SlideShare a Scribd company logo
1 of 57
Download to read offline
Principal Financial Group®
August 2015
Use of Non-GAAP Financial Measures
A non-GAAP financial measure is a numerical measure of performance, financial position, or cash flows that
includes adjustments from a comparable financial measure presented in accordance with U.S. GAAP.
The company uses a number of non-GAAP financial measures that management believes are useful to
investors because they illustrate the performance of the company’s normal, ongoing operations which is
important in understanding and evaluating the company’s financial condition and results of operations. While
such measures are also consistent with measures utilized by investors to evaluate performance, they are not,
however, a substitute for U.S. GAAP financial measures. Therefore, at the end of the presentation, the
company has provided reconciliations of the non-GAAP financial measures to the most directly comparable
U.S. GAAP financial measure. The company adjusts U.S. GAAP financial 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 financial 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.
The company also uses a variety of other operational measures that do not have U.S. GAAP counterparts, and
therefore do not fit the definition of non-GAAP financial measures. Assets under management is an example
of an operational measure that is not considered a non-GAAP financial measure.
2
Forward Looking Statements
3
Certain statements made by the company which are not historical facts may be considered 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, 2014 and in the company’s
quarterly report on Form 10-Q for quarter ended Jun. 30, 2015 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; conditions in the global capital markets and the economy generally; continued
volatility or further declines in the equity, bond or real estate 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 DAC 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.
A Leading Financial Services Company
Fortune 500 company; 136 year history; 20.1 million customers
Assets Under Management by Source
$539.9 billion
as of Jun. 30, 2015
Retirement &
Investor Services
Accumulation
48%
Corporate
1%
U.S.
Insurance
Solutions
4%
Principal
International
22%
Principal
Global
Investors
22%
Operating Earnings
$1,459.7 million*
Jun. 30, 2015
Retirement &
Investor Services
Accumulation
50%
U.S.
Insurance
Solutions
17%
Principal
International
18% Principal
Global
Investors 8%
*Trailing Twelve Months. After-tax. Results exclude Corporate.
4
COMPANY OVERVIEW
RIS
Guaranteed
7%
RIS
Guaranteed
3%
Organizational Structure
Principal Financial Group
Zimpleman CEO – 44/44 yrs*
Lillis CFO – 33/33 yrs
Houston COO – 31/31 yrs
Retirement &
Investor Services
Everett - President
24/24 yrs
Principal Global
Investors
McCaughan – President
41/13 yrs
Principal
International
Valdes – President
27/24 yrs
U.S. Insurance
Solutions
Strable – President
26/26 yrs
Corporate
Full Service
Accumulation
Principal Funds**
Individual Annuities
Bank & Trust**
Full Service Payout
Investment Only
Life
Specialty Benefits
*Years of experience: Industry/The Principal as of year end 2015.
**Structural changes announced Feb 2015 will align Principal Funds & Principal Trust with Principal Global Investors.
5
COMPANY OVERVIEW
PRINCIPAL FINANCIAL GROUP
Headquarters
Des Moines, Iowa
Mexico
Pensions
Annuities
Mutual Funds
Asset Management
Chile
Pensions – Mandatory
Pensions – Voluntary
Annuities
Mutual Funds
Asset Management
Brazil
Pensions
Annuities
Asset Management
Mutual Funds
India
Mutual Funds
Advisory Service
Asset Management
Malaysia
Mutual Funds
Asset Management
Islamic Institutional
Asset Management
Pensions
Hong Kong
Pensions,
Mutual Funds
Asset Management
China
Mutual Funds
Asset Management
Principal Financial Group Global Presence
Germany
Asset Management
Ireland
Mutual Funds
UK
Asset Management
Japan
Asset Management
Australia
Asset Management
Singapore
Asset Management
Thailand
Mutual Funds
Asset Management
Indonesia
Mutual Funds
Asset Management
Netherlands
Asset Management
UAE
Asset Management
6
COMPANY OVERVIEW
Malta
Asset Management
136 Years of Experience
1879
Life
Assoc
1911
Mutual
Life Co
1936
Mortgage
Banking/
Commercial
Mortgage
1941
Group
Health &
Pension
1968
Mutual
Funds
1985
Principal
Financial
Group
1998
Principal Bank;
Mutual
Holding Co
2001
IPO;
Spectrum
1990
Principal
Intl
1970s
Defined
Contribution
1999
Principal Global
Investors;
BrasilPrev JV;
Principal Asset
Mgmt Co (India)
2002
Benefit
Consultants
Inc; Total
Retirement
Suite
2006
Washington
Mutual Funds;
WM Advisors
2008
CIMB-Principal
Islamic
Asset Mgmt
2007
Morley
2011
HSBC Afore;
Finisterre;
Origin
1995
Principal
Chile
1996
Principal
Hong Kong
1997
Principal
Mexico
2003
Post
Advisory
Group
2005
CCB
Principal;
Columbus
Circle
JV – Joint Venture
IPO – Initial Public Offering
2010
BrasilPrev
JV extension
2012
Claritas;
Cuprum
2013
Liongate
7
COMPANY OVERVIEW
2014
AXA Hong
Kong
Pension
Name Age* Title (Industry/PFG)*
Larry D. Zimpleman 64 Chairman & Chief Executive Officer 44/44
Daniel J. Houston 54 President & Chief Operating Officer 31/31
Nora M. Everett 56 President - Retirement & Investor Services 24/24
James P. McCaughan 62 President - Global Asset Management 41/13
Deanna D. Strable 47 President - U.S. Insurance Solutions 26/26
Luis E. Valdes 58 President - International Asset Management and Accumulation 27/24
Timothy M. Dunbar 58 Executive VP & Chief Investment Officer 34/29
Terrance J. Lillis 63 Executive VP & Chief Financial Officer 33/33
Gary P. Scholten 58 Executive VP & Chief Information Officer 35/35
Karen E. Shaff 61 Executive VP, General Counsel & Secretary 33/33
Rex Auyeung 63 Chairman - Principal Financial Group – Asia 38/21
David M. Blake 49 Senior Executive Director & Head Global Fixed Income 26/15
Elizabeth S. Brady 55 Senior VP & Chief Marketing Officer 31/2
Ned A. Burmeister 56 Senior VP & COO – Principal International 36/36
Gregory J. Burrows 53 Senior VP - Retirement & Investor Services 29/29
Gregory B. Elming 55 Senior VP & Chief Risk Officer 33/33
Amy C. Friedrich 45 Senior VP – Specialty Benefits Division 18/15
Patrick G. Halter 56 Senior Executive Director – Principal Real Estate Investors 31/31
Julia M. Lawler 55 Senior Executive Director - Multi Asset Allocation 33/31
Gregory A. Linde 59 Senior VP – Individual Life 36/23
Barbara A. McKenzie 55 Senior Executive Director & COO – Boutique Operations 31/31
Dennis J. Menken 52 Senior VP & Chief Investment Officer – Principal Life 21/21
Gerald W. Patterson 49 Senior VP - Retirement & Investor Services 27/14
Elizabeth L. Raymond 49 Senior VP & Chief Human Resources Officer 24/15
Angela R. Sanders 52 Senior VP & Controller 26/26
Ellen W. Shumway 52 Senior Executive Director – Strategy & Boutique Operations 25/10
Roberto A. Walker 50 Senior VP & President, Principal Financial Group – LatAm 26/19
*As of 12/2015
8
Experienced Management Team
COMPANY OVERVIEW
Retirement and Investor Services
•#3 provider of DC plans1
•#1 provider of DB plans2
•#1 provider of ESOP plans3
•#6 manager of Target Date Funds4
Industry Leadership
Sources: 1 PLANSPONSOR Recordkeeping Survey, June 2015, 2 PLANSPONSOR Defined Benefit Administration Survey, May 2015; 3 PLANSPONSOR
Recordkeeping Survey, June 2015; 4 In the United States. Strategic Insight Lifecycle FlowWatch report April 2015; 5Pensions & Investments, “The Best
Places to Work in Money Management among companies with our size category”, PFG recognition 12/08/2014. 6 Managers ranked by total worldwide
real estate assets (net of leverage), as of June 30, 2014. “Largest Real Estate Managers”, PENSIONS & INVESTMENTS, October 27, 2014.; 7Managers
ranked by U.S. institutional, tax-exempt assets managed internally, as of 12/31/14, “Largest Money Managers”, Pensions & Investments, May 2015.
8Commercial Property Executive Published April 2015 “2015 Greenest CRE Companies” list”. 9Fenaprevi, March 2015; 10Asociacion de Administradóras
de Fondos Mutuos De Chile, 10/2014; 11Lipper. Percentage of market share as of 12/2014; 12Towers Watson. Based on AUM as of 09/2014; 13CONSAR &
PROCESAR, October 2014; 14PLANSPONSOR NQDC Buyer’s Guide, July 2015; 15LIMRA 2014 survey: Non-medical based on fully insured employer
contracts in force. 16 LIMRA 2014 survey: Individual Disability Insurance (IDI) rank based on in-force policies
Principal Global Investors
•Best Place to Work in Money
Management 5
•Top 10 manager Real Estate 6
•15th largest manager High Yield7
•#4 Greenest CRE Company8
Principal International
•#1 market share – Brazil (Brasilprev)9
•#1 APV – Chile10
•#2 asset management – Malaysia11
•Top ten MPF provider – Hong Kong12
•#5 AFORE – Mexico13
U.S. Insurance Solutions
•#1 Non-qualified deferred
compensation14
•#4 Non-medical coverages15
•#5 IDI coverages16
9
COMPANY OVERVIEW
Financial Strength:
Current Ratings
(as of July 2015)
• Moody's Investors Service
'A1', Good – fifth highest of 21
rating levels.
Outlook: Stable
Rating reviewed November 2013
• FitchRatings
'AA-‘, Very Strong - fourth highest of
19 rating levels.
Outlook: Stable
Rating reviewed April 2015
• Standard & Poor's
‘A+’, Strong - fifth highest of 24
rating levels.
Outlook: Stable
Rating reviewed April 2015
• A.M. Best
'A+', Superior - second highest of
16 rating levels.
Outlook: Stable
Rating reviewed January 2015
Ratings related to Principal Life Insurance Company and Principal National Life Insurance Company.10
COMPANY OVERVIEW
Platform Continuum
Across markets | Across life stages
INDIVIDUAL
EMPLOYER
INVESTMENT MANAGEMENT
Full Service Accumulation
Principal Funds
Investment
Only
Bank
Annuities
Full
Service
Payout
11
RETIREMENT AND INVESTOR SERVICES
Customer-Centric Business Model
12
Full Service Accumulation
RETIREMENT AND INVESTOR SERVICES
Principal Total Retirement SuiteSM
STILL A DIFFERENTIATOR
All rankings sourced from PLANSPONSOR magazine as follows – Defined Benefit: DB Administration Survey 05/15;
Defined Contribution and ESOP: Recordkeeping Survey 06/15; Nonqualified Deferred Compensation:
PLANSPONSOR NQDC Buyer’s Guide, July 2015
Defined Benefit
#1 DB provider
(by # of clients)
Defined Contribution
#3 DC plan recordkeeper
(by # of plans)
Employee Stock
Ownership Plan
#1 ESOP plan recordkeeper
(by # of plans)
Nonqualified Plans
#1 Deferred Comp provider
(by # of plans)
13
Full Service Accumulation
RETIREMENT AND INVESTOR SERVICES
1.7 2.0
3.2 2.9 2.7 2.8
0.9
1.7
2.3
1.8
1.4 1.6
0.9
1.5
2.7
2.6
1.83.2
3.3
3.3
3.0
2.8
0
2
4
6
8
10
12
14
2010 2011 2012 2013 2014 2015
$Billions
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
4.4
Balanced Sales Approach
14
6.7
8.5
11.5
10.3
8.7
Full Service Accumulation
RETIREMENT AND INVESTOR SERVICES
4.8 5.0
6.5 6.8 7.4 8.1
4.1 5.0
5.7 5.8 5.9
6.43.8
4.3
5.6
6.3 5.75.8
6.0
6.5
6.3 6.0
0
5
10
15
20
25
30
2010 2011 2012 2013 2014 2015
$Billions
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
14.5
People making a deferral +35%*
Avg deferral per member +11%*
People receiving a match +47%*
15
18.5
20.3
24.3 25.2
The Power of Payroll Deduction
* 2Q10 compared to 2Q15.
25.0
Full Service Accumulation
RETIREMENT AND INVESTOR SERVICES
Account Value byManager
16
60.4% 58.4% 58.3% 56.6% 55.8% 56.6% 56.5%
62.2%
12.7% 12.8% 11.1% 10.0% 10.3% 9.9% 9.4%
10.2%
20.1% 22.3% 23.3% 26.5% 26.9%
26.4% 27.1%
23.3%
6.9% 6.6% 7.3% 6.9% 7.1% 7.1% 7.0% 4.3%
0%
20%
40%
60%
80%
100%
2009 2010 2011 2012 2013 2014 2Q15 2Q15 YTD
Deposits
PGI managed Sub-advised Non-proprietary ER Securities
Full Service Accumulation
RETIREMENT AND INVESTOR SERVICES
Our Disciplined Execution Delivers
Positive Results
17
Profit Margin*
Industry Avg vs. The Principal
Principal Industry Avg
* Profit 2000 Benchmark Study, Sterling Resources, Inc. (2013)
Full Service Accumulation
RETIREMENT AND INVESTOR SERVICES
Revenue sourced from FSA platform
FSA
FSA
Other PFG
businesses
Other PFG
businesses
2013 2018E
Multiple Businesses Leverage FSA Success
Principal Funds, PGI, Bank & Trust, Individual Annuities, Individual Life and Full Service Payout are all beneficiaries
$500
MILLION
$350
MILLION
$0
$2B
18
RETIREMENT AND INVESTOR SERVICES
Full Service Accumulation
1.9%
4.5% 4.2%
3.1%
6.7%
18.1%
12.5%
8.5%
2011 2012 2013 2014
Industry net flows Principal Funds net flows
1.0%
0.7%
0.3%
-0.9%
3.5%
6.3%
1.7%
0.4%
2011 2012 2013 2014
401k Industry net flows Principal FSA net flows
Full Service Accumulation (FSA)
Net cash flows as % of beginning of year assets 2011-2014. Sources of industry data: 401(k) industry – Department of Labor & Cerulli
Associates 2014 (for 2014, industry 401(k) is an estimate); Funds – Strategic Insight Mutual Fund Industry Review (long-term funds).
Principal Funds net flows represent long-term funds only.
