* Says not to take funds under CPP
* Cites improved credit, financial conditions
June 11 (Reuters) - Principal Financial Group Inc, a U.S. life and health insurer, declined funds under the U.S. government's capital purchase program (CPP), after receiving preliminary approval, citing improved credit and financial conditions.
'We have decided not to participate in the CPP due to the stabilization of the credit and financial systems in the U.S. and the further strengthening of our already solid financial and capital position,' Chief executive Larry Zimpleman said.
On May 15, the company got preliminary approval for funds under CPP and had said it had to review 'all the terms and conditions, both economic and non-economic,' before making its decision.
The company said it strengthened its capital position through $1.15 billion equity offering and a $750 million debt offering.
Principal is one of about a dozen insurers that had asked the U.S. Treasury for capital injections under a $700 billion financial services rescue plan.
Shares of the Des Moines, Iowa-based company closed at $21.33 on Thursday on the New York Stock Exchange.
(Reporting by Sweta Singh in Bangalore, Editing by Dinesh Nair) Keywords: PRINCIPALFINANCIAL/ (sweta.singh@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: sweta.singh.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
* Cites improved credit, financial conditions
June 11 (Reuters) - Principal Financial Group Inc, a U.S. life and health insurer, declined funds under the U.S. government's capital purchase program (CPP), after receiving preliminary approval, citing improved credit and financial conditions.
'We have decided not to participate in the CPP due to the stabilization of the credit and financial systems in the U.S. and the further strengthening of our already solid financial and capital position,' Chief executive Larry Zimpleman said.
On May 15, the company got preliminary approval for funds under CPP and had said it had to review 'all the terms and conditions, both economic and non-economic,' before making its decision.
The company said it strengthened its capital position through $1.15 billion equity offering and a $750 million debt offering.
Principal is one of about a dozen insurers that had asked the U.S. Treasury for capital injections under a $700 billion financial services rescue plan.
Shares of the Des Moines, Iowa-based company closed at $21.33 on Thursday on the New York Stock Exchange.
(Reporting by Sweta Singh in Bangalore, Editing by Dinesh Nair) Keywords: PRINCIPALFINANCIAL/ (sweta.singh@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: sweta.singh.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.