Principal Financial Group, Inc. Announces Preferred Dividend

  Principal Financial Group, Inc. Announces Preferred Dividend

Business Wire

DES MOINES, Iowa -- October 25, 2012

Principal Financial Group, Inc. (NYSE: PFG) announced today that its board of
directors declared a cash dividend of $1.39075 per share on its 5.563% Series
A non–cumulative perpetual preferred stock and a cash dividend of $0.407375
per share on its 6.518% Series B non-cumulative perpetual preferred stock. The
preferred dividends are payable on Dec. 31, 2012, to preferred stockholders of
record as of Dec. 13, 2012.

Forward looking and cautionary statements
This press release contains forward-looking statements, including, without
limitation, statements as to operating earnings, net income available to
common stockholders, net cash flows, realized and unrealized gains and losses,
capital and liquidity positions, sales and earnings trends, and management's
beliefs, expectations, goals and opinions. The company does not undertake to
update these statements, which are based on a number of assumptions concerning
future conditions that may ultimately prove to be inaccurate. Future events
and their effects on the company may not be those anticipated, and actual
results may differ materially from the results anticipated in these
forward-looking statements. The risks, uncertainties and factors that could
cause or contribute to such material differences are discussed in the
company's annual report on Form 10-K for the year ended Dec. 31, 2011, and in
the company’s quarterly report on Form 10-Q for the quarter ended June 30,
2012, filed by the company with the Securities and Exchange Commission, as
updated or supplemented from time to time in subsequent filings. These risks
and uncertainties include, without limitation: adverse capital and credit
market conditions may significantly affect the company’s ability to meet
liquidity needs, access to capital and cost of capital; continued difficult
conditions in the global capital markets and the economy generally; continued
volatility or further declines in the equity markets; changes in interest
rates or credit spreads; the company’s investment portfolio is subject to
several risks that may diminish the value of its invested assets and the
investment returns credited to customers; the company’s valuation of
securities may include methodologies, estimations and assumptions that are
subject to differing interpretations; the determination of the amount of
allowances and impairments taken on the company’s investments requires
estimations and assumptions that are subject to differing interpretations;
gross unrealized losses may be realized or result in future impairments;
competition from companies that may have greater financial resources, broader
arrays of products, higher ratings and stronger financial performance; a
downgrade in the company’s financial strength or credit ratings; inability to
attract and retain sales representatives and develop new distribution sources;
international business risks; the company’s actual experience could differ
significantly from its pricing and reserving assumptions; the company’s
ability to pay stockholder dividends and meet its obligations may be
constrained by the limitations on dividends or distributions Iowa insurance
laws impose on Principal Life; the pattern of amortizing the company’s DPAC
and other actuarial balances on its universal life-type insurance contracts,
participating life insurance policies and certain investment contracts may
change; the company may need to fund deficiencies in its “Closed Block” assets
that support participating ordinary life insurance policies that had a
dividend scale in force at the time of Principal Life’s 1998 conversion into a
stock life insurance company; the company’s reinsurers could default on their
obligations or increase their rates; risks arising the company's ability to
obtain regulatory approval and consummate the acquisition of A.F.P. Cuprum
S.A. and other acquisitions of businesses; changes in laws, regulations or
accounting standards; a computer system failure or security breach could
disrupt the company’s business, and damage its reputation; results of
litigation and regulatory investigations; from time to time the company may
become subject to tax audits, tax litigation or similar proceedings, and as a
result it may owe additional taxes, interest and penalties in amounts that may
be material; fluctuations in foreign currency exchange rates; and applicable
laws and the company’s certificate of incorporation and by-laws may discourage
takeovers and business combinations that some stockholders might consider in
their best interests.

About the Principal Financial Group
The Principal Financial Group^® (The Principal ^®)^1 is a global investment
management leader offering retirement services, insurance solutions and asset
management. The Principal offers businesses, individuals and institutional
clients a wide range of financial products and services, including retirement,
asset management and insurance through its diverse family of financial
services companies. Founded in 1879 and a member of the FORTUNE 500^®, the
Principal Financial Group has $392.2 billion in assets under management^2 and
serves some 18.3 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” and “The Principal” are registered service
marks of Principal Financial Services, Inc., a member of the Principal
Financial Group.
^2 As of September 30, 2012.

Contact:

Principal Financial Group, Inc.
Media contact:
Susan Houser, 515-248-2268
houser.susan@principal.com
or
Investor Relations contact:
John Egan, 515-235-9500
egan.john@principal.com
 
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