Published: February 07, 2011
Principal Financial Group, Inc. Announces Full Year and Fourth Quarter 2010 Results
DES MOINES, Iowa - (BUSINESS WIRE) - Principal Financial Group, Inc. (NYSE: PFG) today announced results for
full-year and fourth quarter 2010. The company reported operating
earnings of $844.8 million for the twelve months ended Dec. 31, 2010,
compared to $733.3 million for the twelve months ended Dec. 31, 2009.
Operating earnings per diluted share (EPS) were $2.62 for the twelve
months ended Dec. 31, 2010, compared to $2.45 for the twelve months
ended Dec. 31, 2009. The company reported net income available to common
stockholders of $666.3 million, or $2.06 per diluted share for the
twelve months ended Dec. 31, 2010, compared to $589.7 million, or $1.97
per diluted share for the twelve months ended Dec. 31, 2009. Operating
revenues for the year 2010 were $8,041.9 million compared to $7,712.2
million for the same period last year.
The company reported operating earnings of $214.1 million for the three
months ended Dec. 31, 2010, compared to $203.9 million for the three
months ended Dec. 31, 2009. Operating earnings per diluted share (EPS)
were $0.66 for the three months ended Dec. 31, 2010, compared to $0.63
for the three months ended Dec. 31, 2009. The company reported net
income available to common stockholders of $199.3 million, or $0.62 per
diluted share for the three months ended Dec. 31, 2010, compared to
$141.9 million, or $0.44 per diluted share for the three months ended
Dec. 31, 2009. Operating revenues for the fourth quarter 2010 were
$2,106.5 million compared to $1,983.6 million for the same period last
year.
"The Principal finished the year strong with all-time record
assets under management and an increase in operating earnings. Strong
sales in Full Service Accumulation and Principal Funds paired with
record net cash flow in Principal International demonstrate the growth
we're seeing across our businesses," said Larry D. Zimpleman, chairman,
president and chief executive officer of Principal Financial Group, Inc.
"Throughout 2010, we continued to be well-served by our hybrid business
model and purposeful diversification. The potential of our
long-term strategies will help us capitalize on unprecedented growth
opportunities in 2011 and beyond."
"As the economic recovery takes hold, we continue to see momentum build
in our businesses," said Terry Lillis, senior vice president and chief
financial officer. "Compared to 2009, we kept operating expenses
relatively flat on 14 percent growth in average assets under management,
reflecting our ongoing expense discipline and operating leverage. Our
investment portfolio performed better than expected in 2010 with
improving trends throughout the year, and we remain in a very strong
financial position as we move forward."
Key Highlights
Year End
-
Principal International reported record assets under management of
$45.8 billion as of Dec. 31, 2010, and record net cash flow of $4.7
billion for the year.
-
Record net cash flow in Principal Funds of $1.6 billion for 2010.
-
Continued strong operating leverage in Principal Global Investors with
53 percent growth in full-year 2010 operating earnings over full-year
2009 compared to 6 percent growth in average assets under management.
-
Strong capital position with an estimated risk based capital ratio of
420 percent at year end and $1.6 billion of excess capital.2
Fourth Quarter
-
Third highest cumulative sales quarter of the company's three key U.S.
Retirement and Investor Services products in the fourth quarter, with
$3.2 billion for Full Service Accumulation, $2.6 billion for Principal
Funds and $306 million for Individual Annuities.
-
Book value per share, excluding AOCI3 increased to a record
high of $27.82, up 6 percent over fourth quarter 2009.
-
Paid an annual dividend of $0.55 per common share during the quarter,
a 10 percent increase over 2009.
Net Income
Year End
Net income available to common stockholders of $666.3 million for the
twelve months ended Dec. 31, 2010 reflects net realized capital losses
of $194.2 million, which include:
-
$148.9 million of losses related to credit gains and losses on sales
and permanent impairments of fixed maturity securities, including
$114.3 million of losses on commercial mortgage backed securities;
-
$72.1 million of gains recognized in the second quarter 2010 from a
change in the company's economic interest in the Brasilprev joint
venture;
-
$64.4 million of losses and provisions on residential mortgage loans,
primarily related to Principal Bank's home equity portfolio; and
-
$34.5 million of losses on commercial mortgage whole loans.
Net income also reflects $48.5 million of one-time after-tax losses
during the third quarter 2010 from planned severance and goodwill
write-off as a result of the company's decision to exit the medical
insurance business.
