Principal Financial Group, Inc. Announces Fourth Quarter and Full-Year 2012 Results

  Principal Financial Group, Inc. Announces Fourth Quarter and Full-Year 2012
  Results

            Company Also Announces Common Stock Dividend Increase

  *Fourth quarter 2012 operating earnings^1 of $243.9 million, an increase of
    21 percent over fourth quarter 2011; net income available to common
    shareholders was $218.6 million, an increase of 47 percent over fourth
    quarter 2011.
  *Full-year 2012 operating earnings of $808.0 million, a decrease of 4
    percent over 2011 (adjusted operating earnings of $898.7 million^2, an
    increase of 7 percent over full-year 2011); net income available to common
    shareholders of $772.9 million, an increase of 25 percent over 2011.
  *Year-end 2012 record assets under management of $403.0 billion, an
    increase of 20 percent compared to year-end 2011.
  *First quarter dividend of $0.23 per share of common stock, an increase of
    10 percent over the fourth quarter 2012 dividend.

Business Wire

DES MOINES, Iowa -- January 31, 2013

Principal Financial Group, Inc. (NYSE: PFG) today announced results for fourth
quarter and full year 2012. The company reported operating earnings of $243.9
million for fourth quarter 2012, compared to $201.8 million for fourth quarter
2011. Operating earnings per diluted share (EPS) were $0.82 for fourth quarter
2012, compared to $0.66 for fourth quarter 2011. The company reported net
income available to common stockholders of $218.6 million, or $0.74 per
diluted share for fourth quarter 2012, compared to $148.5 million, or $0.48
per diluted share for fourth quarter 2011, reflecting a strong increase in
operating earnings and improvement in credit-related losses. Operating
revenues for fourth quarter 2012 were $2,293.1 million compared to $2,103.3
million for the same period last year.

The company reported operating earnings of $808.0 million for the twelve
months ended Dec. 31, 2012 (which were negatively impacted by a $90.7 million
charge from the third quarter actuarial assumption review, predominantly due
to the lower interest rates), compared to $843.8 million for the twelve months
ended Dec. 31, 2011. Operating earnings per diluted share (EPS) were $2.69 for
the twelve months ended Dec. 31, 2012, compared to $2.66 for the twelve months
ended Dec. 31, 2011. (Adjusted 2012 EPS of $2.99^2 is up 12 percent over
reported 2011 EPS.) The company reported net income available to common
stockholders of $772.9 million, or $2.57 per diluted share for the twelve
months ended Dec. 31, 2012, compared to $619.7 million, or $1.95 per diluted
share for the twelve months ended Dec. 31, 2011. Operating revenues for the
year 2012 were $9,175.4 million compared to $8,281.0 million for the same
period last year.

The company also announced today that its board of directors has declared a
quarterly dividend of $0.23 per share of common stock, an increase of 10
percent over the fourth quarter 2012 dividend. The dividend will be payable on
March 29, 2013 to shareholders of record as of March 11, 2013.

“The Principal Financial Group ended a strong 2012 with very strong fourth
quarter earnings. The continued strength of our underlying business
fundamentals and successful execution of our strategy gives us momentum going
into 2013,” said Larry D. Zimpleman, chairman, president and chief executive
officer. “We significantly advanced our international strategy with two
acquisitions in Latin America last year. Closing on Cuprum will further
solidify our position as a global investment management leader in 2013 and
beyond.”

Added Terry Lillis, senior vice president and chief financial officer, “Our
very strong earnings in the fourth quarter and the ability of our fee-based
business model to continuously generate deployable capital gives us continued
financial flexibility, as demonstrated by our strong capital deployment in
2012 and today’s announcement of a 10 percent increase in our quarterly common
stock dividend. Full-year book value per share (excluding other comprehensive
income) increased 7 percent over full year 2011 and our investment portfolio
is performing very well.”

