DOW JONES NEWSWIRES 
 

Principal Financial Group Inc. (PFG) said its board elected Chief Executive Larry D. Zimpleman as chairman, effective Tuesday.

He succeeds J. Barry Griswell, who has been chairman since 2002.

Zimpleman, who joined the company in 1971 as a part-time actuarial student, became chief executive last year.

"Larry is the right leader for these challenging times. His depth and breadth of global financial services expertise make him especially well-suited for the job," said Griswell, who will remain on the board.

Earlier this month, Principal Financial reported a 34% drop in first-quarter profit as the life insurer and asset manager continued to be hurt by equity-market declines.

The life-insurance sector has been roiled by troubles in investment portfolios and annuities, both heavily exposed to the downbeat financial sector.

But Principal Financial is among those expected to get some help from the Troubled Asset Relief Program, after the Treasury Department decided to include life insurers among the financial companies eligible for such aid. The company has applied for $2 billion.

Principal Financial's shares were at $20.65, down 0.8%, in after-hours trading.

-By Kathy Shwiff, Dow Jones Newswires; 201-938-5975; Kathy.Shwiff@dowjones.com