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   <TD colSpan=4 align=center><B><FONT size=5 face=serif>SECURITIES AND EXCHANGE COMMISSION</FONT></B>&nbsp;</TD></TR>

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   <TD align=center><B><FONT size=2 face=serif>Washington, D.C. 20549</FONT></B>&nbsp;</TD>

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   <TD align=center><B><FONT size=5 face=serif>FORM 8-K</FONT></B>&nbsp;</TD>

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   <TD align=center><B><FONT size=3 face=serif>CURRENT REPORT</FONT></B>&nbsp;</TD>

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   <TD colSpan=3 align=center><B><FONT size=3 face=serif>Pursuant to Section 13 or 15(d) of the</FONT></B>&nbsp;</TD></TR>

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   <TD colSpan=3 align=center><B><FONT size=3 face=serif>Securities Exchange Act of 1934</FONT></B>&nbsp;</TD></TR>

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   <TD colSpan=3 align=center><FONT size=3 face=serif>Date of Report: </FONT><B><FONT size=3 face=serif>January 31, 2013</FONT></B>&nbsp;</TD></TR>

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   <TD colSpan=3 align=center><FONT size=3 face=serif>(Date of earliest event reported)</FONT>&nbsp;</TD></TR>

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   <TD colSpan=4 align=center><B><FONT size=5 face=serif>PRINCIPAL FINANCIAL GROUP, INC.</FONT></B>&nbsp;</TD></TR>

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   <TD colSpan=3 align=center><FONT size=3 face=serif>(Exact name of registrant as specified in its charter)</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 72.042pt" align=left><B><FONT size=2 face=serif>Delaware</FONT></B>&nbsp;</TD>

   <TD style="TEXT-INDENT: 34.753pt" align=left><B><FONT size=2 face=serif>1-16725</FONT></B>&nbsp;</TD>

   <TD align=center><B><FONT size=2 face=serif>42-1520346</FONT></B>&nbsp;</TD></TR>

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   <TD align=center><FONT size=2 face=serif>(State or other jurisdiction</FONT>&nbsp;</TD>

   <TD style="TEXT-INDENT: 7.721pt" align=left><FONT size=2 face=serif>(Commission file number)</FONT>&nbsp;</TD>

   <TD align=center><FONT size=2 face=serif>(I.R.S. Employer</FONT>&nbsp;</TD></TR>

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   <TD align=center><FONT size=2 face=serif>of incorporation)</FONT>&nbsp;</TD>

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   <TD colSpan=3 align=center><B><FONT size=2 face=serif>711 High Street, Des Moines, Iowa 50392</FONT></B>&nbsp;</TD></TR>

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   <TD align=center><B><FONT size=2 face=serif>(515) 247-5111</FONT></B>&nbsp;</TD>

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   <TD colSpan=4 align=left><FONT size=2 face=serif>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>

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   <TD colSpan=2 align=left><FONT size=2 face=serif>registrant under any of the following provisions:</FONT>&nbsp;</TD>

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   <TD colSpan=3 align=left><FONT size=2 face=serif>Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 0.038pt" colSpan=3 align=left><FONT size=2 face=serif>Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 0.032pt" colSpan=3 align=left><FONT size=2 face=serif>Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 0.034pt" colSpan=3 align=left><FONT size=2 face=serif>Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR</FONT>&nbsp;</TD></TR>

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   <TD colSpan=4 align=center>____________________</TD></TR></TABLE></DIV>

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   <P style="MARGIN-BOTTOM: 8pt"><B><FONT size=3 face=serif>Item 2.02. Results of Operations and Financial Condition</FONT></B>&nbsp;</P></TD></TR>

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   <TD colSpan=2 align=left><FONT size=3 face=serif>On January 31, 2013, Principal Financial Group, Inc. publicly announced information regarding its</FONT>&nbsp;</TD></TR>

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   <TD colSpan=2 align=left><FONT size=3 face=serif>results of operations and financial condition for the quarter and year ended December 31, 2012. The</FONT>&nbsp;</TD></TR>

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   <P style="MARGIN-BOTTOM: 12pt"><FONT size=3 face=serif>text of the announcement is included herewith as Exhibit 99.</FONT>&nbsp;</P></TD></TR>

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   <P style="MARGIN-BOTTOM: 8pt"><B><FONT size=3 face=serif>Item 9.01 Financial Statements and Exhibits</FONT></B>&nbsp;</P></TD>

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   <P style="MARGIN-BOTTOM: 16pt"><FONT size=3 face=serif>99 Fourth Quarter and Calendar Year 2012 Earnings Release</FONT>&nbsp;</P></TD></TR>

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   <TD colSpan=2 align=left><FONT size=3 face=serif>Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this</FONT>&nbsp;</TD></TR>

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   <TD colSpan=2 align=left><FONT size=3 face=serif>report to be signed on its behalf by the undersigned thereunto duly authorized.</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 215.999pt" colSpan=2 align=left><FONT size=3 face=serif>PRINCIPAL FINANCIAL GROUP, INC.</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 215.999pt" align=right><FONT size=3 face=serif>By:</FONT>&nbsp;</TD>

   <TD align=left><FONT size=3 face=serif>&nbsp;&nbsp;&nbsp;&nbsp; <U>/s/ Terrance J. Lillis</U></FONT><U>&nbsp;</U></TD></TR>

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   <TD style="TEXT-INDENT: 215.999pt" colSpan=2 align=left><FONT size=3 face=serif>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name: Terrance J. Lillis</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 215.999pt" colSpan=2 align=left><FONT size=3 face=serif>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Title: Senior Vice President and Chief Financial Officer</FONT>&nbsp;</TD></TR>

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   <TD align=left><FONT size=3 face=serif>Date: January 31, 2013</FONT>&nbsp;</TD>

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   <TD align=left><FONT size=2 face=serif>Release:</FONT>&nbsp;</TD>

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   <TD style="TEXT-INDENT: 13.828pt" align=left><FONT size=2 face=serif>On receipt, Jan. 31, 2013</FONT>&nbsp;</TD></TR>

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   <TD colSpan=2 align=left><FONT size=2 face=serif>Media contact:</FONT>&nbsp;</TD>

   <TD align=left><FONT size=2 face=serif>&nbsp;&nbsp;&nbsp;&nbsp;Susan Houser, 515-248-2268, </FONT><U><FONT size=2 face=serif>houser.susan@principal.com</FONT></U>&nbsp;</TD></TR>

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   <TD colSpan=2 align=left><FONT size=2 face=serif>Investor contact:</FONT>&nbsp;</TD>

   <TD style="TEXT-INDENT: 13.87pt" align=left><FONT size=2 face=serif>John Egan, 515-235-9500, </FONT><U><FONT size=2 face=serif>egan.john@principal.com</FONT></U>&nbsp;</TD></TR>

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   <TD colSpan=3 align=center><B><FONT size=4 face=serif>Principal Financial Group, Inc. Announces Fourth Quarter</FONT></B></TD></TR>

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   <TD colSpan=3 align=center><B><FONT size=4 face=serif>And Full-Year 2012 Results</FONT></B></TD></TR>

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   <P style="MARGIN-BOTTOM: 12pt"><B><FONT size=3 face=serif>Company Also Announces Common Stock Dividend Increase</FONT></B></P></TD></TR>

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   <TD style="TEXT-INDENT: 36pt" align=left><FONT face=sans-serif><STRONG><FONT size=5>&#183;</FONT></STRONG></FONT><FONT size=5>&nbsp;</FONT></TD>

   <TD colSpan=2 align=left><B><FONT size=2 face=serif>Fourth quarter 2012 operating earnings</FONT></B><B><SUP><FONT size=2 face=serif>1 </FONT></SUP></B><B><FONT size=2 face=serif>of $243.9 million, an increase of 21 percent over</FONT></B>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 0pt" colSpan=2 align=left><B><FONT size=2 face=serif>fourth quarter 2011; net income available to common shareholders was $218.6 million, an</FONT></B>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 0pt" colSpan=2 align=left><B><FONT size=2 face=serif>increase of 47 percent over fourth quarter 2011.</FONT></B>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 36pt" align=left><FONT size=2 face=sans-serif><FONT size=4 face=sans-serif><STRONG><FONT face=sans-serif><STRONG><FONT size=5>&#183;</FONT></STRONG></FONT><FONT size=5>&nbsp;</FONT></STRONG></FONT></FONT></TD>

   <TD style="TEXT-INDENT: 0pt" colSpan=2 align=left><B><FONT size=2 face=serif>Full-year 2012 operating earnings of $808.0 million, a decrease of 4 percent over 2011 (adjusted</FONT></B>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 0pt" colSpan=2 align=left><B><FONT size=2 face=serif>operating earnings of $898.7 million</FONT></B><B><SUP><FONT size=2 face=serif>2</FONT></SUP></B><B><FONT size=2 face=serif>, an increase of 7 percent over full-year 2011); net income</FONT></B>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 0pt" colSpan=2 align=left><B><FONT size=2 face=serif>available to common shareholders of $772.9 million, an increase of 25 percent over 2011.</FONT></B>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 36pt" align=left><STRONG><FONT size=2 face=sans-serif><FONT size=4 face=sans-serif><STRONG><FONT face=sans-serif><STRONG><FONT size=5><FONT size=2 face=sans-serif><FONT size=4 face=sans-serif><STRONG><FONT face=sans-serif><STRONG><FONT size=5>&#183;</FONT></STRONG></FONT><FONT size=5>&nbsp;</FONT></STRONG></FONT></FONT></FONT></STRONG></FONT></STRONG></FONT></FONT></STRONG></TD>

   <TD style="TEXT-INDENT: 0pt" colSpan=2 align=left><B><FONT size=2 face=serif>Year-end 2012 record assets under management of $403.0 billion, an increase of 20 percent</FONT></B>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 0pt" colSpan=2 align=left><B><FONT size=2 face=serif>compared to year-end 2011.</FONT></B>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 36pt" align=left><STRONG><FONT size=2 face=sans-serif><FONT face=sans-serif><STRONG><FONT size=5>&#183;</FONT></STRONG></FONT></FONT><FONT size=5>&nbsp;</FONT></STRONG></TD>

   <TD style="TEXT-INDENT: 0pt" colSpan=2 align=left><B><FONT size=2 face=serif>First quarter dividend of $0.23 per share of common stock, an increase of 10 percent over the</FONT></B>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 0pt" colSpan=2 align=left><B><FONT size=2 face=serif>fourth quarter 2012 dividend.</FONT></B>&nbsp;</TD></TR>

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   <TD colSpan=2 align=left><FONT size=2 face=serif>(Des Moines, Iowa) &#8211; Principal Financial Group, Inc. (NYSE: PFG) today announced results for fourth</FONT>&nbsp;</TD></TR>

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   <TD colSpan=3 align=left><FONT size=2 face=serif>quarter and full year 2012. The company reported operating earnings of $243.9 million for fourth quarter 2012,</FONT>&nbsp;</TD></TR>

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   <TD colSpan=3 align=left><FONT size=2 face=serif>compared to $201.8 million for fourth quarter 2011. Operating earnings per diluted share (EPS) were $0.82 for fourth</FONT>&nbsp;</TD></TR>

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   <TD colSpan=3 align=left><FONT size=2 face=serif>quarter 2012, compared to $0.66 for fourth quarter 2011. The company reported net income available to common</FONT>&nbsp;</TD></TR>

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   <TD colSpan=3 align=left><FONT size=2 face=serif>stockholders of $218.6 million, or $0.74 per diluted share for fourth quarter 2012, compared to $148.5 million, or $0.48</FONT>&nbsp;</TD></TR>

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   <TD colSpan=3 align=left><FONT size=2 face=serif>per diluted share for fourth quarter 2011, reflecting a strong increase in operating earnings and improvement in credit-</FONT>&nbsp;</TD></TR>

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   <TD colSpan=3 align=left><FONT size=2 face=serif>related losses. Operating revenues for fourth quarter 2012 were $2,293.1 million compared to $2,103.3 million for the</FONT>&nbsp;</TD></TR>

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   <TD colSpan=2 align=left><FONT size=2 face=serif>same period last year.</FONT>&nbsp;</TD>

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   <TD colSpan=2 align=left><FONT size=2 face=serif>The company reported operating earnings of $808.0 million for the twelve months ended Dec. 31, 2012</FONT>&nbsp;</TD></TR>

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   <TD colSpan=3 align=left><FONT size=2 face=serif>(which were negatively impacted by a $90.7 million charge from the third quarter actuarial assumption review,</FONT>&nbsp;</TD></TR>

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   <TD colSpan=3 align=left><FONT size=2 face=serif>predominantly due to the lower interest rates), compared to $843.8 million for the twelve months ended Dec. 31, 2011.</FONT>&nbsp;</TD></TR>

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   <TD colSpan=3 align=left><FONT size=2 face=serif>Operating earnings per diluted share (EPS) were $2.69 for the twelve months ended Dec. 31, 2012, compared to $2.66 for</FONT>&nbsp;</TD></TR>