Net Cash Flow Consistently
Outpaces Industry
Principal Funds
19
RETIREMENT AND INVESTOR SERVICES
TOP SELLING FUNDS
TTM
2Q15
Global Diversified Income $3.4B
MidCap Fund $2.9B
Preferred Securities $1.9B
High Yield Fund $1.6B
Diversified Real Asset $1.5B
TOTAL FOR TOP 5 $11.3B
ASSET ALLOCATION LEADERSHIP
• #6 largest lifecycle fund manager*
• Target date & target risk
• Multi-manager solutions
• Portfolio construction strategies:
*Based on $41.2B in assets Strategic Insight 3/31/15 Lifecycle Report
Needs-Driven Investment Solutions
Broad and unique asset allocation strategies
20
RETIREMENT AND INVESTOR SERVICES
Principal Funds
Account Values – Then & Now
34%
44%
100%
22% Affiliated Distribution
Third Party
Broker/Dealers
DCIO/RIA
17%
44%
100%
39%
Affiliated Distribution
Third Party
Broker/Dealers
DCIO/RIA
Multiple Distribution Channels
SALES – Then & Now
2006
$3.8B
TTM 2Q15
$22.9B
2006
$14.7B
2Q15
$79.1B
21 DCIO = Defined Contribution Investment Only. RIA = Registered Investment Advisor
RETIREMENT AND INVESTOR SERVICES
Principal Funds
A Diversified Family of Mutual Funds
15%
5%
60%
45%
1%
3%
-9%
16%
31%
TTM 2Q15 06/30/2015
Equity
Fixed Income
Index
Asset Allocation
Other
Net Cash
Flow
Assets Under
Management
22
33%
RETIREMENT AND INVESTOR SERVICES
Principal Funds
Driving Industry Recognition
and Advisor Engagement
15th largest advisor-sold fund family(1)
Best Global Real
Estate Fund Over
the 5-Year Period
23
(1) Strategic Insights Mutual Fund Management Companies Rankings and Analysis, March 2015
#5 for DC
Investment
Manager
RETIREMENT AND INVESTOR SERVICES
Principal Funds
2014 Best Mutual Fund Families:
#5 Ranking
READY TO
RETIRE
Individual Investor Strategy
• Portfolio allocation
• Participant education
RETIREMENT
INCOME
SOLUTIONS
• Education and guidance
• Portfolio construction
strategies
• Income annuities
ENROLLMENT
OPTIMIZATION
• Simplify process
• Improve experience
• Maximize participation and
influence behavior
24
RETIREMENT AND INVESTOR SERVICES
Innovative Solutions:
Solving Income Needs
ACCUMULATION
OUR APPROACH:
• Education
• Planning assistance
(RetireSecure®)
• Full array of options
• Innovative solutions
MULTI-PRODUCT
SOLUTION SET
•“Through Retirement” Lifecycle Funds
•Mutual Funds that:
‒Generate income
‒Preserve capital
‒Protect against inflation
‒Address market volatility
•Annuities to provide:
‒Fixed returns
‒Guaranteed income
‒Protection against volatility
•Bank products
•Full Service Payout
‒Defined Benefit plan terminations
RETIREMENT
INCOME
25
RETIREMENT AND INVESTOR SERVICES
INDIVIDUAL LIFE
•Non-Qualified Plans* 13.9% #1
•Total Life New Sales Premium 1.7% #19
SPECIALTY BENEFITS
•Total Group In-Force Contracts 7.1% #4
- Life 9.5% #3
- Disability 7.1% #5
- Dental 5.0% #8
•Individual Disability
In-force Premium
8.4% #5
•Individual Disability
New Sales Premium
15.8% #3
Success Reflects Expertise Serving SMB Market
2014
Industry
Rank
2014
Market
Share
26
Nonqualified Plans ranking from PLANSPONSOR Buyers Guide Survey, July 2015. All other rankings are from LIMRA 2013/2014.
*Excludes governmental 457 plans.
U.S. INSURANCE SOLUTIONS
ER/NQ
28%
BOES
27%
Individual
45%
Individual Life Leadership:
FOCUS ON THE BUSINESS MARKET
Business owners’ financial challenges
•Exiting the business
•Business transition
•Retaining key employees
•Retirement planning
Solutions for key employees
•Retirement income
•Survivor income
•Business protection
2014 Sales
BOES = Business Owner/Executive Solutions
ER/NQ = Employer/Non-qualified
SOLUTIONSFORBUSINESS,BUSINESSOWNERSANDKEYEXECUTIVES
27
U.S. INSURANCE SOLUTIONS
3.9%
10.4%
2.4% 2.0%
Group Benefits Individual DI
The Principal Industry
Dental/
Vision
47% Group
Life
27%
Balanced Portfolio
plus Above Industry PremiumGrowth
2014 Total Premium & Fees
3 Year In-Force Premium Growth
(2010 – 2013 CAGR)
Group
Benefits
83%Individual
Disability
17%
Group
Disability
26%
28
U.S. INSURANCE SOLUTIONS
•Stable loss ratios
•Attractive margins
•ROE of 14% +
Industry source: LIMRA 2010-2013
U.S. Distribution Overview
PRINCIPAL
CONNECTION
• 70 counselors
with focus on
education
CAREER
• 1,000 agents
• Sell all products
• Career places
80-85% of sales
within The
Principal family
products
BANKSINSURANCE-
ORIENTED
INVESTMENT-
ORIENTED
• Wirehouses
• Regional
Broker/Dealers
• Planners
• Insurance
Producers
• Banks
• Broker/
Dealers
• Marketers
THIRD PARTYPROPRIETARY
ALLIANCE MANAGEMENT GROUP (AMG)
Select 3rd party distributors with dedicated support
STRENGTHENS RELATIONSHIPS AND FUELS SALES GROWTH
All supported by DEDICATED SERVICE TEAMS providing education, training, counseling and retention
11 WHOLESALE CHANNELS
Group
Benefits
Retirement Investment
Solutions
Annuities NQDC Disability
Insurance
Retail
Life
AMG WorksiteESOP Wellness
29
DISTRIBUTION
National Presence with
Local Employees
OUR VALUE TO ADVISORS:
● Solutions-based selling
● Point of sale support
● Ongoing service and
education support
● Pipeline development
● Practice management
● Advisor education
121 Total Offices
NOTE: Approximate view as of March 2012. Check www.principal.com for actual locations.
30
DISTRIBUTION
Expanding Distribution Partnerships
Have Generated Strong Sales Growth
3.1 3.8 3.7
7.6 6.6 7
2.8
5.7 6.5
10.5
14.5 14.4
1.2
1.5
1.4
2.5
3.3 2.4
0.9
1.5
1.4
1.7
2.0
2.0
2009 2010 2011 2012 2013 2014
Individual Annuities
Separately Managed Accounts
Mutual Funds
Full Service Accum
$8.0BTotal: +26%
CAGR:
$12.5B $13.0B $22.3B
31
$26.4B
DISTRIBUTION
$25.8B
Broad and Deep Distribution
Proprietary provides foundation; 3rd party provides accelerated growth
Rankings and percentages as of 12/31/2014
Product Line
New Sales
1st 2nd 3rd Top 3
represent
NQ Life 33%
Retail Life 59%
Individual Disability Plus Group 39%
Group Benefits Gallagher 14%
Fixed Annuities 52%
Variable Annuities
KeyCorp Ins.
Agency
94%
Mutual Funds 23%
FSA – New Sales Assets 35%
FSA – New Sales Case
Counts
Edward D.
Jones 33%
32
DISTRIBUTION
Principal
Advisor
Network
Principal
Advisor
Network
Principal
Advisor
Network
Principal
Advisor
Network
Principal
Advisor
Network
Principal
Advisor
Network
Principal
Advisor
Network
Principal
Advisor
Network
• Serve clients in over 70 countries, including several
major central banks and sovereign wealth funds
• Network of specialized investment boutiques
managing assets for a broad range of investors
around the world
• Manages:
– 60% of Full Service Accumulation assets
– 74% of Principal Funds assets
– 100% of Principal Life general account assets
• Office locations in major financial markets
worldwide
• Long-standing commitment to corporate
stewardship
As of 06/30/2015
Principal Global Investors
Assets Under Management
$328.4B
By Asset Class
33
Fixed
Income
$136B
Equity
$118B
Real
Estate
$60B
Alternatives
$14B
PRINCIPAL GLOBAL INVESTORS
At a Glance
Our Current Boutiques
(AUM as of 06/30/15)
Principal Global
Equities
$68.4B
Principal Global
Fixed Income
$81.9B
Private Real Estate
$37.0B
CMBS
$7.5B
Origin Asset
Management
$3.7B
Edge Asset
Management1
$21.5B
Fixed IncomeEquities
REITs
$9.9B
Principal Enterprise
Capital
$6.1B
MorleyFinancial
Services
$16.8B
Spectrum Asset
Management
$18.9B
Macro Currency
Group
$8.9B
Post Advisory
Group
$10.4B
Multi-Asset
Advisors
$0.7B2
Real Estate
AssetAllocation/
Alternatives
Finisterre Capital
$3.6B
Columbus Circle
Investors
$16.1B
Liongate Capital
Management
$0.4B
34
1 Edge Asset Management advises on an additional $8.7B across asset classes for Retirement and Investor Services.
2 Responsible for allocation decision-making and implementation across a range of products and client portfolios, and for providing macro
economic perspectives to guide allocations. Multi-Asset Advisors advise on an additional $28.6B managed by multiple PGI boutiques.
PRINCIPAL GLOBAL INVESTORS
Aligned Investors
$16.6B
Asset Management Expertise Wins Mandates
$82.4
$98.2
$109.4 $114.0
$121.1
2011 2012 2013 2014 2Q15
Principal Global Investors
Unaffiliated AUM
(in billions)
• Best Global Real Estate
Fund over the 5-year
period
(1)
• Top 10 Manager of Real
Estate
(2)
• 15th Largest manager of
High Yield
(3)
• PFG ranked No.1 company
among the Best Places to
Work in Money
Management(4)
Sources: (1) The Principal Real Estate Investors portfolio management team subadvises the Principal Global Real Estate Securities
Fund-Class l, which received the award from Lipper, Inc. for the third year in a row, March 2015. (2) Managers ranked by total
worldwide real estate assets (net of leverage), as of June 30, 2014, “Largest Real Estate Managers”, PENSIONS & INVESTMENTS,
October 27, 2014. (3) Managers ranked by U.S. institutional, tax-exempt assets managed internally, as of 12/31/14 “Largest
Money Managers”, Pensions & Investments, May 2015. (4) Pensions & Investments, “The Best Places to Work in Money
Management among companies with our size category”, PFG recognition 12/08/2014.(5) Managers ranked by total assets under
management. America’s Top 300 Money Manager, Institutional Investor, July 2014, data as of 12/31/2013.
35
PRINCIPAL GLOBAL INVESTORS
Strong Investment Performance
Represents $174 billion AUM of which 75% managed by PGI boutiques
Morningstar Rankings
Percentage of Principal Funds in the top two quartiles
79%
88%
89%
85%
89%
88%
87% 87%
91%
1-Year 3-Year 5-Year
Jun. 30, 2014 Mar. 31, 2015 Jun. 30, 2015
36
Principal “I” shares; if no “I” share class then “A” share class; separate accounts use “R6” rate level; Includes Principal mutual funds,
separate accounts and collective investment trusts (CITs); Excludes money market, stable value and U.S. Property separate account.
PRINCIPAL GLOBAL INVESTORS
PRINCIPAL FINANCIAL
GROUP
Mexico (1993)
• Annuities, Mutual
Funds, Pensions,
Asset Management
• AUM of $11.4B
• Wholly owned
Chile (1995)
• Annuities, Mutual Funds, Asset
Management, Mandatory Pensions,
Voluntary Pensions
• AUM of $40.8B
• Wholly owned
• Cuprum – a 98% owned joint venture
AUM of $35.2B
Brazil (1999)
• Annuities, Pensions,
Mutual Funds, Asset
Management
• Brasilprev – a 25%
owned joint venture with
Banco do Brasil
AUM of $43.4B
• Claritas – 71% indirectly
owned mutual fund
company
AUM of $1.1B
India (2000)
• Asset Management,
Mutual Funds
• AUM of $0.8B
• 79% owned joint venture
with Punjab National
Malaysia (2003)
• Conventional & Islamic Asset
Management, Mutual Funds,
Pensions
• AUM of $13.1B
• CIMB-Principal – 40% owned
joint venture with CIMB
Group; 50% owned Islamic
company with CIMB
China (2005)
• Asset Management, Mutual
Funds
• AUM of $34.2B
• CCB-Principal – a 25%
owned joint venture with
China Construction Bank
Hong Kong (1996)
• Asset Management, Mutual
Funds, Pensions
• AUM of $4.2B
• Wholly owned
Thailand (2010)
• Asset Management, Mutual Funds
• AUM of $2.4B
• Wholly owned subsidiary of Malaysian JV
Indonesia (2007)
• Asset Management,
Mutual Funds
• AUM of $0.3B
• Wholly owned
subsidiary of Malaysian
JV
Singapore (2006)
• Asset Management
• AUM of $1.6M
• Wholly owned subsidiary
of Malaysian JV
AUM as of 06/30/2015
PRINCIPAL INTERNATIONAL
37
We’re in the Right Countries
SOURCE: IMF, Standard Chartered Research.
TEN LARGEST ECONOMIES BY DECADE
Current Principal International locations: Asia Latin America
38
1990
US$
trn
1 U.S. 5.9
2 Japan 3.1
3 Germany 1.7
4 France 1.2
5 Italy 1.1
6 UK 1.0
7 Canada 0.6
8 Spain 0.5
9 Brazil 0.5
10 China 0.4
2000
US$
trn
U.S. 10.3
Japan 4.7
Germany 1.9
UK 1.5
France 1.3
China 1.2
Italy 1.1
Canada 0.7
Brazil 0.6
Mexico 0.6
2010
US$
trn
U.S. 15.0
China 5.9
Japan 5.5
Germany 3.3
France 2.5
UK 2.3
Italy 2.0
Brazil 2.1
Canada 1.6
Russia 1.5
2020E
US$
trn
U.S. 23.5
China 21.9
Japan 6.1
Germany 5.1
India 4.5
Brazil 3.9
France 3.9
UK 3.7
Italy 2.7
Russia 2.6
2030E
US$
trn
China 53.8
U.S. 38.5
India 15.0
Japan 9.3
Germany 7.4
Brazil 6.3
UK 5.8
France 5.7
Indonesia 4.7
Russia 4.6
PRINCIPAL INTERNATIONAL
Joint Venture Partner
Partner’s Industry
Ranking
Partner’s Distribution Reach
Banco do Brasil
Largest bank in Latin
America1
5,524 branches2
61 million customers2
2nd largest listed bank in
world3
14,650 branches4
632 million retail customers4
5th largest banking group
in ASEAN5
1,057 branches6
13 million retail customers5
3rd largest Nationalized
bank in India7
6,081 branches8
89 million retail customers8
SOURCE: 1Relbanks.com December 2014 in terms of AUM; 2Banco do Brasil Annual Report 2014; 3Relbanks.com December 2014
in terms of AUM; 4CCB 2014 annual report – customers based on retail debit cards; 5CIMB Group 2014 Annual report – ranking in
terms of AUM; 6CIMB Group 2013 4Q Analyst Presentation; 7Indian Banks’ Association 2014 in terms of assets; 8PNBIndia.com in
2014
Leveraging Strong Marquee Partners
with Outstanding Distribution
39
PRINCIPAL INTERNATIONAL
Pensions
Mutual
Funds
Asset
Mgmt
Annuities
Brazil    
Chile    
Mexico    
China   
Hong
Kong
  