Fourth Quarter
Net income available to common stockholders of $199.3 million for the
three months ended Dec. 31, 2010 reflects net realized capital losses of
$37.3 million, which include:
-
$33.5 million of losses related to credit gains and losses on sales
and permanent impairments of fixed maturity securities, including
$24.6 million of losses on commercial mortgage backed securities;
-
$5.9 million of losses on commercial mortgage whole loans;
-
$9.7 million of losses on residential mortgage loans; and
-
$5.7 million of losses from fixed maturities designated as trading.
1 Use of non-GAAP financial measures is discussed in this
release after Segment Highlights
2 Excess capital
includes cash at the holding company and capital at the life company
above that needed to maintain a 350 percent NAIC risk based capital
ratio for the life company.
3 Accumulated Other
Comprehensive Income
Segment Highlights
Retirement and Investor Services
Segment operating earnings
for fourth quarter 2010 were $151.0 million, compared to $125.3 million
for the same period in 2009, as every line of business within the
segment saw a double-digit percentage increase. Full Service
Accumulation earnings increased 13 percent from the year ago quarter to
$76.0 million, reflecting a 10 percent increase in average account
values. Principal Funds earnings increased 24 percent from a year ago to
$10.5 million, primarily due to a 15 percent increase in average account
values. Individual Annuities earnings were $33.2 million compared to
$24.2 million for fourth quarter 2009. The variance primarily reflects
favorable investment performance in the quarter, including higher asset
prepayment fee income. The accumulation businesses4 had
record account values of $159.6 billion at year end.
Operating revenues for the fourth quarter 2010 were $1,093.4 million
compared to $1,017.1 million for the same period in 2009 primarily due
to higher revenues for the accumulation businesses, which improved $51.5
million, or 8 percent from a year ago.
Segment assets under management were $175.0 billion as of Dec. 31, 2010,
compared to $159.8 billion as of Dec. 31, 2009, despite a $3.3 billion
decrease in Investment Only account values.
Principal Global Investors
Segment operating earnings for
fourth quarter 2010 were $19.2 million, compared to $12.7 million in the
prior year quarter, primarily due to increased transaction fees and an
increase in assets under management.
Operating revenues for fourth quarter were $135.3 million, compared to
$120.4 million for the same period in 2009, primarily due to higher
management fees and an increase in transaction fees.
Unaffiliated assets under management were $78.8 billion as of Dec. 31,
2010, compared to $73.8 billion as of Dec. 31, 2009.
Principal International
Segment operating earnings were
$30.9 million in fourth quarter 2010, compared to $39.5 million in the
prior year quarter as the current quarter, reflecting our reduced
economic interest in the Brazilian joint venture.
Operating revenues were $210.5 million for fourth quarter 2010, compared
to $180.3 million for the same period last year, primarily due to 32
percent growth in assets under management.
4 Full Service Accumulation, Principal Funds, Individual
Annuities and Bank and Trust Services
Segment assets under management were a record $45.8 billion as of Dec.
31, 2010 (excluding approximately $6.9 billion of assets under
management in our asset management joint venture in China, which are not
included in reported assets under management), up $11.2 billion over
$34.6 billion as of Dec. 31, 2009. This includes a record $4.7 billion
of net cash flows over the trailing twelve months, or 14 percent of
beginning of period assets under management.
U.S. Insurance Solutions
Segment operating earnings for
fourth quarter 2010 were $52.3 million, compared to $56.0 million for
the same period in 2009. Specialty Benefits earnings were $30.2 million
in fourth quarter 2010, up from $25.5 million in the same period a year
ago, primarily due to favorable claims experience and improved
investment performance. Individual Life earnings were $22.1 million in
the fourth quarter, compared to $30.5 million in fourth quarter 2009,
primarily due to an increase in GAAP net reserves in Individual Life
following a periodic long-term interest rate assumption review.
Segment operating revenues for fourth quarter were flat compared to the
year ago quarter, with stronger retail insurance sales and continued
recovery in employer-sponsored benefit programs in the second half of
2010.
Corporate
Operating losses for fourth quarter 2010 were
$39.3 million compared to operating losses of $29.6 million in fourth
quarter 2009. The difference reflects a favorable settlement reserve
release in the year ago quarter and higher expenses in fourth quarter
2010.