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   <TD colSpan=3 align=left><FONT size=2 face=serif>the twelve months ended Dec. 31, 2011. (Adjusted 2012 EPS of $2.99</FONT><SUP><FONT size=2 face=serif>2 </FONT></SUP><FONT size=2 face=serif>is up 12 percent over reported 2011 EPS.) The</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 0pt" colSpan=3 align=left><FONT size=2 face=serif>company reported net income available to common stockholders of $772.9 million, or $2.57 per diluted share for the</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 0pt" colSpan=3 align=left><FONT size=2 face=serif>twelve months ended Dec. 31, 2012, compared to $619.7 million, or $1.95 per diluted share for the twelve months ended</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 0pt" colSpan=3 align=left><FONT size=2 face=serif>Dec. 31, 2011. Operating revenues for the year 2012 were $9,175.4 million compared to $8,281.0 million for the same</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 0pt" colSpan=2 align=left><FONT size=2 face=serif>period last year.</FONT>&nbsp;</TD>

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   <TD colSpan=2 align=left><FONT size=2 face=serif>The company also announced today that its board of directors has declared a quarterly dividend of</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 0pt" colSpan=3 align=left><FONT size=2 face=serif>$0.23 per share of common stock, an increase of 10 percent over the fourth quarter 2012 dividend. The dividend</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 0pt" colSpan=3 align=left><FONT size=2 face=serif>will be payable on March 29, 2013 to shareholders of record as of March 11, 2013.</FONT>&nbsp;</TD></TR>

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   <TD colSpan=3><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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>

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   <TD colSpan=3 align=left><SUP><FONT size=2 face=serif>1 </FONT></SUP><FONT size=2 face=serif>Use of non-GAAP financial measures is discussed in this release after segment results.</FONT>&nbsp;</TD></TR>

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   <TD colSpan=3 align=left><SUP><FONT size=2 face=serif>2 </FONT></SUP><FONT size=2 face=serif>2012 operating earnings were negatively impacted by $90.7 million from the third quarter 2012 actuarial assumption</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 0pt" align=left><FONT size=2 face=serif>review.</FONT>&nbsp;</TD>

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   <TD style="TEXT-INDENT: 0pt" colSpan=2 align=left><FONT size=2 face=serif>&#8220;The Principal Financial Group ended a strong 2012 with very strong fourth quarter earnings. The continued</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 0pt" colSpan=3 align=left><FONT size=2 face=serif>strength of our underlying business fundamentals and successful execution of our strategy gives us momentum going</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 0pt" colSpan=3 align=left><FONT size=2 face=serif>into 2013,&#8221; said Larry D. Zimpleman, chairman, president and chief executive officer. &#8220;We significantly advanced our</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 0pt" colSpan=3 align=left><FONT size=2 face=serif>international strategy with two acquisitions in Latin America last year. Closing on Cuprum will further solidify our</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 0pt" colSpan=3 align=left><FONT size=2 face=serif>position as a global investment management leader in 2013 and beyond.&#8221;</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 0pt" colSpan=2 align=left><FONT size=2 face=serif>Added Terry Lillis, senior vice president and chief financial officer, &#8220;Our very strong earnings in the fourth quarter</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 0pt" colSpan=3 align=left><FONT size=2 face=serif>and the ability of our fee-based business model to continuously generate deployable capital gives us continued financial</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 0pt" colSpan=3 align=left><FONT size=2 face=serif>flexibility, as demonstrated by our strong capital deployment in 2012 and today&#8217;s announcement of a 10 percent increase in</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 0pt" colSpan=3 align=left><FONT size=2 face=serif>our quarterly common stock dividend. Full-year book value per share (excluding other comprehensive income) increased 7</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 0pt" colSpan=3 align=left><FONT size=2 face=serif>percent over full year 2011 and our investment portfolio is performing very well.&#8221;</FONT>&nbsp;</TD></TR>

<TR>

   <TD colSpan=3>&nbsp;</TD></TR>

<TR>

   <TD colSpan=3>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 0pt" colSpan=2 align=left>

   <P style="MARGIN-BOTTOM: 6pt"><B><FONT size=2 face=serif>Key Highlights</FONT></B>&nbsp;</P></TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 17.999pt" colSpan=3 align=left><I><FONT size=2 face=serif>Fourth Quarter</FONT></I>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18pt" vAlign=bottom align=left><FONT size=5 face=sans-serif><STRONG>&#183;</STRONG></FONT>&nbsp;</TD>

   <TD style="TEXT-INDENT: 0pt" colSpan=2 align=left><FONT size=2 face=serif>Retirement and Investor Services Accumulation sales were up 17 percent in the fourth quarter compared to the</FONT>&nbsp;</TD></TR>

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   <TD align=left>&nbsp;</TD>

   <TD style="TEXT-INDENT: 0pt" colSpan=2 align=left><FONT size=2 face=serif>year ago quarter. This includes $3.3 billion for Full Service Accumulation, $4.2 billion for Principal Funds</FONT>&nbsp;</TD></TR>

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   <TD align=left>&nbsp;</TD>

   <TD style="TEXT-INDENT: 0pt" colSpan=2 align=left><FONT size=2 face=serif>and $448 million for Individual Annuities. Net cash flows of $1.6 billion for Full Service Accumulation and</FONT>&nbsp;</TD></TR>

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   <TD align=left>&nbsp;</TD>

   <TD style="TEXT-INDENT: 0pt" colSpan=2 align=left><FONT size=2 face=serif>$1.5 billion for Principal Funds.</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18pt" vAlign=bottom align=left><FONT size=2 face=sans-serif><FONT size=5 face=sans-serif><STRONG>&#183;</STRONG></FONT></FONT></TD>

   <TD style="TEXT-INDENT: 0pt" colSpan=2 align=left><FONT size=2 face=serif>Principal Global Investors had record unaffiliated assets under management (AUM) of $98.2 billion.</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18pt" align=left><FONT size=2 face=sans-serif><FONT size=5 face=sans-serif><STRONG>&#183;</STRONG></FONT></FONT></TD>

   <TD style="TEXT-INDENT: 0pt" colSpan=2 align=left><FONT size=2 face=serif>Principal International reported net cash flows of $2.0 billion and record AUM of $69.3 billion (excluding $11.3</FONT>&nbsp;</TD></TR>

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   <TD align=left>&nbsp;</TD>

   <TD style="TEXT-INDENT: 0pt" colSpan=2 align=left><FONT size=2 face=serif>billion of AUM in our asset management joint venture in China, which is not included in reported assets under</FONT>&nbsp;</TD></TR>

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   <TD align=left>&nbsp;</TD>

   <TD style="TEXT-INDENT: 0pt" colSpan=2 align=left><FONT size=2 face=serif>management).</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18pt" align=left><FONT size=2 face=sans-serif><FONT size=5 face=sans-serif><STRONG>&#183;</STRONG></FONT></FONT></TD>

   <TD style="TEXT-INDENT: 0pt" colSpan=2 align=left><FONT size=2 face=serif>Individual Life sales of $84.8 million, up 56 percent over fourth quarter 2011.</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18pt" align=left><FONT size=2 face=sans-serif><FONT size=5 face=sans-serif><STRONG>&#183;</STRONG></FONT></FONT></TD>

   <TD style="TEXT-INDENT: 0pt" colSpan=2 align=left><FONT size=2 face=serif>Specialty Benefits premium and fee growth of 5 percent over fourth quarter 2011and favorable incurred loss</FONT>&nbsp;</TD></TR>

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   <TD align=left>&nbsp;</TD>

   <TD style="TEXT-INDENT: 0pt" colSpan=2 align=left><FONT size=2 face=serif>ratio of 64.3 percent.</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18pt" colSpan=3 align=left><I><FONT size=2 face=serif>Full Year Results</FONT></I>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18pt" align=left><FONT size=2 face=sans-serif><FONT size=5 face=sans-serif><STRONG>&#183;</STRONG></FONT></FONT></TD>

   <TD colSpan=2 align=left><FONT size=2 face=serif>Record AUM of $403.0 billion, up 20 percent compared to year-end 2011.</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18pt" align=left><FONT size=2 face=sans-serif><FONT size=5 face=sans-serif><STRONG>&#183;</STRONG></FONT></FONT></TD>

   <TD style="TEXT-INDENT: 0pt" colSpan=2 align=left><FONT size=2 face=serif>Total company net cash flows of $29.8 billion.</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18pt" align=left><FONT size=2 face=sans-serif><FONT size=5 face=sans-serif><STRONG>&#183;</STRONG></FONT></FONT></TD>

   <TD style="TEXT-INDENT: 0pt" colSpan=2 align=left><FONT size=2 face=serif>Strong capital position with an estimated risk based capital ratio of 415-420 percent at year end and $2.5 billion</FONT>&nbsp;</TD></TR>

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   <TD align=left>&nbsp;</TD>

   <TD style="TEXT-INDENT: 0pt" colSpan=2 align=left><FONT size=2 face=serif>of excess capital.</FONT><SUP><FONT size=2 face=serif>3</FONT></SUP>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18pt" align=left><FONT size=2 face=sans-serif><FONT size=5 face=sans-serif><STRONG>&#183;</STRONG></FONT></FONT></TD>

   <TD style="TEXT-INDENT: 0pt" colSpan=2 align=left><FONT size=2 face=serif>Book value per share, excluding AOCI</FONT><SUP><FONT size=2 face=serif>4 </FONT></SUP><FONT size=2 face=serif>was $29.20, up 7 percent over 2011.</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18pt" align=left><FONT size=2 face=sans-serif><FONT size=5 face=sans-serif><STRONG>&#183;</STRONG></FONT></FONT></TD>

   <TD style="TEXT-INDENT: 0pt" colSpan=2 align=left><FONT size=2 face=serif>Four quarterly dividends to common stockholders in 2012 totaling $0.78 cents per share, up 11 percent over</FONT>&nbsp;</TD></TR>

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   <TD align=left>&nbsp;</TD>

   <TD style="TEXT-INDENT: 0pt" align=left><FONT size=2 face=serif>2011.</FONT>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18pt" align=left><FONT size=2 face=sans-serif><FONT size=5 face=sans-serif><STRONG>&#183;</STRONG></FONT></FONT></TD>

   <TD style="TEXT-INDENT: 0pt" colSpan=2 align=left><FONT size=2 face=serif>Repurchased 9.9 million shares of common stock in 2012 at an average price of $25.92.</FONT>&nbsp;</TD></TR>

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   <TD colSpan=3>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 0pt" colSpan=2 align=left><B><FONT size=2 face=serif>Net Income</FONT></B>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 18pt" colSpan=3 align=left><I><FONT size=2 face=serif>Fourth Quarter</FONT></I>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 0pt" colSpan=3 align=left><FONT size=2 face=sans-serif><FONT size=2 face=sans-serif><FONT size=5 face=sans-serif><STRONG>&#183;&nbsp;&nbsp;</STRONG></FONT></FONT></FONT><FONT size=2 face=serif>Net income available to common stockholders of $218.6 million for fourth quarter 2012, up 47 percent compared</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18pt" colSpan=3 align=left><FONT size=2 face=serif>to fourth quarter 2011 reflecting:</FONT>&nbsp;</TD></TR>

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   <TD align=left>&nbsp;</TD>

   <TD align=right><FONT size=2 face=sans-serif><FONT size=5 face=sans-serif><STRONG>&#183;</STRONG></FONT></FONT></TD>

   <TD style="TEXT-INDENT: 0.002pt" align=left><FONT size=2 face=serif>&nbsp; Net realized capital losses of $0.5 million, which includes:</FONT>&nbsp;</TD></TR>

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   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left><FONT size=2 face=sans-serif><FONT size=5 face=sans-serif><STRONG>&#183;&nbsp; </STRONG></FONT></FONT><FONT size=2 face=serif>$15.0 million of net losses, down 48 percent from a year ago quarter, related to sales and</FONT>&nbsp;</TD></TR>

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   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left><FONT size=2 face=serif>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;permanent impairments of fixed maturity securities. This includes $11.1 million of losses on</FONT>&nbsp;</TD></TR>

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   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left><FONT size=2 face=serif>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;commercial mortgage backed securities, which is down 51 percent from $22.6 million loss in</FONT>&nbsp;</TD></TR>

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   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left><FONT size=2 face=serif>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; fourth quarter 2011.</FONT>&nbsp;</TD></TR>

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   <TD align=left>&nbsp;</TD>

   <TD align=right><FONT size=2 face=sans-serif><FONT size=5 face=sans-serif><STRONG>&#183;</STRONG></FONT></FONT></TD>

   <TD align=left><FONT size=2 face=serif>&nbsp; Other after-tax adjustment loss of $24.8 million, which reflects expenses incurred extinguishing $400</FONT>&nbsp;</TD></TR>

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   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left><FONT size=2 face=serif>&nbsp; million of long-term debt that was scheduled to mature in 2014.</FONT>&nbsp;</TD></TR>

