e424b2
 

             
Pricing Supplement Dated October 4, 2007   Filed Pursuant to Rule 424(b)(2)
(To Prospectus dated February 16, 2006, and
   Registration Statement Nos.   333-129763
Prospectus Supplement dated February 16, 2006)
      and 333-129763-01
 
            
      CUSIP: 74254PUP5

(PRINCIPAL FINANCIAL GROUP LOGO)

Principal Life Insurance Company
Secured Medium-Term Notes (that are also Asset-Backed Securities)
Issued Through and Obligations of
Principal Life Income Fundings Trust 33 (the “Trust” and the “Issuing Entity”)
     The description of this pricing supplement of the particular terms of the Secured Medium-Term Notes offered hereby, and the Funding Agreement (specified below) issued by Principal Life Insurance Company (“Principal Life”) to the Trust, the payment obligations of which are fully and unconditionally guaranteed by the Guarantee (specified below) issued by Principal Financial Group, Inc. to the Trust, supplements the description of the general terms and provisions of the notes, the funding agreements and the guarantees set forth in the accompanying prospectus and prospectus supplement, to which reference is hereby made.

1. The Notes

 
                     
Principal Amount:
   $ 250,000,000     Purchasing Agent(s) Discount:   0%    
 
                    
Issue Price:
     99.94281%     Original Issue Date:   October 12, 2007
 
                    
Net Proceeds to the Trust:
  $ 249,857,025     Stated Maturity Date:   October 9, 2009
 
                    
 
                     
Specified Currency:
  U.S. Dollars
 
                    
Interest Payment Dates:
  January 9, April 9, July 9 and October 9 of each year
 
                    
Initial Interest Payment Date:
  January 9, 2008
 
                    
Regular Record Date:
  15 calendar days prior to the Interest Payment Date
 
                    
Type of Interest Rate:
   o Fixed Rate   x Floating Rate    
 
                    
Fixed Rate Notes:
   o Yes x No.   If, Yes,
 
                    
Interest Rate:
                    
 
                    
Floating Rate Notes:
   x Yes o No.   If, Yes,
 
                    
Regular Floating Rate Notes:
   x Yes   o No.   If, Yes,
Interest Rate:
   Federal Funds Rate + .50%
Interest Rate Basis(es):
   See below
 
                    
Floating Rate/Fixed Rate Note:
  o Yes   x No.   If, Yes,
Floating Interest Rate:
    
Interest Rate Basis(es):
    
Fixed Interest Rate:
    
Fixed Rate Commencement Date:
   

 

 

             
Inverse Floating Rate Note:
  o Yes   x No.   If, Yes,
Fixed Interest Rate:
    
Floating Interest Rate:
    
Interest Rate Basis(es):
    
 
                    
Initial Interest Rate, if any:
   Federal Funds Rate + .50%
 
                    
Initial Interest Reset Date:
   January 9, 2008
 
                    
Interest Rate Basis(es). Check all that apply:
       
 
   o CD Rate   o Commercial Paper Rate
 
   o CMT Rate   o Eleventh District Cost of Funds Rate
 
   o Constant Maturity Swap Rate   o Federal Fund Open Rate
 
   o LIBOR   x Federal Funds Rate
 
   o EURIBOR   o Treasury Rate
 
   o Prime Rate   o Other
 
            
If LIBOR:
   o LIBOR Reuters Screen LIBOR01 Page   o LIBOR Moneyline Telerate Page 3750
 
        LIBOR Currency:    
 
            
If CMT Rate:
            
Designated CMT Telerate Page:
        
If 7052:
   o Weekly Average   o Monthly Average
Designated CMT Maturity Index:
        
 
            
Index Maturity:
    
 
            
Spread (+/-):
   + .50%
 
            
Spread Multiplier:
   Not Applicable
 
            
Interest Reset Date(s):
   Each business day
 
            
Interest Rate Determination Date(s):
   The first business day preceding each Interest Reset Date
 
            
Maximum Interest Rate, if any:
   Not Applicable
 
            
Minimum Interest Rate, if any:
   Not Applicable
             
Calculation Agent:
  Citibank, N.A.    
 
