firstqtrer11.htm - Generated by SEC Publisher for SEC Filing
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________________________
 
 
FORM 8-K
 
CURRENT REPORT
 
 
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
 
Date of Report: May 2, 2011
(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))
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Item 2.02. Results of Operations and Financial Condition 
On May 2, 2011, Principal Financial Group, Inc. publicly announced information regarding its 
results of operations and financial condition for the quarter ended March 31, 2011. The text of the 
announcement is included herewith as Exhibit 99. 
Item 9.01 Financial Statements and Exhibits   
99   First Quarter 2011 Earnings Release   
                                                                 SIGNATURE
        Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly 
caused this report to be signed on its behalf by the undersigned thereunto duly authorized. 
 
                                                  PRINCIPAL FINANCIAL GROUP, INC. 
 
                                                                 By:          /s/ Terrance J. Lillis                                               
                                                  Name: Terrance J. Lillis 
                                                  Title:    Senior Vice President and Chief Financial 
                                                                            Officer 
Date: May 3, 2011   

 



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                                                                                                        EXHIBIT 99 
Release:              On receipt, May 2, 2011 
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 First Quarter 2011 Results
 
             Record assets under management of $327.4 billion at the end of first quarter 2011, an increase 
                                       of 12 percent compared to first quarter 2010. 
(Des Moines, Iowa) – Principal Financial Group, Inc. (NYSE: PFG) today announced results for first quarter 
2011. The company reported operating earnings1 of $231.8 million for first quarter 2011, compared to $221.4 
million for first quarter 2010. Operating earnings per diluted share (EPS) were $0.71 for first quarter 2011, 
compared to $0.69 for first quarter 2010. The company reported net income available to common stockholders 
of $196.3 million, or $0.60 per diluted share for first quarter 2011, compared to $190.8 million, or $0.59 per 
diluted share for first quarter 2010. Operating revenues for first quarter 2011 were $2,046.7 million compared to 
$1,972.5 million for the same period last year. 
          “The Principal® had a very solid start to 2011, including record total company assets under 
management, record Principal Funds sales and strong net cash flows from Principal International, Full Service 
Accumulation and Principal Funds,” said Larry D. Zimpleman, chairman, president and chief executive 
officer of Principal Financial Group, Inc. “With the continued successful execution of our strategy and signs 
of a recovering economy, we expect growth across our businesses to accelerate in the quarters ahead.” 
          “Because of our strong financial position and flexibility going into the year, we have the 
opportunity to further increase shareholder value through capital deployment,” said Zimpleman. “Since year 
end, we’ve announced two acquisitions, the HSBC AFORE and Finisterre Capital. These businesses 
complement our strategy, provide additional scale and fit nicely within our existing infrastructure, which gives us 
potential for substantial synergies. We’re also excited about additional opportunities in 2011 to deploy capital as we 
continue to execute our strategy.” 
          “In the first quarter we delivered strong operating results on double-digit earnings growth from Principal 
Global Investors, Principal Funds, Individual Annuities and U.S. Insurance Solutions,” said Terry Lillis, senior vice 
president and chief financial officer. “Across our business lines we’re seeing momentum continue to build, 
reflecting demand for our unique solutions and success of our multi-product, multi-channel distribution platform.” 
          “Our investment portfolio continues to perform better than expected,” added Lillis. “In addition, we are 
encouraged by the demand for many of the investment strategies where Principal Global Investors has a proven 
track record such as real estate, emerging markets and high yield.” 
 
 
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1 Use of non-GAAP financial measures is discussed in this release after Segment Highlights 

 



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Key Highlights 
   •  Excellent sales in the company’s three key U.S. Retirement and Investor Services products in the first 
  quarter, with $2.0 billion for Full Service Accumulation, $2.9 billion for Principal Funds and $345 
  million for Individual Annuities. 
   •  Net cash flows of $870 million for Full Service Accumulation and $620 million for Principal Funds. 
   •  Continued strong operating leverage in Principal Global Investors with 38 percent growth in first quarter 
  2011 operating earnings over first quarter 2010 on 6 percent growth in average assets under management. 
   •  Principal International reported record assets under management of $48.5 billion, excluding China, as of 
  March 31, 2011, and net cash flows of $1.3 billion for the quarter. 
   •  Record Specialty Benefits sales of $113 million for the quarter and a 35 percent increase in Individual 
  Life sales over the prior year quarter. 
   •  Strong capital position with an estimated risk based capital ratio of 425 percent at quarter end and 
  approximately $1.9 billion of excess capital.2 
   •  Book value per share, excluding AOCI3 increased to a record high of $28.38, up 6 percent over first 
  quarter 2010. 
   •  Named by Barron’s as the #3 rated Fund Family for investment performance across all asset categories in 
  2010 and #7 for the last decade. 
   •  Named Investment Brand of The Year in the 2011 Harris Poll EquiTrend® Study.* 
 