<TR>

   <TD colSpan=3>&nbsp;</TD></TR>

<TR>

   <TD colSpan=3><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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>

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   <TD style="TEXT-INDENT: 0pt" colSpan=3 align=left><SUP><FONT size=2 face=serif>3 </FONT></SUP><FONT size=2 face=serif>Excess capital includes cash at the holding company and capital at the life company above the amount needed to maintain a</FONT>&nbsp;</TD></TR>

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   <TD colSpan=3 align=left><FONT size=2 face=serif>350 percent NAIC risk based capital ratio for the life company.</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 0pt" colSpan=3 align=left><SUP><FONT size=2 face=serif>4 </FONT></SUP><FONT size=2 face=serif>Accumulated Other Comprehensive Income</FONT>&nbsp;</TD></TR></TABLE></DIV>

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   <TD width="94%"></TD></TR>

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   <TD style="TEXT-INDENT: 18.003pt" colSpan=2 align=left><I><FONT size=2 face=serif>Full Year Results</FONT></I>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18.003pt" colSpan=2 align=left><FONT size=2 face=serif>Net income available to common stockholders of $772.9 million for the twelve months ended Dec. 31, 2012,</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18.003pt" colSpan=2 align=left><FONT size=2 face=serif>reflects net realized capital gains of $39.1 million, up $180.9 million from a $141.8 loss in 2011. This includes:</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18.003pt" align=left><STRONG><FONT size=5 face=sans-serif>&#183;</FONT><FONT size=5>&nbsp;</FONT></STRONG></TD>

   <TD align=left><FONT size=2 face=serif>&nbsp; A net gain of $141.2 million as a result of Catalyst Health Solutions, Inc.&#8217;s merger into a subsidiary of SXC</FONT>&nbsp;</TD></TR>

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   <TD align=left>&nbsp;</TD>

   <TD align=left><FONT size=2 face=serif>&nbsp; Health Solutions Corp. (SXC), and our subsequent sale of our interest in SXC (now known as Catamaran</FONT>&nbsp;</TD></TR>

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   <TD align=left>&nbsp;</TD>

   <TD align=left><FONT size=2 face=serif>&nbsp; Corporation);</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18.003pt" align=left><FONT size=2 face=sans-serif><STRONG><FONT size=5 face=sans-serif>&#183;</FONT><FONT size=5>&nbsp;</FONT></STRONG></FONT></TD>

   <TD align=left><FONT size=2 face=serif>&nbsp; $76.8 million of net losses, a 36 percent improvement over 2011 related to sales and permanent impairments</FONT>&nbsp;</TD></TR>

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   <TD align=left>&nbsp;</TD>

   <TD align=left><FONT size=2 face=serif>&nbsp; of fixed maturity securities, including:</FONT>&nbsp;</TD></TR>

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   <TD align=left>&nbsp;</TD>

   <TD align=left><FONT size=2 face=sans-serif><STRONG><FONT size=5 face=sans-serif>&#183;</FONT><FONT size=5>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></STRONG></FONT><FONT size=2 face=serif>$60.1 million of losses on commercial mortgage backed securities, which is down 34 percent from</FONT>&nbsp;</TD></TR>

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   <TD align=left>&nbsp;</TD>

   <TD style="TEXT-INDENT: 35.998pt" align=left><FONT size=2 face=serif>&nbsp;$90.5 million loss in 2011.</FONT>&nbsp;</TD></TR>

<TR>

   <TD colSpan=2>&nbsp;</TD></TR>

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   <TD align=left>&nbsp;</TD>

   <TD align=center><B><I><FONT size=2 face=serif>Segment Results</FONT></I></B>&nbsp;</TD></TR>

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   <TD colSpan=2 align=left><B><FONT size=2 face=serif>Retirement and Investor Services</FONT></B>&nbsp;</TD></TR>

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   <TD align=left>&nbsp;</TD>

   <TD align=left><FONT size=2 face=serif>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Segment operating earnings for fourth quarter 2012 were $152.3 million, compared to $124.5 million for</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18pt" colSpan=2 align=left><FONT size=2 face=serif>the same period in 2011. Full Service Accumulation earnings increased 39 percent from a year ago quarter to $81.3</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18pt" colSpan=2 align=left><FONT size=2 face=serif>million reflecting an $8 million after-tax benefit as more companies paid extraordinary and accelerated dividends in</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18pt" colSpan=2 align=left><FONT size=2 face=serif>fourth quarter 2012. Principal Funds earnings were up 25 percent compared to the year-ago quarter to $13.2 million,</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18pt" colSpan=2 align=left><FONT size=2 face=serif>primarily due to an increase in average account values. Individual Annuities earnings were $31.1 million compared to</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18pt" colSpan=2 align=left><FONT size=2 face=serif>$27.8 million for fourth quarter 2011 reflecting $3 million after tax of favorable variable investment income. Bank</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18pt" colSpan=2 align=left><FONT size=2 face=serif>and Trust Services operating earnings were $7.9 million, compared to $8.5 million for fourth quarter 2011. The</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18pt" colSpan=2 align=left><FONT size=2 face=serif>guaranteed businesses, which consist of Investment Only and Full Service Payout, earned $18.8 million in the fourth</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18pt" colSpan=2 align=left><FONT size=2 face=serif>quarter 2012 compared to $19.0 million in fourth quarter 2011.</FONT>&nbsp;</TD></TR>

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   <TD align=left>&nbsp;</TD>

   <TD align=left><FONT size=2 face=serif>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating revenues for the fourth quarter 2012 were $1,127.9 million compared to $1,016.9 million for</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18pt" colSpan=2 align=left><FONT size=2 face=serif>the same period in 2011 primarily due to higher fee revenue in the accumulations businesses and higher premiums</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18pt" colSpan=2 align=left><FONT size=2 face=serif>in the guaranteed businesses.</FONT>&nbsp;</TD></TR>

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   <TD align=left>&nbsp;</TD>

   <TD style="TEXT-INDENT: 26.996pt" align=left><FONT size=2 face=serif>Segment assets under management were a record $212.0 billion as of Dec. 31, 2012, compared to</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18pt" colSpan=2 align=left><FONT size=2 face=serif>$179.8 billion as of Dec. 31, 2011, reflecting asset appreciation and strong net cash flows from Full Service</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18pt" colSpan=2 align=left><FONT size=2 face=serif>Accumulation and Principal Funds.</FONT>&nbsp;</TD></TR>

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   <TD colSpan=2>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 0.003pt" colSpan=2 align=left><B><FONT size=2 face=serif>Principal Global Investors</FONT></B>&nbsp;</TD></TR>

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   <TD align=left>&nbsp;</TD>

   <TD align=left><FONT size=2 face=serif>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Segment operating earnings for fourth quarter 2012 were $26.2 million, up strongly from $17.5 million in</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18.003pt" colSpan=2 align=left><FONT size=2 face=serif>the prior year quarter, primarily due to an increase in assets under management and the year ago quarter having</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18.004pt" colSpan=2 align=left><FONT size=2 face=serif>one-time acquisition costs.</FONT>&nbsp;</TD></TR>

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   <TD align=left>&nbsp;</TD>

   <TD style="TEXT-INDENT: 18.001pt" align=left><FONT size=2 face=serif>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating revenues for fourth quarter were $168.0 million, compared to $151.8 million for the same</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18.004pt" colSpan=2 align=left><FONT size=2 face=serif>period in 2011, primarily a result of higher management and transaction fees.</FONT>&nbsp;</TD></TR>

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   <TD align=left>&nbsp;</TD>

   <TD align=left><FONT size=2 face=serif>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unaffiliated assets under management were a record $98.2 billion as of Dec. 31, 2012, compared to $82.4</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18.003pt" colSpan=2 align=left><FONT size=2 face=serif>billion as of Dec. 31, 2011 as a result of strong net cash flows and strong investment performance.</FONT>&nbsp;</TD></TR>

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   <TD colSpan=2 align=left><B><FONT size=2 face=serif>Principal International</FONT></B>&nbsp;</TD></TR>

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   <TD align=left>&nbsp;</TD>

   <TD align=left><FONT size=2 face=serif>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Segment operating earnings were $45.1 million in fourth quarter 2012, compared to $50.1 million in the</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18.004pt" colSpan=2 align=left><FONT size=2 face=serif>prior year quarter. Fourth quarter 2011 benefited from $10.4 million of one-time earnings.</FONT>&nbsp;</TD></TR>

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   <TD align=left>&nbsp;</TD>

   <TD align=left><FONT size=2 face=serif>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating revenues were $265.8 million for fourth quarter 2012, compared to $255.6 million for the same</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18.005pt" colSpan=2 align=left><FONT size=2 face=serif>period last year primarily due to 31 percent growth in assets under management, which were partially offset by one-time</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18.004pt" colSpan=2 align=left><FONT size=2 face=serif>revenues in the year ago quarter.</FONT>&nbsp;</TD></TR></TABLE></DIV>

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   <TD style="TEXT-INDENT: 63.001pt" align=left><FONT size=2 face=serif>Segment assets under management were a record $69.3 billion as of Dec. 31, 2012, compared to $52.8</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18.001pt" align=left><FONT size=2 face=serif>billion as of Dec. 31, 2011. This includes a record $9.3 billion of net cash flows for the full year, or 18 percent of</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18.001pt" align=left><FONT size=2 face=serif>beginning of the year assets under management.</FONT>&nbsp;</TD></TR>

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   <TD>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 0.001pt" align=left><B><FONT size=2 face=serif>U.S. Insurance Solutions</FONT></B>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 63.001pt" align=left><FONT size=2 face=serif>Segment operating earnings for fourth quarter 2012 were $59.4 million, compared to $52.8 million for</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18.001pt" align=left><FONT size=2 face=serif>the same period in 2011. Individual Life earnings were $27.8 million in the fourth quarter 2012 compared to $27.2</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18.001pt" align=left><FONT size=2 face=serif>million in fourth quarter 2011. Specialty Benefits earnings were $31.6 million in fourth quarter 2012, up 23</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18.001pt" align=left><FONT size=2 face=serif>percent from $25.6 million in the same period a year ago primarily due to favorable claims experience in the</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18.001pt" align=left><FONT size=2 face=serif>current quarter.</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 63pt" align=left>

   <P style="MARGIN-TOP: 6pt"><FONT size=2 face=serif>Segment operating revenues for fourth quarter 2012 were $779.7 million compared to $737.9 million</FONT>&nbsp;</P></TD></TR>

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   <TD style="TEXT-INDENT: 18pt" align=left><FONT size=2 face=serif>for the same period a year ago.</FONT>&nbsp;</TD></TR>