Forward looking and cautionary statements
This press release
contains forward-looking statements, including, without limitation,
statements as to operating earnings, net income available to common
stockholders, net cash flows, realized and unrealized gains and losses,
capital and liquidity positions, sales and earnings trends, and
management's beliefs, expectations, goals and opinions. The company does
not undertake to update these statements, which are based on a number of
assumptions concerning future conditions that may ultimately prove to be
inaccurate. Future events and their effects on the company may not be
those anticipated, and actual results may differ materially from the
results anticipated in these forward-looking statements. The risks,
uncertainties and factors that could cause or contribute to such
material differences are discussed in the company's annual report on
Form 10-K for the year ended Dec. 31, 2009, and in the company's
quarterly report on Form 10-Q for the quarter ended Sept. 30, 2010,
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 that may significantly affect the company's
ability to meet liquidity needs, access to capital and cost of capital;
a continuation of difficult conditions in the global capital markets and
the general economy that may materially adversely affect the company's
business and results of operations; the actions of the U.S. government,
Federal Reserve and other governmental and regulatory bodies for
purposes of stabilizing the financial markets might not achieve the
intended effect; the risk from acquiring new businesses, which could
result in the impairment of goodwill and/or intangible assets recognized
at the time of acquisition; impairment of other financial institutions
that could adversely affect the company; investment risks which may
diminish the value of the company's invested assets and the investment
returns credited to customers, which could reduce sales, revenues,
assets under management and net income; requirements to post collateral
or make payments related to declines in market value of specified assets
may adversely affect company liquidity and expose the company to
counterparty credit risk; changes in laws, regulations or accounting
standards that may reduce company profitability; fluctuations in foreign
currency exchange rates that could reduce company profitability;
Principal Financial Group, Inc.'s primary reliance, as a holding
company, on dividends from its subsidiaries to meet debt payment
obligations and regulatory restrictions on the ability of subsidiaries
to pay such dividends; competitive factors; volatility of financial
markets; decrease in ratings; interest rate changes; inability to
attract and retain sales representatives; international business risks;
a pandemic, terrorist attack or other catastrophic event; and default of
the company's re-insurers.
Use of Non-GAAP Financial Measures
The company uses a number
of non-GAAP financial measures that management believes are useful to
investors because they illustrate the performance of normal, ongoing
operations, which is important in understanding and evaluating the
company's financial condition and results of operations. They are not,
however, a substitute for U.S. GAAP financial measures. Therefore, the
company has provided reconciliations of the non-GAAP measures to the
most directly comparable U.S. GAAP measure at the end of the release.
The company adjusts U.S. GAAP measures for items not directly related to
ongoing operations. However, it is possible these adjusting items
have occurred in the past and could recur in the future reporting
periods. Management also uses non-GAAP measures for goal setting, as a
basis for determining employee and senior management awards and
compensation, and evaluating performance on a basis comparable to that
used by investors and securities analysts.
Earnings Conference Call
On Tuesday, Feb. 8, 2011 at 10:00
a.m. (ET), Chairman, President and Chief Executive Officer Larry
Zimpleman and Senior Vice President and Chief Financial Officer Terry
Lillis will lead a discussion of results, asset quality and capital
adequacy during a live conference call, which can be accessed as follows:
-
Via live Internet webcast. Please go to www.principal.com/investor
at least 10-15 minutes prior to the start of the call to register, and
to download and install any necessary audio software.
-
Via telephone by dialing 800-374-1609 (U.S. and Canadian callers) or
706-643-7701 (International callers) approximately 10 minutes prior to
the start of the call. The access code is 34798317.
-
Replay of the earnings call via telephone is available by dialing
800-642-1687 (U.S. and Canadian callers) or 706-645-9291
(International callers). The access code is 34798317. This replay will
be available approximately two hours after the completion of the live
earnings call through the end of day Feb. 15, 2011.
-
Replay of the earnings call via webcast as well as a transcript of the
call will be available after the call at: www.principal.com/investor.
The company's financial supplement and additional investment portfolio
detail for fourth quarter 2010 is currently available at www.principal.com/investor,
and may be referred to during the call.
