The CEO and chief operating officer of the investment arm of Principal Financial Group Inc. said yesterday that Principal has a strong commitment to banking, even though many other competitors are leaving the banking business.
Jim McCaughan, CEO of Principal Global Investors, and Barb McKenzie, Principal Global's chief operating officer, made the comments at a panel discussion focused on how Principal plans to move forward during the 2012 KBW Asset Management Conference in New York City.
Several other insurance companies, such as MetLife Inc., have exited banking because of government regulation, according to Bloomberg.
McKenzie said Principal has a good working relationship with the federal government and just underwent a three-week review of its banking operations, which she called "collaborative."
McCaughan said that offering government-insured deposits through Principal Bank
provides its customers a place to park their money with the company while they develop plans for retirement.