Key Highlights
Fourth Quarter

  *Retirement and Investor Services Accumulation sales were up 17 percent in
    the fourth quarter compared to the year ago quarter. This includes $3.3
    billion for Full Service Accumulation, $4.2 billion for Principal Funds
    and $448 million for Individual Annuities. Net cash flows of $1.6 billion
    for Full Service Accumulation and $1.5 billion for Principal Funds.
  *Principal Global Investors had record unaffiliated assets under management
    (AUM) of $98.2 billion.
  *Principal International reported net cash flows of $2.0 billion and record
    AUM of $69.3 billion (excluding $11.3 billion of AUM in our asset
    management joint venture in China, which is not included in reported
    assets under management).
  *Individual Life sales of $84.8 million, up 56 percent over fourth quarter
    2011.
  *Specialty Benefits premium and fee growth of 5 percent over fourth quarter
    2011 and favorable incurred loss ratio of 64.3 percent.

Full Year Results

  *Record AUM of $403.0 billion, up 20 percent compared to year-end 2011.
  *Total company net cash flows of $29.8 billion.
  *Strong capital position with an estimated risk based capital ratio of
    415-420 percent at year end and $2.5 billion of excess capital.^3
  *Book value per share, excluding AOCI^4 was $29.20, up 7 percent over 2011.
  *Four quarterly dividends to common stockholders in 2012 totaling $0.78
    cents per share, up 11 percent over 2011.
  *Repurchased 9.9 million shares of common stock in 2012 at an average price
    of $25.92.

Net Income
Fourth Quarter

  *Net income available to common stockholders of $218.6 million for fourth
    quarter 2012, up 47 percent compared to fourth quarter 2011 reflecting:

       *Net realized capital losses of $0.5 million, which includes:

            *$15.0 million of net losses, down 48 percent from a year ago
              quarter, related to sales and permanent impairments of fixed
              maturity securities. This includes $11.1 million of losses on
              commercial mortgage backed securities, which is down 51 percent
              from $22.6 million loss in fourth quarter 2011.

       *Other after-tax adjustment loss of $24.8 million, which reflects
         expenses incurred extinguishing $400 million of long-term debt that
         was scheduled to mature in 2014.

Full Year Results
Net income available to common stockholders of $772.9 million for the twelve
months ended Dec. 31, 2012, reflects net realized capital gains of $39.1
million, up $180.9 million from a $141.8 loss in 2011. This includes:

  *A net gain of $141.2 million as a result of Catalyst Health Solutions,
    Inc.’s merger into a subsidiary of SXC Health Solutions Corp. (SXC), and
    our subsequent sale of our interest in SXC (now known as Catamaran
    Corporation);
  *$76.8 million of net losses, a 36 percent improvement over 2011 related to
    sales and permanent impairments of fixed maturity securities, including:

       *$60.1 million of losses on commercial mortgage backed securities,
         which is down 34 percent from $90.5 million loss in 2011.

                               Segment Results

Retirement and Investor Services
Segment operating earnings for fourth quarter 2012 were $152.3 million,
compared to $124.5 million for the same period in 2011. Full Service
Accumulation earnings increased 39 percent from a year ago quarter to $81.3
million reflecting an $8 million after-tax benefit as more companies paid
extraordinary and accelerated dividends in fourth quarter 2012. Principal
Funds earnings were up 25 percent compared to the year-ago quarter to $13.2
million, primarily due to an increase in average account values. Individual
Annuities earnings were $31.1 million compared to $27.8 million for fourth
quarter 2011 reflecting $3 million after tax of favorable variable investment
income. Bank and Trust Services operating earnings were $7.9 million, compared
to $8.5 million for fourth quarter 2011. The guaranteed businesses, which
consist of Investment Only and Full Service Payout, earned $18.8 million in
the fourth quarter 2012 compared to $19.0 million in fourth quarter 2011.

