Principal Financial Group 2009 Annual Report Download

Download and view the complete annual report

Please find the complete 2009 Principal Financial Group annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 32

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32

Are you ready?
2009 Year in Review
ß

Table of contents

  • Page 1
    Are you ready? ß 2009 Year in Review

  • Page 2
    ... READY to tAKE CoNtRol READY to FEEl CoNFIDENt READY to MAKE SoME ChANGES At A Gl ANCE INvEStING FoR thE FUtURE FINANCIAl hIGhlIGhtS SUMMARY CoNSolIDAtED FINANCIAlS BoARD oF DIRECtoRS SENIoR MANAGEMENt REpoRtABlE SEGMENtS AND pRINCIpAl FUNDS This 2009 Year in Review provides a company overview...

  • Page 3
    to our shareholders Are you ready? It's an important question. For clients, their trusted financial advisors...ourselves. If there's one thing 2009 reminded us of, it's that being ready is crucial. For the good and the bad, the expected and unexpected. Ready for anything. As the economy recovers, ...

  • Page 4
    ... have never been more demanding. More than 64 percent of individuals use a professional financial advisor1. We reached out to help make their jobs easier, offering expert perspective and resources so advisors could better assist clients and build their business. n 2 the principal financial group

  • Page 5
    ... $2.4 billion in insurance-related claims, delivering on our promises and making sure our customers were taken care of in their times of need. n n 1 2 The Financial Advisor's Role in Retirement, LIMRA, 2009 Including accumulated other comprehensive income per share the principal financial group 3

  • Page 6
    ... the increasing need to manage retirement income. And new relationships with alliance partners Merrill Lynch and Ameriprise mean our distribution reach has never been stronger. Principal International grew market share in Brazil, Mexico, Chile and Malaysia in 2009. The company now has operations in...

  • Page 7
    ..., Vice President- Capital Markets Zimpleman Chris Freese, Vice President and Chief Actuary Randi Woods, Assistant Vice President and Actuary Julia Lawler, Senior Vice President and Chief Investment Officer Dwight Soethout, Chief Financial Officer-Retirement and Investor Services Are you ready...

  • Page 8
    Are you ready to rebuild? "pEoplE ARE StARtING to FEEl MoRE poSItIvE, AND thEY'RE ANxIoUS to geT BAck on TrAck wITh A plAn ThAT WIll hElp GEt thEM WhERE thEY wAnT To go fInAncIAlly." RO b ER T PuL L i n C A R EER A G En T PRi nC i PA L F i n A n Ci A L G RO u P RO u n D R OC k , T E xA S See more ...

  • Page 9
    ... tools, case studies, white papers and more, all located at principal.com/planningcenter Rebuilding retirement savings Curious how long it may take to rebuild 64.4% you're ready. oF INDIvIDUAlS USE A pRoFESSIoNAl fInAncIAl AdvIsor . 1 your 401(k) retirement savings? Our Retirement Rebuilding...

  • Page 10
    Are you ready to take control? "The recessIon wAs A wAke up cAll for me. so I meT wITh my fInAncIAl consulTAnT And we lAId ouT A plAn. I FEEl So EMpoWERED NoW!" k i M TH OMPS On SALES C OOR Di n AT O R Su nn y DELi G HT b E V E RA G E S CO M PA n y C i nC i nn ATi , OH i O See more about ...

  • Page 11
    ...In Hong Kong, clients can also receive monthly text messages that include their pension account balance as well as investment tips. Ready to take control? The good news is you don't have to go it alone. With some 78 million baby boomers approaching retirement, income-generating solutions are in high...

  • Page 12
    Are you ready to feel confident? " The economIc crIsIs Is defInITely shApIng my clIenTs' fInAncIAl decIsIons. IT's my joB To help Them mAInTAIn perspecTIve, reAssess TheIr rIsk TolerAnce And focus on The long-Term." ER i k A b j OR k Lu n D C A R EER A G En T PRi nC i PA L F i n A n Ci A L G RO u P ...

  • Page 13
    ..., we have a demonstrated history of responding to legislative changes and advocating for our clients; we will be ready. Need a boost of confidence? Your advisor and The Principal can help. 1 Employee Benefit Research Institute 2009 Retirement Confidence Survey the principal financial group 11

  • Page 14
    Are you ready to make some changes? " As A BusIness owner, I'm lookIng AT wAys To AdjusT my BenefIT pAckAge so IT provIdes more vAlue for employees whose BudgeTs Are tIGhtER thAN EvER." RO b WA i TE C HiEF Ex EC uT iV E OF F iC ER DR Ex EL META LS L L C iVyL A nD, PA . ...

  • Page 15
    .... Here's an easy, automated retirement income solution: income annuities. A Plan Sponsor's Guide: Bridging Employees' Retirement Income Gap with Income Annuities explains how employers can make income annuities available without adding burdensome costs and administrative headaches. We were there to...

