Principal Financial Group Receives High Rankings as Third-Party Administrator

Business Wire, April 20, 2006

DES MOINES, Iowa -- As the nation's premier provider of employee benefits, The Principal(R) again receives recognition from Business Insurance as the second largest employee benefit third-party administrator (TPA). Specializing in employee benefits claims administration, the National Accounts Division of the Principal Financial Group(R), held on to this ranking for the second year in a row.

"We are thrilled to receive a solid ranking again this year showing our place as a leader in employee benefits for our self-funded customers. This recognition is further proof of our broad administration capabilities and our commitment to developing new products and educational tools designed to help keep members healthy," said Jim Charling, vice president of National Accounts for the Principal Financial Group. "Working closely with our new and existing customers, we use innovative technology and wellness programs as a way to create individual involvement and impact growing health care costs."

Throughout the past year National Accounts generated more than $170.3 million in revenue and provided administrative support services to self-funded and wellness customers nationwide. The Principal TPA model is based on a dedicated service team approach for all employer clients with claim services handled from regional claim centers located throughout the country. Client's employees have access to a broad range of products and services including claim management, care management, provider networks and comprehensive reporting and online tools.

Business Insurance is an industry publication serving business executives who are responsible for the purchase and administration of corporate insurance/self insurance programs, including employee benefit programs. The ranking is part of the publication's annual Spotlight on Claims Management and Ranking of Largest Third-Party Administrators, which ran in the March 20, 2006 issue. The ranking includes companies that provide employee benefit claims administration services to self-insured employers.

About Principal Financial Group

The Principal Financial Group(R) (The Principal (R))(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 and national network of financial professionals. A member of the Fortune 500, the Principal Financial Group has $195.2 billion in assets under management(2) and serves some 15.6 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.

Insurance products and services issued by Principal Life Insurance Company.

(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 December 31, 2005