Operating revenues for the fourth quarter 2012 were $1,127.9 million compared
to $1,016.9 million for the same period in 2011 primarily due to higher fee
revenue in the accumulations businesses and higher premiums in the guaranteed
businesses.

Segment assets under management were a record $212.0 billion as of Dec. 31,
2012, compared to $179.8 billion as of Dec. 31, 2011, reflecting asset
appreciation and strong net cash flows from Full Service Accumulation and
Principal Funds.

Principal Global Investors
Segment operating earnings for fourth quarter 2012 were $26.2 million, up
strongly from $17.5 million in the prior year quarter, primarily due to an
increase in assets under management and the year ago quarter having one-time
acquisition costs.

Operating revenues for fourth quarter were $168.0 million, compared to $151.8
million for the same period in 2011, primarily a result of higher management
and transaction fees.

Unaffiliated assets under management were a record $98.2 billion as of Dec.
31, 2012, compared to $82.4 billion as of Dec. 31, 2011 as a result of strong
net cash flows and strong investment performance.

Principal International
Segment operating earnings were $45.1 million in fourth quarter 2012, compared
to $50.1 million in the prior year quarter. Fourth quarter 2011 benefited from
$10.4 million of one-time earnings.

Operating revenues were $265.8 million for fourth quarter 2012, compared to
$255.6 million for the same period last year primarily due to 31 percent
growth in assets under management, which were partially offset by one-time
revenues in the year ago quarter.

Segment assets under management were a record $69.3 billion as of Dec. 31,
2012, compared to $52.8 billion as of Dec. 31, 2011. This includes a record
$9.3 billion of net cash flows for the full year, or 18 percent of beginning
of the year assets under management.

U.S. Insurance Solutions
Segment operating earnings for fourth quarter 2012 were $59.4 million,
compared to $52.8 million for the same period in 2011. Individual Life
earnings were $27.8 million in the fourth quarter 2012 compared to $27.2
million in fourth quarter 2011. Specialty Benefits earnings were $31.6 million
in fourth quarter 2012, up 23 percent from $25.6 million in the same period a
year ago primarily due to favorable claims experience in the current quarter.

Segment operating revenues for fourth quarter 2012 were $779.7 million
compared to $737.9 million for the same period a year ago.

Corporate
Operating losses for fourth quarter 2012 were $39.1 million compared to
operating losses of $43.1 million in fourth quarter 2011. The fourth quarter
2011 was negatively impacted from an active credit strategy on excess capital
at the holding company, which was wound down in 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 Sept. 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 from the company's ability
to obtain regulatory approval and consummate the acquisition of A.F.P. Cuprum
S.A. and from 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.

Use of Non-GAAP Financial Measures
The company uses a number of non-GAAP financial measures that management
believes are useful to investors because they illustrate the performance of
normal, ongoing operations, which is important in understanding and evaluating
the company’s financial condition and results of operations. They are not,
however, a substitute for U.S. GAAP financial measures. Therefore, the company
has provided reconciliations of the non-GAAP measures to the most directly
comparable U.S. GAAP measure at the end of the release. The company adjusts
U.S. GAAP measures for items not directly related to  ongoing operations.
However, it is possible these adjusting items have occurred in the past and
could recur in future reporting periods. Management also uses non-GAAP
measures for goal setting, as a basis for determining employee and senior
management awards and compensation, and evaluating performance on a basis
comparable to that used by investors and securities analysts.

