<HTML>
<HEAD>
   <TITLE>firstqtrer10.htm - Generated by SEC Publisher for SEC Filing</TITLE>
</HEAD>

<BODY bgcolor="#ffffff">
 <!--$$/page=-->
<A name="page_1"></A><BR>
<TABLE cellSpacing=0 cellPadding=0 width="85%" border=0>
<TR>
     <TD width="99%"></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=center><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=5>SECURITIES AND EXCHANGE COMMISSION</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=center><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Washington, D.C. 20549</FONT></B></TD></TR>
<TR>
     <TD align=center>_________________________</TD></TR>
<TR>
     <TD>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=center><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=5>FORM 8-K</FONT></B></TD></TR>
<TR height=20>
     <TD align=center></TD></TR>
<TR vAlign=bottom>
     <TD align=center><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">CURRENT REPORT</FONT></B></TD></TR>
<TR>
     <TD>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=center><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Pursuant to Section 13 or 15(d) of the</FONT></B></TD></TR>
<TR vAlign=bottom>
     <TD align=center><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Securities Exchange Act of 1934</FONT></B></TD></TR>
<TR height=20>
     <TD align=center></TD></TR>
<TR vAlign=bottom>
     <TD align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Date of Report: </FONT><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">May 3, 2010</FONT></B></TD></TR>
<TR vAlign=bottom>
     <TD align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(Date of earliest event reported)</FONT></TD></TR>
<TR>
     <TD>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=center><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=5>PRINCIPAL FINANCIAL GROUP, INC.</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(Exact name of registrant as specified in its charter)</FONT></TD></TR></TABLE><BR>
<TABLE cellSpacing=0 cellPadding=0 width="85%" border=0>
<TR>
     <TD width="18%"></TD>
     <TD width="32%"></TD>
     <TD width="50%"></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Delaware</FONT></B>&nbsp;</TD>
     <TD noWrap align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>1-16725</FONT></B>&nbsp;</TD>
     <TD noWrap align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 42-1520346</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (State or other jurisdiction</FONT>&nbsp;</TD>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Commission file number)</FONT>&nbsp;</TD>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I.R.S. Employer</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; of incorporation)</FONT>&nbsp;</TD>
     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Identification Number)</FONT>&nbsp;</TD></TR></TABLE><BR>
<TABLE cellSpacing=0 cellPadding=0 width="85%" border=0>
<TR>
     <TD width="5%"></TD>
     <TD width="94%"></TD></TR>
<TR vAlign=bottom>
     <TD align=center colSpan=2><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>711 High Street, Des Moines, Iowa 50392</FONT></B></TD></TR>
<TR vAlign=bottom>
     <TD align=center colSpan=2><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(Address of principal executive offices)</FONT></TD></TR>
<TR>
     <TD colSpan=2>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=center colSpan=2><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>(515) 247-5111</FONT></B></TD></TR>
<TR vAlign=bottom>
     <TD align=center colSpan=2><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(Registrant&#146;s telephone number, including area code)</FONT></TD></TR>
<TR>
     <TD colSpan=2>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=2><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=2><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>registrant under any of the following provisions:</FONT>&nbsp;</TD></TR>
<TR>
     <TD colSpan=2>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>&nbsp; [&nbsp;&nbsp;&nbsp; ]</FONT>&nbsp;</TD>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>&nbsp; [&nbsp;&nbsp; &nbsp;]</FONT>&nbsp;</TD>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>&nbsp; [&nbsp;&nbsp; &nbsp;]</FONT>&nbsp;</TD>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>240.14d-2(b))</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>&nbsp; [&nbsp;&nbsp; &nbsp;]</FONT>&nbsp;</TD>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>240.13e-4(c))</FONT>&nbsp;</TD></TR>
<TR height=20>
     <TD noWrap align=left></TD>
     <TD noWrap align=center>_________________________</TD></TR></TABLE><BR>
<HR align=center width="100%" noShade SIZE=2>
<!--$$/page=-->
<A name="page_2"></A><BR>
<TABLE cellSpacing=0 cellPadding=0 width="85%" border=0>
<TR>
     <TD width="100%"></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Page 2</FONT>&nbsp;</TD></TR>
<TR height=20>
     <TD noWrap align=left></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Item 2.02. Results of Operations and Financial Condition</FONT></B>&nbsp;</TD></TR>
<TR height=20>
     <TD noWrap align=left></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">On May 3, 2010, Principal Financial Group, Inc. publicly announced information regarding its</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">results of operations and financial condition for the quarter ended March 31, 2010. The text of the</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">announcement is included herewith as Exhibit 99.</FONT>&nbsp;</TD></TR>
<TR height=20>
     <TD noWrap align=left></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Item 9.01 Financial Statements and Exhibits</FONT></B>&nbsp;</TD></TR>
<TR height=20>
     <TD noWrap align=left></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">99&nbsp;&nbsp;&nbsp;&nbsp;First Quarter 2010 Earnings Release</FONT>&nbsp;</TD></TR>
<TR height=20>
     <TD align=center></TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SIGNATURE</FONT></TD></TR>
<TR height=20>
     <TD noWrap align=left></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">caused this report to be signed on its behalf by the undersigned thereunto duly authorized.</FONT>&nbsp;</TD></TR>
<TR>
     <TD>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">PRINCIPAL FINANCIAL GROUP, INC.</FONT>&nbsp;</TD></TR>
<TR height=20>
     <TD></TD></TR>
<TR>
     <TD>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New &#13;&#10;Roman,Times,serif">By:</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; _<U>/s/ Terrance J. Lillis&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </U></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Name:&nbsp;Terrance J. Lillis</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Title:&nbsp;&nbsp;&nbsp; Senior Vice President and Chief Financial</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Officer</FONT>&nbsp;</TD></TR>
<TR height=20>
     <TD noWrap align=left></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Date: May 3, 2010</FONT>&nbsp;</TD></TR></TABLE><BR>
<HR align=center width="100%" noShade SIZE=2>
<!--$$/page=-->
<A name="page_3"></A><BR>
<TABLE cellSpacing=0 cellPadding=0 width="85%" border=0>
<TR>
     <TD width="13%"></TD>
     <TD width="28%"></TD>
     <TD width="58%"></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Page 3</FONT>&nbsp;</TD>
     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left>&nbsp;</TD></TR>
<TR>
     <TD colSpan=3>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>EXHIBIT 99</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><B><I><FONT face="TimesNewRomanPS-BoldItalicMT,Times New Roman,Times,serif" size=2>RELEASE:</FONT></I></B>&nbsp;</TD>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>On receipt</FONT>&nbsp;</TD>
     <TD noWrap align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=3><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>MEDIA CONTACT:</FONT></B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Susan Houser, 515-248-2268, houser.susan@principal.com</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=3><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>INVESTOR RELATIONS CONTACT:</FONT></B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>John Egan, 515-235-9500, investor-relations@principal.com</FONT>&nbsp;</TD></TR>