About the Principal Financial Group
The Principal Financial
Group (The Principal )5 is a leader
in offering businesses, individuals and institutional clients a wide
range of financial products and services, including retirement and
investment services, insurance, and banking through its diverse family
of financial services companies. A member of the Fortune 500, the
Principal Financial Group has $318.8 billion in assets under management6
and serves some 19.1 million customers worldwide from offices in
Asia, Australia, Europe, Latin America and the United States. Principal
Financial Group, Inc. is traded on the New York Stock Exchange under the
ticker symbol PFG. For more information, visit www.principal.com.
5 "The Principal Financial Group" and "The
Principal" are registered service marks of Principal Financial Services,
Inc., a member of the Principal Financial Group.
6 As of
Dec. 31, 2010
|
|
|
|
|
|
Summary of Segment and Principal Financial Group, Inc.
Results
|
|
Segment
|
|
|
|
|
|
|
Operating Earnings (Loss)*
in millions
|
|
|
|
Three Months Ended,
|
|
|
Twelve Months Ended,
|
|
|
|
12/31/10
|
|
12/31/09
|
|
|
12/31/10
|
|
12/31/09
|
|
Retirement and Investor Services
|
|
|
$
|
151.0
|
|
|
$
|
125.3
|
|
|
|
$
|
584.4
|
|
|
$
|
510.4
|
|
|
Principal Global Investors
|
|
|
|
19.2
|
|
|
|
12.7
|
|
|
|
|
58.5
|
|
|
|
38.2
|
|
|
Principal International
|
|
|
|
30.9
|
|
|
|
39.5
|
|
|
|
|
136.9
|
|
|
|
118.9
|
|
|
U.S. Insurance Solutions
|
|
|
|
52.3
|
|
|
|
56.0
|
|
|
|
|
193.7
|
|
|
|
204.1
|
|
|
Corporate
|
|
|
|
(39.3
|
)
|
|
|
(29.6
|
)
|
|
|
|
(128.7
|
)
|
|
|
(138.3
|
)
|
|
Operating Earnings
|
|
|
$
|
214.1
|
|
|
$
|
203.9
|
|
|
|
$
|
844.8
|
|
|
$
|
733.3
|
|
|
Net realized capital losses, as adjusted
|
|
|
|
(37.3
|
)
|
|
|
(58.8
|
)
|
|
|
|
(194.2
|
)
|
|
|
(213.4
|
)
|
|
Other after-tax adjustments
|
|
|
|
22.5
|
|
|
|
(3.2
|
)
|
|
|
|
15.7
|
|
|
|
69.8
|
|
|
Net income available to common stockholders
|
|
|
$
|
199.3
|
|
|
$
|
141.9
|
|
|
|
$
|
666.3
|
|
|
$
|
589.7
|
|
|
|
|
|
|
|
|
|
|
Per Diluted Share
|
|
|
|
Three Months Ended,
|
|
|
Twelve Months Ended,
|
|
|
|
12/31/10
|
|
12/31/09
|
|
|
12/31/10
|
|
12/31/09
|
|
Operating Earnings
|
|
|
$
|
0.66
|
|
|
$
|
0.63
|
|
|
|
$
|
2.62
|
|
|
$
|
2.45
|
|
|
Net realized capital losses, as adjusted
|
|
|
|
(0.11
|
)
|
|
|
(0.18
|
)
|
|
|
|
(0.61
|
)
|
|
|
(0.72
|
)
|
|
Other after-tax adjustments
|
|
|
|
0.07
|
|
|
|
(0.01
|
)
|
|
|
|
0.05
|
|
|
|
0.24
|
|
|
Net income available to common stockholders
|
|
|
$
|
0.62
|
|
|
$
|
0.44
|
|
|
|
$
|
2.06
|
|
|
$
|
1.97
|
|
|
Weighted-average diluted common shares outstanding
|
|
|
|
324.0
|
|
|
|
321.9
|
|
|
|
|
323.0
|
|
|
|
298.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*Operating earnings versus U.S. GAAP (GAAP) net income available to
common stockholders
Management uses operating earnings, which
excludes the effect of net realized capital gains and losses, as
adjusted, and other after-tax adjustments, for goal setting, as a basis
for determining employee compensation, and evaluating performance on a
basis comparable to that used by investors and securities analysts.
