AM Best Affirms Credit Ratings of Principal Financial Group, Inc. and Its Subsidiaries

Key Facts

• OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has affirmed the Financial Strength Rating of A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “aa” (Superior) of Principal Life Insurance Company and Principal National Life Insurance Company.
• Concurrently, AM Best has affirmed the Long-Term ICRs of “a” (Excellent) of Principal Financial Services, Inc. and PFG, as well as the group’s Long-Term Issue Credit Ratings (Long-Term IR).
• AM Best expects the divestitures of the retail fixed annuity and universal life insurance with secondary guarantee (ULSG) blocks, announced in January 2022 and expected to close in the second quarter of 2022, to have a neutral to positive impact on the company’s risk-adjusted capitalization levels in the intermediate term.
• The following Long-Term IRs have been affirmed with stable outlook: Principal Financial Group, Inc – -- “a” (Excellent) on $300 million 3.30% senior unsecured notes, due 2022 -- “a” (Excellent) on $300 million 3.125% senior unsecured notes, due 2023 -- “a” (Excellent) on $400 million 3.40% senior unsecured notes, due 2025 -- “a” (Excellent) on $350 million 3.10% senior unsecured notes, due 2026 -- “a” (Excellent) on $500 million 3.70% senior unsecured notes, due 2029 -- “a” (Excellent) on $600 million 2.125% senior secured notes, due 2030 -- “a” (Excellent) on $505.6 million 6.05% senior unsecured notes, due 2036 -- “a” (Excellent) on $300 million 4.625% senior unsecured notes, due 2042 -- “a” (Excellent) on $300 million 4.35% senior unsecured notes, due 2043 -- “a” (Excellent) on $300 million 4.30% senior unsecured notes, due 2046 -- “a-” (Excellent) on $400 million 4.70% junior subordinated notes, due 2055 Principal Life Global Funding I—“aa” (Superior) on program rating -- “aa” (Superior) on all outstanding notes issued under the program Principal Life Global Funding II—“aa” (Superior) on program rating -- “aa” (Superior) on all outstanding notes issued under the program Principal Financial Global Funding, LLC—“aa” (Superior) on program rating -- “aa” (Superior) on all outstanding notes issued under the program Principal Financial Global Funding II LLC—“aa” (Superior) on program rating Principal Life Income Funding Trusts—“aa” (Superior) on program rating The following Short-Term IR has been affirmed: Principal Life Insurance Company— -- AMB-1+ (Strongest) commercial paper rating The following indicative Long-Term IRs on securities available under universal shelf registration have been affirmed with stable outlooks: Principal Financial Group, Inc.— -- “a” (Excellent) on senior unsecured debt -- “a-”(Excellent) on subordinated debt -- “bbb+”(Good) on preferred stock Principal Capital I, II and III— -- “aa” (Superior) on preferred securities This press release relates to Credit Ratings that have been published on AM Best’s website.

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