<TR>
     <TD colSpan=3>&nbsp;</TD></TR>
<TR>
     <TD colSpan=3>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>PRINCIPAL FINANCIAL GROUP, INC. REPORTS FIRST QUARTER 2010 RESULTS</FONT></I></B>&nbsp;</TD></TR></TABLE><BR>
<TABLE cellSpacing=0 cellPadding=0 width="85%" border=0>
<TR>
     <TD width="99%"></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Des Moines, IA (May 3, 2010) &#150; Principal Financial Group, Inc. (NYSE: PFG) today announced</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>results for first quarter 2010. The company reported net income available to common stockholders of</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$190.8 million, or $0.59 per diluted share for the three months ended March 31, 2010, compared to $112.8</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>million, or $0.43 per diluted share for the three months ended March 31, 2009. The company reported</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>operating earnings of $255.6 million for first quarter 2010, compared to $164.0 million for first quarter</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>2009. Operating earnings per diluted share (EPS) for first quarter 2010 were $0.79 compared to $0.63 for</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>the same period in 2009. Operating revenues for first quarter 2010 were $2,333.8 million compared to</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$2,261.2 million for the same period last year.</FONT><SUP><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>1 </FONT></SUP><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Assets under management (AUM) were $293.4 billion as</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>of March 31, 2010 compared to $236.6 billion as of March 31, 2009.</FONT>&nbsp;</TD></TR>
<TR height=20>
     <TD noWrap align=center></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &#147;First quarter was a very solid start to the year, as we continue to position the company for</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>sustainable, profitable growth as the recovery builds over time,&#148; said Larry D. Zimpleman, chairman,</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>president and chief executive officer. &#147;We delivered significant improvement in operating earnings, EPS, net</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>income, AUM and book value per share, reflecting improved credit and equity market conditions, and our</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>ongoing discipline around expenses and the investment portfolio.&#148;</FONT>&nbsp;</TD></TR></TABLE><BR>
<TABLE cellSpacing=0 cellPadding=0 width="60%" border=0>
<TR vAlign=bottom>
     <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid" noWrap align=left width="25%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Measure</FONT>&nbsp;</TD>
     <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid" noWrap align=center width="38%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Change from first quarter 2009</FONT>&nbsp;</TD>
     <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid" noWrap align=center width="36%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Change from fourth quarter 2009</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left>&nbsp;</TD>
     <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>to first quarter 2010</FONT>&nbsp;</TD>
     <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>to first quarter 2010</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Operating Earnings</FONT>&nbsp;</TD>
     <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>+56%</FONT>&nbsp;</TD>
     <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>+27%</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>EPS</FONT>&nbsp;</TD>
     <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>+25%</FONT>&nbsp;</TD>
     <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>+27%</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Net Income</FONT>&nbsp;</TD>
     <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>+69%</FONT>&nbsp;</TD>
     <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>+34%</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>AUM</FONT>&nbsp;</TD>
     <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>+24%</FONT>&nbsp;</TD>
     <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>+3%</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Book value per share</FONT><SUP><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>2</FONT></SUP>&nbsp;</TD>
     <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>+212%</FONT>&nbsp;</TD>
     <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>+9%</FONT>&nbsp;</TD></TR></TABLE><BR>
<TABLE cellSpacing=0 cellPadding=0 width="85%" border=0>
<TR>
     <TD width="100%"></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &#147;We see clear signs the economy is starting to recover,&#148; said Zimpleman. &#147;As this has occurred, our</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>three largest U.S. accumulation businesses</FONT><SUP><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>3 </FONT></SUP><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>have delivered meaningful sequential improvement in sales, with</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$4.3 billion in total for the first quarter, generating more than $900 million of positive net cash flows. While</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>we see improving trends, small and medium businesses continue to proceed with caution, and our sales</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>remain below 2007 levels. Job losses have slowed, but small business confidence levels are still low</FONT><SUP><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>4 </FONT></SUP><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>and</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>we&#146;ve yet to see consistent signs of employment growth in the small business segment, which is critical to</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>driving growth in the U.S. economy.&#148;</FONT>&nbsp;</TD></TR>
<TR>
     <TD>____________________&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><SUP><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>1 </FONT></SUP><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Use of non-GAAP financial measures is discussed in this release after Segment Highlights.</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><SUP><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>2 </FONT></SUP><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>GAAP book value, including accumulated other comprehensive income</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><SUP><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>3 </FONT></SUP><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Full Service Accumulation, Principal Funds and Individual Annuities</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><SUP><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>4 </FONT></SUP><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>National Federation of Independent Business' Small Business Optimism Index dropped 1.2 points to 86.8 in March, with</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>only one of its ten components showing improvement.</FONT>&nbsp;</TD></TR></TABLE><BR>
<HR align=center width="100%" noShade SIZE=2>
<!--$$/page=-->
<A name="page_4"></A><BR>
<TABLE cellSpacing=0 cellPadding=0 width="85%" border=0>
<TR>
     <TD width="100%"></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Page 4</FONT>&nbsp;</TD></TR>
<TR>
     <TD>&nbsp;</TD></TR>
<TR>
