Moody's affirms Principal Life

Moody's Investors Service said it affirmed the Aa3 insurance financial strength rating and stable outlook of Principal Life Insurance Co., and the provisional Baa1 unguaranteed senior debt rating and stable outlook of Principal Financial Group Inc. , Principal Life's indirect owner and holding company.

The ratings of its other affiliated companies also were affirmed with a stable outlook.

Moody's also said it assigned a provisional Aa3 long-term debt rating to the funding agreement-backed global note program of Principal Life Global Funding II, a newly organized special purpose Delaware statutory trust.

The ratings reflect the company's strong, broad-based position in the U.S. market for group pensions, with moderate revenue and earnings diversification from its domestic individual life, annuity businesses and specialty benefits, Moody's said.

The company, which remained profitable during the financial crisis of 2008 to 2009, continues to improve from a revenue and earnings perspective as the economy gradually recovers, the agency said.

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