            
Exchange Rate Agent:
  Not applicable    
 
            
Computation of Interest (not applicable unless different than as specified in the prospectus and prospectus supplement):
 
Day Count Convention (not applicable unless different than as specified in the prospectus and prospectus supplement):
 
            
Amortizing Notes:
  o Yes   x No.   If, Yes,
Amortizing Schedule:
    
Additional/Other Terms:
    
 
            
Discount Note:
  o Yes   x No.   If, Yes,
Total Amount of Discount:
    
Initial Accrual Period of Discount:
    
Additional/Other Terms:
    
 
            
Redemption Provisions:
  o Yes   x No.   If, Yes,
Initial Redemption Date:
    
Initial Redemption Percentage:
    
Annual Redemption Percentage Reduction (if any):
Redemption:
  o In whole only and not in part    
  o May be in whole or in part    
Additional/Other Terms:
    
 
            
Repayment:
  o Yes   x No.   If, Yes,

 

 

             
Repayment Date(s):
    
Repayment Price:
    
Repayment:
  o In whole only and not in part    
  o May be in whole or in part    
Additional/Other Terms:
    
 
            
Sinking Fund (not applicable unless specified):
  
 
            
Additional Amounts to be Paid for Withholding Tax (not applicable unless specified):
 
            
Securities Exchange Listing:
  o Yes   x No.   If, Yes, Name of Exchange:
 
            
Authorized Denominations:
  $2,000        
Ratings: The Notes issued under the Program are rated AA by Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc. (“S&P”). Principal Life expects the Notes to be rated Aa2 by Moody’s Investors Service, Inc. (“Moody’s”).
             
Purchasing Agent(s) Purchasing Notes as Principal:
  x Yes   o No.   If, Yes,
         
Purchasing Agent(s)
   Principal Amount
 
        
Banc of America Securities LLC
   $ 125,000,000  
Lehman Brothers Inc.
   $ 125,000,000  
 
Total:
   $ 250,000,000  
             
Purchasing Agent(s) Acting as Agent:
  o Yes   x No.   If, Yes,
         
Purchasing Agent(s)
   Principal Amount
 
        
 
                                          
 
        
 
Total:
        
                 
State of Organization of the Trust:
New York            
 
                
Additional/Other Terms: Notwithstanding anything in the Prospectus Supplement to the contrary, “Federal Funds Rate” means the rate for an Interest Reset Date will be the rate set forth in H.15(519) for that day under the caption “EFFECT,” as such rate is displayed on the Reuters Screen FEDFUNDS1 Page. If by 5:00 p.m., New York City time, on the day that is one business day following the Interest Reset Date, such rate for the Interest Reset Date does not appear on the Reuters Screen FEDFUNDS1 Page or is not yet published in H.15(519), the rate for that Interest Reset Date will be the rate set forth in H.15 Daily Update, or such other recognized electronic source used for the purpose of displaying such rate, for that day opposite the caption “Federal funds (effective)”. If by 5:00 p.m., New York City time, on the day that is one business day following the Interest Reset Date, such rate for the Interest Reset Date does not appear on the Reuters Screen FEDFUNDS1 Page or is not yet published in H.15(519), H.15 Daily Update or another recognized electronic source, the rate for that Interest Reset Date will be the rate for the first preceding day for which such rate is set forth in H.15(519) opposite the caption “Federal funds (effective)”, as such rate is displayed on the Reuters Screen FEDFUNDS1 Page.
 
                
Special Tax Considerations:
           
 
                
2. The Funding Agreement
              
 
                
Funding Agreement Issuer:
Principal Life Insurance Company
 
                
Funding Agreement No.:
5-20011            
 
                
Deposit Amount:
  $250,000,015        
 
                
Net Deposit:
$249,857,025        
 
                
Effective Date:
October 12, 2007        
 
                
Stated Maturity Date:
October 9, 2009        
 
                
Specified Currency:
   U.S. Dollars

 

 

             
 
                
Interest Payment Dates:
  January 9, April 9, July 9 and October 9 of each year  
 
                
Initial Interest Payment Date:
  January 9, 2008
 
                
Type of Interest Rate:
   o Fixed Rate   x Floating Rate    
 
                
Fixed Rate Funding Agreement:
   o Yes x No.   If, Yes,
 
                
Interest Rate:
                
 
                
Floating Rate Funding Agreement:
   x Yes o No.   If, Yes,
 
                
Regular Floating Rate Funding Agreement:
   x Yes   o No.   If, Yes,
Interest Rate:
   Federal Funds Rate + .50%            
Interest Rate Basis(es):
   See below            
 
                
Floating Rate/Fixed Rate Funding Agreement:
  o Yes   x No.   If, Yes,
Floating Interest Rate:
    
Interest Rate Basis(es):
    
Fixed Interest Rate:
    
