Principal Financial Group Completes Cuprum Acquisition, the Premier Chilean AFP Pension Company

  Principal Financial Group Completes Cuprum Acquisition, the Premier Chilean
  AFP Pension Company

Business Wire

DES MOINES, Iowa -- February 4, 2013

Principal Financial Group, Inc. (NYSE:PFG), a global investment management
leader, today announced that the AFP Cuprum S.A. (Cuprum) acquisition is
complete. On Oct. 8, 2012, The Principal^® announced a definitive agreement to
acquire Cuprum, which required Empresas Penta S.A. and Inversiones Banpenta
Limitada to sell their 63 percent ownership in Cuprum pursuant to a public
tender offer that also included the remaining 37 percent of publicly traded
shares, which has been completed giving The Principal a 90.4 percent ownership
stake in Cuprum. The Principal intends to acquire the remaining shares after
completion for a total purchase price of USD$1.5 billion less assumed debt.

The transaction was immediately accretive and is expected by the company to
benefit 2013 EPS by approximately 12 cents and 23 cents in full year 2014. The
transaction is estimated to improve total company ROE by 45 bps in 2013 and 75
bps in 2014.

Cuprum, a leading pension manager in Chile and among the fastest growing, has
approximately USD$32.7 billion of assets under management^1. Cuprum products
include mandatory employee-funded pension plans, voluntary pension products
(APV), and other long-term savings products. The Chilean pension market has
consistently grown at double-digit rates driven by a large and expanding
middle and affluent market, stable economic growth and robust growth in
voluntary pension products.

"The combination of Cuprum and The Principal provides customers in Chile with
an unparalleled array of retirement savings, asset management and retirement
income solutions,” said Luis Valdes, president and CEO of Principal
International. "Cuprum already has a leading pension brand in Chile, and now
adds the backing of a global retirement and investment management leader in
The Principal."

According to Larry Zimpleman, chairman, president and CEO at The Principal,
“the Cuprum acquisition further strengthens our competitive position in one of
the most attractive emerging retirement and long-term savings markets. Cuprum
represents the sixth such transaction for The Principal in the past two years
and adds meaningfully to our fee-based earnings, giving us continued financial
flexibility.”

The Principal Financial Group's strategy of Investment Management Plus helps
customers around the world ensure their financial future by building
retirement and long-term savings, investing to grow their assets, and insuring
their income.

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 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 ^®)^2 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^3 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.

About AFP Cuprum
AFP Cuprum is a publicly traded, leading Chilean pension company with US$32.7
billion in assets under management. Their products include mandatory defined
contribution pensions (AFP), voluntary pensions, non-tax preferenced voluntary
savings (CAV) and account drawdown at retirement (RP). Based in Santiago,
Chile, the company has more than 1,100 employees and distributes products from
32 branches in Chile, with 3 branches located in Santiago.

^1 As of Nov. 30, 2012
^2 “The Principal Financial Group” and “The Principal” are registered service
marks of Principal Financial Services, Inc., a member of the Principal
Financial Group.
^3 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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