     <TD>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Added Terry Lillis, senior vice president and chief financial officer, &#147;In our customer base of small</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>and medium businesses, we continue to see a number of positive trends, with membership declines slowing</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>and employers beginning to restore 401(k) matching contributions. We&#146;re also seeing sales pipelines build.</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>And we continue to demonstrate industry leadership; in our investment offerings, and by launching services</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>such as RetireView</FONT><SUP><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>SM </FONT></SUP><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>, our new asset allocation program for retirement plans. As more normal employment</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>and economic conditions return, we remain well-positioned for improved long-term growth and</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>profitability.&#148;</FONT>&nbsp;</TD></TR></TABLE><BR>
<TABLE cellSpacing=0 cellPadding=0 width="85%" border=0>
<TR>
     <TD width="2%"></TD>
     <TD width="97%"></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=2><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>2010 Awards and Recognition</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="SymbolMT,Times New Roman,Times,serif" size=4>&#183;</FONT>&nbsp;</TD>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>The Principal was recognized by the Ethisphere Institute as one of the World&#146;s Most Ethical Companies,</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>one of only three financial services companies included in the 2010 list.</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="SymbolMT,Times New Roman,Times,serif" size=4>&#183;</FONT>&nbsp;</TD>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Principal Funds received two Lipper Fund Awards for consistent multi-year performance; and four</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>LifeTime Funds were recognized by Barron&#146;s for top performance in their category.</FONT><SUP><FONT face="TimesNewRomanPSMT,Times New &#13;&#10;Roman,Times,serif" size=2>5</FONT></SUP>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="SymbolMT,Times New Roman,Times,serif" size=4>&#183;</FONT>&nbsp;</TD>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>For the eighth consecutive year, The Principal was named a top 50 company by the National Association</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>of Female Executives.</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="SymbolMT,Times New Roman,Times,serif" size=4>&#183;</FONT>&nbsp;</TD>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>BrasilPrev, the company&#146;s pension joint venture in Brazil, was recognized by </FONT><I><FONT face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif" size=2>Consumidor Moderno</FONT></I>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Magazine as the number one company in the pension segment for customer service.</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=2><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Additional Highlights</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="SymbolMT,Times New Roman,Times,serif" size=4>&#183;</FONT>&nbsp;</TD>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Operating return on average equity excluding accumulated other comprehensive income improved 90</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>basis points from year-end 2009 to 11.5 percent for the trailing twelve months ended March 31, 2010.</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="SymbolMT,Times New Roman,Times,serif" size=4>&#183;</FONT>&nbsp;</TD>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Strong sales of the company&#146;s three key U.S. retirement and investment products in the first quarter,</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>despite a difficult sales environment with $1.7 billion for Full Service Accumulation, $2.1 billion for</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Principal Funds and $0.5 billion for Individual Annuities.</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="SymbolMT,Times New Roman,Times,serif" size=4>&#183;</FONT>&nbsp;</TD>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Strong capital and liquidity, with: an estimated risk based capital ratio of 440 to 450 percent at quarter-end;</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>approximately $1.8 billion of excess capital;</FONT><SUP><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>6 </FONT></SUP><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>and $5.6 billion of liquid assets.</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=2><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Net Income</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=2><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Net income available to common stockholders of $190.8 million for first quarter 2010 includes $7.8 million</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=2><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>of losses related to other after-tax adjustments, reflecting the tax impact of healthcare reform legislation</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=2><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>enacted in first quarter 2010, and net realized capital losses of $57.0 million, which includes:</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="SymbolMT,Times New Roman,Times,serif" size=4>&#183;</FONT>&nbsp;</TD>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$54.1 million of losses related to sales and permanent impairments of fixed maturity securities including</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$36.9 million of losses on commercial mortgage backed securities; partially offset by $9.1 million of</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>gains related to sales of fixed maturity securities; and</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="SymbolMT,Times New Roman,Times,serif" size=4>&#183;</FONT>&nbsp;</TD>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$11.2 million of losses on commercial mortgage whole loans.</FONT>&nbsp;</TD></TR></TABLE><BR>
<TABLE cellSpacing=0 cellPadding=0 width="85%" border=0>
<TR>
     <TD width="100%"></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I><FONT face="TimesNewRomanPS-BoldItalicMT,Times New &#13;&#10;Roman,Times,serif" size=2>Segment Highlights</FONT></I></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>U.S. Asset Accumulation</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Segment operating earnings for first quarter 2010 were $157.0 million, compared to $93.1 million</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>for the same period in 2009, reflecting a 16 percent increase in average account values, and strong expense</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>management. Full service accumulation earnings increased $25.2 million from a year ago to $76.3 million</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>for first quarter 2010 primarily due to a 24 percent increase in average account values. Individual annuities</FONT>&nbsp;</TD></TR>
<TR>
     <TD>____________________&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><SUP><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>5 </FONT></SUP><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Barron&#146;s quarterly fund report, based on data from Lipper, top among peers based on first quarter 2010 performance.</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><SUP><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>6 </FONT></SUP><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Excess capital includes cash at the holding company and capital at the life company above that needed to maintain a 350 percent</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>NAIC risk based capital ratio for the life company.</FONT>&nbsp;</TD></TR></TABLE><BR>