India   
Malaysia/
SE Asia
  
Our Markets and Product Offering
 = Where we
have a product
offering today
Targeted
Markets
 = Targeted
expansion
= 10% of market
share or Top 25% of
providers
40
PRINCIPAL INTERNATIONAL
41
Emerging Markets: The PI Story
We are in the right markets8%+4%
Inflation
GDP
3%
“Low Inflation/Strong Growth”“Low Inflation/Slow Growth”
“High Inflation/Slow Growth ”
“High Inflation/Strong Growth”
0
0
6% +
+
Mexico
2.2%
GDP Growth
Mature Economies
India
Indonesia
Hong Kong
Brazil
Chile
Malaysia
China
Thailand
(8.9% inflation)
(7.5% GDP)
Source: IMF. 2014 Estimates.
Singapore
Brasilprev – an outlier:
Grew NCCF market share
in a volatile market
+
PRINCIPAL INTERNATIONAL
BRAZIL MEXICO CHILE
Brasilprev:
#1 in net
deposits and
total market
share
5th largest
AFORE
(by AUM)
#1 APV:
PI Chile and
Cuprum
PRINCIPAL IS 2ND LARGEST
PENSION PROVIDER
IN LATIN AMERICA
Proven Strength & Success
42
Brazil source: Fenaprevi. 3/15. Mexico source: CONSAR & PROCESAR. 11/14. Chile source: Asociacion de Administradóras de
Fondos Mutuos De Chile. 10/14. Principal is 2nd largest pension provider in Latin America by AUM among multi-country pension
providers.
Latin America
PRINCIPAL INTERNATIONAL
CUPRUM: A “One-Stop Shop”
43 ERM = Enterprise Risk Management
Chile
PRINCIPAL INTERNATIONAL
HONG KONG
Among Top Ten
MPF* Providers
Building a Strong Foundation
MALAYSIA
#2 in PRS
CHINA
Top Ten
for Mutual Funds
INDIA
1st mover in advisory
services business
44
*Mandatory Provident Fund. Malaysia source: Lipper. Percentage of market share as of 12/14. Hong Kong
source: Towers Watson. Based on AUM as of 9/14. China source: East Fortune. Based on AUM as of 12/14.
India source: Company data/media tracking at launch 11/12
PRINCIPAL INTERNATIONAL
Asia
Corporate Public
Bonds
27%
Corporate Private
Bonds
17%
Commercial
Mortgages
16% CMBS
5%
Cash
3%
MBS
6%
ABS
6%
Government, Agency,
State & Political
9%
Other*
11%
Diversified Portfolio
$70.4 Billion
* Other includes Equity Securities, Residential Mortgages, Real Estate, Policy Loans, Investment in Equity Method subs,
Direct Finance Leases and Other Investments
45
Invested Assets & Cash
As of 06/30/15
GAAP carrying value
INVESTMENTS
• Liability-driven investment
approach
• Active asset/liability management
• Optimized risk adjusted yields and
returns
• High quality, well-diversified
portfolio
• Global collaboration and best
practices
• Portfolio responsibility remains at
local country
Investment Philosophy
& Strategy
REMAINS THE SAME
Assets & Liabilities
Performed as Expected
-$600
-$400
-$200
$0
$200
$400
$600
$800
Jan-12
Feb-12
Mar-12
Apr-12
May-12
Jun-12
Jul-12
Aug-12
Sep-12
Oct-12
Nov-12
Dec-12
Jan-13
Feb-13
Mar-13
Apr-13
May-13
Jun-13
Jul-13
Aug-13
Sep-13
Oct-13
Nov-13
Dec-13
Jan-14
Feb-14
Mar-14
Apr-14
May-14
Jun-14
Jul-14
Aug-14
Sep-14
Oct-14
Nov-14
Dec-14
Inmillions
Actual net assets & liabilities Modeled net assets & liabilities
46
INVESTMENTS
Power of our Fee-Based Model
OPERATING EARNINGS
Continual shift in mix of business leading to a higher ROE and more free cash flow
64%
20%
16%
Current
70%
15%
15%
2018E
Fee Spread Risk
47
Fee includes Full Service Accumulation, Mutual Funds, Principal Global Investors, Principal International.
Spread includes Individual Annuities, Bank and Trust Services, Investment Only, Full Service Payout.
Risk includes U.S. Insurance Solutions.
30%
40%
30%
2001
FINANCIALS
40%
30%
30%
33%
33%
34%
Returning Capital to Shareholders
2007 Current 2018E
• Less capital needed to support organic growth
• Moving to higher dividend payout ratio
• Diligently pursuing active acquisition pipeline
• Opportunistically buying back shares
48
(Acquisitions & share buybacks)
Organic Growth Dividends Available Capital
25%
25%
50%
FINANCIALS
Driving ROE
Growth
OCI = Other Comprehensive Income.
As Reported
2007
2014
Operating
earnings
$1.1B $1.3B
Average
equity (x-OCI)
$6.5B $9.3B
Return on
equity (x-OCI)
16.4% 14.2%
EARNINGS
+ 4-5% for market
performance
+ 4-5% for growth
from sales/NCF
+ 1-2% operational
efficiency
EQUITY
 Fee-based growth
 Dividend growth
 Opportunistic
share repurchases
ROE =
50-80 bps average annual
ROE improvement
FINANCIALS
49
We’ve Played
Offense Since
Recession
Emerged from financial
crisis in a position of
strength and flexibility
Executing on our
strategy to increase our
global footprint and fee-
based earnings
50
Opportunity
Year
Announced Rationale
AXA Hong Kong
Pension
2014
 15 year exclusive distribution
with 4,440 agents
 Gateway into China
2013
 Expand alternative asset class
capabilities
2012
 Complete offering in Chile with
marquee pension and savings
franchise
2012
 Entry into Brazil mutual fund
and asset management market
2011
 Enhance global equity
investment capabilities
2011
 Establish leadership in
emerging markets fixed income
investing
AFORE 2011
 Solidify position as a leader in
Mexican Afore market
BrasilPrev 2010
 23 year extension of successful
JV with Banco do Brasil
FINANCIALS
Merger & Acquisition Criteria
• Mid-teens IRR
• More accretive than buyback over
time
1
2
3
STRATEGIC
ABILITY TO
ONBOARD
DISCIPLINED
PRICING
• Aligns with our core competencies
• Blend local talent with Principal
expertise
• Synergies with multiple lines of
business preferred
• Adds scale or a new niche
Have a diligent M&A process that optimizes long-term results
51 IRR = Internal Rate of Return.
FINANCIALS
Capital Deployment
Strategic
Acquisitions:
$350M
Share
Repurchases:
$550M
2011 2012
Over $1.1 billion
in total
Allocated $2.1 billion
Common Stock
Dividends: $230M
Share Repurchases:
$300M
Strategic
Acquisitions:
$1,595M
2013
Allocated $480 million
Share
Repurchases:
$150M
Strategic Acquisition:
$44M
Common
Stock
Dividends:
$288M
Common Stock
Dividends: $215M
52
2014
Allocated $855 million
Share
Repurchases:
$200M
Strategic
Acquisition:
$180M
Surplus Note
Redemption: $100M
Common
Stock
Dividends:
$375M
Long term: expect to deploy 65–70 percent of our net income
with fluctuations in any given year
FINANCIALS
Capital Deployment
• We expect to be at the upper end of the $800M - $1.0B deployment in 2015
̶ Have announced deployments of more than $835M as of 6/30/15
̶ $330M in common stock dividends
̶ Paid 1Q15 and 2Q15 dividends of 36-cents and 38-cents
per share respectively
̶ Announced 3Q15 dividend of 38-cents per share
̶ $150M announced Board share repurchase authorization
̶ $335M for AXA’s Hong Kong pension business
̶ $20M for increased ownership in PGI boutiques
• Long term: expect to deploy 65–70 percent of our net income with fluctuations
in any given year
FINANCIALS
53
5-Year 2015E
Accumulation
Net revenue
growth
6-8% 4-6%
Pre-tax RONR 28-32% 30-33%
Guaranteed
Net revenue
growth
6-8% (2)-2%
Pre-tax RONR 75-80% 78-80%
Net revenue = operating revenues less benefits, claims & settlement expenses less dividends to policyholders.
RONR = Return on Net Revenue. Pre-tax operating margin = pre-tax operating earnings / premium and fees.
*Combined basis includes all Principal International companies at 100%.
Retirement & Investor Services
U.S. Insurance Solutions
5-Year 2015E
Individual
Life
Premium & fee
growth
4-8% 3-5%
Pre-tax operating
margin
16-21% 13-16%
Specialty
Benefits
Premium & fee
growth
8-10% 6-8%
Pre-tax operating
margin
8-12% 10-12%
Loss ratio 65-71% 64-70%
54
Key Business Drivers Outlook
5-Year 2015E
Revenue growth 14-17% 7-10%
Pre-tax margin 30+% 26-28%
Principal Global Investors
Principal International
5-Year 2015E
Combined* net revenue growth
(normalized local basis)
15-20% 14-16%
Combined net revenue growth
(in reported USD)
15-20% 8-10%
Combined pre-tax RONR 55-60% 50-52%
Principal’s share of
combined pre-tax earnings
N/A 35%
Estimated After-tax operating losses for Corporate of $130-$150 million in 2015
FINANCIALS
(1) Excludes discontinued operations. (2) Diluted. (3) Operating return on average equity excluding other
comprehensive income, based on trailing 12 month period.
2001 2014
CAGR
(’01-’14)
YTD
2Q14
YTD
2Q15
Change
Operating Earnings(1)
($M)
$433 $1,318 9% $640.2 $650.3 2%
Earnings Per Share(2) $1.20 $4.41 10.5% $2.14 $2.18 2%
Assets Under
Management ($B)
$98 $519 14% $518 $540 4%
ROE (TTM)(3) 6.9% 14.2% +730 bps 13.3% 13.8% +50 bps
Book Value Per Share
(x-OCI)
$17.81 $32.64 5% $31.52 $34.00 8%
S&P 500 1,148 2,059 5% 1,960 2,063 5%
Results Demonstrate Relative Strength of
Our Business Model
55
FINANCIALS
Exhibit 1 Principal Financial Group, Inc.
Non-GAAP Financial Measure Reconciliations
(in millions, except as indicated)
Three Months Ended, Six Months Ended,
30-Jun-15 31-Mar-15 31-Dec-14 30-Sep-14 30-Jun-14 30-Jun-15 30-Jun-14
Stockholders' Equity x-OCI Available to Common Stockholders:
Retirement and Investor Services 3,192.1$ 3,145.1$ 3,124.0$ 3,194.4$ 3,247.1$ 3,192.1$ 3,247.1$
Principal Global Investors 619.7 609.8 602.8 638.1 457.3 619.7 457.3
Principal International 3,625.2 3,584.4 3,463.4 3,430.9 3,483.2 3,625.2 3,483.2
U.S. Insurance Solutions 2,398.9 2,333.4 2,288.0 2,342.7 2,115.1 2,398.9 2,115.1
Corporate 184.1 179.9 113.4 (211.8) (42.3) 184.1 (42.3)
Total stockholders' equity x-OCI available to common stockholders: 10,020.0 9,852.6 9,591.6 9,394.3 9,260.4 10,020.0 9,260.4
Net unrealized capital gains (losses) 927.6 1,246.7 1,148.3 1,088.4 1,122.1 927.6 1,122.1
Foreign currency translation (867.1) (819.6) (686.8) (563.1) (373.9) (867.1) (373.9)
Net unrecognized postretirement benefit obligations (387.1) (399.1) (411.1) (145.2) (148.8) (387.1) (148.8)
Preferred stock, at par - 0.1 0.1 0.1 0.1 - 0.1
Paid in capital - preferred stock - 541.9 541.9 541.9 541.9 - 541.9
Noncontrolling interest 69.2 69.5 48.0 52.6 57.5 69.2 57.5
Total stockholders' equity 9,762.6$ 10,492.1$ 10,232.0$ 10,369.0$ 10,459.3$ 9,762.6$ 10,459.3$
Book Value Per Common Share x-OCI:
Book value x-OCI 34.00$ 33.47$ 32.64$ 32.00$ 31.52 34.00 31.52
Net unrealized capital gains (losses) 3.14 4.23 3.91 3.70 3.82 3.14 3.82
Foreign currency translation (2.94) (2.78) (2.34) (1.92) (1.27) (2.94) (1.27)
Net unrecognized postretirement benefit obligations (1.31) (1.36) (1.40) (0.49) (0.51) (1.31) (0.51)
Book Value Per Common Share including OCI 32.89$ 33.56$ 32.81$ 33.29$ 33.56$ 32.89$ 33.56$
Operating Earnings (Losses):
Retirement and Investor Services 216.7$ 210.9$ 195.2$ 204.3$ 212.1$ 427.6$ 428.6$
Principal Global Investors 31.5 30.7 36.4 25.3 27.4 62.2 54.3
Principal International 59.3 59.9 62.9 73.8 68.0 119.2 131.3
U.S. Insurance Solutions 58.8 55.1 55.6 83.3 49.0 113.9 92.4
Corporate (42.4) (30.2) (26.1) (33.0) (33.4) (72.6) (66.4)
Total operating earnings (losses) 323.9 326.4 324.0 353.7 323.1 650.3 640.2
Net realized capital gains (losses) (82.8) 13.1 (53.2) (55.2) 30.8 (69.7) 7.9
Other after-tax adjustments - 74.7 (0.4) (57.8) (47.6) 74.7 (48.1)
Net Income (Loss) Available to Common Stockholders 241.1$ 414.2$ 270.4$ 240.7$ 306.3$ 655.3$ 600.0$
Operating Revenues:
Retirement and Investor Services 2,108.6$ 1,319.4$ 1,672.3$ 1,324.7$ 1,265.1$ 3,428.0$ 2,526.3$
Principal Global Investors 188.4 186.6 208.0 173.6 173.2 375.0 344.3
Principal International 315.0 236.2 323.2 294.5 357.3 551.2 657.7
U.S. Insurance Solutions 857.8 861.7 825.8 821.0 811.4 1,719.5 1,615.8
Corporate (63.0) (59.3) (69.1) (61.1) (64.4) (122.3) (102.2)
Total operating revenues 3,406.8 2,544.6 2,960.2 2,552.7 2,542.6 5,951.4 5,041.9
Net realized capital gains (losses), net of related revenue
adjustments (141.3) 45.6 (52.4) (68.2) 64.3 (95.7) 43.2
Other income on an indemnified uncertain tax position (6.7) 66.9 - - - 60.2 -
Exited group medical insurance buisness 0.4 0.2 0.2 (0.2) (0.2) 0.6 0.2
Total GAAP Revenues 3,259.2$ 2,657.3$ 2,908.0$ 2,484.3$ 2,606.7$ 5,916.5$ 5,085.3$
Exhibit 2 Principal Financial Group, Inc.
Non-GAAP Financial Measure Reconciliations
(in millions, except as indicated)
Three Months Ended, Six Months Ended,
30-Jun-15 31-Mar-15 31-Dec-14 30-Sep-14 30-Jun-14 30-Jun-15 30-Jun-14
Operating Earnings ROE (x-OCI):
Retirement and Investor Services 25.7% 25.6% 25.5% 24.3% 23.6% 25.7% 23.6%
Principal Global Investors 23.0% 22.3% 21.2% 19.2% 18.9% 23.0% 18.9%
Principal International 7.2% 7.6% 7.8% 7.9% 7.2% 7.2% 7.2%
U.S. Insurance Solutions 11.2% 10.7% 10.6% 10.5% 9.7% 11.2% 9.7%
Corporate N/M N/M N/M N/M N/M N/M N/M
Total operating earnings ROE (x-OCI) 13.8% 14.0% 14.2% 14.1% 13.3% 13.8% 13.3%
Net realized capital gains (losses) -1.9% -0.7% -1.1% -1.1% -0.8% -1.9% -0.8%
Other after-tax adjustments 0.2% -0.3% -1.1% -1.2% -0.5% 0.2% -0.5%
Net income ROE available to common stockholders (x-OCI) 12.1% 13.0% 12.0% 11.8% 12.0% 12.1% 12.0%
Net unrealized capital gains (losses) -1.2% -1.3% -1.1% -1.1% -1.1% -1.2% -1.1%
Foreign currency translation 0.7% 0.7% 0.6% 0.5% 0.3% 0.7% 0.3%
Net unrecognized postretirement benefit obligation 0.3% 0.3% 0.3% 0.4% 0.4% 0.3% 0.4%
Net Income ROE Available to Common Stockholders (including OCI) 11.9% 12.7% 11.8% 11.6% 11.6% 11.9% 11.6%
Net Realized Capital Gains (Losses):
Total net realized capital gains (losses) (82.8)$ 13.1$ (53.2)$ (55.2)$ 30.8$ (69.7)$ 7.9$
Certain derivative and hedging-related adjustments 26.4 19.7 26.4 21.9 22.7 46.1 44.5
Amortization of deferred acquisition costs and other actuarial balances (16.2) 16.0 22.5 3.6 13.5 (0.2) 23.2
Certain market value adjustments of embedded derivatives - 0.9 1.2 (5.7) 0.1 0.9 (0.3)
Capital gains distributed 2.9 (4.8) 3.1 8.8 6.2 (1.9) 9.3
Noncontrolling interest capital gains (losses) (0.8) 2.8 0.8 0.1 0.1 2.0 0.1
Tax impacts (44.4) 17.6 (26.8) (19.8) 13.6 (26.8) 3.0
Recognition of front-end fee revenues 0.3 (0.2) (0.3) (0.1) (0.2) 0.1 (0.3)
Net realized capital gains (losses) associated with exited group medical
insurance business - - - - - - -
Certain market value adjustments to fee revenues - 1.1 - - - 1.1 -
GAAP Net Realized Capital Gains (Losses) (114.6)$ 66.2$ (26.3)$ (46.4)$ 86.8$ (48.4)$ 87.4$
Other After-Tax Adjustments:
Exited group medical insurance business -$ (0.2)$ (0.4)$ 0.3$ (0.1)$ (0.2)$ (0.6)$
Impact of a court ruling on some uncertain tax positions - (30.3) - - (47.5) (30.3) (47.5)
Impact of enactment of tax legislation in Chile - - - (58.1) - - -
Change in deferred tax balances related to merged Chilean entities - 105.2 - - - 105.2 -
Contribution to Principal Financial Group Foundation, Inc. - - - - - - -
Early extinguishment of debt - - - - - - -
Total Other After-Tax Adjustments -$ 74.7$ (0.4)$ (57.8)$ (47.6)$ 74.7$ (48.1)$