Net Income 
Net income available to common stockholders of $196.3 million for first quarter 2011 reflects net realized 
capital losses of $52.6 million, which include: 
   •  $32.7 million of losses related to credit gains and losses on sales and permanent impairments of fixed 
  maturity securities, including $21.3 million of losses on commercial mortgage backed securities; and 
   •  $5.1 million of losses on commercial mortgage whole loans. 
                                                                 Segment Highlights 
Retirement and Investor Services 
               Segment operating earnings for first quarter 2011 were $159.3 million, compared to $157.0 million for 
the same period in 2010. Full Service Accumulation earnings were $76.0 million for first quarter 2011 as 
compared to $76.3 million for first quarter 2010. A 13 percent increase in average account values was 
substantially offset by a lower dividends received deduction accrual true-up than a year ago quarter and higher 
deferred policy acquisition cost (DPAC) amortization expense. Principal Funds earnings increased 18 percent 
from a year ago to $12.0 million, primarily due to a 19 percent increase in average account values. Individual 
Annuities earnings were $37.3 million compared to $30.8 million for first quarter 2010. The variance primarily 
reflects favorable investment income in the quarter and record account values. The accumulation businesses4 had 
record account values of $166.6 billion at March 31, 2011. 
 
 
 
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2 Excess capital includes cash at the holding company and capital at the life company above that needed to maintain a 
350 percent NAIC risk based capital ratio for the life company. 
3 Accumulated Other Comprehensive Income 
4 Full Service Accumulation, Principal Funds, Individual Annuities and Bank and Trust Services 

 



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          Operating revenues for first quarter 2011 were $1,017.8 million compared to $1,012.7 million for 
the same period in 2010, primarily due to higher revenues for the accumulation businesses, which improved 
$51.7 million, or 7 percent, from a year ago. 
          Segment assets under management were $181.5 billion as of March 31, 2011, compared to $165.9 
billion as of March 31, 2010. 
 
Principal Global Investors 
          Segment operating earnings for first quarter 2011 were $16.6 million, compared to $12.0 million in 
the prior year quarter, primarily due to an increase in assets under management. 
          Operating revenues for first quarter were $125.3 million, compared to $113.8 million for the same 
period in 2010, primarily due to higher management fees and transaction fees. 
          Unaffiliated assets under management were $78.1 billion as of March 31, 2011, compared to $74.9 
billion as of March 31, 2010. 
 
Principal International 
          Segment operating earnings were $28.5 million in first quarter 2011, compared to $37.9 million in 
the prior year quarter, reflecting a reduced economic interest in our Brazilian joint venture. 
          Operating revenues were $206.2 million for first quarter 2011, compared to $181.1 million for the same 
period last year, primarily due to growth in assets under management. 
          Segment assets under management were a record $48.5 billion as of March 31, 2011 ($7.7 billion 
of assets in our joint venture in China are not included in reported assets under management), up from $35.7 
billion as of March 31, 2010. This includes a record $5.6 billion of net cash flows over the trailing twelve 
months, or 16 percent of beginning of period assets under management. 
 
U.S. Insurance Solutions 
          Segment operating earnings for first quarter 2011 were $59.5 million, compared to $44.1 million 
for the same period in 2010. Individual Life earnings were $36.5 million in the first quarter, compared to 
$30.5 million in first quarter 2010, primarily due to improved mortality experience. Specialty Benefits earnings 
were $23.0 million in first quarter 2011, up from $13.6 million in the same period a year ago, primarily due to 
improved claims experience and investment performance. 
          Segment operating revenues for first quarter 2011 were $731.2 million compared to $692.1 million 
for the same period a year ago, with stronger non-qualified life insurance sales and positive trends in sales, 
lapses and employment in Specialty Benefits. 
 
Corporate 
          Operating losses for first quarter 2011 were $32.1 million compared to operating losses of $29.6 
million in first quarter 2010. 