<HR align=center width="100%" noShade SIZE=2>
<!--$$/page=-->
<A name="page_5"></A><BR>
<TABLE cellSpacing=0 cellPadding=0 width="85%" border=0>
<TR>
     <TD width="100%"></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Page 5</FONT>&nbsp;</TD></TR>
<TR>
     <TD>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>earnings increased $25.5 million from a year ago to $30.8 million for first quarter 2010. The increase</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>reflects: an 11 percent increase in average account values; and $16.5 million pre-tax of higher amortization</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>of deferred policy acquisitions costs (DPAC) in first quarter 2009, primarily the result of unfavorable equity</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>market performance in that period. Principal Funds earnings increased $8.4 million from a year ago to $10.2</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>million for first quarter 2010 primarily due to a 27 percent increase in average account values.</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Operating revenues for the first quarter were $1,012.7 million, compared to $1,007.5 million for</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>the same period in 2009. Fee revenues from the accumulation businesses, which increased $60.8 million, or</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>22 percent from the year ago quarter, were substantially offset by a $42.3 million decline in revenues from</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Investment Only (the institutional GIC and funding agreement business), which the company has been</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>scaling back over the last several quarters.</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Segment assets under management were $165.9 billion as of March 31, 2010, compared to $133.9</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>billion as of March 31, 2009.</FONT>&nbsp;</TD></TR>
<TR>
     <TD>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Global Asset Management</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Segment operating earnings for first quarter 2010 were $12.0 million, compared to $6.8 million in</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>the prior year quarter, primarily due to a 13 percent increase in average assets under management.</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Operating revenues for first quarter were $113.8 million, compared to $104.4 million for the same</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>period in 2009 reflecting higher management fees due to growth in assets under management.</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-affiliated assets under management were $74.9 billion as of March 31, 2010, compared to $64.8</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>billion as of March 31, 2009.</FONT>&nbsp;</TD></TR>
<TR>
     <TD>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>International Asset Management and Accumulation</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Segment operating earnings for first quarter 2010 were $37.9 million compared to $17.0 million</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>for the same period in 2009, reflecting higher fee revenues due to higher average assets under management</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>and improving macroeconomic conditions.</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Operating revenues were $181.1 million for first quarter, compared to $64.0 million for the same</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>period last year. The increase reflects: more favorable macroeconomic conditions, including higher yields on</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>inflation-linked investments in Chile and strengthening of Latin American currencies against the U.S. dollar; and</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>strong revenue growth on a local basis.</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Segment assets under management were a record $35.7 billion as of March 31, 2010, compared to</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$23.5 billion as of March 31, 2009. The increase includes $3.1 billion of net cash flows over the trailing</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>twelve months, or 13 percent of beginning of period AUM.</FONT>&nbsp;</TD></TR>
<TR>
     <TD>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Life and Health Insurance</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Segment operating earnings for first quarter 2010 were $69.8 million, compared to $71.8 million</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>for the same period in 2009. Individual Life earnings were a strong $30.5 million in first quarter 2010,</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>compared to $22.8 million in first quarter 2009. The increase primarily reflects growth in the block of business</FONT>&nbsp;</TD></TR></TABLE><BR>
<HR align=center width="100%" noShade SIZE=2>
<!--$$/page=-->
<A name="page_6"></A><BR>
<TABLE cellSpacing=0 cellPadding=0 width="85%" border=0>
<TR>
     <TD width="100%"></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Page 6</FONT>&nbsp;</TD></TR>
<TR>
     <TD>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>and ongoing expense management. Health division earnings were $25.7 million in first quarter 2010</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>compared to $31.9 million in first quarter 2009. The change primarily reflects a decline in insured medical</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>covered members from a year ago. Specialty Benefits earnings were $13.6 million in first quarter 2010</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>compared to $17.1 million in first quarter 2009, primarily due to unfavorable group disability claims</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>experience.</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Operating revenues for first quarter were $1,057.9 million, compared to $1,131.0 million for the</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>same period a year ago. The variance was primarily due to a 15 percent decrease in Health division</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>premiums, reflecting a decline in group medical covered members.</FONT>&nbsp;</TD></TR>
<TR>
     <TD>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Corporate</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Operating losses for first quarter 2010 were $21.1 million, compared to operating losses of $24.7</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>million for the same period in 2009.</FONT>&nbsp;</TD></TR></TABLE><BR>
<TABLE cellSpacing=0 cellPadding=0 width="85%" border=0>
<TR>
