Principal Financial Had $996.5M of Exposure to Bond and Mortgage Insurers at Year End
March 04, 2008: 02:11 PM EST
NEW YORK (Associated Press) - Principal Financial Group Inc.'s (PFG) life insurance business had $996.5 million of exposure to bond insurers and mortgage insurance companies at the end of 2007, according to a Securities and Exchange Commission filing Tuesday.
Of the total exposure by Principal Life Insurance Co., bond and mortgage insurers provided guarantees on $774.1 million of underlying municipal bonds, corporate credit, or asset backed securities.
Principal Life Insurance owned securities issued by bond and mortgage insurers totaling $222.4 million, including $50.5 million by bond insurer Financial Guaranty Insurance Co.
According to the filing, the company's total exposure to bond insurer MBIA Inc. totals $375.5 million. It has total exposure of $234.1 million to Ambac Financial Group Inc. and $193.7 million to FGIC.
Principal Financial said it provided the information in response to inquiries by investors.
Principal Financial shares fell $1.37, or 2.5 percent, to $53.21 in afternoon trading. The stock has traded between $51 and $70.85 during the past 52 weeks.
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