Earnings Conference Call
On Friday, Feb. 1, 2013 at 10:00 a.m. (ET), Chairman, President and Chief
Executive Officer Larry Zimpleman and Senior Vice President and Chief
Financial Officer Terry Lillis will lead a discussion of results, asset
quality and capital adequacy during a live conference call, which can be
accessed as follows:

  *Via live Internet webcast. Please go to www.principal.com/investor at
    least 10-15 minutes prior to the start of the call to register, and to
    download and install any necessary audio software.
  *Via telephone by dialing 800-374-1609 (U.S. and Canadian callers) or
    706-643-7701 (International callers) approximately 10 minutes prior to the
    start of the call. The access code is 83659918.
  *Replay of the earnings call via telephone is available by dialing
    855-859-2056 (U.S. and Canadian callers) or 404-537-3406 (International
    callers). The access code is 83659918. This replay will be available
    approximately two hours after the completion of the live earnings call
    through the end of day Feb. 8, 2013.
  *Replay of the earnings call via webcast as well as a transcript of the
    call will be available after the call at: www.principal.com/investor.

The company's financial supplement and additional investment portfolio detail
for fourth quarter 2012 is currently available at www.principal.com/investor,
and may be referred to during the call. Slides related to the call will be
available at www.principal.com/investor approximately one-half hour prior to
call start time.

About the Principal Financial Group
The Principal Financial Group^® (The Principal ^®)^5 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 $403.0 billion in assets under management^6 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.

Summary of Segment and Principal Financial Group, Inc. Results

                      

                        Operating Earnings (Loss)*
                       in millions

                       Three Months Ended,       Twelve Months Ended,
Segment                12/31/12    12/31/11    12/31/12     12/31/11
Retirement and         $ 152.3    $ 124.5    $ 575.1     $ 562.9  
Investor Services
Principal Global        26.2      17.5      81.2       74.0   
Investors
Principal               45.1      50.1      153.3      149.5  
International
U.S. Insurance          59.4      52.8      138.2      204.3  
Solutions
Corporate               (39.1 )    (43.1 )    (139.8 )    (146.9 )
Operating Earnings     $ 243.9    $ 201.8    $ 808.0     $ 843.8  
Net realized capital
gains (losses), as      (0.5  )    (53.6 )    39.1       (141.8 )
adjusted
Other after-tax         (24.8 )    0.3       (74.2  )    (82.3  )
adjustments
Net income available
to common              $ 218.6    $ 148.5    $ 772.9     $ 619.7  
stockholders

                       Per Diluted Share
                      Three Months Ended,       Twelve Months Ended,
                       12/31/12    12/31/11    12/31/12     12/31/11
Operating Earnings     $ 0.82     $ 0.66     $ 2.69      $ 2.66   
Net realized capital
gains (losses), as      -         (0.18 )    0.13       (0.45  )
adjusted
Other after-tax         (0.08 )    -         (0.25  )    (0.26  )
adjustments
Net income available
to common              $ 0.74     $ 0.48     $ 2.57      $ 1.95   
stockholders
Weighted-average
diluted common          297.3     307.9     300.4      317.6  
shares outstanding
(in millions)
                                                           

*Operating earnings versus U.S. GAAP (GAAP) net income available to common
stockholders
Management uses operating earnings, which excludes the effect of net realized
capital gains and losses, as adjusted, and other after-tax adjustments, for
goal setting, as a basis for determining employee compensation, and evaluating
performance on a basis comparable to that used by investors and securities
analysts. Segment operating earnings are determined by adjusting U.S. GAAP net
income available to common stockholders for net realized capital gains and
losses, as adjusted, and other after-tax adjustments the company believes are
not indicative of overall operating trends. Note: it is possible these
adjusting items have occurred in the past and could recur in future reporting
periods. While these items may be significant components in understanding and
assessing our consolidated financial performance, management believes the
presentation of segment operating earnings enhances the understanding of
results of operations by highlighting earnings attributable to the normal,
ongoing operations of the company’s businesses.


