This document provides an overview and summary of Principal Financial Group's third quarter 2016 earnings call. It discusses several key themes from the call, including strong investment performance across many of Principal's investment options, record assets under management, and continued growth in earnings and revenues despite accounting for significant variances. Business segments such as Retirement and Income Solutions, Principal Global Investors, and Specialty Benefits saw increases in revenues and earnings on both a reported and adjusted basis. Principal also continued deploying capital through dividends and share repurchases.

1. Principal Financial Group
®
Third Quarter 2016 Earnings Call
October 28, 2016

2. 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, on principal.com/investor, 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.
Use of Non-GAAP Financial Measures
2 Posted on PFG website: 10/28/2016

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, 2015, and in the company’s quarterly report on Form 10-Q for the quarter ended Jun. 30, 2016, filed by the company
with the U.S. 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; volatility or declines in the equity, bond or real estate markets; changes in interest
rates or credit spreads or a sustained low interest rate environment; 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 investments and the determination of the amount of allowances and impairments taken on such
investments may include methodologies, estimations and assumptions that are subject to differing interpretations; any
impairments of or valuation allowances against the company’s deferred tax assets; the company’s actual experience could
differ significantly from its pricing and reserving assumptions; 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 not be able to protect its intellectual property and may be subject to
infringement claims; 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; changes in laws, regulations or
accounting standards; 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; 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;
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; changes in investor
preferences; inability to attract and retain qualified employees and sales representatives and develop new distribution
sources; international business risks; fluctuations in foreign currency exchange rates; 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; and a computer system
failure or security breach could disrupt the company’s business and damage its reputation.
Forward Looking Statements
3 Posted on PFG website: 10/28/2016

4. • Diverse and integrated business model delivers the highest quarterly after-tax
operating earnings on record, excluding significant variances
• Record AUM of $596B, with total company net cash flows of $7B for the quarter
• Strong investment performance1 - more than 85% of investment options in the top
two Morningstar quartiles on a three and five-year basis
• Continuing to generate and deploy capital to create long-term shareholder value:
− Deployed $153M of capital in 3Q16 through dividends and share repurchases
− Announced a 5% increase in the 4Q16 quarterly dividend to $0.43 per share
• Managing the long-term rate of expense growth in line with revenues while still
investing in the business
Strong growth magnified by expense management efforts
3Q16 Earnings Call Key Themes
4 Posted on PFG website: 10/28/2016
1Investment performance represents the percentage of Principal mutual funds, separate
accounts, and collective investment trusts in the top two Morningstar quartiles.

5. Morningstar rankings of Principal mutual funds, separate accounts and CITs
Percentage of funds in the top two quartiles
Strong Investment Performance Continues
86%
91% 91%
72%
95% 93%
59%
90%
86%
1-Year 3-Year 5-Year
Sep. 30, 2015
Jun. 30, 2016
Sep. 30, 2016
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.
5 Posted on PFG website: 10/28/2016

6. Impacts of 3Q16 Significant Variances
6 Posted on PFG website: 10/28/2016
Income statement line item impacts of the annual actuarial assumption review, variable investment income from a real estate sale, and
actual vs expected encaje returns
($ in millions)
Encaje
returns
RIS RIS Principal Specialty Individual RIS RIS Specialty Principal
Line Item Fee Spread International Benefits Life Fee Spread Benefits International
Premiums and other considerations -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Fees and other revenues - - - - (9.5) (9.5) - - - - - (9.5)
Net investment income - - (1.5) - - (1.5) 11.8 15.0 7.9 34.7 8.0 41.2
Total operating revenues - - (1.5) - (9.5) (11.0) 11.8 15.0 7.9 34.7 8.0 31.7
Benefits, claims and settlement expenses 41.0 0.8 7.4 2.1 53.6 104.9 - - - - - 104.9
Dividends to policyholders - - - - 8.2 8.2 - - - - - 8.2
Commissions - - - - - - - - - - - -
Capitalization of DAC - - - - - - - - - - - -
Amortization of DAC (14.8) 4.6 - - (28.1) (38.3) - - - - - (38.3)
Depreciation and amortization - - - - - - - - - - - -
Interest expense on corporate debt - - - - - - - - - - - -
Compensation and other - - - (12.1) - (12.1) - - - - - (12.1)
Total expenses 26.2 5.4 7.4 (10.0) 33.7 62.7 - - - - - 62.7
Pre-tax operating earnings (losses) attributable to
noncontrolling interest - - - - - - - - - - - -
Pre-tax operating earnings (losses) (26.2)$ (5.4)$ (8.9)$ 10.0$ (43.2)$ (73.7)$ 11.8$ 15.0$ 7.9$ 34.7$ 8.0$ (31.0)$
Total
Subtotal
actuarial
assumption
review
Subtotal
RE sale
Annual actuarial assumption review
Variable investment income -
real estate sale