  • Page 16
    ... high deductible n Group medical, high deductible health plans with health savings accounts n Wellness programs n Administrative services Specialty benefits: n Group dental and vision insurance n Group life insurance n Group and individual disability insurance 14 the principal financial group

  • Page 17
    ... with Banco do Brasil) ranked first in Private Pensions in the Marcas de Confianca (Trusted Brands) survey. (July 2009) CIMB-Principal Asset Management Berhad (Malaysia) named Best Institutional House by Asia Asset Management in its annual Best of the Best Awards. (December 2009) Segment services...

  • Page 18
    ...Managing retirement income - A new report from business owners faced increasing financial pressure, The Principal announced that small businesses with 50 or fewer employees, with renewal dates from July 1, 2009 through Jan. 31, 2010, would have no rate increase on life, vision, short-term and long...

  • Page 19
    ...transition our group health business to a value-added care management model. In 2009 we made significant progress with key initiatives including building and operating proprietary networks. Principal Edge Networks are now operating in Texas, Tennessee and most of Georgia, with more planned for 2010...

  • Page 20
    ... to the smaller plan retirement market, after introducing them to the large plan market in 2008. Principal Trust Target Date Funds complement our Principal LifeTime Portfolios. n SM Building advisor relationships - A new internal system enables us to consolidate data on advisors we work with-so we...

  • Page 21
    ... Place to Work. Community n The Principal Charity Classic was named the 2009 Best Event on the Champions Tour. n The 19th company to receive the United Way Spirit of America award. Financial Well-Being Index has identified trends in consumer financial well-being, retirement planning, employee...

  • Page 22
    ... operating results for 2009, in a year that demonstrated the resilience of our businesses and the benefits of business and investment portfolio diversification. ® T Total assets under management are up $187 billion1 since we became a public company in 2001- a compounded annual growth rate of 14...

  • Page 23
    ...' Equity Attributable to Principal Financial Group, Inc. (in millions) $2.69 $3.61 $3.93 $3.42 $2.87 2009 2008 2007 2006 2005 $7,894 $2,473 $7,422 $7,861 $7,807 1 2 From Dec. 31, 2001, to Dec. 31, 2009. Includes employees and their dependents under employee benefit arrangements. 3 Certain...

  • Page 24
    ... It is a replication of the information in the consolidated statements of operations in the Principal Financial Group, Inc.'s 2009 Form 10-K. For complete financial statements, including notes and management's discussion and analysis of financial condition and results of operations, please refer...

  • Page 25
    ...Total assets Liabilities Contractholder funds Future policy benefits and claims Other policyholder funds Short-term debt Long-term debt Income taxes currently payable Deferred income taxes Separate account liabilities Other liabilities Total liabilities Stockholders' equity Series A preferred stock...

  • Page 26
    ... stockholders Dividends to preferred stockholders Issuance of long-term debt Principal repayments of long-term debt Net proceeds (repayments) of short-term borrowings Investment contract deposits Investment contract withdrawals Net increase in banking operation deposits Other Net cash provided by...

  • Page 27
    COn SOLi DATED S TAT E M E nT S OF C AS H FLOW S Principal Financial Group, Inc. For the year ended December 31, 2009 Discontinued operations Net cash provided by operating activities Net cash used in investing activities Net cash used in financing activities Net cash provided by discontinued ...

  • Page 28
    ..., LLC J. Barry Griswell President Community Foundation of Greater Des Moines Retired Chairman and Chief Executive Officer Principal Financial Group Larry D. Zimpleman Chairman, President and Chief Executive Officer Principal Financial Group Sandra L. Helton Past Executive Vice President and Chief...

  • Page 29
    ...Management Norman R. Sorensen President, International Asset Management and Accumulation Karen E. Shaff Executive Vice President and General Counsel Rex Auyeung Senior Vice President and President, Principal Financial Group-Asia Ned A. Burmeister Senior Vice President and Chief Operating Officer...

  • Page 30
    ...Wellness Company Corporate and Other Principal Development Investors, LLC Principal Global Services Private Limited Principal Life Insurance Company Principal Real Estate Fund Investors, LLC Principal Real Estate Portfolio, Inc. Principal Funds Bond & Mortgage Securities Fund Bond Market Index Fund...

  • Page 31
    ...u P, in C . Corporate Headquarters 711 High St. Des Moines, Iowa 50392 1-800-986-EDGE (3343) The Principal Financial Group on the Internet The Principal home page, at www.principal.com, is your source for a vast array of information including company news releases, investment and savings tools, and...

  • Page 32
    Des Moines, Iowa 50392 1-800-986-EDGE (3343) www.principal.com WE'LL GIVE YOU AN EDGE® BB1345-15