Principal Financial Group, Inc.
Results of Operations
(in millions)
                                              
                   Three Months Ended,           Twelve Months Ended,
                   12/31/12      12/31/11      12/31/12      12/31/11
Premiums and
other              $ 700.0       $ 635.1       $ 3,216.5     $ 2,385.5
considerations
Fees and other       717.7           616.4           2,606.9         2,423.3
revenues
Net investment      875.4       851.8       3,352.0     3,472.2 
income
Total
operating           2,293.1     2,103.3     9,175.4     8,281.0 
revenues
                                                                   
Benefits,
claims and           1,155.3         1,093.8         5,128.6         4,236.9
settlement
expenses
Dividends to         48.2            51.5            197.7           210.2
policyholders
Commissions          179.2           149.7           657.9           592.0
Capitalization       (132.2  )       (95.3   )       (435.3  )       (349.6  )
of DPAC
Amortization         64.9            51.5            121.4           236.9
of DPAC
Depreciation
and                  19.9            16.1            90.2            68.4
amortization
Interest
expense on           39.9            31.5            132.7           123.7
corporate debt
Compensation        612.4       552.8       2,244.7     2,051.1 
and other
Total expenses      1,987.6     1,851.6     8,137.9     7,169.6 
                                                                   
Operating
earnings
before tax,
noncontrolling
interest and
preferred            305.5           251.7           1,037.5         1,111.4
stock
dividends
Less:
Income tax           49.9            43.2            186.0           230.0
Operating
earnings
(loss)
attributable
to
noncontrolling       3.4             (1.6    )       10.5            4.6
interest
Preferred
stock               8.3         8.3         33.0        33.0    
dividends
Operating          $ 243.9      $ 201.8      $ 808.0      $ 843.8   
earnings
                                                                   
Net realized
capital gains        (0.5    )       (53.6   )       39.1            (141.8  )
(losses), as
adjusted
Other
after-tax           (24.8   )    0.3         (74.2   )    (82.3   )
adjustments
Net income
available to       $ 218.6      $ 148.5      $ 772.9      $ 619.7   
common
stockholders
                                                                             

Selected Balance Sheet Statistics
                                       
                                         Period Ended,
                                         12/31/12    12/31/11    12/31/10
Total assets (in billions)               $ 161.9     $ 147.4     $ 144.7
Total common equity (in millions)        $ 9,211.2     $ 8,475.9     $ 8,607.2
Total common equity excluding
accumulated
other comprehensive income (in           $ 8,579.3     $ 8,217.9     $ 8,300.5
millions)
End of period common shares
outstanding (in
millions)                                  293.8         301.1         320.4
Book value per common share              $ 31.35       $ 28.15       $ 26.86
Book value per common share
excluding
accumulated other comprehensive          $ 29.20       $ 27.29       $ 25.91
income


Principal Financial Group, Inc.
Reconciliation of Non-GAAP Financial Measures to U.S. GAAP
(in millions, except as indicated)
                                               
                    Three Months Ended,           Twelve Months Ended,
                    12/31/12      12/31/11      12/31/12      12/31/11
Diluted
Earnings Per                                                 
Common Share:
Operating           $ 0.82          $ 0.66          $ 2.69          $ 2.66
earnings
Net realized
capital gains         -               (0.18   )       0.13            (0.45   )
(losses)
Other after-tax      (0.08   )    -           (0.25   )    (0.26   )
adjustments
Net income
available to        $ 0.74       $ 0.48       $ 2.57       $ 1.95    
common
stockholders
                                                                    
Book Value Per
Common Share
Excluding
Accumulated
Other
Comprehensive
Income:
Book value per
common share
excluding
accumulated
other
comprehensive       $ 29.20         $ 27.29         $ 29.20         $ 27.29
income
Net unrealized        4.20            2.42            4.20            2.42
capital gains
Foreign
currency              (0.39   )       (0.36   )       (0.39   )       (0.36   )
translation
Net
unrecognized
postretirement       (1.66   )    (1.20   )    (1.66   )    (1.20   )
benefit
obligations
Book value per
common share
including
accumulated
other
comprehensive       $ 31.35      $ 28.15      $ 31.35      $ 28.15   
income
                                                                    