     <TD width="100%"></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Forward looking and cautionary statements</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>This press release contains forward-looking statements, including, without limitation, statements as to</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>operating earnings, net income available to common stockholders, net cash flows, realized and</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>unrealized losses, capital and liquidity positions, sales and earnings trends, and management's beliefs,</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>expectations, goals and opinions. The company does not undertake to update or revise these statements,</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>which are based on a number of assumptions concerning future conditions that may ultimately prove to</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>be inaccurate. Future events and their effects on the company may not be those anticipated, and actual</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>results may differ materially from the results anticipated in these forward-looking statements. The risks,</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>uncertainties and factors that could cause or contribute to such material differences are discussed in the</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>company's annual report on Form 10-K for the year ended December 31, 2009, filed by the company</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>with the Securities and Exchange Commission, as updated or supplemented from time to time in</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>subsequent filings. These risks and uncertainties include, without limitation: adverse capital and credit</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>market conditions that may significantly affect the company&#146;s ability to meet liquidity needs, access to</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>capital and cost of capital; a continuation of difficult conditions in the global capital markets and the</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>general economy that may materially adversely affect the company&#146;s business and results of operations;</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>the actions of the U.S. government, Federal Reserve and other governmental and regulatory bodies for</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>purposes of stabilizing the financial markets might not achieve the intended effect; the risk from</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>acquiring new businesses, which could result in the impairment of goodwill and/or intangible assets</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>recognized at the time of acquisition; impairment of other financial institutions that could adversely</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>affect the company; investment risks which may diminish the value of the company&#146;s invested assets</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>and the investment returns credited to customers, which could reduce sales, revenues, assets under</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>management and net income; requirements to post collateral or make payments related to declines in</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>market value of specified assets may adversely affect company liquidity and expose the company to</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>counterparty credit risk; changes in laws, regulations or accounting standards that may reduce company</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>profitability; fluctuations in foreign currency exchange rates that could reduce company profitability;</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Principal Financial Group, Inc.&#146;s primary reliance, as a holding company, on dividends from its</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>subsidiaries to meet debt payment obligations and regulatory restrictions on the ability of subsidiaries to</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>pay such dividends; competitive factors; volatility of financial markets; decrease in ratings; interest rate</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>changes; inability to attract and retain sales representatives; international business risks; a pandemic,</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>terrorist attack or other catastrophic event; and default of the company&#146;s reinsurers.</FONT>&nbsp;</TD></TR>
<TR>
     <TD>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Use of Non-GAAP Financial Measures</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>The company uses a number of non-GAAP financial measures that management believes are useful to</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>investors because they illustrate the performance of normal, ongoing operations, which is important in</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>understanding and evaluating the company&#146;s financial condition and results of operations. They are not,</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>however, a substitute for U.S. GAAP financial measures. Therefore, the company has provided</FONT>&nbsp;</TD></TR></TABLE><BR>
<HR align=center width="100%" noShade SIZE=2>
<!--$$/page=-->
<A name="page_7"></A><BR>
<TABLE cellSpacing=0 cellPadding=0 width="85%" border=0>
<TR>
     <TD width="7%"></TD>
     <TD width="92%"></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Page 7</FONT>&nbsp;</TD>
     <TD noWrap align=left>&nbsp;</TD></TR>
<TR>
     <TD colSpan=2>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=2><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>reconciliations of the non-GAAP measures to the most directly comparable U.S. GAAP measure at the end</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=2><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>of the release. The company adjusts U.S. GAAP measures for items not directly related to ongoing</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=2><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>operations. However, it is possible these adjusting items have occurred in the past and could recur in the</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=2><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>future reporting periods. Management also uses non-GAAP measures for goal setting, as a basis for</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=2><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>determining employee and senior management awards and compensation, and evaluating performance on a</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=2><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>basis comparable to that used by investors and securities analysts.</FONT>&nbsp;</TD></TR>
<TR>
     <TD colSpan=2>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=2><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Earnings Conference Call</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=2><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>On Tuesday, May 4, 2010 at 10:00 A.M. (ET), Chairman, President and Chief Executive Officer Larry</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=2><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Zimpleman and Senior Vice President and Chief Financial Officer Terry Lillis will lead a discussion of</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=2><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>results, asset quality and capital adequacy during a live conference call, which can be accessed as follows:</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=2><FONT face="SymbolMT,Times New Roman,Times,serif" size=2><FONT size=4>&#183;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Via live Internet webcast. Please go to </FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" color=#0000ff size=2><U>www.principal.com/investor</U> </FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>at least 10-15 minutes prior to the</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=2><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;start of the call to register, and to download and install any necessary audio software.</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=2><FONT face="SymbolMT,Times New Roman,Times,serif" size=2><FONT size=4>&#183;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Via telephone by dialing 800-374-1609 (U.S. and Canadian callers) or 706-643-7701 (International</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>callers) approximately 10 minutes prior to the start of the call. The access code is 66747663.</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=2><FONT face="SymbolMT,Times New Roman,Times,serif" size=2><FONT size=4>&#183;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Replays of the earnings call are available at: </FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" color=#0000ff size=2><U>www.principal.com/investor</U> </FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>or by dialing 800-642-1687</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=2><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (U.S. and Canadian callers) or 706-645-9291 (International callers). The access code is 66747663.</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=2><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Replays will be available approximately two hours after the completion of the live earnings call through</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>the end of day May 11, 2010.</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=2><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>The company's financial supplement and additional investment portfolio detail for first quarter 2010 is</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=2><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>currently available at </FONT><FONT face="TimesNewRomanPSMT,Times New &#13;&#10;Roman,Times,serif" color=#0000ff size=2><U>www.principal.com/investor</U></FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>, and may be referred to during the call.</FONT>&nbsp;</TD></TR></TABLE><BR>