7. Significant Variances Reflected in Earnings per Share
7 Posted on PFG website: 10/28/2016
Per diluted share, after tax
3Q 2016 3Q 2015
Operating earnings per share, as reported $1.15 $1.06 +8%
Variances reflected in reported EPS include:
Annual actuarial assumption reviews and 3Q15 impairment of intangible assets
within our Brazil mutual fund business
(0.17) 0.07
Variable investment income 0.08 (0.01)
Actual vs expected encaje returns and higher than expected Latin American
inflation
0.02 0.01
Additional expense recognition due to a decline in markets (0.05)
Total of significant variances ($0.07) $0.02
Operating earnings per share, excluding significant variances1
$1.22 $1.04 +17%
1Significant variances need to be excluded as they are already reflected in reported EPS. Additional details available on principal.com/investor

8. Retirement and Income Solutions - Fee (RIS – Fee)
$392 $365
3Q15 3Q16
Net Revenue ($m)
On a trailing twelve month basis1:
• Net revenue decreased 3%
• Pre-tax return on net revenue of 34%
• Quarterly results, excluding significant
variances2,3, were driven by strong sales and
growth in recurring deposits
• Quarterly net cash flows were $1.4B, with
$4.4B YTD net cash flows; on track to be well
within our targeted range of 1-3% of beginning
of year account value
• Quarterly net revenue growth excluding
significant variances4, of 1% compared to
3Q15
8 Posted on PFG website: 10/28/2016
1Excluding third quarter 2015 and 2016 actuarial assumption reviews.
2Excluding third quarter 2016 actuarial assumption review and variable
investment income.
3Excluding third quarter 2015 actuarial assumption review and additional
expense recognition due decline in markets.
4Excluding third quarter 2015 and 2016 actuarial assumption reviews and
variable investment income.
Reported
Pre-tax Operating
Earnings ($m)
Significant
Variances ($m)
Pre-tax Operating
Earnings ex
Significant
Variances ($m)
3Q16 $130.9 $14.42 $145.3
3Q15 $83.6 $54.13 $137.7
Change +$47.3 (+57%) +$7.6 (+6%)

9. Retirement and Income Solutions - Spread (RIS – Spread)
$97
$122
3Q15 3Q16
Net Revenue ($m)
On a trailing twelve month basis1:
• Net revenue increased 6%
• Pre-tax return on net revenue of 60%
• Growth in quarterly net revenue and pre-
tax operating earnings driven by double
digit account value growth
• Disciplined expense management helped
sustain pre-tax return on net revenue
• Quarterly net revenue growth, excluding
significant variances4, of 7% compared to
3Q15
9 Posted on PFG website: 10/28/2016
1Excluding third quarter 2015 and 2016 actuarial assumption reviews.
2Excluding third quarter 2016 actuarial assumption review and variable
investment income.
3Excluding third quarter 2015 actuarial assumption review, variable investment
income, and additional expense recognition due to decline in markets.
4Excluding third quarter 2015 and 2016 actuarial assumption reviews and
variable investment income.
Reported
Pre-tax
Operating
Earnings ($m)
Significant
Variances ($m)
Pre-tax
Operating
Earnings ex
Significant
Variances ($m)
3Q16 $76.0 -$9.62 $66.4
3Q15 $49.9 $2.23 $52.1
Change +$26.1 (+52%) +$14.3 (+27%)

10. Principal Global Investors
On a trailing twelve month basis:
• Adjusted revenue increased 2%
• Pre-tax return on adjusted revenue of 35%
• Second highest quarterly pre-tax operating
earnings on record
• Quarterly net cash flows of $4.2B
• Record AUM of $397B (including record
institutional AUM of $135B), increased 12%
over year ago quarter
Reported Pre-tax
Operating Earnings
($m)
3Q16 $112.9
3Q15 $95.4
Change +$17.5 (+18%)
$284 $305
3Q15 3Q16
Adjusted Revenue ($m)
10 Posted on PFG website: 10/28/2016

