Nippon Life Insurance Company to Acquire Minority Stake in Post Advisory Group

  Nippon Life Insurance Company to Acquire Minority Stake in Post Advisory
  Group

          Deal broadens Post Advisory Group’s distribution in Japan

Business Wire

DES MOINES, Iowa -- April 1, 2013

The Principal Financial Group (NYSE:PFG) today announced its subsidiary,
Principal Global Investors, LLC, a leading global asset manager, has agreed to
sell a minority stake in Post Advisory Group, LLC (Post) to Nippon Life
Insurance Company (Nippon Life).

Post is a leading manager of high-yield fixed income based in Santa Monica,
Calif., with approximately $11.8 billion in assets under management^1 and
additional offices in New York and London. Nippon Life is a leading global
financial services firm headquartered in Osaka with total assets of more than
$600 billion. The transaction will bring significant new distribution
opportunities for Post’s products and enhance Nippon Life’s fixed income
investment products.

“We are very pleased Nippon Life has chosen us to be its high yield partner,”
said Larry Post, founder and chief investment officer of Post. “This is a
tremendous vote of confidence in our firm and it extends the geographic reach
of our broad menu of high yield products.”

“We are delighted with our new partnership with Post and intend to keep
accelerating our efforts in growing our asset management business field,” said
Yoshinobu Tsutsui, president of Nippon Life. “This transaction marks a new
milestone in our history with the Principal Financial Group and we hope to
further strengthen our relationship going forward.”

“Nippon Life has long been a valued partner of the Principal Financial Group,
and this transaction will serve to deepen and strengthen that relationship,”
said Larry Zimpleman, chairman, president and CEO of the Principal Financial
Group^®. “Post Advisory Group has already been successful in bringing high
yield solutions to a market that is in need of yield-oriented products.
Japanese investors will now be positioned to take even greater advantage of
this key offering through Nippon Life’s networks and relationships.”

The transaction is expected to close in the second quarter of 2013.

For more news and insights from the Principal Financial Group, connect with us
on Twitter at: http://twitter.com/ThePrincipal.

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, 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 Principal Global Investors

Principal Global Investors is a diversified asset management organization and
a member of the Principal Financial Group^®, with expertise in equities, fixed
income and real estate investments, as well as specialized overlay and
advisory services. Principal Global Investors manages $281.5 billion in
assets^2 primarily for retirement plans and other institutional clients^3.

About Post Advisory Group

Post Advisory Group, LLC is a global investment manager specializing in
high-yield securities with a multi-strategy, value-oriented investment
approach. With approximately $11.8 billion in assets under management, Post,
founded in 1992 by Larry Post, is a leading manager of high-yield fixed
income.

About Nippon Life

Nippon Life Insurance Company, founded in 1889, is Japan’s largest private
life insurer with revenues of over 7 trillion JPY ($80 billion) and total
assets of over 50 trillion JPY ($600 billion)^4. The company, which has over
14 million policies in Japan, offers a wide range of products, including
individual and group life insurance and annuity policies, through various
distribution channels. The company primarily operates in Japan, North America,
Europe and Asia and is headquartered in Osaka, Japan.

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.

                        

^1 As of March 27, 2013

^2 As of Dec. 31, 2012

^3 Principal Global Investors is the asset management arm of the Principal
Financial Group ® (The Principal ®) and includes the asset management
operations of the following subsidiaries of The Principal: Principal Global
Investors, LLC; Principal Real Estate Investors, LLC; Principal Enterprise
Capital, LLC; Spectrum Asset Management, Inc.; Post Advisory Group, LLC;
Columbus Circle Investors; Edge Asset Management, Inc.; Morley Financial
Services Inc.; Finisterre Capital, LLP; Origin Asset Management, LLP;
Principal Global Investors (Europe) Limited; Principal Global Investors
(Singapore) Ltd.; Principal Global Investors (Australia) Ltd.; Principal
Global Investors (Japan) Ltd.; Principal Global Investors (Hong Kong) Ltd.;
CIMB-Principal Islamic Asset Management Sdn. Bhd.; and the majority owned
affiliates of Principal International, Inc. Assets under management includes
assets managed by investment professionals of Principal Global Investors under
dual employee arrangements with other subsidiaries of The Principal and assets
managed in accordance with investment advice provided by Principal Global
Investors through the delivery of a model.

^4 As of March 31, 2012

^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
Adam Lackey, 515-362-0482
lackey.adam@principal.com
or
Nippon Life
Takayuki Honda,
honda26950@nissay.co.jp
or
Post Advisory Group
Larry Post, 310-996-9600
lpost@postadvisory.com
or
Investor Relations:
Principal Financial Group
John Egan, 515-235-9500
egan.john@principal.com
 
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