Segment operating earnings are determined by adjusting U.S. GAAP net
income available to common stockholders for net realized capital gains
and losses, as adjusted, and other after-tax adjustments the company
believes are not indicative of overall operating trends. Note: it is
possible these adjusting items have occurred in the past and could recur
in future reporting periods. While these items may be significant
components in understanding and assessing our consolidated financial
performance, management believes the presentation of segment operating
earnings enhances the understanding of results of operations by
highlighting earnings attributable to the normal, ongoing operations of
the company's businesses.
|
|
|
Principal Financial Group, Inc.
|
|
Results of Operations
|
|
(in millions)
|
|
|
|
|
|
|
Three Months Ended,
|
|
|
Twelve Months Ended,
|
|
|
|
|
12/31/10
|
|
12/31/09
|
|
|
12/31/10
|
|
12/31/09
|
|
Premiums and other considerations
|
|
|
$
|
627.0
|
|
|
$
|
576.1
|
|
|
|
$
|
2,281.0
|
|
|
$
|
2,270.1
|
|
|
Fees and other revenues
|
|
|
|
582.4
|
|
|
|
532.8
|
|
|
|
|
2,191.2
|
|
|
|
1,995.4
|
|
|
Net investment income
|
|
|
|
897.1
|
|
|
|
874.7
|
|
|
|
|
3,569.7
|
|
|
|
3,446.7
|
|
|
Total operating revenues
|
|
|
|
2,106.5
|
|
|
|
1,983.6
|
|
|
|
|
8,041.9
|
|
|
|
7,712.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefits, claims and settlement expenses
|
|
|
|
1,135.4
|
|
|
|
1,074.7
|
|
|
|
|
4,329.9
|
|
|
|
4,182.0
|
|
|
Dividends to policyholders
|
|
|
|
55.2
|
|
|
|
53.9
|
|
|
|
|
219.9
|
|
|
|
242.2
|
|
|
Commissions
|
|
|
|
143.5
|
|
|
|
132.4
|
|
|
|
|
559.8
|
|
|
|
521.8
|
|
|
Capitalization of DPAC
|
|
|
|
(128.8
|
)
|
|
|
(121.4
|
)
|
|
|
|
(496.3
|
)
|
|
|
(482.4
|
)
|
|
Amortization of DPAC
|
|
|
|
56.3
|
|
|
|
65.7
|
|
|
|
|
199.0
|
|
|
|
223.7
|
|
|
Depreciation and amortization
|
|
|
|
20.8
|
|
|
|
23.4
|
|
|
|
|
72.3
|
|
|
|
94.5
|
|
|
Interest expense on corporate debt
|
|
|
|
30.5
|
|
|
|
29.5
|
|
|
|
|
120.1
|
|
|
|
114.8
|
|
|
Compensation and other
|
|
|
|
506.5
|
|
|
|
462.7
|
|
|
|
|
1,919.2
|
|
|
|
1,852.8
|
|
|
Total expenses
|
|
|
|
1,819.4
|
|
|
|
1,720.9
|
|
|
|
|
6,923.9
|
|
|
|
6,749.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating earnings before tax, noncontrolling
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
interest and preferred stock dividends
|
|
|
|
287.1
|
|
|
|
262.7
|
|
|
|
|
1,118.0
|
|
|
|
962.8
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
|
|
|
|
61.7
|
|
|
|
48.9
|
|
|
|
|
233.9
|
|
|
|
192.1
|
|
|
Operating earnings attributable to noncontrolling interest
|
|
|
|
3.0
|
|
|
|
1.6
|
|
|
|
|
6.3
|
|
|
|
4.4
|
|
|
Preferred stock dividends
|
|
|
|
8.3
|
|
|
|
8.3
|
|
|
|
|
33.0
|
|
|
|
33.0
|
|
|
Operating earnings
|
|
|
$
|
214.1
|
|
|
$
|
203.9
|
|
|
|
$
|
844.8
|
|
|
$
|
733.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net realized capital losses, as adjusted
|
|
|
|
(37.3
|
)
|
|
|
(58.8
|
)
|
|
|
|
(194.2
|
)
|
|
|
(213.4
|
)
|
|
Other after-tax adjustments
|
|
|
|
22.5
|
|
|
|
(3.2
|
)
|
|
|
|
15.7
|
|
|
|
69.8
|
|
|
Net income available to common stockholders
|
|
|
$
|
199.3
|
|
|
$
|
141.9
|
|
|
|
$
|
666.3
|
|
|
$
|
589.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Balance Sheet Statistics
|
|
|
|
|
|
|
|
|
|
Period Ended,
|
|
|
|
12/31/10
|
|
|
12/31/09
|
|
|
12/31/08
|
|
Total assets (in billions)
|
|
|
$
|
|
145.6
|
|
|
$
|
|
137.8
|
|
|
$
|
|
128.2
|
|
Total common equity (in millions)
|
|
|
$
|
|
9,185.8
|
|
|
$
|
|
7,351.5
|
|
|
$
|
|
1,930.8
|
|
Total common equity excluding accumulated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
other comprehensive income (in millions)
|
|
|
$
|
|
8,913.4
|
|
|
$
|
|
8,393.5
|
|
|
$
|
|
6,842.4
|
|
End of period common shares outstanding (in
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
millions)
|
|
|
|
|
320.4
|
|
|
|
|
319.0
|
|
|
|
|
259.3
|
|
Book value per common share
|
|
|
$
|
|
28.67
|
|
|
$
|
|
23.05
|
|
|
$
|
|
7.45
|
|
Book value per common share excluding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
accumulated other comprehensive income
|
|
|
$
|
|
27.82
|
|
|
$
|
|
26.31
|
|
|
$
|
|
26.39
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal Financial Group, Inc.
