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Principal Gets 2nd Subpoena From Spitzer

by AP Associated Press - May 17,2006

DES MOINES, Iowa - Principal Financial Group Inc. said Tuesday it has received a second subpoena from New York Attorney General Eliot Spitzer, who is conducting an industrywide probe of insurance companies.

The second request came Friday, "seeking information associated with the marketing and sale of retirement products and services," the company said in a statement.

"Principal intends to fully cooperate with the inquiry," the statement said.

The Des Moines-based retirement and financial services company received its first request from Spitzer's office on March 4, 2005.

Principal spokeswoman Eva Quinn said then that Spitzer's office was seeking information on agreements between Principal and the marketers who sell retirement products for the company.

A spokeswoman and the company's investor relations manager did not immediately return calls seeking comment Tuesday.

Spitzer's office has obtained 10 guilty pleas from executives at four companies as part of a New York state investigation of bid-rigging and price-fixing in the insurance industry.

Principal has 30,000 401(k) employer plans covering 2.3 million workers. Principal also sells life and health insurance plans and investment and banking services.

Principal shares closed 24 cents lower at $53.21 on the     New York Stock Exchange. The stock has been trading at a 52-week range of $38.60 to $53.73.

________________________________________

Copyright © 2006 The Associated Press. All rights reserved.

 

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The Principal Financial Group Unveils New Tools to Help Navigate Pension Protection Act by Business-Wire posted on Nov 01,2006
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