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   <TD>&nbsp;</TD></TR>

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   <TD align=left><B><FONT size=2 face=serif>Corporate</FONT></B>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 63.36pt" align=left><FONT size=2 face=serif>Operating losses for fourth quarter 2012 were $39.1 million compared to operating losses of $43.1 million</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18pt" align=left><FONT size=2 face=serif>in fourth quarter 2011. The fourth quarter 2011 was negatively impacted from an active credit strategy on excess</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18pt" align=left><FONT size=2 face=serif>capital at the holding company, which was wound down in 2012.</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 0.001pt" align=left><B><FONT size=2 face=serif>Forward looking and cautionary statements</FONT></B>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18pt" align=left><FONT size=2 face=serif>This press release contains forward-looking statements, including, without limitation, statements as to operating</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18pt" align=left><FONT size=2 face=serif>earnings, net income available to common stockholders, net cash flows, realized and unrealized gains and losses,</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18pt" align=left><FONT size=2 face=serif>capital and liquidity positions, sales and earnings trends, and management's beliefs, expectations, goals and</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18pt" align=left><FONT size=2 face=serif>opinions. The company does not undertake to update these statements, which are based on a number of</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18pt" align=left><FONT size=2 face=serif>assumptions concerning future conditions that may ultimately prove to be inaccurate. Future events and their</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18pt" align=left><FONT size=2 face=serif>effects on the company may not be those anticipated, and actual results may differ materially from the results</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18pt" align=left><FONT size=2 face=serif>anticipated in these forward-looking statements. The risks, uncertainties and factors that could cause or contribute</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18pt" align=left><FONT size=2 face=serif>to such material differences are discussed in the company's annual report on Form 10-K for the year ended Dec.</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18pt" align=left><FONT size=2 face=serif>31, 2011, and in the company&#8217;s quarterly report on Form 10-Q for the quarter ended Sept.30, 2012, filed by the</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18pt" align=left><FONT size=2 face=serif>company with the Securities and Exchange Commission, as updated or supplemented from time to time in</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18pt" align=left><FONT size=2 face=serif>subsequent filings. These risks and uncertainties include, without limitation: adverse capital and credit market</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18pt" align=left><FONT size=2 face=serif>conditions may significantly affect the company&#8217;s ability to meet liquidity needs, access to capital and cost of</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18pt" align=left><FONT size=2 face=serif>capital; continued difficult conditions in the global capital markets and the economy generally; continued volatility</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 18pt" align=left><FONT size=2 face=serif>or further declines in the equity markets; changes in interest rates or credit spreads; the company&#8217;s investment</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18pt" align=left><FONT size=2 face=serif>portfolio is subject to several risks that may diminish the value of its invested assets and the investment returns</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18pt" align=left><FONT size=2 face=serif>credited to customers; the company&#8217;s valuation of securities may include methodologies, estimations and</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18pt" align=left><FONT size=2 face=serif>assumptions that are subject to differing interpretations; the determination of the amount of allowances and</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18pt" align=left><FONT size=2 face=serif>impairments taken on the company&#8217;s investments requires estimations and assumptions that are subject to differing</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18pt" align=left><FONT size=2 face=serif>interpretations; gross unrealized losses may be realized or result in future impairments; competition from</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18pt" align=left><FONT size=2 face=serif>companies that may have greater financial resources, broader arrays of products, higher ratings and stronger</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18pt" align=left><FONT size=2 face=serif>financial performance; a downgrade in the company&#8217;s financial strength or credit ratings; inability to attract and</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 18pt" align=left><FONT size=2 face=serif>retain sales representatives and develop new distribution sources; international business risks; the company&#8217;s</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18pt" align=left><FONT size=2 face=serif>actual experience could differ significantly from its pricing and reserving assumptions; the company&#8217;s ability to</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18pt" align=left><FONT size=2 face=serif>pay stockholder dividends and meet its obligations may be constrained by the limitations on dividends or</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18pt" align=left><FONT size=2 face=serif>distributions Iowa insurance laws impose on Principal Life; the pattern of amortizing the company&#8217;s DPAC and</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18pt" align=left><FONT size=2 face=serif>other actuarial balances on its universal life-type insurance contracts, participating life insurance policies and</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18pt" align=left><FONT size=2 face=serif>certain investment contracts may change; the company may need to fund deficiencies in its &#8220;Closed Block&#8221; assets</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18pt" align=left><FONT size=2 face=serif>that support participating ordinary life insurance policies that had a dividend scale in force at the time of Principal</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18pt" align=left><FONT size=2 face=serif>Life&#8217;s 1998 conversion into a stock life insurance company; the company&#8217;s reinsurers could default on their</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18pt" align=left><FONT size=2 face=serif>obligations or increase their rates; risks arising from the company's ability to obtain regulatory approval and</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18pt" align=left><FONT size=2 face=serif>consummate the acquisition of A.F.P. Cuprum S.A. and from other acquisitions of businesses; changes in laws,</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18pt" align=left><FONT size=2 face=serif>regulations or accounting standards; a computer system failure or security breach could disrupt the company&#8217;s</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18pt" align=left><FONT size=2 face=serif>business, and damage its reputation; results of litigation and regulatory investigations; from time to time the</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18pt" align=left><FONT size=2 face=serif>company may become subject to tax audits, tax litigation or similar proceedings, and as a result it may owe</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18pt" align=left><FONT size=2 face=serif>additional taxes, interest and penalties in amounts that may be material; fluctuations in foreign currency exchange</FONT>&nbsp;</TD></TR></TABLE></DIV>

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   <TD width="94%"></TD></TR>

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   <TD style="TEXT-INDENT: 18pt" colSpan=2 align=left><FONT size=2 face=serif>rates; and applicable laws and the company&#8217;s certificate of incorporation and by-laws may discourage takeovers</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18pt" colSpan=2 align=left><FONT size=2 face=serif>and business combinations that some stockholders might consider in their best interests.</FONT>&nbsp;</TD></TR>

<TR>

   <TD colSpan=2>&nbsp;</TD></TR>

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   <TD colSpan=2 align=left><B><FONT size=2 face=serif>Use of Non-GAAP Financial Measures</FONT></B>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 18pt" colSpan=2 align=left><FONT size=2 face=serif>The company uses a number of non-GAAP financial measures that management believes are useful to investors</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18pt" colSpan=2 align=left><FONT size=2 face=serif>because they illustrate the performance of normal, ongoing operations, which is important in understanding and</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18pt" colSpan=2 align=left><FONT size=2 face=serif>evaluating the company&#8217;s financial condition and results of operations. They are not, however, a substitute for U.S.</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18pt" colSpan=2 align=left><FONT size=2 face=serif>GAAP financial measures. Therefore, the company has provided reconciliations of the non-GAAP measures to the</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18pt" colSpan=2 align=left><FONT size=2 face=serif>most directly comparable U.S. GAAP measure at the end of the release. The company adjusts U.S. GAAP measures</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18pt" colSpan=2 align=left><FONT size=2 face=serif>for items not directly related to ongoing operations. However, it is possible these adjusting items have occurred in</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18pt" colSpan=2 align=left><FONT size=2 face=serif>the past and could recur in future reporting periods. Management also uses non-GAAP measures for goal setting,</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18pt" colSpan=2 align=left><FONT size=2 face=serif>as a basis for determining employee and senior management awards and compensation, and evaluating</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18pt" colSpan=2 align=left>

   <P style="MARGIN-BOTTOM: 16pt"><FONT size=2 face=serif>performance on a basis comparable to that used by investors and securities analysts.</FONT>&nbsp;</P></TD></TR>

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   <TD style="TEXT-INDENT: 0pt" colSpan=2 align=left><B><FONT size=2 face=serif>Earnings Conference Call</FONT></B>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18pt" colSpan=2 align=left><FONT size=2 face=serif>On Friday, Feb. 1, 2013 at 10:00 a.m. (ET), Chairman, President and Chief Executive Officer Larry Zimpleman</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18pt" colSpan=2 align=left><FONT size=2 face=serif>and Senior Vice President and Chief Financial Officer Terry Lillis will lead a discussion of results, asset quality</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18pt" colSpan=2 align=left><FONT size=2 face=serif>and capital adequacy during a live conference call, which can be accessed as follows:</FONT>&nbsp;</TD></TR>

<TR>

   <TD colSpan=2>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18pt" align=left><STRONG><FONT size=5 face=sans-serif>&#183;</FONT><FONT size=5>&nbsp;</FONT></STRONG></TD>

   <TD align=left><FONT size=2 face=serif>Via live Internet webcast. Please go to </FONT><U><FONT size=2 face=serif>www.principal.com/investor </FONT></U><FONT size=2 face=serif>at least 10-15 minutes prior to the start of</FONT>&nbsp;</TD></TR>

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   <TD align=left>&nbsp;</TD>

   <TD style="TEXT-INDENT: 0pt" align=left><FONT size=2 face=serif>the call to register, and to download and install any necessary audio software.</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 18pt" align=left><STRONG><FONT size=2 face=sans-serif><STRONG><FONT size=5 face=sans-serif><STRONG><FONT size=5 face=sans-serif>&#183;</FONT><FONT size=5>&nbsp;</FONT></STRONG></FONT></STRONG></FONT></STRONG></TD>

   <TD style="TEXT-INDENT: 0pt" align=left><FONT size=2 face=serif>Via telephone by dialing 800-374-1609 (U.S. and Canadian callers) or 706-643-7701 (International callers)</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD style="TEXT-INDENT: 0pt" align=left><FONT size=2 face=serif>approximately 10 minutes prior to the start of the call. The access code is 83659918.</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 18pt" align=left><FONT size=2 face=sans-serif><STRONG><FONT size=5 face=sans-serif>&#183;</FONT><FONT size=5>&nbsp;</FONT></STRONG></FONT></TD>

   <TD style="TEXT-INDENT: 0pt" align=left><FONT size=2 face=serif>Replay of the earnings call via telephone is available by dialing 855-859-2056 (U.S. and Canadian callers) or</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD style="TEXT-INDENT: 0pt" align=left><FONT size=2 face=serif>404-537-3406 (International callers). The access code is 83659918. This replay will be available</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD style="TEXT-INDENT: 0pt" align=left><FONT size=2 face=serif>approximately two hours after the completion of the live earnings call through the end of day Feb. 8, 2013.</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 18pt" align=left><FONT size=2 face=sans-serif><STRONG><FONT size=5 face=sans-serif><STRONG><FONT size=5 face=sans-serif>&#183;</FONT><FONT size=5>&nbsp;</FONT></STRONG></FONT></STRONG></FONT></TD>

   <TD style="TEXT-INDENT: 0pt" align=left><FONT size=2 face=serif>Replay of the earnings call via webcast as well as a transcript of the call will be available after the call at:</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD style="TEXT-INDENT: 0.001pt" align=left><U><FONT size=2 face=serif>www.principal.com/investor</FONT></U><FONT size=2 face=serif>.</FONT>&nbsp;</TD></TR>

<TR>

   <TD colSpan=2>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 18pt" colSpan=2 align=left><FONT size=2 face=serif>The company's financial supplement and additional investment portfolio detail for fourth quarter 2012 is</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 18pt" colSpan=2 align=left><FONT size=2 face=serif>currently available at </FONT><U><FONT size=2 face=serif>www.principal.com/investor</FONT></U><FONT size=2 face=serif>, and may be referred to during the call. Slides related to the</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 18pt" colSpan=2 align=left><FONT size=2 face=serif>call will be available at </FONT><U><FONT size=2 face=serif>www.principal.com/investor </FONT></U><FONT size=2 face=serif>approximately one-half hour prior to call start time.</FONT>&nbsp;</TD></TR>

<TR>

   <TD colSpan=2>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 0pt" colSpan=2 align=left><B><FONT size=2 face=serif>About the Principal Financial Group</FONT></B>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 18pt" colSpan=2 align=left><FONT size=2 face=serif>The Principal Financial Group</FONT><FONT size=1 face=sans-serif><SUP><FONT size=2 face=serif>&#174;</FONT></SUP></FONT><FONT size=2 face=serif>(The Principal </FONT><SUP><FONT size=2 face=serif>&#174;</FONT></SUP><FONT size=2 face=serif>)</FONT><SUP><FONT size=2 face=serif>5 </FONT></SUP><FONT size=2 face=serif>is a global investment management leader offering</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 17.999pt" colSpan=2 align=left><FONT size=2 face=serif>retirement services, insurance solutions and asset management. The Principal offers businesses, individuals</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 17.999pt" colSpan=2 align=left><FONT size=2 face=serif>and institutional clients a wide range of financial products and services, including retirement, asset</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 17.999pt" colSpan=2 align=left><FONT size=2 face=serif>management and insurance through its diverse family of financial services companies. Founded in 1879 and a</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 17.999pt" colSpan=2 align=left><FONT size=2 face=serif>member of the FORTUNE 500</FONT><SUP><FONT size=2 face=serif>&#174;</FONT></SUP><FONT size=2 face=serif>, the Principal Financial Group has $403.0 billion in assets under</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 18pt" colSpan=2 align=left><FONT size=2 face=serif>management</FONT><SUP><FONT size=2 face=serif>6 </FONT></SUP><FONT size=2 face=serif>and serves some 18.3 million customers worldwide from offices in Asia, Australia, Europe,</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 18pt" colSpan=2 align=left><FONT size=2 face=serif>Latin America and the United States. Principal Financial Group, Inc. is traded on the New York Stock</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 18pt" colSpan=2 align=left>

   <P style="MARGIN-BOTTOM: 6pt"><FONT size=2 face=serif>Exchange under the ticker symbol PFG. For more information, visit </FONT><U><FONT size=2 face=serif>www.principal.com</FONT></U><FONT size=2 face=serif>.</FONT>&nbsp;</P></TD></TR>

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   <TD colSpan=2 align=left><FONT size=2 face=serif><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" colSpan=2 align=left><SUP><FONT size=1 face=serif>5 </FONT></SUP><FONT size=1 face=serif>&#8220;The Principal Financial Group&#8221; and &#8220;The Principal&#8221; are registered service marks of Principal Financial Services, Inc., a member of the Principal</FONT>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 0pt" colSpan=2 align=left><FONT size=1 face=serif>Financial Group.</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" colSpan=2 align=left><SUP><FONT size=1 face=serif>6 </FONT></SUP><FONT size=1 face=serif>As of Dec.31, 2012</FONT>&nbsp;</TD></TR></TABLE></DIV>

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   <TD width="52%"></TD>

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   <TD colSpan=2 align=right><B><I><FONT size=2 face=serif>Summary of Segment and Principal Financial Group, Inc. Results</FONT></I></B>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR>

   <TD colSpan=5>&nbsp;</TD></TR>

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   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD colSpan=2 align=center><B><FONT size=2 face=serif>Operating Earnings (Loss)*</FONT></B>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD style="TEXT-INDENT: 37.379pt" colSpan=2 align=left><B><I><FONT size=2 face=serif>in millions</FONT></I></B>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD colSpan=2 align=right><I><FONT size=2 face=serif>Three Months Ended,</FONT></I>&nbsp;</TD>

   <TD colSpan=2 align=right><I><FONT size=2 face=serif>Twelve Months Ended,</FONT></I>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=right><B><I><FONT size=2 face=serif>Segment</FONT></I></B>&nbsp;</TD>