|
|
Reconciliation of Non-GAAP Financial Measures to U.S. GAAP
|
|
(in millions, except as indicated)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended,
|
|
|
Twelve Months Ended,
|
|
|
|
|
12/31/10
|
|
12/31/09
|
|
|
12/31/10
|
|
12/31/09
|
|
Diluted Earnings Per Common Share:
|
|
|
|
|
|
|
|
|
|
|
|
Operating Earnings
|
|
|
0.66
|
|
|
0.63
|
|
|
|
2.62
|
|
|
2.45
|
|
|
Net realized capital losses
|
|
|
(0.11
|
)
|
|
(0.18
|
)
|
|
|
(0.61
|
)
|
|
(0.72
|
)
|
|
Other after-tax adjustments
|
|
|
0.07
|
|
|
(0.01
|
)
|
|
|
0.05
|
|
|
0.24
|
|
|
Net income available to common stockholders
|
|
|
0.62
|
|
|
0.44
|
|
|
|
2.06
|
|
|
1.97
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book Value Per Common Share Excluding Accumulated Other
Comprehensive Income:
|
|
|
|
|
|
|
|
|
|
|
|
Book value per common share excluding accumulated other
comprehensive income
|
|
|
27.82
|
|
|
26.31
|
|
|
|
27.82
|
|
|
26.31
|
|
|
Net unrealized capital gains (losses)
|
|
|
1.35
|
|
|
(2.00
|
)
|
|
|
1.35
|
|
|
(2.00
|
)
|
|
Foreign currency translation
|
|
|
0.09
|
|
|
(0.02
|
)
|
|
|
0.09
|
|
|
(0.02
|
)
|
|
Net unrecognized postretirement benefit obligations
|
|
|
(0.59
|
)
|
|
(1.24
|
)
|
|
|
(0.59
|
)
|
|
(1.24
|
)
|
|
Book value per common share including accumulated other
comprehensive income
|
|
|
28.67
|
|
|
23.05
|
|
|
|
28.67
|
|
|
23.05
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
RIS
|
|
|
1,093.4
|
|
|
1,017.1
|
|
|
|
4,124.4
|
|
|
4,041.5
|
|
|
PGI
|
|
|
135.3
|
|
|
120.4
|
|
|
|
481.4
|
|
|
439.4
|
|
|
PI
|
|
|
210.5
|
|
|
180.3
|
|
|
|
779.9
|
|
|
562.1
|
|
|
USIS
|
|
|
705.0
|
|
|
706.0
|
|
|
|
2,775.1
|
|
|
2,812.6
|
|
|
Corporate
|
|
|
(37.7
|
)
|
|
(40.2
|
)
|
|
|
(118.9
|
)
|
|
(143.4
|
)
|
|
Total operating revenues
|
|
|
2,106.5
|
|
|
1,983.6
|
|
|
|
8,041.9
|
|
|
7,712.2
|
|
|
Net realized capital losses and related adjustments
|
|
|
(86.9
|
)
|
|
(136.6
|
)
|
|
|
(286.4
|
)
|
|
(473.2
|
)
|
|
Exited businesses
|
|
|
352.9
|
|
|
385.4
|
|
|
|
1,403.1
|
|
|
1,610.1
|
|
|
Total GAAP revenues
|
|
|
2,372.5
|
|
|
2,232.4
|
|
|
|
9,158.6
|
|
|
8,849.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Earnings:
|
|
|
|
|
|
|
|
|
|
|
|
RIS
|
|
|
151.0
|
|
|
125.3
|
|
|
|
584.4
|
|
|
510.4
|
|
|
PGI
|
|
|
19.2
|
|
|
12.7
|
|
|
|
58.5
|
|
|
38.2
|
|
|
PI
|
|
|
30.9
|
|
|
39.5
|
|
|
|
136.9
|
|
|
118.9
|
|
|
USIS
|
|
|