More Related Content

What's hot

Third Point Reinsurance Ltd. Investor Presentation
Third Point Reinsurance Ltd. Investor PresentationThird Point Reinsurance Ltd. Investor Presentation
Third Point Reinsurance Ltd. Investor Presentationirthirdpointre
 
Five Common Questions About Deferred Compensation
Five Common Questions About Deferred CompensationFive Common Questions About Deferred Compensation
Five Common Questions About Deferred CompensationCBIZ, Inc.
 
Sem cams investor presentation master september 2018 final
Sem cams investor presentation master september 2018 finalSem cams investor presentation master september 2018 final
Sem cams investor presentation master september 2018 finalSemGroupCorporation
 
Sem group investor presentation september 2018 final
Sem group investor presentation september 2018 finalSem group investor presentation september 2018 final
Sem group investor presentation september 2018 finalSemGroupCorporation
 
Sem group investor presentation august 2018 final
Sem group investor presentation august 2018 finalSem group investor presentation august 2018 final
Sem group investor presentation august 2018 finalSemGroupCorporation
 
Sem group investor presentation 3q 2018 final
Sem group investor presentation 3q 2018 finalSem group investor presentation 3q 2018 final
Sem group investor presentation 3q 2018 finalSemGroupCorporation
 
Hfotco investor tour presentation final web
Hfotco investor tour presentation final webHfotco investor tour presentation final web
Hfotco investor tour presentation final webSemGroupCorporation
 

What's hot (18)

2 q13 earnings-call-slides
2 q13 earnings-call-slides2 q13 earnings-call-slides
2 q13 earnings-call-slides
 
Third Point Reinsurance Ltd. Investor Presentation
Third Point Reinsurance Ltd. Investor PresentationThird Point Reinsurance Ltd. Investor Presentation
Third Point Reinsurance Ltd. Investor Presentation
 
3Q 2017 Earnings Conference Call Presentation
3Q 2017 Earnings Conference Call Presentation 3Q 2017 Earnings Conference Call Presentation
3Q 2017 Earnings Conference Call Presentation
 
2Q 2014 Earnings Conference Call Presentation
2Q 2014 Earnings Conference Call Presentation2Q 2014 Earnings Conference Call Presentation
2Q 2014 Earnings Conference Call Presentation
 
The Principal Financial Group 101: May 2017
The Principal Financial Group 101: May 2017The Principal Financial Group 101: May 2017
The Principal Financial Group 101: May 2017
 
Principal Financial Group 101
Principal Financial Group 101Principal Financial Group 101
Principal Financial Group 101
 
1Q 2015 Earnings Conference Call Presentation
1Q 2015 Earnings Conference Call Presentation1Q 2015 Earnings Conference Call Presentation
1Q 2015 Earnings Conference Call Presentation
 
3Q 2016 Earnings Conference Call Presentation
3Q 2016 Earnings Conference Call Presentation3Q 2016 Earnings Conference Call Presentation
3Q 2016 Earnings Conference Call Presentation
 
3Q 2014 Earnings Conference Call Presentation
3Q 2014 Earnings Conference Call Presentation3Q 2014 Earnings Conference Call Presentation
3Q 2014 Earnings Conference Call Presentation
 
Five Common Questions About Deferred Compensation
Five Common Questions About Deferred CompensationFive Common Questions About Deferred Compensation
Five Common Questions About Deferred Compensation
 
The Principal Financial Group 101
The Principal Financial Group 101The Principal Financial Group 101
The Principal Financial Group 101
 
1Q 2017 Earnings Conference Call Presentation
1Q 2017 Earnings Conference Call Presentation 1Q 2017 Earnings Conference Call Presentation
1Q 2017 Earnings Conference Call Presentation
 
Sem cams investor presentation master september 2018 final
Sem cams investor presentation master september 2018 finalSem cams investor presentation master september 2018 final
Sem cams investor presentation master september 2018 final
 
Sem group investor presentation september 2018 final
Sem group investor presentation september 2018 finalSem group investor presentation september 2018 final
Sem group investor presentation september 2018 final
 
2Q 2016 Earnings Conference Call Presentation
 2Q 2016 Earnings Conference Call Presentation 2Q 2016 Earnings Conference Call Presentation
2Q 2016 Earnings Conference Call Presentation
 
Sem group investor presentation august 2018 final
Sem group investor presentation august 2018 finalSem group investor presentation august 2018 final
Sem group investor presentation august 2018 final
 
Sem group investor presentation 3q 2018 final
Sem group investor presentation 3q 2018 finalSem group investor presentation 3q 2018 final
Sem group investor presentation 3q 2018 final
 
Hfotco investor tour presentation final web
Hfotco investor tour presentation final webHfotco investor tour presentation final web
Hfotco investor tour presentation final web
 

Viewers also liked

Alon kossonogi
Alon kossonogiAlon kossonogi
Alon kossonogiartnet
 
Eng 101 (Gerdes, 10/15/2013)
Eng 101 (Gerdes, 10/15/2013)Eng 101 (Gerdes, 10/15/2013)
Eng 101 (Gerdes, 10/15/2013)eccreference
 
Compliance in Unified Communications & Collaboration- The Financial Sector (1)
Compliance in Unified Communications & Collaboration- The Financial Sector (1)Compliance in Unified Communications & Collaboration- The Financial Sector (1)
Compliance in Unified Communications & Collaboration- The Financial Sector (1)Steve Hood
 
VisualConditions-9d467ded-635472512898158451
VisualConditions-9d467ded-635472512898158451VisualConditions-9d467ded-635472512898158451
VisualConditions-9d467ded-635472512898158451Ben Hallworth
 
Resume Tyler Golden
Resume Tyler GoldenResume Tyler Golden
Resume Tyler GoldenTyler Golden
 
Minteer Resume 4.7.16 - Linkedin
Minteer Resume 4.7.16 - LinkedinMinteer Resume 4.7.16 - Linkedin
Minteer Resume 4.7.16 - LinkedinZachary Minteer
 
2 ensayo generos periodisticos
2 ensayo   generos periodisticos2 ensayo   generos periodisticos
2 ensayo generos periodisticosSantiago Cajamarca
 
Importance of Education Lesson for FHE
Importance of Education Lesson for FHEImportance of Education Lesson for FHE
Importance of Education Lesson for FHEJimmy Smith
 
Proyecto productivo
Proyecto productivoProyecto productivo
Proyecto productivoeuniceasis22
 

Viewers also liked (12)

Alon kossonogi
Alon kossonogiAlon kossonogi
Alon kossonogi
 
Eng 101 (Gerdes, 10/15/2013)
Eng 101 (Gerdes, 10/15/2013)Eng 101 (Gerdes, 10/15/2013)
Eng 101 (Gerdes, 10/15/2013)
 
Compliance in Unified Communications & Collaboration- The Financial Sector (1)
Compliance in Unified Communications & Collaboration- The Financial Sector (1)Compliance in Unified Communications & Collaboration- The Financial Sector (1)
Compliance in Unified Communications & Collaboration- The Financial Sector (1)
 
VisualConditions-9d467ded-635472512898158451
VisualConditions-9d467ded-635472512898158451VisualConditions-9d467ded-635472512898158451
VisualConditions-9d467ded-635472512898158451
 
Resume Tyler Golden
Resume Tyler GoldenResume Tyler Golden
Resume Tyler Golden
 
Brochure FillPak TT
Brochure FillPak TTBrochure FillPak TT
Brochure FillPak TT
 
Minteer Resume 4.7.16 - Linkedin
Minteer Resume 4.7.16 - LinkedinMinteer Resume 4.7.16 - Linkedin
Minteer Resume 4.7.16 - Linkedin
 
2 ensayo generos periodisticos
2 ensayo   generos periodisticos2 ensayo   generos periodisticos
2 ensayo generos periodisticos
 
Importance of Education Lesson for FHE
Importance of Education Lesson for FHEImportance of Education Lesson for FHE
Importance of Education Lesson for FHE
 
AnneWalden
AnneWaldenAnneWalden
AnneWalden
 
محاسبة المقاولات
محاسبة المقاولاتمحاسبة المقاولات
محاسبة المقاولات
 
Proyecto productivo
Proyecto productivoProyecto productivo
Proyecto productivo
 

Similar to Principal Financial Group Non-GAAP Measures Explained

First Quarter 2014 Earnings Call Presentation - Principal Financial Group
First Quarter 2014 Earnings Call Presentation - Principal Financial GroupFirst Quarter 2014 Earnings Call Presentation - Principal Financial Group
First Quarter 2014 Earnings Call Presentation - Principal Financial Groupinvestors_principalfinancial
 
Sem group investor presentation march 2018 final
Sem group investor presentation march 2018 finalSem group investor presentation march 2018 final
Sem group investor presentation march 2018 finalSemGroupCorporation
 
Sem group investor-presentation-march-2018-final
Sem group investor-presentation-march-2018-finalSem group investor-presentation-march-2018-final
Sem group investor-presentation-march-2018-finalSemGroupCorporation
 
Sem group earnings presentation 2q 2018 final
Sem group earnings presentation 2q 2018 finalSem group earnings presentation 2q 2018 final
Sem group earnings presentation 2q 2018 finalSemGroupCorporation
 
Sem group investor presentation may 2018 final
Sem group investor presentation may 2018 finalSem group investor presentation may 2018 final
Sem group investor presentation may 2018 finalSemGroupCorporation
 

Similar to Principal Financial Group Non-GAAP Measures Explained (17)

The Principal Financial Group 101
The Principal Financial Group 101The Principal Financial Group 101
The Principal Financial Group 101
 
First Quarter 2015 Earnings Call Presentation
First Quarter 2015 Earnings Call PresentationFirst Quarter 2015 Earnings Call Presentation
First Quarter 2015 Earnings Call Presentation
 
2Q 2015 Earnings Conference Call Presentation
2Q 2015 Earnings Conference Call Presentation2Q 2015 Earnings Conference Call Presentation
2Q 2015 Earnings Conference Call Presentation
 
4Q 2014 Earnings Conference Call Presentation
4Q 2014 Earnings Conference Call Presentation4Q 2014 Earnings Conference Call Presentation
4Q 2014 Earnings Conference Call Presentation
 
1Q 2016 Earnings Conference Call Presentation
1Q 2016 Earnings Conference Call Presentation1Q 2016 Earnings Conference Call Presentation
1Q 2016 Earnings Conference Call Presentation
 
4Q 2015 Earnings Conference Call Presentation
4Q 2015 Earnings Conference Call Presentation4Q 2015 Earnings Conference Call Presentation
4Q 2015 Earnings Conference Call Presentation
 
3Q 2015 Earnings Conference Call Presentation
3Q 2015 Earnings Conference Call Presentation3Q 2015 Earnings Conference Call Presentation
3Q 2015 Earnings Conference Call Presentation
 
3 q14 earnings-call-presentation
3 q14 earnings-call-presentation3 q14 earnings-call-presentation
3 q14 earnings-call-presentation
 
Principal Investor Workshop 2017
Principal Investor Workshop 2017Principal Investor Workshop 2017
Principal Investor Workshop 2017
 
4Q 2016 Earnings Conference Call Presentation
4Q 2016 Earnings Conference Call Presentation 4Q 2016 Earnings Conference Call Presentation
4Q 2016 Earnings Conference Call Presentation
 
3Q 2019 Earnings Conference Call Presentation
3Q 2019 Earnings Conference Call Presentation 3Q 2019 Earnings Conference Call Presentation
3Q 2019 Earnings Conference Call Presentation
 
First Quarter 2014 Earnings Call Presentation - Principal Financial Group
First Quarter 2014 Earnings Call Presentation - Principal Financial GroupFirst Quarter 2014 Earnings Call Presentation - Principal Financial Group
First Quarter 2014 Earnings Call Presentation - Principal Financial Group
 
4Q 2018 Earnings Conference Call Presentation
4Q 2018 Earnings Conference Call Presentation 4Q 2018 Earnings Conference Call Presentation
4Q 2018 Earnings Conference Call Presentation
 
Sem group investor presentation march 2018 final
Sem group investor presentation march 2018 finalSem group investor presentation march 2018 final
Sem group investor presentation march 2018 final
 
