recognizes the improved uniform access and speed-to-market an updated system will provide. Life insurance products can take up to two years to go through the state-by-state approval process, compared to the three to four month, single regulator review process that’s in place for securities. National banks need no explicit regulatory approval to bring most new products to market on a nationwide basis.

Additionally, changes in the current system will facilitate agents in working across state lines, benefiting insurance consumers with consistency in service by trusted advisors.

Global organizations like The Principal® will benefit from a modernized system with a federal regulator experienced in the international financial services marketplace. Today’s 50 state regulatory structure does not include a single person or entity that represents the insurance industry as a whole when international trade negotiations begin.

“E-commerce and globalization of financial services brings an added dimension to an already complicated industry,” noted Larry Zimpleman, president and COO of The Principal. “Having an optional federal charter in place would bring focus to the industry and provide U.S. insurance companies more opportunity in international markets”

About the Principal Financial Group

The Principal Financial Group® (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 $282.1 billion in assets under management2 and serves some 18.1 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.

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, 2007