   <TD align=center><FONT size=2 face=serif>12/31/12</FONT>&nbsp;</TD>

   <TD align=center><FONT size=2 face=serif>12/31/11</FONT>&nbsp;</TD>

   <TD align=center><FONT size=2 face=serif>12/31/12</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>12/31/11</FONT>&nbsp;</TD></TR>

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   <TD align=right><I><FONT size=2 face=serif>Retirement and Investor Services</FONT></I>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 152.3</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 124.5</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 575.1</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 562.9</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=right><I><FONT size=2 face=serif>Principal Global Investors</FONT></I>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>26.2</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>17.5</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>81.2</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>74.0</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=right><I><FONT size=2 face=serif>Principal International</FONT></I>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>45.1</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>50.1</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>153.3</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>149.5</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=right><I><FONT size=2 face=serif>U.S. Insurance Solutions</FONT></I>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>59.4</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>52.8</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>138.2</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>204.3</FONT>&nbsp;</TD></TR>

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   <TD align=right><I><FONT size=2 face=serif>Corporate</FONT></I>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>(39.1)</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>(43.1)</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>(139.8)</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>(146.9)</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=right><B><I><FONT size=2 face=serif>Operating Earnings</FONT></I></B>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face=serif>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 243.9</FONT></B>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face=serif>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 201.8</FONT></B>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face=serif>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 808.0</FONT></B>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face=serif>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;843.8</FONT></B>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=right><I><FONT size=2 face=serif>Net realized capital gains (losses), as adjusted</FONT></I>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>(0.5)</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>(53.6)</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>39.1</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>(141.8)</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=right><I><FONT size=2 face=serif>Other after-tax adjustments</FONT></I>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>(24.8)</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>0.3</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>(74.2)</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>(82.3)</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=right><B><I><FONT size=2 face=serif>Net income available to common stockholders</FONT></I></B>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face=serif>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 218.6</FONT></B>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face=serif>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 148.5</FONT></B>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face=serif>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 772.9</FONT></B>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face=serif>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 619.7</FONT></B>&nbsp;</TD></TR>

<TR>

   <TD colSpan=5>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD colSpan=2 align=center><B><FONT size=2 face=serif>Per Diluted Share</FONT></B>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD colSpan=2 align=right><I><FONT size=2 face=serif>Three Months Ended,</FONT></I>&nbsp;</TD>

   <TD colSpan=2 align=right><I><FONT size=2 face=serif>Twelve Months Ended,</FONT></I>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD align=center><FONT size=2 face=serif>12/31/12</FONT>&nbsp;</TD>

   <TD align=center><FONT size=2 face=serif>12/31/11</FONT>&nbsp;</TD>

   <TD align=center><FONT size=2 face=serif>12/31/12</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>12/31/11</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=right><B><I><FONT size=2 face=serif>Operating Earnings</FONT></I></B>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face=serif>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.82</FONT></B>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face=serif>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.66</FONT></B>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face=serif>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2.69</FONT></B>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face=serif>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.66</FONT></B>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=right><I><FONT size=2 face=serif>Net realized capital gains (losses), as adjusted</FONT></I>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>-</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>(0.18)</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>0.13</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>(0.45)</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=right><I><FONT size=2 face=serif>Other after-tax adjustments</FONT></I>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>(0.08)</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>-</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>(0.25)</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>(0.26)</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=right><B><I><FONT size=2 face=serif>Net income available to common stockholders</FONT></I></B>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face=serif>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.74</FONT></B>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face=serif>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.48</FONT></B>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face=serif>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.57</FONT></B>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face=serif>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1.95</FONT></B>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=right><B><I><FONT size=2 face=serif>Weighted-average diluted common shares outstanding(in</FONT></I></B>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=right><B><I><FONT size=2 face=serif>millions)</FONT></I></B>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face=serif>297.3</FONT></B>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face=serif>307.9</FONT></B>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face=serif>300.4</FONT></B>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face=serif>317.6</FONT></B>&nbsp;</TD></TR></TABLE></DIV>

<P style="MARGIN: 0px">&nbsp;</P>

<DIV align=left>

<TABLE border=0 cellSpacing=0>



<TR>

   <TD width="99%">

   <P>&nbsp;</P>

   <P>&nbsp;</P>

   <P>&nbsp;</P>

   <P>&nbsp;</P>

   <P>&nbsp;</P></TD></TR>

<TR vAlign=bottom>

   <TD align=left><B><FONT size=2 face=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><FONT size=2 face=serif>Management uses operating earnings, which excludes the effect of net realized capital gains and losses, as adjusted, and other after-tax</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face=serif>adjustments, for goal setting, as a basis for determining employee compensation, and evaluating performance on a basis comparable to that</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face=serif>used by investors and securities analysts. Segment operating earnings are determined by adjusting U.S. GAAP net income available to</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face=serif>common stockholders for net realized capital gains and losses, as adjusted, and other after-tax adjustments the company believes are not</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face=serif>indicative of overall operating trends. Note: it is possible these adjusting items have occurred in the past and could recur in future</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face=serif>reporting periods. While these items may be significant components in understanding and assessing our consolidated financial</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face=serif>performance, management believes the presentation of segment operating earnings enhances the understanding of results of operations by</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face=serif>highlighting earnings attributable to the normal, ongoing operations of the company&#8217;s businesses.</FONT>&nbsp;</TD></TR></TABLE></DIV>

<P style="MARGIN: 0px">&nbsp;</P></DIV>

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<TABLE border=0 cellSpacing=0>



<TR>

   <TD width="42%"></TD>

   <TD width="18%"></TD>

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   <TD colSpan=7 align=center><B><FONT size=2 face=serif>Principal Financial Group, Inc.</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD colSpan=7 align=center><B><FONT size=2 face=serif>Results of Operations</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD colSpan=7 align=center><B><FONT size=2 face=serif>(in millions)</FONT></B></TD></TR>

<TR>

   <TD colSpan=7>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" colSpan=2 align=right><B><FONT size=2 face=serif>Three Months Ended,</FONT></B>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; TEXT-INDENT: 4.413pt; BORDER-TOP: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" colSpan=4 align=left><B><FONT size=2 face=serif>Twelve Months Ended,</FONT></B>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" align=center><B><FONT size=2 face=serif>12/31/12</FONT></B>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" align=center><B><FONT size=2 face=serif>12/31/11</FONT></B>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; TEXT-INDENT: 6.695pt; BORDER-RIGHT: #000000 1px solid" colSpan=3 align=left><B><FONT size=2 face=serif>12/31/12</FONT></B>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" align=center><B><FONT size=2 face=serif>12/31/11</FONT></B>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 1.319pt" align=left><FONT size=2 face=serif>Premiums and other considerations</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>$ 700.0</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>$ 635.1</FONT>&nbsp;</TD>

   <TD colSpan=3 align=right><FONT size=2 face=serif>$ 3,216.5</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>$ 2,385.5</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 1.319pt" align=left><FONT size=2 face=serif>Fees and other revenues</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>717.7</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>616.4</FONT>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD colSpan=2 align=right><FONT size=2 face=serif>2,606.9</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>2,423.3</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 1.319pt" align=left><FONT size=2 face=serif>Net investment income</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>875.4</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>851.8</FONT>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD colSpan=2 align=right><FONT size=2 face=serif>3,352.0</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>3,472.2</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 1.319pt" align=left><I><FONT size=2 face=serif>Total operating revenues</FONT></I>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-TOP: #000000 1px solid" align=right><FONT size=2 face=serif>2,293.1</FONT>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-TOP: #000000 1px solid" align=right><FONT size=2 face=serif>2,103.3</FONT>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-TOP: #000000 1px solid" align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-TOP: #000000 1px solid" colSpan=2 align=right><FONT size=2 face=serif>9,175.4</FONT>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-TOP: #000000 1px solid" align=right><FONT size=2 face=serif>8,281.0</FONT>&nbsp;</TD></TR>

<TR>

   <TD colSpan=7>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 1.319pt" align=left><FONT size=2 face=serif>Benefits, claims and settlement expenses</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>1,155.3</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>1,093.8</FONT>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD colSpan=2 align=right><FONT size=2 face=serif>5,128.6</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>4,236.9</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 1.319pt" align=left><FONT size=2 face=serif>Dividends to policyholders</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>48.2</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>51.5</FONT>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD colSpan=2 align=right><FONT size=2 face=serif>197.7</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>210.2</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 1.319pt" align=left><FONT size=2 face=serif>Commissions</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>179.2</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>149.7</FONT>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD colSpan=2 align=right><FONT size=2 face=serif>657.9</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>592.0</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 1.319pt" align=left><FONT size=2 face=serif>Capitalization of DPAC</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>(132.2)</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>(95.3)</FONT>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD colSpan=2 align=right><FONT size=2 face=serif>(435.3)</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>(349.6)</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 1.319pt" align=left><FONT size=2 face=serif>Amortization of DPAC</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>64.9</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>51.5</FONT>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD colSpan=2 align=right><FONT size=2 face=serif>121.4</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>236.9</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 1.319pt" align=left><FONT size=2 face=serif>Depreciation and amortization</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>19.9</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>16.1</FONT>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>90.2</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>68.4</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 1.319pt" align=left><FONT size=2 face=serif>Interest expense on corporate debt</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>39.9</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>31.5</FONT>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD colSpan=2 align=right><FONT size=2 face=serif>132.7</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>123.7</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 1.319pt" align=left><FONT size=2 face=serif>Compensation and other</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>612.4</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>552.8</FONT>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD colSpan=2 align=right><FONT size=2 face=serif>2,244.7</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>2,051.1</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 1.319pt" align=left><I><FONT size=2 face=serif>Total expenses</FONT></I>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-TOP: #000000 1px solid" align=right><FONT size=2 face=serif>1,987.6</FONT>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-TOP: #000000 1px solid" align=right><FONT size=2 face=serif>1,851.6</FONT>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-TOP: #000000 1px solid" align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-TOP: #000000 1px solid" colSpan=2 align=right><FONT size=2 face=serif>8,137.9</FONT>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-TOP: #000000 1px solid" align=right><FONT size=2 face=serif>7,169.6</FONT>&nbsp;</TD></TR>

<TR>

   <TD colSpan=7>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 1.319pt" align=left><FONT size=2 face=serif>Operating earnings before tax, noncontrolling</FONT>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 18.42pt" align=left><FONT size=2 face=serif>interest and preferred stock dividends</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>305.5</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>251.7</FONT>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD colSpan=2 align=right><FONT size=2 face=serif>1,037.5</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>1,111.4</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 1.319pt" align=left><FONT size=2 face=serif>Less:</FONT>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 6.359pt" align=left><FONT size=2 face=serif>Income tax</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>49.9</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>43.2</FONT>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD colSpan=2 align=right><FONT size=2 face=serif>186.0</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>230.0</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 6.36pt" align=left><FONT size=2 face=serif>Operating earnings (loss) attributable to</FONT>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 18.42pt" align=left><FONT size=2 face=serif>noncontrolling interest</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>3.4</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>(1.6)</FONT>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>10.5</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>4.6</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 6.36pt" align=left><FONT size=2 face=serif>Preferred stock dividends</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>8.3</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>8.3</FONT>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>33.0</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>33.0</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.42pt" align=left><I><FONT size=2 face=serif>Operating earnings</FONT></I>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-TOP: #000000 1px solid" align=right><U><FONT size=2 face=serif>$ 243.9</FONT>&nbsp;</U></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-TOP: #000000 1px solid" align=right><U><FONT size=2 face=serif>$ 201.8</FONT>&nbsp;</U></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-TOP: #000000 1px solid" colSpan=3 align=right><U><FONT size=2 face=serif>$ 808.0</FONT>&nbsp;</U></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-TOP: #000000 1px solid" align=right><U><FONT size=2 face=serif>$ 843.8</FONT>&nbsp;</U></TD></TR>

<TR>

   <TD colSpan=7>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 1.319pt" align=left><FONT size=2 face=serif>Net realized capital gains (losses), as adjusted</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>(0.5)</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>(53.6)</FONT>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>39.1</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>(141.8)</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 1.319pt" align=left><FONT size=2 face=serif>Other after-tax adjustments</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>(24.8)</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>0.3</FONT>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD colSpan=2 align=right><FONT size=2 face=serif>(74.2)</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>(82.3)</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 1.319pt" align=left><I><FONT size=2 face=serif>Net income available to common stockholders</FONT></I>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-TOP: #000000 1px solid" align=right><U><FONT size=2 face=serif>$ 218.6</FONT>&nbsp;</U></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-TOP: #000000 1px solid" align=right><U><FONT size=2 face=serif>$ 148.5</FONT>&nbsp;</U></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-TOP: #000000 1px solid" colSpan=3 align=right><U><FONT size=2 face=serif>$ 772.9</FONT>&nbsp;</U></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-TOP: #000000 1px solid" align=right><U><FONT size=2 face=serif>$ 619.7</FONT>&nbsp;</U></TD></TR>