Sem group investor-presentation-march-2018-final
Sem group investor-presentation-march-2018-finalSem group investor-presentation-march-2018-final
Sem group investor-presentation-march-2018-final
 
Sem group earnings presentation 2q 2018 final
Sem group earnings presentation 2q 2018 finalSem group earnings presentation 2q 2018 final
Sem group earnings presentation 2q 2018 final
 
Sem group investor presentation may 2018 final
Sem group investor presentation may 2018 finalSem group investor presentation may 2018 final
Sem group investor presentation may 2018 final
 

More from investors_principalfinancial

More from investors_principalfinancial (9)

2Q 2019 Earnings Conference Call Presentation
2Q 2019 Earnings Conference Call Presentation 2Q 2019 Earnings Conference Call Presentation
2Q 2019 Earnings Conference Call Presentation
 
1Q 2019 Earnings Conference Call Presentation
1Q 2019 Earnings Conference Call Presentation 1Q 2019 Earnings Conference Call Presentation
1Q 2019 Earnings Conference Call Presentation
 
3Q 2018 Earnings Conference Call Presentation
3Q 2018 Earnings Conference Call Presentation 3Q 2018 Earnings Conference Call Presentation
3Q 2018 Earnings Conference Call Presentation
 
2Q 2018 Earnings Conference Call Presentation
2Q 2018 Earnings Conference Call Presentation 2Q 2018 Earnings Conference Call Presentation
2Q 2018 Earnings Conference Call Presentation
 
1Q 2018 Earnings Conference Call Presentation
1Q 2018 Earnings Conference Call Presentation 1Q 2018 Earnings Conference Call Presentation
1Q 2018 Earnings Conference Call Presentation
 
4Q 2017 Earnings Conference Call Presentation
4Q 2017 Earnings Conference Call Presentation 4Q 2017 Earnings Conference Call Presentation
4Q 2017 Earnings Conference Call Presentation
 
2Q 2017 Earnings Conference Call Presentation
2Q 2017 Earnings Conference Call Presentation 2Q 2017 Earnings Conference Call Presentation
2Q 2017 Earnings Conference Call Presentation
 
Principal Investor Day 2016
Principal Investor Day 2016Principal Investor Day 2016
Principal Investor Day 2016
 
The Principal Financial Group 101
The Principal Financial Group 101The Principal Financial Group 101
The Principal Financial Group 101
 

Recently uploaded

High Profile Call Girls Kolkata Gayatri 🤌 8250192130 🚀 Vip Call Girls Kolkata
High Profile Call Girls Kolkata Gayatri 🤌  8250192130 🚀 Vip Call Girls KolkataHigh Profile Call Girls Kolkata Gayatri 🤌  8250192130 🚀 Vip Call Girls Kolkata
High Profile Call Girls Kolkata Gayatri 🤌 8250192130 🚀 Vip Call Girls Kolkataanamikaraghav4
 
如何办理(UTS毕业证书)悉尼科技大学毕业证学位证书
如何办理(UTS毕业证书)悉尼科技大学毕业证学位证书如何办理(UTS毕业证书)悉尼科技大学毕业证学位证书
如何办理(UTS毕业证书)悉尼科技大学毕业证学位证书Fis s
 
WheelTug PLC Pitch Deck | Investor Insights | April 2024
WheelTug PLC Pitch Deck | Investor Insights | April 2024WheelTug PLC Pitch Deck | Investor Insights | April 2024
WheelTug PLC Pitch Deck | Investor Insights | April 2024Hector Del Castillo, CPM, CPMM
 
VIP Kolkata Call Girl Rishra 👉 8250192130 Available With Room
VIP Kolkata Call Girl Rishra 👉 8250192130  Available With RoomVIP Kolkata Call Girl Rishra 👉 8250192130  Available With Room
VIP Kolkata Call Girl Rishra 👉 8250192130 Available With Roomdivyansh0kumar0
 
Short-, Mid-, and Long-term gxxoals.pptx
Short-, Mid-, and Long-term gxxoals.pptxShort-, Mid-, and Long-term gxxoals.pptx
Short-, Mid-, and Long-term gxxoals.pptxHenryBriggs2
 
Methanex Investor Presentation (April 2024)
Methanex Investor Presentation (April 2024)Methanex Investor Presentation (April 2024)
Methanex Investor Presentation (April 2024)Methanex Corporation
 
定制(UWIC毕业证书)英国卡迪夫城市大学毕业证成绩单原版一比一
定制(UWIC毕业证书)英国卡迪夫城市大学毕业证成绩单原版一比一定制(UWIC毕业证书)英国卡迪夫城市大学毕业证成绩单原版一比一
定制(UWIC毕业证书)英国卡迪夫城市大学毕业证成绩单原版一比一Fir La
 
如何办理密苏里大学堪萨斯分校毕业证(文凭)UMKC学位证书
如何办理密苏里大学堪萨斯分校毕业证(文凭)UMKC学位证书如何办理密苏里大学堪萨斯分校毕业证(文凭)UMKC学位证书
如何办理密苏里大学堪萨斯分校毕业证(文凭)UMKC学位证书Fir La
 
The Concept of Humanity in Islam and its effects at future of humanity
The Concept of Humanity in Islam and its effects at future of humanityThe Concept of Humanity in Islam and its effects at future of humanity
The Concept of Humanity in Islam and its effects at future of humanityJohanAspro
 
VIP 7001035870 Find & Meet Hyderabad Call Girls Miyapur high-profile Call Girl
VIP 7001035870 Find & Meet Hyderabad Call Girls Miyapur high-profile Call GirlVIP 7001035870 Find & Meet Hyderabad Call Girls Miyapur high-profile Call Girl
VIP 7001035870 Find & Meet Hyderabad Call Girls Miyapur high-profile Call Girladitipandeya
 
VIP Kolkata Call Girls Bidhannagar 8250192130 Available With Room
VIP Kolkata Call Girls Bidhannagar 8250192130 Available With RoomVIP Kolkata Call Girls Bidhannagar 8250192130 Available With Room
VIP Kolkata Call Girls Bidhannagar 8250192130 Available With Roomrran7532
 
VIP Kolkata Call Girl Entally 👉 8250192130 Available With Room
VIP Kolkata Call Girl Entally 👉 8250192130  Available With RoomVIP Kolkata Call Girl Entally 👉 8250192130  Available With Room
VIP Kolkata Call Girl Entally 👉 8250192130 Available With Roomdivyansh0kumar0
 
如何办理北卡罗来纳大学教堂山分校毕业证(文凭)UNC学位证书
如何办理北卡罗来纳大学教堂山分校毕业证(文凭)UNC学位证书如何办理北卡罗来纳大学教堂山分校毕业证(文凭)UNC学位证书
如何办理北卡罗来纳大学教堂山分校毕业证(文凭)UNC学位证书Fir La
 
如何办理东俄勒冈大学毕业证(文凭)EOU学位证书
如何办理东俄勒冈大学毕业证(文凭)EOU学位证书如何办理东俄勒冈大学毕业证(文凭)EOU学位证书
如何办理东俄勒冈大学毕业证(文凭)EOU学位证书Fir La
 
No 1 AMil Baba In Islamabad No 1 Amil Baba In Lahore No 1 Amil Baba In Faisl...
No 1 AMil Baba In Islamabad  No 1 Amil Baba In Lahore No 1 Amil Baba In Faisl...No 1 AMil Baba In Islamabad  No 1 Amil Baba In Lahore No 1 Amil Baba In Faisl...
No 1 AMil Baba In Islamabad No 1 Amil Baba In Lahore No 1 Amil Baba In Faisl...First NO1 World Amil baba in Faisalabad
 
9654467111 Call Girls In Katwaria Sarai Short 1500 Night 6000
9654467111 Call Girls In Katwaria Sarai Short 1500 Night 60009654467111 Call Girls In Katwaria Sarai Short 1500 Night 6000
9654467111 Call Girls In Katwaria Sarai Short 1500 Night 6000Sapana Sha
 

Recently uploaded (20)

High Profile Call Girls Kolkata Gayatri 🤌 8250192130 🚀 Vip Call Girls Kolkata
High Profile Call Girls Kolkata Gayatri 🤌  8250192130 🚀 Vip Call Girls KolkataHigh Profile Call Girls Kolkata Gayatri 🤌  8250192130 🚀 Vip Call Girls Kolkata
High Profile Call Girls Kolkata Gayatri 🤌 8250192130 🚀 Vip Call Girls Kolkata
 
如何办理(UTS毕业证书)悉尼科技大学毕业证学位证书
如何办理(UTS毕业证书)悉尼科技大学毕业证学位证书如何办理(UTS毕业证书)悉尼科技大学毕业证学位证书
如何办理(UTS毕业证书)悉尼科技大学毕业证学位证书
 
WheelTug PLC Pitch Deck | Investor Insights | April 2024
WheelTug PLC Pitch Deck | Investor Insights | April 2024WheelTug PLC Pitch Deck | Investor Insights | April 2024
WheelTug PLC Pitch Deck | Investor Insights | April 2024
 
Falcon Invoice Discounting - Best Platform
Falcon Invoice Discounting - Best PlatformFalcon Invoice Discounting - Best Platform
Falcon Invoice Discounting - Best Platform
 
VIP Kolkata Call Girl Rishra 👉 8250192130 Available With Room
VIP Kolkata Call Girl Rishra 👉 8250192130  Available With RoomVIP Kolkata Call Girl Rishra 👉 8250192130  Available With Room
VIP Kolkata Call Girl Rishra 👉 8250192130 Available With Room
 
Short-, Mid-, and Long-term gxxoals.pptx
Short-, Mid-, and Long-term gxxoals.pptxShort-, Mid-, and Long-term gxxoals.pptx
Short-, Mid-, and Long-term gxxoals.pptx
 
Methanex Investor Presentation (April 2024)
Methanex Investor Presentation (April 2024)Methanex Investor Presentation (April 2024)
Methanex Investor Presentation (April 2024)
 
定制(UWIC毕业证书)英国卡迪夫城市大学毕业证成绩单原版一比一
定制(UWIC毕业证书)英国卡迪夫城市大学毕业证成绩单原版一比一定制(UWIC毕业证书)英国卡迪夫城市大学毕业证成绩单原版一比一
定制(UWIC毕业证书)英国卡迪夫城市大学毕业证成绩单原版一比一
 
如何办理密苏里大学堪萨斯分校毕业证(文凭)UMKC学位证书
如何办理密苏里大学堪萨斯分校毕业证(文凭)UMKC学位证书如何办理密苏里大学堪萨斯分校毕业证(文凭)UMKC学位证书
如何办理密苏里大学堪萨斯分校毕业证(文凭)UMKC学位证书
 
young call girls in Yamuna Vihar 🔝 9953056974 🔝 Delhi escort Service
young  call girls in   Yamuna Vihar 🔝 9953056974 🔝 Delhi escort Serviceyoung  call girls in   Yamuna Vihar 🔝 9953056974 🔝 Delhi escort Service
young call girls in Yamuna Vihar 🔝 9953056974 🔝 Delhi escort Service
 
The Concept of Humanity in Islam and its effects at future of humanity
The Concept of Humanity in Islam and its effects at future of humanityThe Concept of Humanity in Islam and its effects at future of humanity
The Concept of Humanity in Islam and its effects at future of humanity
 
VIP 7001035870 Find & Meet Hyderabad Call Girls Miyapur high-profile Call Girl
VIP 7001035870 Find & Meet Hyderabad Call Girls Miyapur high-profile Call GirlVIP 7001035870 Find & Meet Hyderabad Call Girls Miyapur high-profile Call Girl
VIP 7001035870 Find & Meet Hyderabad Call Girls Miyapur high-profile Call Girl
 
VIP Kolkata Call Girls Bidhannagar 8250192130 Available With Room
VIP Kolkata Call Girls Bidhannagar 8250192130 Available With RoomVIP Kolkata Call Girls Bidhannagar 8250192130 Available With Room
VIP Kolkata Call Girls Bidhannagar 8250192130 Available With Room
 
VIP Kolkata Call Girl Entally 👉 8250192130 Available With Room
VIP Kolkata Call Girl Entally 👉 8250192130  Available With RoomVIP Kolkata Call Girl Entally 👉 8250192130  Available With Room
VIP Kolkata Call Girl Entally 👉 8250192130 Available With Room
 
如何办理北卡罗来纳大学教堂山分校毕业证(文凭)UNC学位证书
如何办理北卡罗来纳大学教堂山分校毕业证(文凭)UNC学位证书如何办理北卡罗来纳大学教堂山分校毕业证(文凭)UNC学位证书
如何办理北卡罗来纳大学教堂山分校毕业证(文凭)UNC学位证书
 
如何办理东俄勒冈大学毕业证(文凭)EOU学位证书
如何办理东俄勒冈大学毕业证(文凭)EOU学位证书如何办理东俄勒冈大学毕业证(文凭)EOU学位证书
如何办理东俄勒冈大学毕业证(文凭)EOU学位证书
 
young call girls in Hauz Khas,🔝 9953056974 🔝 escort Service
young call girls in Hauz Khas,🔝 9953056974 🔝 escort Serviceyoung call girls in Hauz Khas,🔝 9953056974 🔝 escort Service
young call girls in Hauz Khas,🔝 9953056974 🔝 escort Service
 
Preet Vihar (Delhi) 9953330565 Escorts, Call Girls Services
Preet Vihar (Delhi) 9953330565 Escorts, Call Girls ServicesPreet Vihar (Delhi) 9953330565 Escorts, Call Girls Services
Preet Vihar (Delhi) 9953330565 Escorts, Call Girls Services
 
No 1 AMil Baba In Islamabad No 1 Amil Baba In Lahore No 1 Amil Baba In Faisl...
No 1 AMil Baba In Islamabad  No 1 Amil Baba In Lahore No 1 Amil Baba In Faisl...No 1 AMil Baba In Islamabad  No 1 Amil Baba In Lahore No 1 Amil Baba In Faisl...
No 1 AMil Baba In Islamabad No 1 Amil Baba In Lahore No 1 Amil Baba In Faisl...
 