Fixed Rate Commencement Date:
   
 
                
Inverse Floating Rate Funding Agreement:
  o Yes   x No.   If, Yes,
Fixed Interest Rate:
    
Floating Interest Rate:
    
Interest Rate Basis(es):
    
 
                
Initial Interest Rate, if any:
   Federal Funds Rate + .50%
 
                
Initial Interest Reset Date:
   January 9, 2008
             
Interest Rate Basis(es). Check all that apply:
       
 
   o CD Rate   o Commercial Paper Rate
 
   o CMT Rate   o Eleventh District Cost of Funds Rate
 
   o Constant Maturity Swap Rate   o Federal Funds Open Rate
 
   o LIBOR   x Federal Funds Rate
 
   o EURIBOR   o Treasury Rate
 
   o Prime Rate   o Other (See Attached)
 
            
If LIBOR:
   o LIBOR Reuters Screen LIBOR01 Page   o LIBOR Moneyline Telerate Page 3750
 
        LIBOR Currency:    
 
            
If CMT Rate:
    
Designated CMT Telerate Page:
        
If 7052:
   o Weekly Average   o Monthly Average
Designated CMT Maturity Index:
        
             
Index Maturity:
            
 
            
Spread (+/-):
   + .50%        
 
            
Spread Multiplier:
   Not Applicable        
 
            
Interest Reset Date(s):
   Each business day        
 
            
Interest Rate Determination Date(s):
   The first business day preceding each Interest Reset Date
 
            
Maximum Interest Rate, if any:
   Not Applicable        
 
            
Minimum Interest Rate, if any:
   Not Applicable        
 
            
Calculation of Interest (not applicable unless different than as specified in the prospectus and prospectus supplement):
 
Day Count Convention (not applicable unless different than as specified in the prospectus and prospectus supplement):

 

 

             
 
            
Amortizing Funding Agreement:
  o Yes   x No.   If, Yes,
Amortizing Schedule:
            
Additional/Other Terms:
    
 
            
Discount Funding Agreement:
  o Yes   x No.   If, Yes,
Total Amount of Discount:
            
Initial Accrual Period of Discount:
            
Additional/Other Terms:
    
Redemption Provisions:
  o Yes   x No.   If, Yes,
Initial Redemption Date:
    
Initial Redemption Percentage:
    
Annual Redemption Percentage Reduction (if any):
Redemption:
  o In whole only and not in part    
 
  o May be in whole or in part    
Additional/Other Terms:
    
 
            
Repayment:
  o Yes   x No.   If, Yes,
Repayment Date(s):
            
Repayment Price:
            
Repayment:
  o In whole only and not in part    
 
  o May be in whole or in part    
Additional/Other Terms:
            
 
            
Sinking Fund (not applicable unless specified):
            
 
            
Additional Amounts to be Paid For Withholding Tax (not applicable unless specified):

Ratings: The Funding Agreement issued under the Program is rated AA by S&P. Principal Life expects the Funding Agreement to be rated Aa2 by Moody’s.

     
Additional/Other Terms if any: Notwithstanding anything in the Prospectus Supplement to the contrary, “Federal Funds Rate” means the rate for an Interest Reset Date will be the rate set forth in H.15(519) for that day under the caption “EFFECT,” as such rate is displayed on the Reuters Screen FEDFUNDS1 Page. If by 5:00 p.m., New York City time, on the day that is one business day following the Interest Reset Date, such rate for the Interest Reset Date does not appear on the Reuters Screen FEDFUNDS1 Page or is not yet published in H.15(519), the rate for that Interest Reset Date will be the rate set forth in H.15 Daily Update, or such other recognized electronic source used for the purpose of displaying such rate, for that day opposite the caption “Federal funds (effective)”. If by 5:00 p.m., New York City time, on the day that is one business day following the Interest Reset Date, such rate for the Interest Reset Date does not appear on the Reuters Screen FEDFUNDS1 Page or is not yet published in H.15(519), H.15 Daily Update or another recognized electronic source, the rate for that Interest Reset Date will be the rate for the first preceding day for which such rate is set forth in H.15(519) opposite the caption “Federal funds (effective)”, as such rate is displayed on the Reuters Screen FEDFUNDS1 Page.
 
    
Special Tax Considerations:
   
 
    
3. The Guarantee
    
 
    
Guarantee Issuer:
  Principal Financial Group, Inc.
 
    
Effective Date:
  October 12, 2007
 
    
Additional/Other Terms if any: