Principal Financial Group 2008 Annual Report Download - page 17

2008 Year in Review | At a Glance 15
n Continued outstanding sales of the company’s
three key retirement and investment products
(FSA, Principal Funds and Individual Annuities)
despite a difficult sales environment, with
$21.1 billion of sales on a combined basis in
2008, compared to a record $21.7 billion for 2007.
n Record net cash flows in 2008 of $5.5 billion
for FSA and $2.8 billion for Individual Annuities,
an increase from 2007 of 17 percent and
38 percent, respectively, reflecting excellent
sales and retention.
n Principal Bank delivered record operating
earnings of $15.5 million, an increase of
22 percent from 2007; and total deposits of
$2.1 billion, an increase of 21 percent.
IRAs grew 22 percent to more than 460,000.
n FSA serves more than 35,000 plans and
3.7 million customers.
n Longest client retention (an average of 10.3
years vs. an industry average of 8.1 years) in the
Boston Research Group’s 2008 plan sponsor
Defined Contribution study. (September 2008)
n Earned 74 “Best in Class” awards from Chatham
Partners Survey of defined benefit, defined
contribution and combo clients with more than
$5 million in assets, including our range of
services, relationship managers, accessibility and
actuaries’ knowledge and consulting skills.
(December 2008)
n Recognized as the #1 recordkeeper by plans
for defined contribution and ESOP in
PLANSPONSOR magazine’s Recordkeeping
Survey. (June 2008)
n Named the #1 recordkeeper of defined benefit
plans by Investment Advisor Magazine. Named
the #1 recordkeeper of bundled 401(k) plans
in Spectrem Group’s analysis of fully bundled
401(k) providers. (2008)
n Received the DALBAR Seal of Excellence for
defined contribution plan participant and plan
sponsor Web sites. (September 2008)
n Received the DALBAR Communication Seal of
Excellence in customer communications for
defined benefit, defined contribution, total
retirement, variable annuity and mutual fund
statements. (September 2008)
n Recognized by Pensions & Investments as one of
the magazine’s Eddy Award winners for excellence
in investment education for defined contribution
plan participants. (February 2009)
n Principal Funds ranked as the fourth largest
manager of target-date lifecycle funds by
Financial Research Corporation. (September 2008)
n Eighteen of our mutual funds were recognized
as Lipper Leaders in 2008. We received awards in
Value and Growth, Large-, Mid- and Small-Caps,
U.S. and non-U.S., Real Estate and Traditional
Fixed Income and High Yield Fixed Income.
n Principal Global Investors delivered record
operating revenues of $598.5 million in 2008,
an increase of 4 percent, in spite of the impact of
poor market conditions on assets under
management.
n Near-record deposits for the segment of
$54.3 billion in 2008, compared to a record
$54.6 billion of deposits in 2007.
n Principal Real Estate Investors named Green
Giant of the Year by Real Estate Finance &
Investment magazine for our portfolio of green
properties and efforts to retrofit existing
properties. (June 2008)
n More than 400 investment professionals in
offices around the world, covering investment
markets in more than 50 countries.
n Manages assets for 12 of the top 25 largest U.S.
pension plans based on Pensions & Investments
P&I 1,000 report. (January 2009)
n Recognized by Pensions & Investments as the
fourth largest manager of real estate. (June 2008)
n Ranked as the eighth largest 401(k) manager
by Pensions & Investments based on U.S.
institutional, tax-exempt assets as of Dec. 31,
2007. (July 2008)
n The 19th largest manager of U.S. institutional,
tax-exempt assets, out of 300 managers profiled,
according to Pensions & Investments.
(December 2008)
n Recognized as the 26th largest manager of
international/global assets out of 150 managers
profiled by Pensions & Investments.
(December 2008)
n Record operating revenues for Principal
International of $849.0 million, an increase
of 7 percent.
n Record operating earnings for Principal International
of $126.3 million, an increase of 14 percent.
n Joint venture partners include China
Construction Bank (China), Banco do Brasil
(Brazil), CIMB Group (Malaysia) and Punjab
National Bank/Vijaya Bank (India).
n Principal Hong Kong won eight Lipper awards
across asset categories of bond, mixed asset
and equity. (March 2008)
n Principal Hong Kong voted by AsianInvestor
as the MPF (Mandatory Provident Fund)
Master Trust of the Year. (April 2008)
n Principal PNB Asset Management Company
named Best Mutual Fund House by Outlook
Money NDTV Profit Awards 2008. (June 2008)
n CIMB-Principal Asset Management Berhad
won the AsianInvestor 2007 Achievement
Award for Malaysia Fund House of the Year.
(April 2008)
n BrasilPrev (joint venture with Banco do Brasil)
named one of the most admired companies
in Brazil by Carta Capital magazine.
(September 2008)
n Life and Health earnings improved $49.3 million,
or 22 percent, in 2008 to $270.4 million, with
improvement across each of the divisions, including
strong earnings performance for the health division.
n Segment return on equity improved 250 basis
points to 13.5 percent as of Dec. 31, 2008.
n Segment serves approximately 73,000 group
employers and more than 5.2 million group
covered members.
n Principal Life Insurance Company is the
eighth largest U.S. life insurer based on
HIGHLINEDATA 2008.
n Recognized as the #2 provider of non-medical
insurance (dental, life and disability) based
on LIMRA data of 2007 employer coverages
in force. (2008)
n Ranked #6 provider of non-cancelable individual
disability income insurance based on LIMRA data
of annualized premium in force in 2008. (2009)
n Recognized by PLANSPONSOR magazine as the
#1 deferred compensation plan service provider.
(December 2008)
HIGHLIGHTS