The Principal Financial Group Shines In National 401k Plan Sponsor Stu

The Principal Financial Group Shines In National 401k Plan Sponsor Study

    Business Editors

    DES MOINES, Iowa--(BUSINESS WIRE)--Jan. 18, 2005--

Once again The Principal ranks among the leading retirement plan service providers in the industry
    From the smallest to the largest, retirement plan sponsors are highly satisfied with the Principal Financial Group(R). In a 2004 study released by the industry-expert, Boston Research Group, The Principal(R)--the nation's 401(k) leader and total retirement solutions innovator--surpassed industry norms among the top 22 retirement plan service providers for client satisfaction levels. The survey of more than 3,000 defined contribution plan sponsors found 97 percent overall satisfaction with the Principal Financial Group among employer-clients with more than $5 million in plan assets, and 94 percent overall satisfaction among employer-clients with less than $5 million in plan assets.
    Loyalty among clients of The Principal was also significantly higher than the industry average. The Principal also had the longest average client tenure of any service provider in the study.
    The Principal ranked at or above the industry norms for the five key customer services plan sponsors rated as most important to them:

--	Plan coordinator
--	Relationship manager
--	Recordkeeping services
--	Employee education
--	Investment option performance

    "We've been committed to excellence in retirement plan customer service, investment options and education for more than six decades. Knowing that our 401(k) plan sponsors recognize and value the top-tier services we provide is gratifying," said Dan Houston, senior vice president, retirement and investor services, The Principal. "Their positive responses reinforce our commitment to our clients and their goals."
    The Principal also led the pack in several brand image attributes as a retirement services provider. Plan sponsors in the under $5 million study gave The Principal the highest scores of all 22 retirement plan providers in the study in the following brand attributes:

    -- Minimized administrative burden

    -- Has resources to offer a better plan

    -- Offers the latest and best technology

    -- In the defined contribution market for the long run

    Plan sponsors in the over $5 million study rated The Principal at or above the industry benchmark in the four key brand attributes listed above.
    "Building on its historic leadership in the small plan market, the Principal Financial Group continues to demonstrate its expertise in the large plan market and is among the 401(k) industry's leaders in almost every service area for all sizes of companies," said Warren Cormier, president, Boston Research Group. "Their strategic planning, execution, and quality have made the industry stand up and take notice."

    About Boston Research Group

    Boston Research Group is a leader in marketing, research and consulting in the defined contribution industry. For further information, please contact Warren Cormier, president of Boston Research Group at 781-935-6588.

    About the Principal Financial Group

    The Principal Financial Group(R) (The Principal (R))(1) is a leader in offering businesses, individuals and institutional clients a wide range of financial products and services, including retirement and investment services, life and health insurance and banking through its diverse family of financial services companies. A member of the Fortune 500, the Principal Financial Group has $156.0 billion in assets under management(2) and serves some 14.7 million customers worldwide from offices in Asia, Australia, Europe, Latin America and the United States. Principal Financial Group, Inc. is traded on the New York Stock Exchange under the ticker symbol PFG. For more information, visit www.principal.com.

    (1) "The Principal Financial Group(R)" and "The Principal(R)" are registered service marks of Principal Financial Services, Inc., a member of the Principal Financial Group.

    (2) As of September 30, 2004.

--30--HB/ms*

CONTACT: Principal Financial Group, Des Moines Terri Shell, 515-283-8858 shell.terri@principal.com or Susan Houser, 515-248-2268 houser.susan@principal.com

KEYWORD: IOWA INDUSTRY KEYWORD: INSURANCE BANKING PRODUCT SOURCE: Principal Financial Group

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