9654467111 Call Girls In Katwaria Sarai Short 1500 Night 6000
9654467111 Call Girls In Katwaria Sarai Short 1500 Night 60009654467111 Call Girls In Katwaria Sarai Short 1500 Night 6000
9654467111 Call Girls In Katwaria Sarai Short 1500 Night 6000
 

Principal Financial Group Non-GAAP Measures Explained

  • 2. Use of Non-GAAP Financial Measures A non-GAAP financial measure is a numerical measure of performance, financial position, or cash flows that includes adjustments from a comparable financial measure presented in accordance with U.S. GAAP. The company uses a number of non-GAAP financial measures that management believes are useful to investors because they illustrate the performance of the company’s normal, ongoing operations which is important in understanding and evaluating the company’s financial condition and results of operations. While such measures are also consistent with measures utilized by investors to evaluate performance, they are not, however, a substitute for U.S. GAAP financial measures. Therefore, at the end of the presentation, the company has provided reconciliations of the non-GAAP financial measures to the most directly comparable U.S. GAAP financial measure. The company adjusts U.S. GAAP financial 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 financial 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. The company also uses a variety of other operational measures that do not have U.S. GAAP counterparts, and therefore do not fit the definition of non-GAAP financial measures. Assets under management is an example of an operational measure that is not considered a non-GAAP financial measure. 2
  • 3. Forward Looking Statements 3 Certain statements made by the company which are not historical facts may be considered 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, 2014 and in the company’s quarterly report on Form 10-Q for quarter ended Jun. 30, 2015 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; conditions in the global capital markets and the economy generally; continued volatility or further declines in the equity, bond or real estate 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 DAC 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.
  • 4. A Leading Financial Services Company Fortune 500 company; 136 year history; 20.1 million customers Assets Under Management by Source $539.9 billion as of Jun. 30, 2015 Retirement & Investor Services Accumulation 48% Corporate 1% U.S. Insurance Solutions 4% Principal International 22% Principal Global Investors 22% Operating Earnings $1,459.7 million* Jun. 30, 2015 Retirement & Investor Services Accumulation 50% U.S. Insurance Solutions 17% Principal International 18% Principal Global Investors 8% *Trailing Twelve Months. After-tax. Results exclude Corporate. 4 COMPANY OVERVIEW RIS Guaranteed 7% RIS Guaranteed 3%
  • 5. Organizational Structure Principal Financial Group Zimpleman CEO – 44/44 yrs* Lillis CFO – 33/33 yrs Houston COO – 31/31 yrs Retirement & Investor Services Everett - President 24/24 yrs Principal Global Investors McCaughan – President 41/13 yrs Principal International Valdes – President 27/24 yrs U.S. Insurance Solutions Strable – President 26/26 yrs Corporate Full Service Accumulation Principal Funds** Individual Annuities Bank & Trust** Full Service Payout Investment Only Life Specialty Benefits *Years of experience: Industry/The Principal as of year end 2015. **Structural changes announced Feb 2015 will align Principal Funds & Principal Trust with Principal Global Investors. 5 COMPANY OVERVIEW
  • 6. PRINCIPAL FINANCIAL GROUP Headquarters Des Moines, Iowa Mexico Pensions Annuities Mutual Funds Asset Management Chile Pensions – Mandatory Pensions – Voluntary Annuities Mutual Funds Asset Management Brazil Pensions Annuities Asset Management Mutual Funds India Mutual Funds Advisory Service Asset Management Malaysia Mutual Funds Asset Management Islamic Institutional Asset Management Pensions Hong Kong Pensions, Mutual Funds Asset Management China Mutual Funds Asset Management Principal Financial Group Global Presence Germany Asset Management Ireland Mutual Funds UK Asset Management Japan Asset Management Australia Asset Management Singapore Asset Management Thailand Mutual Funds Asset Management Indonesia Mutual Funds Asset Management Netherlands Asset Management UAE Asset Management 6 COMPANY OVERVIEW Malta Asset Management
  • 7. 136 Years of Experience 1879 Life Assoc 1911 Mutual Life Co 1936 Mortgage Banking/ Commercial Mortgage 1941 Group Health & Pension 1968 Mutual Funds 1985 Principal Financial Group 1998 Principal Bank; Mutual Holding Co 2001 IPO; Spectrum 1990 Principal Intl 1970s Defined Contribution 1999 Principal Global Investors; BrasilPrev JV; Principal Asset Mgmt Co (India) 2002 Benefit Consultants Inc; Total Retirement Suite 2006 Washington Mutual Funds; WM Advisors 2008 CIMB-Principal Islamic Asset Mgmt 2007 Morley 2011 HSBC Afore; Finisterre; Origin 1995 Principal Chile 1996 Principal Hong Kong 1997 Principal Mexico 2003 Post Advisory Group 2005 CCB Principal; Columbus Circle JV – Joint Venture IPO – Initial Public Offering 2010 BrasilPrev JV extension 2012 Claritas; Cuprum 2013 Liongate 7 COMPANY OVERVIEW 2014 AXA Hong Kong Pension
  • 8. Name Age* Title (Industry/PFG)* Larry D. Zimpleman 64 Chairman & Chief Executive Officer 44/44 Daniel J. Houston 54 President & Chief Operating Officer 31/31 Nora M. Everett 56 President - Retirement & Investor Services 24/24 James P. McCaughan 62 President - Global Asset Management 41/13 Deanna D. Strable 47 President - U.S. Insurance Solutions 26/26 Luis E. Valdes 58 President - International Asset Management and Accumulation 27/24 Timothy M. Dunbar 58 Executive VP & Chief Investment Officer 34/29 Terrance J. Lillis 63 Executive VP & Chief Financial Officer 33/33 Gary P. Scholten 58 Executive VP & Chief Information Officer 35/35 Karen E. Shaff 61 Executive VP, General Counsel & Secretary 33/33 Rex Auyeung 63 Chairman - Principal Financial Group – Asia 38/21 David M. Blake 49 Senior Executive Director & Head Global Fixed Income 26/15 Elizabeth S. Brady 55 Senior VP & Chief Marketing Officer 31/2 Ned A. Burmeister 56 Senior VP & COO – Principal International 36/36 Gregory J. Burrows 53 Senior VP - Retirement & Investor Services 29/29 Gregory B. Elming 55 Senior VP & Chief Risk Officer 33/33 Amy C. Friedrich 45 Senior VP – Specialty Benefits Division 18/15 Patrick G. Halter 56 Senior Executive Director – Principal Real Estate Investors 31/31 Julia M. Lawler 55 Senior Executive Director - Multi Asset Allocation 33/31 Gregory A. Linde 59 Senior VP – Individual Life 36/23 Barbara A. McKenzie 55 Senior Executive Director & COO – Boutique Operations 31/31 Dennis J. Menken 52 Senior VP & Chief Investment Officer – Principal Life 21/21 Gerald W. Patterson 49 Senior VP - Retirement & Investor Services 27/14 Elizabeth L. Raymond 49 Senior VP & Chief Human Resources Officer 24/15 Angela R. Sanders 52 Senior VP & Controller 26/26 Ellen W. Shumway 52 Senior Executive Director – Strategy & Boutique Operations 25/10 Roberto A. Walker 50 Senior VP & President, Principal Financial Group – LatAm 26/19 *As of 12/2015 8 Experienced Management Team COMPANY OVERVIEW
  • 9. Retirement and Investor Services •#3 provider of DC plans1 •#1 provider of DB plans2 •#1 provider of ESOP plans3 •#6 manager of Target Date Funds4 Industry Leadership Sources: 1 PLANSPONSOR Recordkeeping Survey, June 2015, 2 PLANSPONSOR Defined Benefit Administration Survey, May 2015; 3 PLANSPONSOR Recordkeeping Survey, June 2015; 4 In the United States. Strategic Insight Lifecycle FlowWatch report April 2015; 5Pensions & Investments, “The Best Places to Work in Money Management among companies with our size category”, PFG recognition 12/08/2014. 6 Managers ranked by total worldwide real estate assets (net of leverage), as of June 30, 2014. “Largest Real Estate Managers”, PENSIONS & INVESTMENTS, October 27, 2014.; 7Managers ranked by U.S. institutional, tax-exempt assets managed internally, as of 12/31/14, “Largest Money Managers”, Pensions & Investments, May 2015. 8Commercial Property Executive Published April 2015 “2015 Greenest CRE Companies” list”. 9Fenaprevi, March 2015; 10Asociacion de Administradóras de Fondos Mutuos De Chile, 10/2014; 11Lipper. Percentage of market share as of 12/2014; 12Towers Watson. Based on AUM as of 09/2014; 13CONSAR & PROCESAR, October 2014; 14PLANSPONSOR NQDC Buyer’s Guide, July 2015; 15LIMRA 2014 survey: Non-medical based on fully insured employer contracts in force. 16 LIMRA 2014 survey: Individual Disability Insurance (IDI) rank based on in-force policies Principal Global Investors •Best Place to Work in Money Management 5 •Top 10 manager Real Estate 6 •15th largest manager High Yield7 •#4 Greenest CRE Company8 Principal International •#1 market share – Brazil (Brasilprev)9 •#1 APV – Chile10 •#2 asset management – Malaysia11 •Top ten MPF provider – Hong Kong12 •#5 AFORE – Mexico13 U.S. Insurance Solutions •#1 Non-qualified deferred compensation14 •#4 Non-medical coverages15 •#5 IDI coverages16 9 COMPANY OVERVIEW
  • 10. Financial Strength: Current Ratings (as of July 2015) • Moody's Investors Service 'A1', Good – fifth highest of 21 rating levels. Outlook: Stable Rating reviewed November 2013 • FitchRatings 'AA-‘, Very Strong - fourth highest of 19 rating levels. Outlook: Stable Rating reviewed April 2015 • Standard & Poor's ‘A+’, Strong - fifth highest of 24 rating levels. Outlook: Stable Rating reviewed April 2015 • A.M. Best 'A+', Superior - second highest of 16 rating levels. Outlook: Stable Rating reviewed January 2015 Ratings related to Principal Life Insurance Company and Principal National Life Insurance Company.10 COMPANY OVERVIEW
  • 11. Platform Continuum Across markets | Across life stages INDIVIDUAL EMPLOYER INVESTMENT MANAGEMENT Full Service Accumulation Principal Funds Investment Only Bank Annuities Full Service Payout 11 RETIREMENT AND INVESTOR SERVICES
  • 12. Customer-Centric Business Model 12 Full Service Accumulation RETIREMENT AND INVESTOR SERVICES
  • 13. Principal Total Retirement SuiteSM STILL A DIFFERENTIATOR All rankings sourced from PLANSPONSOR magazine as follows – Defined Benefit: DB Administration Survey 05/15; Defined Contribution and ESOP: Recordkeeping Survey 06/15; Nonqualified Deferred Compensation: PLANSPONSOR NQDC Buyer’s Guide, July 2015 Defined Benefit #1 DB provider (by # of clients) Defined Contribution #3 DC plan recordkeeper (by # of plans) Employee Stock Ownership Plan #1 ESOP plan recordkeeper (by # of plans) Nonqualified Plans #1 Deferred Comp provider (by # of plans) 13 Full Service Accumulation RETIREMENT AND INVESTOR SERVICES
  • 14. 1.7 2.0 3.2 2.9 2.7 2.8 0.9 1.7 2.3 1.8 1.4 1.6 0.9 1.5 2.7 2.6 1.83.2 3.3 3.3 3.0 2.8 0 2 4 6 8 10 12 14 2010 2011 2012 2013 2014 2015 $Billions 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 4.4 Balanced Sales Approach 14 6.7 8.5 11.5 10.3 8.7 Full Service Accumulation RETIREMENT AND INVESTOR SERVICES
  • 15. 4.8 5.0 6.5 6.8 7.4 8.1 4.1 5.0 5.7 5.8 5.9 6.43.8 4.3 5.6 6.3 5.75.8 6.0 6.5 6.3 6.0 0 5 10 15 20 25 30 2010 2011 2012 2013 2014 2015 $Billions 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 14.5 People making a deferral +35%* Avg deferral per member +11%* People receiving a match +47%* 15 18.5 20.3 24.3 25.2 The Power of Payroll Deduction * 2Q10 compared to 2Q15. 25.0 Full Service Accumulation RETIREMENT AND INVESTOR SERVICES
  • 16. Account Value byManager 16 60.4% 58.4% 58.3% 56.6% 55.8% 56.6% 56.5% 62.2% 12.7% 12.8% 11.1% 10.0% 10.3% 9.9% 9.4% 10.2% 20.1% 22.3% 23.3% 26.5% 26.9% 26.4% 27.1% 23.3% 6.9% 6.6% 7.3% 6.9% 7.1% 7.1% 7.0% 4.3% 0% 20% 40% 60% 80% 100% 2009 2010 2011 2012 2013 2014 2Q15 2Q15 YTD Deposits PGI managed Sub-advised Non-proprietary ER Securities Full Service Accumulation RETIREMENT AND INVESTOR SERVICES
  • 17. Our Disciplined Execution Delivers Positive Results 17 Profit Margin* Industry Avg vs. The Principal Principal Industry Avg * Profit 2000 Benchmark Study, Sterling Resources, Inc. (2013) Full Service Accumulation RETIREMENT AND INVESTOR SERVICES
  • 18. Revenue sourced from FSA platform FSA FSA Other PFG businesses Other PFG businesses 2013 2018E Multiple Businesses Leverage FSA Success Principal Funds, PGI, Bank & Trust, Individual Annuities, Individual Life and Full Service Payout are all beneficiaries $500 MILLION $350 MILLION $0 $2B 18 RETIREMENT AND INVESTOR SERVICES Full Service Accumulation
  • 19. 1.9% 4.5% 4.2% 3.1% 6.7% 18.1% 12.5% 8.5% 2011 2012 2013 2014 Industry net flows Principal Funds net flows 1.0% 0.7% 0.3% -0.9% 3.5% 6.3% 1.7% 0.4% 2011 2012 2013 2014 401k Industry net flows Principal FSA net flows Full Service Accumulation (FSA) Net cash flows as % of beginning of year assets 2011-2014. Sources of industry data: 401(k) industry – Department of Labor & Cerulli Associates 2014 (for 2014, industry 401(k) is an estimate); Funds – Strategic Insight Mutual Fund Industry Review (long-term funds). Principal Funds net flows represent long-term funds only. Net Cash Flow Consistently Outpaces Industry Principal Funds 19 RETIREMENT AND INVESTOR SERVICES
