Principal Fincl:Unit Exposure To Monolines,Mtge Insur $996.5M

Mar.04, 2008 in Market Outlook

Last Update: 3/4/2008 1:35:13 PM

DOW JONES NEWSWIRES

Principal Financial Group Inc. (PFG) on Tuesday said its life insurance unit’s
exposure to monolines and mortgage insurers totaled $996.5 million as of Dec. 31.

The Des Moines, Iowa, insurance company said of that exposure, monolines and
mortgage insurers provide guarantees on $774.1 million of underlying municipal
bonds, corporate credit, or asset backed securities.

The company said 44% of the guaranteed exposure was in municipal bonds and 40%
was investment grade bank perpetual preferreds.

According to a filing with the Securities and Exchange Commission, Principal
Financial’s unit, Principal Life Insurance Co., has total exposure to troubled
monoline insurer Ambac Financial Group Inc. (ABK) of $234.1 million. The company
said it disclosed the details in response to investor inquiries about exposure to
monoline insurance companies and mortgage insurance companies.

Principal Financial has total exposure to MBIA Inc. (MBI) of $375.5 million and
total exposure to the FGIC of $193.7 million, according to the filing.

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