52.3
|
|
|
56.0
|
|
|
|
193.7
|
|
|
204.1
|
|
|
Corporate
|
|
|
(39.3
|
)
|
|
(29.6
|
)
|
|
|
(128.7
|
)
|
|
(138.3
|
)
|
|
Total operating earnings
|
|
|
214.1
|
|
|
203.9
|
|
|
|
844.8
|
|
|
733.3
|
|
|
Net realized capital losses
|
|
|
(37.3
|
)
|
|
(58.8
|
)
|
|
|
(194.2
|
)
|
|
(213.4
|
)
|
|
Other after-tax adjustments
|
|
|
22.5
|
|
|
(3.2
|
)
|
|
|
15.7
|
|
|
69.8
|
|
|
Net income available to common stockholders
|
|
|
199.3
|
|
|
141.9
|
|
|
|
666.3
|
|
|
589.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Realized Capital Gains (losses):
|
|
|
|
|
|
|
|
|
|
|
|
Net realized capital losses, as adjusted
|
|
|
(37.3
|
)
|
|
(58.8
|
)
|
|
|
(194.2
|
)
|
|
(213.4
|
)
|
|
Periodic settlements and accruals on non-hedge derivatives
|
|
|
20.2
|
|
|
21.1
|
|
|
|
90.0
|
|
|
69.0
|
|
|
Amortization of DPAC and sale inducement costs
|
|
|
(46.1
|
)
|
|
(50.1
|
)
|
|
|
25.2
|
|
|
(156.4
|
)
|
|
Certain market value adjustments of embedded derivatives
|
|
|
(0.5
|
)
|
|
(3.0
|
)
|
|
|
(7.2
|
)
|
|
(11.8
|
)
|
|
Capital gains distributed
|
|
|
9.8
|
|
|
5.4
|
|
|
|
12.0
|
|
|
19.8
|
|
|
Tax impacts
|
|
|
(19.7
|
)
|
|
(32.6
|
)
|
|
|
(130.8
|
)
|
|
(129.5
|
)
|
|
Noncontrolling interest capital gains (losses)
|
|
|
7.5
|
|
|
3.1
|
|
|
|
11.6
|
|
|
18.6
|
|
|
Recognition of front-end fee revenues
|
|
|
6.7
|
|
|
2.3
|
|
|
|
1.5
|
|
|
4.4
|
|
|
Capital gains (losses) associated with exited medical business
|
|
|
(0.6
|
)
|
|
(0.6
|
)
|
|
|
(3.0
|
)
|
|
(0.5
|
)
|
|
Certain market value adjustments to fee revenues
|
|
|
1.1
|
|
|
-
|
|
|
|
3.4
|
|
|
1.5
|
|
|
GAAP net realized capital losses
|
|
|
(58.9
|
)
|
|
(113.2
|
)
|
|
|
(191.5
|
)
|
|
(398.3
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other After Tax Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Earnings associated with exited businesses
|
|
|
22.5
|
|
|
(3.2
|
)
|
|
|
23.5
|
|
|
69.8
|
|
|
Tax impact of healthcare reform
|
|
|
-
|
|
|
-
|
|
|
|
(7.8
|
)
|
|
-
|
|
|
Total other after-tax adjustments
|
|
|
22.5
|
|
|
(3.2
|
)
|
|
|
15.7
|
|
|
69.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal Financial Group, Inc.
Media contact:
Susan
Houser, 515-248-2268
houser.susan@principal.com
or
Investor
contact:
John Egan, 515-235-9500
egan.john@principal.com
Copyright © 2012, Business Wire, Inc., All rights reserved.
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