<TR>

   <TD colSpan=7>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD colSpan=3 align=center><B><I><FONT size=2 face=serif>Selected Balance Sheet Statistics</FONT></I></B>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR>

   <TD colSpan=7>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-TOP: #000000 1px solid" align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-TOP: #000000 1px solid" colSpan=3 align=center><B><FONT size=2 face=serif>Period Ended,</FONT></B>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-TOP: #000000 1px solid" align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid" align=center><B><FONT size=2 face=serif>12/31/12</FONT></B>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid" colSpan=3 align=center><B><FONT size=2 face=serif>12/31/11</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid" align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; TEXT-INDENT: 1.299pt; BORDER-RIGHT: #000000 1px solid" align=left><B><FONT size=2 face=serif>12/31/10</FONT></B>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face=serif>Total assets (in billions)</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>$ 161.9</FONT>&nbsp;</TD>

   <TD colSpan=3 align=center><FONT size=2 face=serif>$&nbsp;&nbsp;&nbsp; 147.4</FONT>&nbsp;</TD>

   <TD colSpan=2 align=right><FONT size=2 face=serif>$ 144.7</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face=serif>Total common equity (in millions)</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>$ 9,211.2</FONT>&nbsp;</TD>

   <TD colSpan=3 align=center><FONT size=2 face=serif>$ 8,475.9</FONT>&nbsp;</TD>

   <TD colSpan=2 align=right><FONT size=2 face=serif>$ 8,607.2</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face=serif>Total common equity excluding accumulated</FONT>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 18.419pt" align=left><FONT size=2 face=serif>other comprehensive income (in millions)</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>$ 8,579.3</FONT>&nbsp;</TD>

   <TD colSpan=3 align=center><FONT size=2 face=serif>$ 8,217.9</FONT>&nbsp;</TD>

   <TD colSpan=2 align=right><FONT size=2 face=serif>$ 8,300.5</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face=serif>End of period common shares outstanding (in</FONT>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 18.419pt" align=left><FONT size=2 face=serif>millions)</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>293.8</FONT>&nbsp;</TD>

   <TD colSpan=3 align=center><FONT size=2 face=serif>&nbsp;&nbsp; 301.1</FONT>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>320.4</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face=serif>Book value per common share</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>$ 31.35</FONT>&nbsp;</TD>

   <TD colSpan=3 align=center><FONT size=2 face=serif>$ 28.15</FONT>&nbsp;</TD>

   <TD colSpan=2 align=right><FONT size=2 face=serif>$ 26.86</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face=serif>Book value per common share excluding</FONT>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 13.919pt" align=left><FONT size=2 face=serif>accumulated other comprehensive income</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>$ 29.20</FONT>&nbsp;</TD>

   <TD colSpan=3 align=center><FONT size=2 face=serif>$ 27.29</FONT>&nbsp;</TD>

   <TD colSpan=2 align=right><FONT size=2 face=serif>$ 25.91</FONT>&nbsp;</TD></TR></TABLE></DIV>

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<TR vAlign=bottom>

   <TD colSpan=5 align=center><B><FONT size=2 face=serif>Principal Financial Group, Inc.</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD colSpan=5 align=center><B><FONT size=2 face=serif>Reconciliation of Non-GAAP Financial Measures to U.S. GAAP</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD colSpan=5 align=center><B><FONT size=2 face=serif>(in millions, except as indicated)</FONT></B></TD></TR>

<TR>

   <TD colSpan=5>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD style="BORDER-LEFT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" colSpan=2 align=right><B><FONT size=2 face=serif>Three Months Ended,</FONT></B>&nbsp;</TD>

   <TD style="BORDER-TOP: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" colSpan=2 align=right><B><FONT size=2 face=serif>Twelve Months Ended,</FONT></B>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" align=center><B><FONT size=2 face=serif>12/31/12</FONT></B>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" align=center><B><FONT size=2 face=serif>12/31/11</FONT></B>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" align=center><B><FONT size=2 face=serif>12/31/12</FONT></B>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" align=center><B><FONT size=2 face=serif>12/31/11</FONT></B>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" align=left><B><FONT size=2 face=serif>Diluted Earnings Per Common Share:</FONT></B>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" align=left><FONT size=2 face=serif>Operating earnings</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>$ 0.82</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>$ 0.66</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>$ 2.69</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>$ 2.66</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" align=left><FONT size=2 face=serif>Net realized capital gains (losses)</FONT>&nbsp;</TD>

   <TD align=center><FONT size=2 face=serif>-</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>(0.18)</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>0.13</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>(0.45)</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face=serif>Other after-tax adjustments</FONT>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face=serif>(0.08)</FONT>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><FONT size=2 face=serif>-</FONT>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face=serif>(0.25)</FONT>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face=serif>(0.26)</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face=serif>Net income available to common stockholders</FONT>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><U><FONT size=2 face=serif>$ 0.74</FONT>&nbsp;</U></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><U><FONT size=2 face=serif>$ 0.48</FONT>&nbsp;</U></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><U><FONT size=2 face=serif>$ 2.57</FONT>&nbsp;</U></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><U><FONT size=2 face=serif>$ 1.95</FONT>&nbsp;</U></TD></TR>

<TR>

   <TD colSpan=5>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" align=left><B><FONT size=2 face=serif>Book Value Per Common Share Excluding Accumulated</FONT></B>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" align=left><B><FONT size=2 face=serif>Other Comprehensive Income:</FONT></B>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" align=left><FONT size=2 face=serif>Book value per common share excluding accumulated other</FONT>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face=serif>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; comprehensive income</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>$ 29.20</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>$ 27.29</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>$ 29.20</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>$ 27.29</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" align=left><FONT size=2 face=serif>Net unrealized capital gains</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>4.20</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>2.42</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>4.20</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>2.42</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" align=left><FONT size=2 face=serif>Foreign currency translation</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>(0.39)</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>(0.36)</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>(0.39)</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>(0.36)</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" align=left><FONT size=2 face=serif>Net unrecognized postretirement benefit obligations</FONT>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face=serif>(1.66)</FONT>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face=serif>(1.20)</FONT>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face=serif>(1.66)</FONT>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face=serif>(1.20)</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" align=left><FONT size=2 face=serif>Book value per common share including accumulated other</FONT>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face=serif>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; comprehensive income</FONT>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><U><FONT size=2 face=serif>$ 31.35</FONT>&nbsp;</U></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><U><FONT size=2 face=serif>$ 28.15</FONT>&nbsp;</U></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><U><FONT size=2 face=serif>$ 31.35</FONT>&nbsp;</U></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><U><FONT size=2 face=serif>$ 28.15</FONT>&nbsp;</U></TD></TR>

<TR>

   <TD colSpan=5>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" align=left><B><FONT size=2 face=serif>Operating Revenues:</FONT></B>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" align=left><FONT size=2 face=serif>RIS</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>$ 1,127.9</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>$ 1,016.9</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>$ 4,834.9</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>$ 4,075.0</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" align=left><FONT size=2 face=serif>PGI</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>168.0</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>151.8</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>591.2</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>546.3</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" align=left><FONT size=2 face=serif>PI</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>265.8</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>255.6</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>942.7</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>909.0</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" align=left><FONT size=2 face=serif>USIS</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>779.7</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>737.9</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>2,994.7</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>2,939.9</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" align=left><FONT size=2 face=serif>Corporate</FONT>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face=serif>(48.3)</FONT>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face=serif>(58.9)</FONT>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face=serif>(188.1)</FONT>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face=serif>(189.2)</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" align=left><FONT size=2 face=serif>Total operating revenues</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>2,293.1</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>2,103.3</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>9,175.4</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>8,281.0</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" align=left><FONT size=2 face=serif>Net realized capital gains (losses) and related adjustments</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>1.9</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>(97.4)</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>14.7</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>(216.6)</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" align=left><FONT size=2 face=serif>Exited group medical insurance business</FONT>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face=serif>0.9</FONT>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face=serif>52.9</FONT>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face=serif>25.0</FONT>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face=serif>606.3</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" align=left><FONT size=2 face=serif>Total GAAP revenues</FONT>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><U><FONT size=2 face=serif>$ 2,295.9</FONT>&nbsp;</U></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><U><FONT size=2 face=serif>$ 2,058.8</FONT>&nbsp;</U></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><U><FONT size=2 face=serif>$ 9,215.1</FONT>&nbsp;</U></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><U><FONT size=2 face=serif>$ 8,670.7</FONT>&nbsp;</U></TD></TR>

<TR>

   <TD colSpan=5>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" align=left><B><FONT size=2 face=serif>Operating Earnings:</FONT></B>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" align=left><FONT size=2 face=serif>RIS</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>$ 152.3</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>$ 124.5</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>$ 575.1</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>$ 562.9</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" align=left><FONT size=2 face=serif>PGI</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>26.2</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>17.5</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>81.2</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>74.0</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" align=left><FONT size=2 face=serif>PI</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>45.1</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>50.1</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>153.3</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>149.5</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" align=left><FONT size=2 face=serif>USIS</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>59.4</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>52.8</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>138.2</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>204.3</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" align=left><FONT size=2 face=serif>Corporate</FONT>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face=serif>(39.1)</FONT>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face=serif>(43.1)</FONT>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face=serif>(139.8)</FONT>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face=serif>(146.9)</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" align=left><FONT size=2 face=serif>Total operating earnings</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>243.9</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>201.8</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>808.0</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>843.8</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" align=left><FONT size=2 face=serif>Net realized capital gains (losses) and related adjustments</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>(0.5)</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>(53.6)</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>39.1</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>(141.8)</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" align=left><FONT size=2 face=serif>Other after-tax adjustments</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>(24.8)</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>0.3</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>(74.2)</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>(82.3)</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" align=left><FONT size=2 face=serif>Net income available to common stockholders</FONT>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-TOP: #000000 1px solid" align=right><U><FONT size=2 face=serif>$ 218.6</FONT>&nbsp;</U></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-TOP: #000000 1px solid" align=right><U><FONT size=2 face=serif>$ 148.5</FONT>&nbsp;</U></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-TOP: #000000 1px solid" align=right><U><FONT size=2 face=serif>$ 772.9</FONT>&nbsp;</U></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-TOP: #000000 1px solid" align=right><U><FONT size=2 face=serif>$ 619.7</FONT>&nbsp;</U></TD></TR>

<TR>

   <TD colSpan=5>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" align=left><B><FONT size=2 face=serif>Net Realized Capital Gains (Losses):</FONT></B>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" align=left><FONT size=2 face=serif>Net realized capital gains (losses), as adjusted</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>$ (0.5)</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>$ (53.6)</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>$ 39.1</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>$ (141.8)</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face=serif>Certain derivative and hedging-related adjustments</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>30.5</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>25.6</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>98.9</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>98.8</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face=serif>Amortization of DPAC and sale inducement costs</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>(1.9)</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>(16.0)</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>(36.6)</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>21.5</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face=serif>Certain market value adjustments of embedded derivatives</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>(0.8)</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>(0.9)</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>0.6</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>(65.6)</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face=serif>Capital gains distributed</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>3.5</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>1.1</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>12.2</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>3.1</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face=serif>Tax impacts</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>1.5</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>(29.2)</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>(8.7)</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>(70.5)</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face=serif>Noncontrolling interest capital gains</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>0.1</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>1.2</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>8.3</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>31.6</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face=serif>Recognition of front-end fee revenues</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>0.2</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>0.5</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>0.2</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>0.3</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face=serif>Certain market value adjustments to fee revenues</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>0.3</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>-</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>0.3</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>0.1</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face=serif>Net realized capital gains (losses) associated with exited group</FONT>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face=serif>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; medical business</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>-</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>-</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>(0.2)</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>0.2</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face=serif>GAAP net realized capital gains (losses)</FONT>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; TEXT-INDENT: 0.136pt; BORDER-TOP: #000000 1px solid" align=right><U><FONT size=2 face=serif>$ 32.9</FONT>&nbsp;</U></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-TOP: #000000 1px solid" align=right><U><FONT size=2 face=serif>$ (71.3)</FONT>&nbsp;</U></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-TOP: #000000 1px solid" align=right><U><FONT size=2 face=serif>$ 114.1</FONT>&nbsp;</U></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-TOP: #000000 1px solid" align=right><U><FONT size=2 face=serif>$ (122.3)</FONT>&nbsp;</U></TD></TR>

<TR>

   <TD colSpan=5>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" align=left><B><FONT size=2 face=serif>Other After-Tax Adjustments:</FONT></B>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" align=left><FONT size=2 face=serif>Exited group medical insurance businesses</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>$ -</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>$ 0.1</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>$ (9.6)</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>$ 50.9</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" align=left><FONT size=2 face=serif>Court ruling regarding some uncertain tax positions</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>-</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>-</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>-</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>(68.9)</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" align=left><FONT size=2 face=serif>ELNY liquidation estimated obligation</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>-</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>0.2</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>-</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>(10.3)</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" align=left><FONT size=2 face=serif>Contribution to PFG Foundation</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>-</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>-</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>(39.8)</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>(19.5)</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" align=left><FONT size=2 face=serif>Early extinguishment of debt</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>(24.8)</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>-</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>(24.8)</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>-</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" align=left><FONT size=2 face=serif>Assumption change within the Individual Life business</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>-</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>-</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>-</FONT>&nbsp;</TD>