<TABLE cellSpacing=0 cellPadding=0 width="85%" border=0>
<TR>
     <TD width="100%"></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>About the Principal Financial Group</FONT></B>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>The Principal Financial Group<SUP><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>&#174;</FONT></SUP></FONT><FONT face="SymbolMT,Times New Roman,Times,serif" size=1> </FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(The Principal </FONT><SUP><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>&#174; </FONT></SUP><FONT face="TimesNewRomanPSMT,Times New &#13;&#10;Roman,Times,serif" size=2>)</FONT><SUP><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>7 </FONT></SUP><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>is a leader in offering businesses, individuals and</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>institutional clients a wide range of financial products and services, including retirement and investment</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>services, life and health insurance, and banking through its diverse family of financial services companies. A</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>member of the Fortune 500, the Principal Financial Group has $293.4 billion in assets under management</FONT><SUP><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>8</FONT></SUP>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>and serves some 18.7 million customers worldwide from offices in Asia, Australia, Europe, Latin America</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>and the United States. Principal Financial Group, Inc. is traded on the New York Stock Exchange under the</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>ticker symbol PFG. For more information, visit </FONT><FONT face="TimesNewRomanPSMT,Times New &#13;&#10;Roman,Times,serif" color=#0000ff size=2><U>www.principal.com</U></FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>.</FONT>&nbsp;</TD></TR>
<TR>
     <TD>&nbsp;</TD></TR>
<TR>
     <TD>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ###</FONT>&nbsp;</TD></TR>
<TR>
     <TD>&nbsp;</TD></TR>
<TR>
     <TD>____________________&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><SUP><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=1>7 </FONT></SUP><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=1>"The Principal Financial Group" and &#147;The Principal&#148; are registered service marks of Principal Financial Services, Inc., a member of the</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=1>Principal Financial Group.</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><SUP><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=1>8 </FONT></SUP><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=1>As of March 31, 2010</FONT>&nbsp;</TD></TR></TABLE><BR>
<HR align=center width="100%" noShade SIZE=2>
<!--$$/page=-->
<A name="page_8"></A><BR>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=100%></TD></TR>
<TR valign="bottom">
     <TD align=left nowrap> <FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Page 8</FONT>&nbsp;</TD> </TR> </TABLE><BR>
<IMG src="firstqtrer10x8x1.jpg" border=0>
<BR>
<TABLE border=0 cellspacing=0>
<TR>
     <TD width=100%></TD></TR>
<TR valign="bottom">
     <TD align=left nowrap> <B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">*Operating earnings versus U.S. GAAP (GAAP) net income available to common stockholders</FONT></B>&nbsp;</TD> </TR>
<TR valign="bottom">
     <TD align=left nowrap> <FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">Management uses operating earnings, which excludes the effect of net realized capital gains and losses, as adjusted, and other after-</FONT>&nbsp;</TD> </TR>
<TR valign="bottom">
     <TD align=left nowrap> <FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">tax adjustments, for goal setting, as a basis for determining employee compensation, and evaluating performance on a basis</FONT>&nbsp;</TD> </TR>
<TR valign="bottom">
     <TD align=left nowrap> <FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">comparable to that used by investors and securities analysts. Segment operating earnings are determined by adjusting U.S. GAAP</FONT>&nbsp;</TD> </TR>
<TR valign="bottom">
     <TD align=left nowrap> <FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">net income available to common stockholders for net realized capital gains and losses, as adjusted, and other after-tax adjustments</FONT>&nbsp;</TD> </TR>
<TR valign="bottom">
     <TD align=left nowrap> <FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">the company believes are not indicative of overall operating trends. Note: it is possible these adjusting items have occurred in the</FONT>&nbsp;</TD> </TR>
<TR valign="bottom">
     <TD align=left nowrap> <FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">past and could recur in future reporting periods. While these items may be significant components in understanding and assessing</FONT>&nbsp;</TD> </TR>
<TR valign="bottom">
     <TD align=left nowrap> <FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">our consolidated financial performance, management believes the presentation of segment operating earnings enhances the</FONT>&nbsp;</TD> </TR>
<TR valign="bottom">
     <TD align=left nowrap> <FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">understanding of results of operations by highlighting earnings attributable to the normal, ongoing operations of the company&#146;s</FONT>&nbsp;</TD> </TR>
<TR valign="bottom">
     <TD align=left nowrap> <FONT size=2 face="TimesNewRomanPSMT,Times New Roman,Times,serif">businesses.</FONT>&nbsp;</TD> </TR> </TABLE><BR>
<HR noshade align="center" width="100%" size=2>
<!--$$/page=-->
<A name="page_9"></A><BR>
<IMG src="firstqtrer10x9x1.jpg" border=0>
<BR>
<HR noshade align="center" width="100%" size=2>
<!--$$/page=-->
<A name="page_10"></A><BR>
<IMG src="firstqtrer10x10x1.jpg" border=0>
<BR>
<HR noshade align="center" width="100%" size=2>
</BODY>

</HTML>
[{"type": "8-K", "sequence": "1", "filename": "firstqtrer10.htm", "description": "FIRSTQTRER", "secsgml_size_bytes": 75448}]
{"company-data": {"conformed-name": "PRINCIPAL FINANCIAL GROUP INC", "cik": "0001126328", "assigned-sic": "6321", "irs-number": "421520346", "state-of-incorporation": "DE", "fiscal-year-end": "0224"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-16725", "film-number": "10794315"}, "business-address": {"street1": "711 HIGH STREET", "city": "DES MOINES", "state": "IA", "zip": "50392-0300", "phone": "5152475111"}, "mail-address": {"street1": "711 HIGH STREET", "city": "DES MOINES", "state": "IA", "zip": "50392-0300"}}
firstqtrer10.htm - Generated by SEC Publisher for SEC Filing
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________________________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report:
May 3, 2010
(Date of earliest event reported)
PRINCIPAL FINANCIAL GROUP, INC.