Operating
Revenues:
RIS                 $ 1,127.9       $ 1,016.9       $ 4,834.9       $ 4,075.0
PGI                   168.0           151.8           591.2           546.3
PI                    265.8           255.6           942.7           909.0
USIS                  779.7           737.9           2,994.7         2,939.9
Corporate            (48.3   )    (58.9   )    (188.1  )    (189.2  )
Total operating       2,293.1         2,103.3         9,175.4         8,281.0
revenues
Net realized
capital gains
(losses) and          1.9             (97.4   )       14.7            (216.6  )
related
adjustments
Exited group
medical              0.9         52.9        25.0        606.3   
insurance
business
Total GAAP          $ 2,295.9    $ 2,058.8    $ 9,215.1    $ 8,670.7 
revenues
                                                                    
Operating
Earnings:
RIS                 $ 152.3         $ 124.5         $ 575.1         $ 562.9
PGI                   26.2            17.5            81.2            74.0
PI                    45.1            50.1            153.3           149.5
USIS                  59.4            52.8            138.2           204.3
Corporate            (39.1   )    (43.1   )    (139.8  )    (146.9  )
Total operating       243.9           201.8           808.0           843.8
earnings
Net realized
capital gains
(losses) and          (0.5    )       (53.6   )       39.1            (141.8  )
related
adjustments
Other after-tax      (24.8   )    0.3         (74.2   )    (82.3   )
adjustments
Net income
available to        $ 218.6      $ 148.5      $ 772.9      $ 619.7   
common
stockholders
                                                                    
Net Realized
Capital Gains
(Losses):
Net realized
capital gains       $ (0.5    )     $ (53.6   )     $ 39.1          $ (141.8  )
(losses), as
adjusted
Certain
derivative and        30.5            25.6            98.9            98.8
hedging-related
adjustments
Amortization of
DPAC and sale         (1.9    )       (16.0   )       (36.6   )       21.5
inducement
costs
Certain market
value
adjustments of        (0.8    )       (0.9    )       0.6             (65.6   )
embedded
derivatives
Capital gains         3.5             1.1             12.2            3.1
distributed
Tax impacts           1.5             (29.2   )       (8.7    )       (70.5   )
Noncontrolling
interest              0.1             1.2             8.3             31.6
capital gains
Recognition of
front-end fee         0.2             0.5             0.2             0.3
revenues
Certain market
value                 0.3             -               0.3             0.1
adjustments to
fee revenues
Net realized
capital gains
(losses)
associated with
exited group
medical              -           -           (0.2    )    0.2     
business
GAAP net
realized            $ 32.9       $ (71.3   )   $ 114.1      $ (122.3  )
capital gains
(losses)
                                                                    
Other After-Tax
Adjustments:
Exited group
medical             $ -             $ 0.1           $ (9.6    )     $ 50.9
insurance
businesses
Court ruling
regarding some        -               -               -               (68.9   )
uncertain tax
positions
ELNY
liquidation           -               0.2             -               (10.3   )
estimated
obligation
Contribution to       -               -               (39.8   )       (19.5   )
PFG Foundation
Early
extinguishment        (24.8   )       -               (24.8   )       -
of debt
Assumption
change within        -           -           -           (34.5   )
the Individual
Life business
Total other
after-tax           $ (24.8   )   $ 0.3        $ (74.2   )   $ (82.3   )
adjustments
                                                                              

^1 Use of non-GAAP financial measures is discussed in this release after
segment results.
^2 2012 operating earnings were negatively impacted by $90.7 million from the
third quarter 2012 actuarial assumption review.
^3 Excess capital includes cash at the holding company and capital at the life
company above the amount needed to maintain a 350 percent NAIC risk based
capital ratio for the life company.
^4 Accumulated Other Comprehensive Income
^5 “The Principal Financial Group” and “The Principal” are registered service
marks of Principal Financial Services, Inc., a member of the Principal
Financial Group.
^6 As of Dec. 31, 2012

Contact:

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