SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
------------------
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report: May 7, 2003
(Date of earliest event reported)
PRINCIPAL FINANCIAL GROUP, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
Delaware 1-16725 42-1520346
(State or other jurisdiction Commission file number (I.R.S. Employer
of incorporation) Identification Number)
711 High Street, Des Moines, Iowa 50392
(Address of principal executive offices)
(Registrant's telephone number, including area code)
(515) 247-5111
------------------
ITEM 7. EXHIBITS
99.1 Table of realized capital gains and losses on a pre-tax basis for various
reporting periods.
ITEM 9. REGULATION FD DISCLOSURE
Investors have asked for additional information regarding Principal Financial
Group, Inc.'s exposure to investments in the airline industry, as well as
Realized Capital Gains and Losses. In order for investors to better understand
these two subjects, we are providing the following information:
1. Total airline industry holdings as of March 31, 2003 were $463 million in
book value. Of that, $115 million relates to Southwest Airlines and Federal
Express, two high quality companies. Approximately half of the remaining
exposure is invested in Enhanced Equipment Trust Certificates, which are of
a higher quality.
There has been no material change in the amount of our airline exposure
since December 31, 2002.
2. Exhibit 99.1, attached, shows our Realized Capital Gains and Losses
(including unrealized gains and losses on derivatives and seed money) for
various reporting periods, including the three months ended March 31, 2003.
The format is essentially the same as the required footnote contained in
our most recent annual report on Form 10-K for the year ended December 31,
2002, filed by the company with the Securities and Exchange Commission.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
PRINCIPAL FINANCIAL GROUP, INC.
By: /S/ THOMAS J. GRAF
----------------------------------------------------
Name: Thomas J. Graf
Title: Senior Vice President - Investor Relations
Date: May 7, 2003
2
Exhibit 99.1
Principal Financial Group, Inc.
Pre-tax Realized Capital Gains and Losses
In $ millions
YEARS ENDED
-----------------------------------------
3 MONTHS ENDED 3 MONTHS ENDED 2002 2001 2000
MARCH 31, 2003 MARCH 31, 2002
--------------------- -------------------- ------------- ------------ --------------
Fixed Maturity Securities
Gross Gains 19.9 20.6 176.3 76.7 29.1
Gross Losses (98.2) (95.3) (538.6) (408.9) (155.0)
Equity Securities
Gross Gains 0.1 0.6 4.1 9.4 84.2
Gross Losses (1.1) (7.6) (32.8) (76.9) (5.0)
Commercial Mortgages (0.7) (7.0) (10.3) 10.7 8.6
Real Estate 0.0 (1.0) 9.3 (19) 82.3
Seed Money (3.6) - (83.5) - -
Derivatives 6.1 10.5 (73.2) (45.2) (1.1)
Other 0.8 177.3 193.9 (60.8) 96.5
--------------------- -------------------- ------------- ------------ --------------
--------------------- -------------------- ------------- ------------ --------------
Net Realized Capital
Gains (Losses) (76.7) 98.1 (354.8) (514.0) 139.6
====== ==== ======= ======= =====
3