(Exact name of registrant as specified in its charter)
Delaware
1-16725
42-1520346
(State or other jurisdiction
(Commission file number)
(I.R.S. Employer
of incorporation)
Identification Number)
711 High Street, Des Moines, Iowa 50392
(Address of principal executive offices)
(515) 247-5111
(Registrant's telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the
registrant under any of the following provisions:
[    ]
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[    ]
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[    ]
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
[    ]
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
_________________________
Page 2
Item 2.02. Results of Operations and Financial Condition
On May 3, 2010, Principal Financial Group, Inc. publicly announced information regarding its
results of operations and financial condition for the quarter ended March 31, 2010. The text of the
announcement is included herewith as Exhibit 99.
Item 9.01 Financial Statements and Exhibits
99    First Quarter 2010 Earnings Release
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
PRINCIPAL FINANCIAL GROUP, INC.
By:
_
/s/ Terrance J. Lillis
Name: Terrance J. Lillis
Title:    Senior Vice President and Chief Financial
Officer
Date: May 3, 2010
Page 3
EXHIBIT 99
RELEASE:
On receipt
MEDIA CONTACT:
Susan Houser, 515-248-2268, houser.susan@principal.com
INVESTOR RELATIONS CONTACT:
John Egan, 515-235-9500, investor-relations@principal.com
PRINCIPAL FINANCIAL GROUP, INC. REPORTS FIRST QUARTER 2010 RESULTS
Des Moines, IA (May 3, 2010) – Principal Financial Group, Inc. (NYSE: PFG) today announced
results for first quarter 2010. The company reported net income available to common stockholders of
$190.8 million, or $0.59 per diluted share for the three months ended March 31, 2010, compared to $112.8
million, or $0.43 per diluted share for the three months ended March 31, 2009. The company reported
operating earnings of $255.6 million for first quarter 2010, compared to $164.0 million for first quarter
2009. Operating earnings per diluted share (EPS) for first quarter 2010 were $0.79 compared to $0.63 for
the same period in 2009. Operating revenues for first quarter 2010 were $2,333.8 million compared to
$2,261.2 million for the same period last year.
1
Assets under management (AUM) were $293.4 billion as
of March 31, 2010 compared to $236.6 billion as of March 31, 2009.
"First quarter was a very solid start to the year, as we continue to position the company for
sustainable, profitable growth as the recovery builds over time," said Larry D. Zimpleman, chairman,
president and chief executive officer. "We delivered significant improvement in operating earnings, EPS, net
income, AUM and book value per share, reflecting improved credit and equity market conditions, and our
ongoing discipline around expenses and the investment portfolio."
Measure
Change from first quarter 2009
Change from fourth quarter 2009
to first quarter 2010
to first quarter 2010
Operating Earnings
+56%
+27%
EPS
+25%
+27%
Net Income
+69%
+34%
AUM
+24%
+3%
Book value per share
2
+212%
+9%
"We see clear signs the economy is starting to recover," said Zimpleman. "As this has occurred, our
three largest U.S. accumulation businesses
3
have delivered meaningful sequential improvement in sales, with
$4.3 billion in total for the first quarter, generating more than $900 million of positive net cash flows. While
we see improving trends, small and medium businesses continue to proceed with caution, and our sales
remain below 2007 levels. Job losses have slowed, but small business confidence levels are still low
4
and
we've yet to see consistent signs of employment growth in the small business segment, which is critical to
driving growth in the U.S. economy."
____________________
1
Use of non-GAAP financial measures is discussed in this release after Segment Highlights.
2
GAAP book value, including accumulated other comprehensive income
3
Full Service Accumulation, Principal Funds and Individual Annuities
4
National Federation of Independent Business' Small Business Optimism Index dropped 1.2 points to 86.8 in March, with
only one of its ten components showing improvement.
Page 4
Added Terry Lillis, senior vice president and chief financial officer, "In our customer base of small
and medium businesses, we continue to see a number of positive trends, with membership declines slowing
and employers beginning to restore 401(k) matching contributions. We're also seeing sales pipelines build.
And we continue to demonstrate industry leadership; in our investment offerings, and by launching services
such as RetireView
SM
, our new asset allocation program for retirement plans. As more normal employment
and economic conditions return, we remain well-positioned for improved long-term growth and
profitability."
2010 Awards and Recognition
·
The Principal was recognized by the Ethisphere Institute as one of the World's Most Ethical Companies,
one of only three financial services companies included in the 2010 list.
·
Principal Funds received two Lipper Fund Awards for consistent multi-year performance; and four
LifeTime Funds were recognized by Barron's for top performance in their category.
5
·
For the eighth consecutive year, The Principal was named a top 50 company by the National Association
of Female Executives.
·
BrasilPrev, the company's pension joint venture in Brazil, was recognized by
Consumidor Moderno
Magazine as the number one company in the pension segment for customer service.
Additional Highlights
·
Operating return on average equity excluding accumulated other comprehensive income improved 90
basis points from year-end 2009 to 11.5 percent for the trailing twelve months ended March 31, 2010.
·
Strong sales of the company's three key U.S. retirement and investment products in the first quarter,
despite a difficult sales environment with $1.7 billion for Full Service Accumulation, $2.1 billion for
Principal Funds and $0.5 billion for Individual Annuities.