11. $188
$216
3Q15 3Q16
Combined1 Net Revenue
(at PFG share) ($m)
• Continued strong mid-teens growth in
earnings and revenues on a constant
currency basis, excluding significant
variances4
• Reported 3Q16 net cash flow of $2.5B
• Record reported AUM of $136B increased
28% over 3Q15 and 18% on a constant
currency basis
• Record quarterly earnings in Brasilprev (both
USD and local currency)
On a trailing twelve month combined1 basis
(at PFG share):
• Net revenue increased 14% on an
adjusted2 constant currency basis
• Pre-tax return on net revenue3 of 38%
Principal International
1 Combined basis includes all Principal International companies at 100%.
2 Excludes impact of difference in actual vs expected encaje returns and the 3Q16 actuarial assumption review.
3 Excludes impact of difference in actual vs expected encaje returns, the 3Q15 impairment of intangibles in our Brazil mutual fund business,
LatAm inflation and variable investment income.
4 On a TTM basis. Excludes impact of difference in actual vs expected encaje returns, 3Q16 actuarial assumption review, and the 3Q15
impairment of intangibles in our Brazil mutual fund business.
11
Posted on PFG website: 10/28/2016
Reported
Pre-tax
Operating
Earnings ($m)
Significant
Variances ($m)
Pre-tax
Operating
Earnings ex
Significant
Variances ($m)
3Q16 $84.2 +$0.92 $85.1
3Q15 $51.0 +$17.33 $68.3
Change +$33.2 (+65%) +$16.8 (+25%)

12. $430
$469
3Q15 3Q16
Premium and Fees ($m)
Specialty Benefits
• Growth in the business drove increased
quarterly pre-tax operating earnings
over 3Q15
• Quarterly loss ratio within the guided
range; TTM loss ratio consistently strong
• Quarterly premium and fee growth,
excluding significant variances1, of 8%
compared to 3Q15
On a trailing twelve month basis1:
• Premium and fees increased 7%
• Pre-tax return on premium and fees of 12%
• Incurred loss ratio of 64%
1Excludes third quarter 2015 and 2016 actuarial assumption reviews.
2Excludes third quarter 2016 actuarial assumption review and variable
investment income.
3Excludes third quarter 2015 actuarial assumption review.
12 Posted on PFG website: 10/28/2016
Reported
Pre-tax
Operating
Earnings ($m)
Significant
Variances ($m)
Pre-tax
Operating
Earnings ex
Significant
Variances ($m)
3Q16 $73.9 -$17.92 $56.0
3Q15 $65.4 -$12.23 $53.2
Change +$8.5 (+13%) +$2.8 (+5%)

13. $239 $241
3Q15 3Q16
Premium and Fees ($m)
Individual Life
• Pre-tax operating earnings, excluding
significant variances1, down slightly
reflecting favorable mortality in 3Q15
• Excluding significant variances1,pre-tax
margin and premium and fee growth are
within the guided range for the quarter
and TTM
• Quarterly premium and fee growth,
excluding significant variances1, of 3%
compared to 3Q15
On a trailing twelve month basis1:
• Premium and fees increased 3%
• Pre-tax return on premium and fees of 15%
1Excludes third quarter 2015 and 2016 actuarial assumption reviews.
2Excludes third quarter 2016 actuarial assumption review.
3Excludes third quarter 2015 actuarial assumption review.
13 Posted on PFG website: 10/28/2016
Reported
Pre-tax
Operating
Earnings ($m)
Significant
Variances ($m)
Pre-tax
Operating
Earnings ex
Significant
Variances ($m)
3Q16 -$3.7 +$43.22 $39.5
3Q15 $107.5 -$64.63 $42.9
Change -$111.2 -$3.4 (-8%)

14. • Deployed and committed nearly $730M of capital
− $465M in common stock dividends
 Paid quarterly dividend of $0.41 per share in 3Q16 bringing the TTM
dividends per share to $1.56, a 7% increase compared to 3Q15 TTM
 Announced 4Q16 dividend of $0.43 per share bringing the TTM
dividends per share to $1.61, a 7% increase compared to 4Q15 TTM
− $225M deployed on shares repurchased
− $40M for increased ownership in our boutiques
• Expect to deploy $800M to $1.0B of capital in 2016
− Continue making progress toward a 40% dividend payout ratio
Capital Deployment
14 Posted on PFG website: 10/28/2016