   <TD align=right><FONT size=2 face=serif>(34.5)</FONT>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" align=left><FONT size=2 face=serif>Total other after-tax adjustments</FONT>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-TOP: #000000 1px solid" align=right><U><FONT size=2 face=serif>$ (24.8)</FONT>&nbsp;</U></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-TOP: #000000 1px solid" align=right><U><FONT size=2 face=serif>$ 0.3</FONT>&nbsp;</U></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-TOP: #000000 1px solid" align=right><U><FONT size=2 face=serif>$ (74.2)</FONT>&nbsp;</U></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-TOP: #000000 1px solid" align=right><U><FONT size=2 face=serif>$ (82.3)</FONT>&nbsp;</U></TD></TR></TABLE></DIV>

<P style="MARGIN: 0px">&nbsp;</P></DIV>

</BODY>

</HTML>
[{"type": "8-K", "sequence": "1", "filename": "thquarter.htm", "description": "4Q2012 RELEASE", "secsgml_size_bytes": 122594}]
{"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": "13564930"}, "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"}}
thquarter.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:
January 31, 2013
(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))
____________________
Item 2.02. Results of Operations and Financial Condition
On January 31, 2013, Principal Financial Group, Inc. publicly announced information regarding its
results of operations and financial condition for the quarter and year ended December 31, 2012. The
text of the announcement is included herewith as Exhibit 99.
Item 9.01 Financial Statements and Exhibits
99 Fourth Quarter and Calendar Year 2012 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: January 31, 2013
Release:
On receipt, Jan. 31, 2013
Media contact:
Susan Houser, 515-248-2268,
houser.susan@principal.com
Investor contact:
John Egan, 515-235-9500,
egan.john@principal.com
Principal Financial Group, Inc. Announces Fourth Quarter
And Full-Year 2012 Results
Company Also Announces Common Stock Dividend Increase
·
Fourth quarter 2012 operating earnings
1
of $243.9 million, an increase of 21 percent over
fourth quarter 2011; net income available to common shareholders was $218.6 million, an
increase of 47 percent over fourth quarter 2011.
·
Full-year 2012 operating earnings of $808.0 million, a decrease of 4 percent over 2011 (adjusted
operating earnings of $898.7 million
2
, an increase of 7 percent over full-year 2011); net income
available to common shareholders of $772.9 million, an increase of 25 percent over 2011.
·
Year-end 2012 record assets under management of $403.0 billion, an increase of 20 percent
compared to year-end 2011.
·
First quarter dividend of $0.23 per share of common stock, an increase of 10 percent over the
fourth quarter 2012 dividend.
(Des Moines, Iowa) – Principal Financial Group, Inc. (NYSE: PFG) today announced results for fourth
quarter and full year 2012. The company reported operating earnings of $243.9 million for fourth quarter 2012,
compared to $201.8 million for fourth quarter 2011. Operating earnings per diluted share (EPS) were $0.82 for fourth
quarter 2012, compared to $0.66 for fourth quarter 2011. The company reported net income available to common
stockholders of $218.6 million, or $0.74 per diluted share for fourth quarter 2012, compared to $148.5 million, or $0.48
per diluted share for fourth quarter 2011, reflecting a strong increase in operating earnings and improvement in credit-
related losses. Operating revenues for fourth quarter 2012 were $2,293.1 million compared to $2,103.3 million for the
same period last year.
The company reported operating earnings of $808.0 million for the twelve months ended Dec. 31, 2012
(which were negatively impacted by a $90.7 million charge from the third quarter actuarial assumption review,
predominantly due to the lower interest rates), compared to $843.8 million for the twelve months ended Dec. 31, 2011.
Operating earnings per diluted share (EPS) were $2.69 for the twelve months ended Dec. 31, 2012, compared to $2.66 for
the twelve months ended Dec. 31, 2011. (Adjusted 2012 EPS of $2.99
2
is up 12 percent over reported 2011 EPS.) The
company reported net income available to common stockholders of $772.9 million, or $2.57 per diluted share for the
twelve months ended Dec. 31, 2012, compared to $619.7 million, or $1.95 per diluted share for the twelve months ended
Dec. 31, 2011. Operating revenues for the year 2012 were $9,175.4 million compared to $8,281.0 million for the same
period last year.
The company also announced today that its board of directors has declared a quarterly dividend of
$0.23 per share of common stock, an increase of 10 percent over the fourth quarter 2012 dividend. The dividend
will be payable on March 29, 2013 to shareholders of record as of March 11, 2013.
1
Use of non-GAAP financial measures is discussed in this release after segment results.
2
2012 operating earnings were negatively impacted by $90.7 million from the third quarter 2012 actuarial assumption
review.
"The Principal Financial Group ended a strong 2012 with very strong fourth quarter earnings. The continued
strength of our underlying business fundamentals and successful execution of our strategy gives us momentum going
into 2013," said Larry D. Zimpleman, chairman, president and chief executive officer. "We significantly advanced our
international strategy with two acquisitions in Latin America last year. Closing on Cuprum will further solidify our
position as a global investment management leader in 2013 and beyond."
Added Terry Lillis, senior vice president and chief financial officer, "Our very strong earnings in the fourth quarter
and the ability of our fee-based business model to continuously generate deployable capital gives us continued financial
flexibility, as demonstrated by our strong capital deployment in 2012 and today's announcement of a 10 percent increase in
our quarterly common stock dividend. Full-year book value per share (excluding other comprehensive income) increased 7
percent over full year 2011 and our investment portfolio is performing very well."
Key Highlights
Fourth Quarter
·
Retirement and Investor Services Accumulation sales were up 17 percent in the fourth quarter compared to the
year ago quarter. This includes $3.3 billion for Full Service Accumulation, $4.2 billion for Principal Funds
and $448 million for Individual Annuities. Net cash flows of $1.6 billion for Full Service Accumulation and
$1.5 billion for Principal Funds.
·
Principal Global Investors had record unaffiliated assets under management (AUM) of $98.2 billion.
·
Principal International reported net cash flows of $2.0 billion and record AUM of $69.3 billion (excluding $11.3
billion of AUM in our asset management joint venture in China, which is not included in reported assets under
management).
·
Individual Life sales of $84.8 million, up 56 percent over fourth quarter 2011.
·
Specialty Benefits premium and fee growth of 5 percent over fourth quarter 2011and favorable incurred loss
ratio of 64.3 percent.
Full Year Results
·
Record AUM of $403.0 billion, up 20 percent compared to year-end 2011.
·
Total company net cash flows of $29.8 billion.
·
Strong capital position with an estimated risk based capital ratio of 415-420 percent at year end and $2.5 billion
of excess capital.
3
·
Book value per share, excluding AOCI
4
was $29.20, up 7 percent over 2011.
·
Four quarterly dividends to common stockholders in 2012 totaling $0.78 cents per share, up 11 percent over
2011.
·
Repurchased 9.9 million shares of common stock in 2012 at an average price of $25.92.
Net Income
Fourth Quarter
·
Net income available to common stockholders of $218.6 million for fourth quarter 2012, up 47 percent compared
to fourth quarter 2011 reflecting:
·
Net realized capital losses of $0.5 million, which includes:
·
$15.0 million of net losses, down 48 percent from a year ago quarter, related to sales and
permanent impairments of fixed maturity securities. This includes $11.1 million of losses on
commercial mortgage backed securities, which is down 51 percent from $22.6 million loss in
fourth quarter 2011.
·
Other after-tax adjustment loss of $24.8 million, which reflects expenses incurred extinguishing $400
million of long-term debt that was scheduled to mature in 2014.
3
Excess capital includes cash at the holding company and capital at the life company above the amount needed to maintain a
350 percent NAIC risk based capital ratio for the life company.
4
Accumulated Other Comprehensive Income
Full Year Results
Net income available to common stockholders of $772.9 million for the twelve months ended Dec. 31, 2012,
reflects net realized capital gains of $39.1 million, up $180.9 million from a $141.8 loss in 2011. This includes:
·
A net gain of $141.2 million as a result of Catalyst Health Solutions, Inc.'s merger into a subsidiary of SXC
Health Solutions Corp. (SXC), and our subsequent sale of our interest in SXC (now known as Catamaran
Corporation);
·
$76.8 million of net losses, a 36 percent improvement over 2011 related to sales and permanent impairments
of fixed maturity securities, including:
·
$60.1 million of losses on commercial mortgage backed securities, which is down 34 percent from
$90.5 million loss in 2011.
Segment Results
Retirement and Investor Services
Segment operating earnings for fourth quarter 2012 were $152.3 million, compared to $124.5 million for
the same period in 2011. Full Service Accumulation earnings increased 39 percent from a year ago quarter to $81.3
million reflecting an $8 million after-tax benefit as more companies paid extraordinary and accelerated dividends in
fourth quarter 2012. Principal Funds earnings were up 25 percent compared to the year-ago quarter to $13.2 million,
primarily due to an increase in average account values. Individual Annuities earnings were $31.1 million compared to
$27.8 million for fourth quarter 2011 reflecting $3 million after tax of favorable variable investment income. Bank
and Trust Services operating earnings were $7.9 million, compared to $8.5 million for fourth quarter 2011. The
guaranteed businesses, which consist of Investment Only and Full Service Payout, earned $18.8 million in the fourth
quarter 2012 compared to $19.0 million in fourth quarter 2011.
Operating revenues for the fourth quarter 2012 were $1,127.9 million compared to $1,016.9 million for
the same period in 2011 primarily due to higher fee revenue in the accumulations businesses and higher premiums
in the guaranteed businesses.
Segment assets under management were a record $212.0 billion as of Dec. 31, 2012, compared to
$179.8 billion as of Dec. 31, 2011, reflecting asset appreciation and strong net cash flows from Full Service
Accumulation and Principal Funds.
Principal Global Investors
Segment operating earnings for fourth quarter 2012 were $26.2 million, up strongly from $17.5 million in
the prior year quarter, primarily due to an increase in assets under management and the year ago quarter having
one-time acquisition costs.
Operating revenues for fourth quarter were $168.0 million, compared to $151.8 million for the same
period in 2011, primarily a result of higher management and transaction fees.
Unaffiliated assets under management were a record $98.2 billion as of Dec. 31, 2012, compared to $82.4
billion as of Dec. 31, 2011 as a result of strong net cash flows and strong investment performance.
Principal International
Segment operating earnings were $45.1 million in fourth quarter 2012, compared to $50.1 million in the
prior year quarter. Fourth quarter 2011 benefited from $10.4 million of one-time earnings.
Operating revenues were $265.8 million for fourth quarter 2012, compared to $255.6 million for the same
period last year primarily due to 31 percent growth in assets under management, which were partially offset by one-time
revenues in the year ago quarter.
Segment assets under management were a record $69.3 billion as of Dec. 31, 2012, compared to $52.8
billion as of Dec. 31, 2011. This includes a record $9.3 billion of net cash flows for the full year, or 18 percent of
beginning of the year assets under management.
U.S. Insurance Solutions
Segment operating earnings for fourth quarter 2012 were $59.4 million, compared to $52.8 million for
the same period in 2011. Individual Life earnings were $27.8 million in the fourth quarter 2012 compared to $27.2
million in fourth quarter 2011. Specialty Benefits earnings were $31.6 million in fourth quarter 2012, up 23
percent from $25.6 million in the same period a year ago primarily due to favorable claims experience in the
current quarter.
Segment operating revenues for fourth quarter 2012 were $779.7 million compared to $737.9 million
for the same period a year ago.
Corporate
Operating losses for fourth quarter 2012 were $39.1 million compared to operating losses of $43.1 million
in fourth quarter 2011. The fourth quarter 2011 was negatively impacted from an active credit strategy on excess
capital at the holding company, which was wound down in 2012.
Forward looking and cautionary statements
This press release contains forward-looking statements, including, without limitation, statements as to operating
earnings, net income available to common stockholders, net cash flows, realized and unrealized gains and losses,
capital and liquidity positions, sales and earnings trends, and management's beliefs, expectations, goals and
opinions. The company does not undertake to update these statements, which are based on a number of