 



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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, 2010, filed by the company with the Securities and Exchange 
Commission, as updated or supplemented from time to time in subsequent filings. These risks and 
uncertainties include, without limitation: adverse capital and credit market conditions that may significantly 
affect the company’s ability to meet liquidity needs, access to capital and cost of capital; a continuation of 
difficult conditions in the global capital markets and the general economy that may materially adversely affect 
the company’s business and results of operations; the risk from acquiring new businesses, which could result 
in the impairment of goodwill and/or intangible assets recognized at the time of acquisition; impairment of 
other financial institutions that could adversely affect the company; investment risks which may diminish the 
value of the company’s invested assets and the investment returns credited to customers, which could reduce 
sales, revenues, assets under management and net income; requirements to post collateral or make payments 
related to declines in market value of specified assets may adversely affect company liquidity and expose the 
company to counterparty credit risk; changes in laws, regulations or accounting standards that may reduce 
company profitability; fluctuations in foreign currency exchange rates that could reduce company 
profitability; Principal Financial Group, Inc.’s primary reliance, as a holding company, on dividends from its 
subsidiaries to meet debt payment obligations and regulatory restrictions on the ability of subsidiaries to pay 
such dividends; competitive factors; volatility of financial markets; decrease in ratings; interest rate changes; 
inability to attract and retain sales representatives; international business risks; a pandemic, terrorist attack or 
other catastrophic event; and default of the company’s re-insurers. 
 
Use of Non-GAAP Financial Measures 
The company uses a number of non-GAAP financial measures that management believes are useful to investors 
because they illustrate the performance of normal, ongoing operations, which is important in understanding and 
evaluating the company’s financial condition and results of operations. They are not, however, a substitute for 
U.S. GAAP financial measures. Therefore, the company has provided reconciliations of the non-GAAP 
measures to the most directly comparable U.S. GAAP measure at the end of the release. The company adjusts 
U.S. GAAP measures for items not directly related to ongoing operations. However, it is possible these 
adjusting items have occurred in the past and could recur in the future reporting periods. Management also uses 
non-GAAP measures for goal setting, as a basis for determining employee and senior management 
awards and compensation, and evaluating performance on a basis comparable to that used by investors 
and securities analysts. 
 
Earnings Conference Call 
On Tuesday, May 3, 2011 at 10:00 a.m. (ET), Chairman, President and Chief Executive Officer Larry 
Zimpleman and Senior Vice President and Chief Financial Officer Terry Lillis will lead a discussion of 
results, asset quality and capital adequacy during a live conference call, which can be accessed as follows: 
   •  Via live Internet webcast. Please go to www.principal.com/investor at least 10-15 minutes prior to the 
  start of the call to register, and to download and install any necessary audio software. 
   •  Via telephone by dialing 800-374-1609 (U.S. and Canadian callers) or 706-643-7701 (International 
  callers) approximately 10 minutes prior to the start of the call. The access code is 54521548. 

 



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   •  Replay of the earnings call via telephone is available by dialing 800-642-1687 (U.S. and Canadian 
  callers) or 706-645-9291 (International callers). The access code is 54521548. This replay will be 
  available approximately two hours after the completion of the live earnings call through the end of day 
  May 10, 2011. 
   •  Replay of the earnings call via webcast as well as a transcript of the call will be available after the call at: 
  www.principal.com/investor. 
 
The company's financial supplement and additional investment portfolio detail for first quarter 2011 is 
currently available at www.principal.com/investor, and may be referred to during the call. 
 
 
About the Principal Financial Group 
The Principal Financial Group® (The Principal ® )5 is a leader in offering businesses, individuals and 
institutional clients a wide range of financial products and services, including retirement and investment 
services, insurance, and banking through its diverse family of financial services companies. A member of the 
Fortune 500, the Principal Financial Group has $327.4 billion in assets under management6 and serves some 
16.4 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. 
 
 
*The Principal Financial Group received the highest numerical Equity Score among Investment 
brands included in the 2011 Harris Poll EquiTrend® Study, which is based on opinions of 25,099 U.S. 
consumers ages 15 and over surveyed online between January 11 and 27, 2011. Your opinion may 
differ. “Highest Ranked” was determined by a pure ranking of a sample of Investment brands. 
 
 
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5 “The Principal Financial Groupand “The Principal” are registered service marks of Principal Financial Services, 
Inc., a member of the Principal Financial Group. 
6 As of March 31, 2011