·
Strong capital and liquidity, with: an estimated risk based capital ratio of 440 to 450 percent at quarter-end;
approximately $1.8 billion of excess capital;
6
and $5.6 billion of liquid assets.
Net Income
Net income available to common stockholders of $190.8 million for first quarter 2010 includes $7.8 million
of losses related to other after-tax adjustments, reflecting the tax impact of healthcare reform legislation
enacted in first quarter 2010, and net realized capital losses of $57.0 million, which includes:
·
$54.1 million of losses related to sales and permanent impairments of fixed maturity securities including
$36.9 million of losses on commercial mortgage backed securities; partially offset by $9.1 million of
gains related to sales of fixed maturity securities; and
·
$11.2 million of losses on commercial mortgage whole loans.
Segment Highlights
U.S. Asset Accumulation
Segment operating earnings for first quarter 2010 were $157.0 million, compared to $93.1 million
for the same period in 2009, reflecting a 16 percent increase in average account values, and strong expense
management. Full service accumulation earnings increased $25.2 million from a year ago to $76.3 million
for first quarter 2010 primarily due to a 24 percent increase in average account values. Individual annuities
____________________
5
Barron's quarterly fund report, based on data from Lipper, top among peers based on first quarter 2010 performance.
6
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.
Page 5
earnings increased $25.5 million from a year ago to $30.8 million for first quarter 2010. The increase
reflects: an 11 percent increase in average account values; and $16.5 million pre-tax of higher amortization
of deferred policy acquisitions costs (DPAC) in first quarter 2009, primarily the result of unfavorable equity
market performance in that period. Principal Funds earnings increased $8.4 million from a year ago to $10.2
million for first quarter 2010 primarily due to a 27 percent increase in average account values.
Operating revenues for the first quarter were $1,012.7 million, compared to $1,007.5 million for
the same period in 2009. Fee revenues from the accumulation businesses, which increased $60.8 million, or
22 percent from the year ago quarter, were substantially offset by a $42.3 million decline in revenues from
Investment Only (the institutional GIC and funding agreement business), which the company has been
scaling back over the last several quarters.
Segment assets under management were $165.9 billion as of March 31, 2010, compared to $133.9
billion as of March 31, 2009.
Global Asset Management
Segment operating earnings for first quarter 2010 were $12.0 million, compared to $6.8 million in
the prior year quarter, primarily due to a 13 percent increase in average assets under management.
Operating revenues for first quarter were $113.8 million, compared to $104.4 million for the same
period in 2009 reflecting higher management fees due to growth in assets under management.
Non-affiliated assets under management were $74.9 billion as of March 31, 2010, compared to $64.8
billion as of March 31, 2009.
International Asset Management and Accumulation
Segment operating earnings for first quarter 2010 were $37.9 million compared to $17.0 million
for the same period in 2009, reflecting higher fee revenues due to higher average assets under management
and improving macroeconomic conditions.
Operating revenues were $181.1 million for first quarter, compared to $64.0 million for the same
period last year. The increase reflects: more favorable macroeconomic conditions, including higher yields on
inflation-linked investments in Chile and strengthening of Latin American currencies against the U.S. dollar; and
strong revenue growth on a local basis.
Segment assets under management were a record $35.7 billion as of March 31, 2010, compared to
$23.5 billion as of March 31, 2009. The increase includes $3.1 billion of net cash flows over the trailing
twelve months, or 13 percent of beginning of period AUM.
Life and Health Insurance
Segment operating earnings for first quarter 2010 were $69.8 million, compared to $71.8 million
for the same period in 2009. Individual Life earnings were a strong $30.5 million in first quarter 2010,
compared to $22.8 million in first quarter 2009. The increase primarily reflects growth in the block of business
Page 6
and ongoing expense management. Health division earnings were $25.7 million in first quarter 2010
compared to $31.9 million in first quarter 2009. The change primarily reflects a decline in insured medical
covered members from a year ago. Specialty Benefits earnings were $13.6 million in first quarter 2010
compared to $17.1 million in first quarter 2009, primarily due to unfavorable group disability claims
experience.
Operating revenues for first quarter were $1,057.9 million, compared to $1,131.0 million for the
same period a year ago. The variance was primarily due to a 15 percent decrease in Health division
premiums, reflecting a decline in group medical covered members.
Corporate
Operating losses for first quarter 2010 were $21.1 million, compared to operating losses of $24.7
million for the same period in 2009.
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 losses, capital and liquidity positions, sales and earnings trends, and management's beliefs,
expectations, goals and opinions. The company does not undertake to update or revise 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 December 31, 2009, 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 reinsurers.
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
Page 7
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, May 4, 2010 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 66747663.
·
Replays of the earnings call are available at:
www.principal.com/investor
or by dialing 800-642-1687
(U.S. and Canadian callers) or 706-645-9291 (International callers). The access code is 66747663.
Replays will be available approximately two hours after the completion of the live earnings call through
the end of day May 11, 2010.
The company's financial supplement and additional investment portfolio detail for first 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
®
)
7
is a leader in offering businesses, individuals and
institutional clients a wide range of financial products and services, including retirement and investment
services, life and health insurance, and banking through its diverse family of financial services companies. A
member of the Fortune 500, the Principal Financial Group has $293.4 billion in assets under management
8
and serves some 18.7 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
.
###
____________________
7
"The Principal Financial Group" and "The Principal" are registered service marks of Principal Financial Services, Inc., a member of the
Principal Financial Group.
8
As of March 31, 2010
Page 8
*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.