assumptions concerning future conditions that may ultimately prove to be inaccurate. Future events and their
effects on the company may not be those anticipated, and actual results may differ materially from the results
anticipated in these forward-looking statements. The risks, uncertainties and factors that could cause or contribute
to such material differences are discussed in the company's annual report on Form 10-K for the year ended Dec.
31, 2011, and in the company's quarterly report on Form 10-Q for the quarter ended Sept.30, 2012, filed by the
company with the Securities and Exchange Commission, as updated or supplemented from time to time in
subsequent filings. These risks and uncertainties include, without limitation: adverse capital and credit market
conditions may significantly affect the company's ability to meet liquidity needs, access to capital and cost of
capital; continued difficult conditions in the global capital markets and the economy generally; continued volatility
or further declines in the equity markets; changes in interest rates or credit spreads; the company's investment
portfolio is subject to several risks that may diminish the value of its invested assets and the investment returns
credited to customers; the company's valuation of securities may include methodologies, estimations and
assumptions that are subject to differing interpretations; the determination of the amount of allowances and
impairments taken on the company's investments requires estimations and assumptions that are subject to differing
interpretations; gross unrealized losses may be realized or result in future impairments; competition from
companies that may have greater financial resources, broader arrays of products, higher ratings and stronger
financial performance; a downgrade in the company's financial strength or credit ratings; inability to attract and
retain sales representatives and develop new distribution sources; international business risks; the company's
actual experience could differ significantly from its pricing and reserving assumptions; the company's ability to
pay stockholder dividends and meet its obligations may be constrained by the limitations on dividends or
distributions Iowa insurance laws impose on Principal Life; the pattern of amortizing the company's DPAC and
other actuarial balances on its universal life-type insurance contracts, participating life insurance policies and
certain investment contracts may change; the company may need to fund deficiencies in its "Closed Block" assets
that support participating ordinary life insurance policies that had a dividend scale in force at the time of Principal
Life's 1998 conversion into a stock life insurance company; the company's reinsurers could default on their
obligations or increase their rates; risks arising from the company's ability to obtain regulatory approval and
consummate the acquisition of A.F.P. Cuprum S.A. and from other acquisitions of businesses; changes in laws,
regulations or accounting standards; a computer system failure or security breach could disrupt the company's
business, and damage its reputation; results of litigation and regulatory investigations; from time to time the
company may become subject to tax audits, tax litigation or similar proceedings, and as a result it may owe
additional taxes, interest and penalties in amounts that may be material; fluctuations in foreign currency exchange
rates; and applicable laws and the company's certificate of incorporation and by-laws may discourage takeovers
and business combinations that some stockholders might consider in their best interests.
Use of Non-GAAP Financial Measures
The company uses a number of non-GAAP financial measures that management believes are useful to investors
because they illustrate the performance of normal, ongoing operations, which is important in understanding and
evaluating the company's financial condition and results of operations. They are not, however, a substitute for U.S.
GAAP financial measures. Therefore, the company has provided reconciliations of the non-GAAP measures to the
most directly comparable U.S. GAAP measure at the end of the release. The company adjusts U.S. GAAP measures
for items not directly related to ongoing operations. However, it is possible these adjusting items have occurred in
the past and could recur in 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 Friday, Feb. 1, 2013 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 83659918.
·
Replay of the earnings call via telephone is available by dialing 855-859-2056 (U.S. and Canadian callers) or
404-537-3406 (International callers). The access code is 83659918. This replay will be available
approximately two hours after the completion of the live earnings call through the end of day Feb. 8, 2013.
·
Replay of the earnings call via webcast as well as a transcript of the call will be available after the call at:
www.principal.com/investor
.
The company's financial supplement and additional investment portfolio detail for fourth quarter 2012 is
currently available at
www.principal.com/investor
, and may be referred to during the call. Slides related to the
call will be available at
www.principal.com/investor
approximately one-half hour prior to call start time.
About the Principal Financial Group
The Principal Financial Group
®
(The Principal
®
)
5
is a global investment management leader offering
retirement services, insurance solutions and asset management. The Principal offers businesses, individuals
and institutional clients a wide range of financial products and services, including retirement, asset
management and insurance through its diverse family of financial services companies. Founded in 1879 and a
member of the FORTUNE 500
®
, the Principal Financial Group has $403.0 billion in assets under
management
6
and serves some 18.3 million customers worldwide from offices in Asia, Australia, Europe,
Latin America and the United States. Principal Financial Group, Inc. is traded on the New York Stock
Exchange under the ticker symbol PFG. For more information, visit
www.principal.com
.
###
5
"The Principal Financial Group" and "The Principal" are registered service marks of Principal Financial Services, Inc., a member of the Principal
Financial Group.
6
As of Dec.31, 2012
Summary of Segment and Principal Financial Group, Inc. Results
Operating Earnings (Loss)*
in millions
Three Months Ended,
Twelve Months Ended,
Segment
12/31/12
12/31/11
12/31/12
12/31/11
Retirement and Investor Services
$            152.3
$              124.5
$              575.1
$          562.9
Principal Global Investors
26.2
17.5
81.2
74.0
Principal International
45.1
50.1
153.3
149.5
U.S. Insurance Solutions
59.4
52.8
138.2
204.3
Corporate
(39.1)
(43.1)
(139.8)
(146.9)
Operating Earnings
$         243.9
$          201.8
$         808.0
$      843.8
Net realized capital gains (losses), as adjusted
(0.5)
(53.6)
39.1
(141.8)
Other after-tax adjustments
(24.8)
0.3
(74.2)
(82.3)
Net income available to common stockholders
$         218.6
$          148.5
$         772.9
$      619.7
Per Diluted Share
Three Months Ended,
Twelve Months Ended,
12/31/12
12/31/11
12/31/12
12/31/11
Operating Earnings
$          0.82
$            0.66
$            2.69
$        2.66
Net realized capital gains (losses), as adjusted
-
(0.18)
0.13
(0.45)
Other after-tax adjustments
(0.08)
-
(0.25)
(0.26)
Net income available to common stockholders
$          0.74
$            0.48
$            2.57
$        1.95
Weighted-average diluted common shares outstanding(in
millions)
297.3
307.9
300.4
317.6
*Operating earnings versus U.S. GAAP (GAAP) net income available to common stockholders
Management uses operating earnings, which excludes the effect of net realized capital gains and losses, as adjusted, and other after-tax
adjustments, for goal setting, as a basis for determining employee compensation, and evaluating performance on a basis comparable to that
used by investors and securities analysts. Segment operating earnings are determined by adjusting U.S. GAAP net income available to
common stockholders for net realized capital gains and losses, as adjusted, and other after-tax adjustments the company believes are not
indicative of overall operating trends. Note: it is possible these adjusting items have occurred in the past and could recur in future
reporting periods. While these items may be significant components in understanding and assessing our consolidated financial
performance, management believes the presentation of segment operating earnings enhances the understanding of results of operations by
highlighting earnings attributable to the normal, ongoing operations of the company's businesses.
Principal Financial Group, Inc.
Results of Operations
(in millions)
Three Months Ended,
Twelve Months Ended,
12/31/12
12/31/11
12/31/12
12/31/11
Premiums and other considerations
$ 700.0
$ 635.1
$ 3,216.5
$ 2,385.5
Fees and other revenues
717.7
616.4
2,606.9
2,423.3
Net investment income
875.4
851.8
3,352.0
3,472.2
Total operating revenues
2,293.1
2,103.3
9,175.4
8,281.0
Benefits, claims and settlement expenses
1,155.3
1,093.8
5,128.6
4,236.9
Dividends to policyholders
48.2
51.5
197.7
210.2
Commissions
179.2
149.7
657.9
592.0
Capitalization of DPAC
(132.2)
(95.3)
(435.3)
(349.6)
Amortization of DPAC
64.9
51.5
121.4
236.9
Depreciation and amortization
19.9
16.1
90.2
68.4
Interest expense on corporate debt
39.9
31.5
132.7
123.7
Compensation and other
612.4
552.8
2,244.7
2,051.1
Total expenses
1,987.6
1,851.6
8,137.9
7,169.6
Operating earnings before tax, noncontrolling
interest and preferred stock dividends
305.5
251.7
1,037.5
1,111.4
Less:
Income tax
49.9
43.2
186.0
230.0
Operating earnings (loss) attributable to
noncontrolling interest
3.4
(1.6)
10.5
4.6
Preferred stock dividends
8.3
8.3
33.0
33.0
Operating earnings
$ 243.9
$ 201.8
$ 808.0
$ 843.8
Net realized capital gains (losses), as adjusted
(0.5)
(53.6)
39.1
(141.8)
Other after-tax adjustments
(24.8)
0.3
(74.2)
(82.3)
Net income available to common stockholders
$ 218.6
$ 148.5
$ 772.9
$ 619.7
Selected Balance Sheet Statistics
Period Ended,
12/31/12
12/31/11
12/31/10
Total assets (in billions)
$ 161.9
$    147.4
$ 144.7
Total common equity (in millions)
$ 9,211.2
$ 8,475.9
$ 8,607.2
Total common equity excluding accumulated
other comprehensive income (in millions)
$ 8,579.3
$ 8,217.9
$ 8,300.5
End of period common shares outstanding (in
millions)
293.8
301.1
320.4
Book value per common share
$ 31.35
$ 28.15
$ 26.86
Book value per common share excluding
accumulated other comprehensive income
$ 29.20
$ 27.29
$ 25.91
Principal Financial Group, Inc.
Reconciliation of Non-GAAP Financial Measures to U.S. GAAP
(in millions, except as indicated)
Three Months Ended,
Twelve Months Ended,
12/31/12
12/31/11
12/31/12
12/31/11
Diluted Earnings Per Common Share:
Operating earnings
$ 0.82
$ 0.66
$ 2.69
$ 2.66
Net realized capital gains (losses)
-
(0.18)
0.13
(0.45)
Other after-tax adjustments
(0.08)
-
(0.25)
(0.26)
Net income available to common stockholders
$ 0.74
$ 0.48
$ 2.57
$ 1.95
Book Value Per Common Share Excluding Accumulated
Other Comprehensive Income:
Book value per common share excluding accumulated other
comprehensive income
$ 29.20
$ 27.29
$ 29.20
$ 27.29
Net unrealized capital gains
4.20
2.42
4.20
2.42
Foreign currency translation
(0.39)
(0.36)
(0.39)
(0.36)
Net unrecognized postretirement benefit obligations
(1.66)
(1.20)
(1.66)
(1.20)
Book value per common share including accumulated other
comprehensive income
$ 31.35
$ 28.15
$ 31.35
$ 28.15
Operating Revenues:
RIS
$ 1,127.9
$ 1,016.9
$ 4,834.9
$ 4,075.0
PGI
168.0
151.8
591.2
546.3
PI
265.8
255.6
942.7
909.0
USIS
779.7
737.9
2,994.7
2,939.9
Corporate
(48.3)
(58.9)
(188.1)
(189.2)
Total operating revenues
2,293.1
2,103.3
9,175.4
8,281.0
Net realized capital gains (losses) and related adjustments
1.9
(97.4)
14.7
(216.6)
Exited group medical insurance business
0.9
52.9
25.0
606.3
Total GAAP revenues
$ 2,295.9
$ 2,058.8
$ 9,215.1
$ 8,670.7
Operating Earnings:
RIS
$ 152.3
$ 124.5
$ 575.1
$ 562.9
PGI
26.2
17.5
81.2
74.0
PI
45.1
50.1
153.3
149.5
USIS
59.4
52.8
138.2
204.3
Corporate
(39.1)
(43.1)
(139.8)
(146.9)
Total operating earnings
243.9
201.8
808.0
843.8
Net realized capital gains (losses) and related adjustments
(0.5)
(53.6)
39.1
(141.8)
Other after-tax adjustments
(24.8)
0.3
(74.2)
(82.3)
Net income available to common stockholders
$ 218.6
$ 148.5
$ 772.9
$ 619.7
Net Realized Capital Gains (Losses):
Net realized capital gains (losses), as adjusted
$ (0.5)
$ (53.6)
$ 39.1
$ (141.8)
Certain derivative and hedging-related adjustments
30.5
25.6
98.9
98.8
Amortization of DPAC and sale inducement costs
(1.9)
(16.0)
(36.6)
21.5
Certain market value adjustments of embedded derivatives
(0.8)
(0.9)
0.6
(65.6)
Capital gains distributed
3.5
1.1
12.2
3.1
Tax impacts
1.5
(29.2)
(8.7)
(70.5)
Noncontrolling interest capital gains
0.1
1.2
8.3
31.6
Recognition of front-end fee revenues
0.2
0.5
0.2
0.3
Certain market value adjustments to fee revenues
0.3
-
0.3
0.1
Net realized capital gains (losses) associated with exited group
medical business
-
-
(0.2)
0.2
GAAP net realized capital gains (losses)
$ 32.9
$ (71.3)
$ 114.1
$ (122.3)
Other After-Tax Adjustments:
Exited group medical insurance businesses
$ -
$ 0.1
$ (9.6)
$ 50.9
Court ruling regarding some uncertain tax positions
-
-
-
(68.9)
ELNY liquidation estimated obligation
-
0.2
-
(10.3)
Contribution to PFG Foundation
-
-
(39.8)
(19.5)
Early extinguishment of debt
(24.8)
-
(24.8)
-
Assumption change within the Individual Life business
-
-
-
(34.5)
Total other after-tax adjustments
$ (24.8)
$ 0.3
$ (74.2)
$ (82.3)