  • 20. TOP SELLING FUNDS TTM 2Q15 Global Diversified Income $3.4B MidCap Fund $2.9B Preferred Securities $1.9B High Yield Fund $1.6B Diversified Real Asset $1.5B TOTAL FOR TOP 5 $11.3B ASSET ALLOCATION LEADERSHIP • #6 largest lifecycle fund manager* • Target date & target risk • Multi-manager solutions • Portfolio construction strategies: *Based on $41.2B in assets Strategic Insight 3/31/15 Lifecycle Report Needs-Driven Investment Solutions Broad and unique asset allocation strategies 20 RETIREMENT AND INVESTOR SERVICES Principal Funds
  • 21. Account Values – Then & Now 34% 44% 100% 22% Affiliated Distribution Third Party Broker/Dealers DCIO/RIA 17% 44% 100% 39% Affiliated Distribution Third Party Broker/Dealers DCIO/RIA Multiple Distribution Channels SALES – Then & Now 2006 $3.8B TTM 2Q15 $22.9B 2006 $14.7B 2Q15 $79.1B 21 DCIO = Defined Contribution Investment Only. RIA = Registered Investment Advisor RETIREMENT AND INVESTOR SERVICES Principal Funds
  • 22. A Diversified Family of Mutual Funds 15% 5% 60% 45% 1% 3% -9% 16% 31% TTM 2Q15 06/30/2015 Equity Fixed Income Index Asset Allocation Other Net Cash Flow Assets Under Management 22 33% RETIREMENT AND INVESTOR SERVICES Principal Funds
  • 23. Driving Industry Recognition and Advisor Engagement 15th largest advisor-sold fund family(1) Best Global Real Estate Fund Over the 5-Year Period 23 (1) Strategic Insights Mutual Fund Management Companies Rankings and Analysis, March 2015 #5 for DC Investment Manager RETIREMENT AND INVESTOR SERVICES Principal Funds 2014 Best Mutual Fund Families: #5 Ranking
  • 24. READY TO RETIRE Individual Investor Strategy • Portfolio allocation • Participant education RETIREMENT INCOME SOLUTIONS • Education and guidance • Portfolio construction strategies • Income annuities ENROLLMENT OPTIMIZATION • Simplify process • Improve experience • Maximize participation and influence behavior 24 RETIREMENT AND INVESTOR SERVICES
  • 25. Innovative Solutions: Solving Income Needs ACCUMULATION OUR APPROACH: • Education • Planning assistance (RetireSecure®) • Full array of options • Innovative solutions MULTI-PRODUCT SOLUTION SET •“Through Retirement” Lifecycle Funds •Mutual Funds that: ‒Generate income ‒Preserve capital ‒Protect against inflation ‒Address market volatility •Annuities to provide: ‒Fixed returns ‒Guaranteed income ‒Protection against volatility •Bank products •Full Service Payout ‒Defined Benefit plan terminations RETIREMENT INCOME 25 RETIREMENT AND INVESTOR SERVICES
  • 26. INDIVIDUAL LIFE •Non-Qualified Plans* 13.9% #1 •Total Life New Sales Premium 1.7% #19 SPECIALTY BENEFITS •Total Group In-Force Contracts 7.1% #4 - Life 9.5% #3 - Disability 7.1% #5 - Dental 5.0% #8 •Individual Disability In-force Premium 8.4% #5 •Individual Disability New Sales Premium 15.8% #3 Success Reflects Expertise Serving SMB Market 2014 Industry Rank 2014 Market Share 26 Nonqualified Plans ranking from PLANSPONSOR Buyers Guide Survey, July 2015. All other rankings are from LIMRA 2013/2014. *Excludes governmental 457 plans. U.S. INSURANCE SOLUTIONS
  • 27. ER/NQ 28% BOES 27% Individual 45% Individual Life Leadership: FOCUS ON THE BUSINESS MARKET Business owners’ financial challenges •Exiting the business •Business transition •Retaining key employees •Retirement planning Solutions for key employees •Retirement income •Survivor income •Business protection 2014 Sales BOES = Business Owner/Executive Solutions ER/NQ = Employer/Non-qualified SOLUTIONSFORBUSINESS,BUSINESSOWNERSANDKEYEXECUTIVES 27 U.S. INSURANCE SOLUTIONS
  • 28. 3.9% 10.4% 2.4% 2.0% Group Benefits Individual DI The Principal Industry Dental/ Vision 47% Group Life 27% Balanced Portfolio plus Above Industry PremiumGrowth 2014 Total Premium & Fees 3 Year In-Force Premium Growth (2010 – 2013 CAGR) Group Benefits 83%Individual Disability 17% Group Disability 26% 28 U.S. INSURANCE SOLUTIONS •Stable loss ratios •Attractive margins •ROE of 14% + Industry source: LIMRA 2010-2013
  • 29. U.S. Distribution Overview PRINCIPAL CONNECTION • 70 counselors with focus on education CAREER • 1,000 agents • Sell all products • Career places 80-85% of sales within The Principal family products BANKSINSURANCE- ORIENTED INVESTMENT- ORIENTED • Wirehouses • Regional Broker/Dealers • Planners • Insurance Producers • Banks • Broker/ Dealers • Marketers THIRD PARTYPROPRIETARY ALLIANCE MANAGEMENT GROUP (AMG) Select 3rd party distributors with dedicated support STRENGTHENS RELATIONSHIPS AND FUELS SALES GROWTH All supported by DEDICATED SERVICE TEAMS providing education, training, counseling and retention 11 WHOLESALE CHANNELS Group Benefits Retirement Investment Solutions Annuities NQDC Disability Insurance Retail Life AMG WorksiteESOP Wellness 29 DISTRIBUTION
  • 30. National Presence with Local Employees OUR VALUE TO ADVISORS: ● Solutions-based selling ● Point of sale support ● Ongoing service and education support ● Pipeline development ● Practice management ● Advisor education 121 Total Offices NOTE: Approximate view as of March 2012. Check www.principal.com for actual locations. 30 DISTRIBUTION
  • 31. Expanding Distribution Partnerships Have Generated Strong Sales Growth 3.1 3.8 3.7 7.6 6.6 7 2.8 5.7 6.5 10.5 14.5 14.4 1.2 1.5 1.4 2.5 3.3 2.4 0.9 1.5 1.4 1.7 2.0 2.0 2009 2010 2011 2012 2013 2014 Individual Annuities Separately Managed Accounts Mutual Funds Full Service Accum $8.0BTotal: +26% CAGR: $12.5B $13.0B $22.3B 31 $26.4B DISTRIBUTION $25.8B
  • 32. Broad and Deep Distribution Proprietary provides foundation; 3rd party provides accelerated growth Rankings and percentages as of 12/31/2014 Product Line New Sales 1st 2nd 3rd Top 3 represent NQ Life 33% Retail Life 59% Individual Disability Plus Group 39% Group Benefits Gallagher 14% Fixed Annuities 52% Variable Annuities KeyCorp Ins. Agency 94% Mutual Funds 23% FSA – New Sales Assets 35% FSA – New Sales Case Counts Edward D. Jones 33% 32 DISTRIBUTION Principal Advisor Network Principal Advisor Network Principal Advisor Network Principal Advisor Network Principal Advisor Network Principal Advisor Network Principal Advisor Network Principal Advisor Network
  • 33. • Serve clients in over 70 countries, including several major central banks and sovereign wealth funds • Network of specialized investment boutiques managing assets for a broad range of investors around the world • Manages: – 60% of Full Service Accumulation assets – 74% of Principal Funds assets – 100% of Principal Life general account assets • Office locations in major financial markets worldwide • Long-standing commitment to corporate stewardship As of 06/30/2015 Principal Global Investors Assets Under Management $328.4B By Asset Class 33 Fixed Income $136B Equity $118B Real Estate $60B Alternatives $14B PRINCIPAL GLOBAL INVESTORS At a Glance
  • 34. Our Current Boutiques (AUM as of 06/30/15) Principal Global Equities $68.4B Principal Global Fixed Income $81.9B Private Real Estate $37.0B CMBS $7.5B Origin Asset Management $3.7B Edge Asset Management1 $21.5B Fixed IncomeEquities REITs $9.9B Principal Enterprise Capital $6.1B MorleyFinancial Services $16.8B Spectrum Asset Management $18.9B Macro Currency Group $8.9B Post Advisory Group $10.4B Multi-Asset Advisors $0.7B2 Real Estate AssetAllocation/ Alternatives Finisterre Capital $3.6B Columbus Circle Investors $16.1B Liongate Capital Management $0.4B 34 1 Edge Asset Management advises on an additional $8.7B across asset classes for Retirement and Investor Services. 2 Responsible for allocation decision-making and implementation across a range of products and client portfolios, and for providing macro economic perspectives to guide allocations. Multi-Asset Advisors advise on an additional $28.6B managed by multiple PGI boutiques. PRINCIPAL GLOBAL INVESTORS Aligned Investors $16.6B
  • 35. Asset Management Expertise Wins Mandates $82.4 $98.2 $109.4 $114.0 $121.1 2011 2012 2013 2014 2Q15 Principal Global Investors Unaffiliated AUM (in billions) • Best Global Real Estate Fund over the 5-year period (1) • Top 10 Manager of Real Estate (2) • 15th Largest manager of High Yield (3) • PFG ranked No.1 company among the Best Places to Work in Money Management(4) Sources: (1) The Principal Real Estate Investors portfolio management team subadvises the Principal Global Real Estate Securities Fund-Class l, which received the award from Lipper, Inc. for the third year in a row, March 2015. (2) Managers ranked by total worldwide real estate assets (net of leverage), as of June 30, 2014, “Largest Real Estate Managers”, PENSIONS & INVESTMENTS, October 27, 2014. (3) Managers ranked by U.S. institutional, tax-exempt assets managed internally, as of 12/31/14 “Largest Money Managers”, Pensions & Investments, May 2015. (4) Pensions & Investments, “The Best Places to Work in Money Management among companies with our size category”, PFG recognition 12/08/2014.(5) Managers ranked by total assets under management. America’s Top 300 Money Manager, Institutional Investor, July 2014, data as of 12/31/2013. 35 PRINCIPAL GLOBAL INVESTORS
  • 36. Strong Investment Performance Represents $174 billion AUM of which 75% managed by PGI boutiques Morningstar Rankings Percentage of Principal Funds in the top two quartiles 79% 88% 89% 85% 89% 88% 87% 87% 91% 1-Year 3-Year 5-Year Jun. 30, 2014 Mar. 31, 2015 Jun. 30, 2015 36 Principal “I” shares; if no “I” share class then “A” share class; separate accounts use “R6” rate level; Includes Principal mutual funds, separate accounts and collective investment trusts (CITs); Excludes money market, stable value and U.S. Property separate account. PRINCIPAL GLOBAL INVESTORS
  • 37. PRINCIPAL FINANCIAL GROUP Mexico (1993) • Annuities, Mutual Funds, Pensions, Asset Management • AUM of $11.4B • Wholly owned Chile (1995) • Annuities, Mutual Funds, Asset Management, Mandatory Pensions, Voluntary Pensions • AUM of $40.8B • Wholly owned • Cuprum – a 98% owned joint venture AUM of $35.2B Brazil (1999) • Annuities, Pensions, Mutual Funds, Asset Management • Brasilprev – a 25% owned joint venture with Banco do Brasil AUM of $43.4B • Claritas – 71% indirectly owned mutual fund company AUM of $1.1B India (2000) • Asset Management, Mutual Funds • AUM of $0.8B • 79% owned joint venture with Punjab National Malaysia (2003) • Conventional & Islamic Asset Management, Mutual Funds, Pensions • AUM of $13.1B • CIMB-Principal – 40% owned joint venture with CIMB Group; 50% owned Islamic company with CIMB China (2005) • Asset Management, Mutual Funds • AUM of $34.2B • CCB-Principal – a 25% owned joint venture with China Construction Bank Hong Kong (1996) • Asset Management, Mutual Funds, Pensions • AUM of $4.2B • Wholly owned Thailand (2010) • Asset Management, Mutual Funds • AUM of $2.4B • Wholly owned subsidiary of Malaysian JV Indonesia (2007) • Asset Management, Mutual Funds • AUM of $0.3B • Wholly owned subsidiary of Malaysian JV Singapore (2006) • Asset Management • AUM of $1.6M • Wholly owned subsidiary of Malaysian JV AUM as of 06/30/2015 PRINCIPAL INTERNATIONAL 37
  • 38. We’re in the Right Countries SOURCE: IMF, Standard Chartered Research. TEN LARGEST ECONOMIES BY DECADE Current Principal International locations: Asia Latin America 38 1990 US$ trn 1 U.S. 5.9 2 Japan 3.1 3 Germany 1.7 4 France 1.2 5 Italy 1.1 6 UK 1.0 7 Canada 0.6 8 Spain 0.5 9 Brazil 0.5 10 China 0.4 2000 US$ trn U.S. 10.3 Japan 4.7 Germany 1.9 UK 1.5 France 1.3 China 1.2 Italy 1.1 Canada 0.7 Brazil 0.6 Mexico 0.6 2010 US$ trn U.S. 15.0 China 5.9 Japan 5.5 Germany 3.3 France 2.5 UK 2.3 Italy 2.0 Brazil 2.1 Canada 1.6 Russia 1.5 2020E US$ trn U.S. 23.5 China 21.9 Japan 6.1 Germany 5.1 India 4.5 Brazil 3.9 France 3.9 UK 3.7 Italy 2.7 Russia 2.6 2030E US$ trn China 53.8 U.S. 38.5 India 15.0 Japan 9.3 Germany 7.4 Brazil 6.3 UK 5.8 France 5.7 Indonesia 4.7 Russia 4.6 PRINCIPAL INTERNATIONAL
  • 39. Joint Venture Partner Partner’s Industry Ranking Partner’s Distribution Reach Banco do Brasil Largest bank in Latin America1 5,524 branches2 61 million customers2 2nd largest listed bank in world3 14,650 branches4 632 million retail customers4 5th largest banking group in ASEAN5 1,057 branches6 13 million retail customers5 3rd largest Nationalized bank in India7 6,081 branches8 89 million retail customers8 SOURCE: 1Relbanks.com December 2014 in terms of AUM; 2Banco do Brasil Annual Report 2014; 3Relbanks.com December 2014 in terms of AUM; 4CCB 2014 annual report – customers based on retail debit cards; 5CIMB Group 2014 Annual report – ranking in terms of AUM; 6CIMB Group 2013 4Q Analyst Presentation; 7Indian Banks’ Association 2014 in terms of assets; 8PNBIndia.com in 2014 Leveraging Strong Marquee Partners with Outstanding Distribution 39 PRINCIPAL INTERNATIONAL
  • 40. Pensions Mutual Funds Asset Mgmt Annuities Brazil     Chile     Mexico     China    Hong Kong    India    Malaysia/ SE Asia    Our Markets and Product Offering  = Where we have a product offering today Targeted Markets  = Targeted expansion = 10% of market share or Top 25% of providers 40 PRINCIPAL INTERNATIONAL
  • 41. 41 Emerging Markets: The PI Story We are in the right markets8%+4% Inflation GDP 3% “Low Inflation/Strong Growth”“Low Inflation/Slow Growth” “High Inflation/Slow Growth ” “High Inflation/Strong Growth” 0 0 6% + + Mexico 2.2% GDP Growth Mature Economies India Indonesia Hong Kong Brazil Chile Malaysia China Thailand (8.9% inflation) (7.5% GDP) Source: IMF. 2014 Estimates. Singapore Brasilprev – an outlier: Grew NCCF market share in a volatile market + PRINCIPAL INTERNATIONAL
