Tuesday, February 5, 2008

PFG`s exposure to subprime mortgages

        DOW JONES NEWSWIRES
 

        Principal Financial Group Inc. (PFG), responding to investor inquiries, on Tuesday said its total exposure to subprime mortgages was $613 million, or 1% of invested assets, at Dec. 31.

        The Des Moines, Iowa, retirement fund and financial services company said almost all such exposure was in highly rated traunches of asset-backed securities, most of which were issued in 2005 or earlier, according to a Securities and Exchange Commission filing.

        Principal Financial Group said it owned around $1.9 billion of whole loan residential mortgages, $7.1 billion of mortgage-backed securities and $2.6 billion of asset-backed securities at Dec. 31, 2007.

        The company's shares were trading Tuesday afternoon at $54.08, down $5.73.

 

        -Gee L. Lee, Dow Jones Newswires; 202-862-1346

 

        (END) Dow Jones Newswires

        February 05, 2008 12:27 ET (17:27 GMT)

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