  • 42. BRAZIL MEXICO CHILE Brasilprev: #1 in net deposits and total market share 5th largest AFORE (by AUM) #1 APV: PI Chile and Cuprum PRINCIPAL IS 2ND LARGEST PENSION PROVIDER IN LATIN AMERICA Proven Strength & Success 42 Brazil source: Fenaprevi. 3/15. Mexico source: CONSAR & PROCESAR. 11/14. Chile source: Asociacion de Administradóras de Fondos Mutuos De Chile. 10/14. Principal is 2nd largest pension provider in Latin America by AUM among multi-country pension providers. Latin America PRINCIPAL INTERNATIONAL
  • 43. CUPRUM: A “One-Stop Shop” 43 ERM = Enterprise Risk Management Chile PRINCIPAL INTERNATIONAL
  • 44. HONG KONG Among Top Ten MPF* Providers Building a Strong Foundation MALAYSIA #2 in PRS CHINA Top Ten for Mutual Funds INDIA 1st mover in advisory services business 44 *Mandatory Provident Fund. Malaysia source: Lipper. Percentage of market share as of 12/14. Hong Kong source: Towers Watson. Based on AUM as of 9/14. China source: East Fortune. Based on AUM as of 12/14. India source: Company data/media tracking at launch 11/12 PRINCIPAL INTERNATIONAL Asia
  • 45. Corporate Public Bonds 27% Corporate Private Bonds 17% Commercial Mortgages 16% CMBS 5% Cash 3% MBS 6% ABS 6% Government, Agency, State & Political 9% Other* 11% Diversified Portfolio $70.4 Billion * Other includes Equity Securities, Residential Mortgages, Real Estate, Policy Loans, Investment in Equity Method subs, Direct Finance Leases and Other Investments 45 Invested Assets & Cash As of 06/30/15 GAAP carrying value INVESTMENTS • Liability-driven investment approach • Active asset/liability management • Optimized risk adjusted yields and returns • High quality, well-diversified portfolio • Global collaboration and best practices • Portfolio responsibility remains at local country Investment Philosophy & Strategy REMAINS THE SAME
  • 46. Assets & Liabilities Performed as Expected -$600 -$400 -$200 $0 $200 $400 $600 $800 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Inmillions Actual net assets & liabilities Modeled net assets & liabilities 46 INVESTMENTS
  • 47. Power of our Fee-Based Model OPERATING EARNINGS Continual shift in mix of business leading to a higher ROE and more free cash flow 64% 20% 16% Current 70% 15% 15% 2018E Fee Spread Risk 47 Fee includes Full Service Accumulation, Mutual Funds, Principal Global Investors, Principal International. Spread includes Individual Annuities, Bank and Trust Services, Investment Only, Full Service Payout. Risk includes U.S. Insurance Solutions. 30% 40% 30% 2001 FINANCIALS
  • 48. 40% 30% 30% 33% 33% 34% Returning Capital to Shareholders 2007 Current 2018E • Less capital needed to support organic growth • Moving to higher dividend payout ratio • Diligently pursuing active acquisition pipeline • Opportunistically buying back shares 48 (Acquisitions & share buybacks) Organic Growth Dividends Available Capital 25% 25% 50% FINANCIALS
  • 49. Driving ROE Growth OCI = Other Comprehensive Income. As Reported 2007 2014 Operating earnings $1.1B $1.3B Average equity (x-OCI) $6.5B $9.3B Return on equity (x-OCI) 16.4% 14.2% EARNINGS + 4-5% for market performance + 4-5% for growth from sales/NCF + 1-2% operational efficiency EQUITY  Fee-based growth  Dividend growth  Opportunistic share repurchases ROE = 50-80 bps average annual ROE improvement FINANCIALS 49
  • 50. We’ve Played Offense Since Recession Emerged from financial crisis in a position of strength and flexibility Executing on our strategy to increase our global footprint and fee- based earnings 50 Opportunity Year Announced Rationale AXA Hong Kong Pension 2014  15 year exclusive distribution with 4,440 agents  Gateway into China 2013  Expand alternative asset class capabilities 2012  Complete offering in Chile with marquee pension and savings franchise 2012  Entry into Brazil mutual fund and asset management market 2011  Enhance global equity investment capabilities 2011  Establish leadership in emerging markets fixed income investing AFORE 2011  Solidify position as a leader in Mexican Afore market BrasilPrev 2010  23 year extension of successful JV with Banco do Brasil FINANCIALS
  • 51. Merger & Acquisition Criteria • Mid-teens IRR • More accretive than buyback over time 1 2 3 STRATEGIC ABILITY TO ONBOARD DISCIPLINED PRICING • Aligns with our core competencies • Blend local talent with Principal expertise • Synergies with multiple lines of business preferred • Adds scale or a new niche Have a diligent M&A process that optimizes long-term results 51 IRR = Internal Rate of Return. FINANCIALS
  • 52. Capital Deployment Strategic Acquisitions: $350M Share Repurchases: $550M 2011 2012 Over $1.1 billion in total Allocated $2.1 billion Common Stock Dividends: $230M Share Repurchases: $300M Strategic Acquisitions: $1,595M 2013 Allocated $480 million Share Repurchases: $150M Strategic Acquisition: $44M Common Stock Dividends: $288M Common Stock Dividends: $215M 52 2014 Allocated $855 million Share Repurchases: $200M Strategic Acquisition: $180M Surplus Note Redemption: $100M Common Stock Dividends: $375M Long term: expect to deploy 65–70 percent of our net income with fluctuations in any given year FINANCIALS
  • 53. Capital Deployment • We expect to be at the upper end of the $800M - $1.0B deployment in 2015 ̶ Have announced deployments of more than $835M as of 6/30/15 ̶ $330M in common stock dividends ̶ Paid 1Q15 and 2Q15 dividends of 36-cents and 38-cents per share respectively ̶ Announced 3Q15 dividend of 38-cents per share ̶ $150M announced Board share repurchase authorization ̶ $335M for AXA’s Hong Kong pension business ̶ $20M for increased ownership in PGI boutiques • Long term: expect to deploy 65–70 percent of our net income with fluctuations in any given year FINANCIALS 53
  • 54. 5-Year 2015E Accumulation Net revenue growth 6-8% 4-6% Pre-tax RONR 28-32% 30-33% Guaranteed Net revenue growth 6-8% (2)-2% Pre-tax RONR 75-80% 78-80% Net revenue = operating revenues less benefits, claims & settlement expenses less dividends to policyholders. RONR = Return on Net Revenue. Pre-tax operating margin = pre-tax operating earnings / premium and fees. *Combined basis includes all Principal International companies at 100%. Retirement & Investor Services U.S. Insurance Solutions 5-Year 2015E Individual Life Premium & fee growth 4-8% 3-5% Pre-tax operating margin 16-21% 13-16% Specialty Benefits Premium & fee growth 8-10% 6-8% Pre-tax operating margin 8-12% 10-12% Loss ratio 65-71% 64-70% 54 Key Business Drivers Outlook 5-Year 2015E Revenue growth 14-17% 7-10% Pre-tax margin 30+% 26-28% Principal Global Investors Principal International 5-Year 2015E Combined* net revenue growth (normalized local basis) 15-20% 14-16% Combined net revenue growth (in reported USD) 15-20% 8-10% Combined pre-tax RONR 55-60% 50-52% Principal’s share of combined pre-tax earnings N/A 35% Estimated After-tax operating losses for Corporate of $130-$150 million in 2015 FINANCIALS
  • 55. (1) Excludes discontinued operations. (2) Diluted. (3) Operating return on average equity excluding other comprehensive income, based on trailing 12 month period. 2001 2014 CAGR (’01-’14) YTD 2Q14 YTD 2Q15 Change Operating Earnings(1) ($M) $433 $1,318 9% $640.2 $650.3 2% Earnings Per Share(2) $1.20 $4.41 10.5% $2.14 $2.18 2% Assets Under Management ($B) $98 $519 14% $518 $540 4% ROE (TTM)(3) 6.9% 14.2% +730 bps 13.3% 13.8% +50 bps Book Value Per Share (x-OCI) $17.81 $32.64 5% $31.52 $34.00 8% S&P 500 1,148 2,059 5% 1,960 2,063 5% Results Demonstrate Relative Strength of Our Business Model 55 FINANCIALS
  • 56. Exhibit 1 Principal Financial Group, Inc. Non-GAAP Financial Measure Reconciliations (in millions, except as indicated) Three Months Ended, Six Months Ended, 30-Jun-15 31-Mar-15 31-Dec-14 30-Sep-14 30-Jun-14 30-Jun-15 30-Jun-14 Stockholders' Equity x-OCI Available to Common Stockholders: Retirement and Investor Services 3,192.1$ 3,145.1$ 3,124.0$ 3,194.4$ 3,247.1$ 3,192.1$ 3,247.1$ Principal Global Investors 619.7 609.8 602.8 638.1 457.3 619.7 457.3 Principal International 3,625.2 3,584.4 3,463.4 3,430.9 3,483.2 3,625.2 3,483.2 U.S. Insurance Solutions 2,398.9 2,333.4 2,288.0 2,342.7 2,115.1 2,398.9 2,115.1 Corporate 184.1 179.9 113.4 (211.8) (42.3) 184.1 (42.3) Total stockholders' equity x-OCI available to common stockholders: 10,020.0 9,852.6 9,591.6 9,394.3 9,260.4 10,020.0 9,260.4 Net unrealized capital gains (losses) 927.6 1,246.7 1,148.3 1,088.4 1,122.1 927.6 1,122.1 Foreign currency translation (867.1) (819.6) (686.8) (563.1) (373.9) (867.1) (373.9) Net unrecognized postretirement benefit obligations (387.1) (399.1) (411.1) (145.2) (148.8) (387.1) (148.8) Preferred stock, at par - 0.1 0.1 0.1 0.1 - 0.1 Paid in capital - preferred stock - 541.9 541.9 541.9 541.9 - 541.9 Noncontrolling interest 69.2 69.5 48.0 52.6 57.5 69.2 57.5 Total stockholders' equity 9,762.6$ 10,492.1$ 10,232.0$ 10,369.0$ 10,459.3$ 9,762.6$ 10,459.3$ Book Value Per Common Share x-OCI: Book value x-OCI 34.00$ 33.47$ 32.64$ 32.00$ 31.52 34.00 31.52 Net unrealized capital gains (losses) 3.14 4.23 3.91 3.70 3.82 3.14 3.82 Foreign currency translation (2.94) (2.78) (2.34) (1.92) (1.27) (2.94) (1.27) Net unrecognized postretirement benefit obligations (1.31) (1.36) (1.40) (0.49) (0.51) (1.31) (0.51) Book Value Per Common Share including OCI 32.89$ 33.56$ 32.81$ 33.29$ 33.56$ 32.89$ 33.56$ Operating Earnings (Losses): Retirement and Investor Services 216.7$ 210.9$ 195.2$ 204.3$ 212.1$ 427.6$ 428.6$ Principal Global Investors 31.5 30.7 36.4 25.3 27.4 62.2 54.3 Principal International 59.3 59.9 62.9 73.8 68.0 119.2 131.3 U.S. Insurance Solutions 58.8 55.1 55.6 83.3 49.0 113.9 92.4 Corporate (42.4) (30.2) (26.1) (33.0) (33.4) (72.6) (66.4) Total operating earnings (losses) 323.9 326.4 324.0 353.7 323.1 650.3 640.2 Net realized capital gains (losses) (82.8) 13.1 (53.2) (55.2) 30.8 (69.7) 7.9 Other after-tax adjustments - 74.7 (0.4) (57.8) (47.6) 74.7 (48.1) Net Income (Loss) Available to Common Stockholders 241.1$ 414.2$ 270.4$ 240.7$ 306.3$ 655.3$ 600.0$ Operating Revenues: Retirement and Investor Services 2,108.6$ 1,319.4$ 1,672.3$ 1,324.7$ 1,265.1$ 3,428.0$ 2,526.3$ Principal Global Investors 188.4 186.6 208.0 173.6 173.2 375.0 344.3 Principal International 315.0 236.2 323.2 294.5 357.3 551.2 657.7 U.S. Insurance Solutions 857.8 861.7 825.8 821.0 811.4 1,719.5 1,615.8 Corporate (63.0) (59.3) (69.1) (61.1) (64.4) (122.3) (102.2) Total operating revenues 3,406.8 2,544.6 2,960.2 2,552.7 2,542.6 5,951.4 5,041.9 Net realized capital gains (losses), net of related revenue adjustments (141.3) 45.6 (52.4) (68.2) 64.3 (95.7) 43.2 Other income on an indemnified uncertain tax position (6.7) 66.9 - - - 60.2 - Exited group medical insurance buisness 0.4 0.2 0.2 (0.2) (0.2) 0.6 0.2 Total GAAP Revenues 3,259.2$ 2,657.3$ 2,908.0$ 2,484.3$ 2,606.7$ 5,916.5$ 5,085.3$
  • 57. Exhibit 2 Principal Financial Group, Inc. Non-GAAP Financial Measure Reconciliations (in millions, except as indicated) Three Months Ended, Six Months Ended, 30-Jun-15 31-Mar-15 31-Dec-14 30-Sep-14 30-Jun-14 30-Jun-15 30-Jun-14 Operating Earnings ROE (x-OCI): Retirement and Investor Services 25.7% 25.6% 25.5% 24.3% 23.6% 25.7% 23.6% Principal Global Investors 23.0% 22.3% 21.2% 19.2% 18.9% 23.0% 18.9% Principal International 7.2% 7.6% 7.8% 7.9% 7.2% 7.2% 7.2% U.S. Insurance Solutions 11.2% 10.7% 10.6% 10.5% 9.7% 11.2% 9.7% Corporate N/M N/M N/M N/M N/M N/M N/M Total operating earnings ROE (x-OCI) 13.8% 14.0% 14.2% 14.1% 13.3% 13.8% 13.3% Net realized capital gains (losses) -1.9% -0.7% -1.1% -1.1% -0.8% -1.9% -0.8% Other after-tax adjustments 0.2% -0.3% -1.1% -1.2% -0.5% 0.2% -0.5% Net income ROE available to common stockholders (x-OCI) 12.1% 13.0% 12.0% 11.8% 12.0% 12.1% 12.0% Net unrealized capital gains (losses) -1.2% -1.3% -1.1% -1.1% -1.1% -1.2% -1.1% Foreign currency translation 0.7% 0.7% 0.6% 0.5% 0.3% 0.7% 0.3% Net unrecognized postretirement benefit obligation 0.3% 0.3% 0.3% 0.4% 0.4% 0.3% 0.4% Net Income ROE Available to Common Stockholders (including OCI) 11.9% 12.7% 11.8% 11.6% 11.6% 11.9% 11.6% Net Realized Capital Gains (Losses): Total net realized capital gains (losses) (82.8)$ 13.1$ (53.2)$ (55.2)$ 30.8$ (69.7)$ 7.9$ Certain derivative and hedging-related adjustments 26.4 19.7 26.4 21.9 22.7 46.1 44.5 Amortization of deferred acquisition costs and other actuarial balances (16.2) 16.0 22.5 3.6 13.5 (0.2) 23.2 Certain market value adjustments of embedded derivatives - 0.9 1.2 (5.7) 0.1 0.9 (0.3) Capital gains distributed 2.9 (4.8) 3.1 8.8 6.2 (1.9) 9.3 Noncontrolling interest capital gains (losses) (0.8) 2.8 0.8 0.1 0.1 2.0 0.1 Tax impacts (44.4) 17.6 (26.8) (19.8) 13.6 (26.8) 3.0 Recognition of front-end fee revenues 0.3 (0.2) (0.3) (0.1) (0.2) 0.1 (0.3) Net realized capital gains (losses) associated with exited group medical insurance business - - - - - - - Certain market value adjustments to fee revenues - 1.1 - - - 1.1 - GAAP Net Realized Capital Gains (Losses) (114.6)$ 66.2$ (26.3)$ (46.4)$ 86.8$ (48.4)$ 87.4$ Other After-Tax Adjustments: Exited group medical insurance business -$ (0.2)$ (0.4)$ 0.3$ (0.1)$ (0.2)$ (0.6)$ Impact of a court ruling on some uncertain tax positions - (30.3) - - (47.5) (30.3) (47.5) Impact of enactment of tax legislation in Chile - - - (58.1) - - - Change in deferred tax balances related to merged Chilean entities - 105.2 - - - 105.2 - Contribution to Principal Financial Group Foundation, Inc. - - - - - - - Early extinguishment of debt - - - - - - - Total Other After-Tax Adjustments -$ 74.7$ (0.4)$ (57.8)$ (47.6)$ 74.7$ (48.1)$