Principal Financial Group 2009 Annual Report Download - page 17

n Continued strong sales of the company’s
three key U.S. retirement and investment
products (FSA, Principal Funds and individual
annuities), despite a difficult sales environment,
with $14.9 billion on a combined basis in 2009.
n FSA had $2 billion of positive net cash flow
in 2009, during a year in which many in the
industry experienced outflows.
n Strong rebound in account values from a
year ago, with FSA up 20 percent, mutual
funds up 20 percent and individual annuities
up 11 percent in 2009.
n Record operating earnings for the individual
annuities business of $100.7 million in 2009.
n Continued planned scale back of investment
only business, freeing up $165 million of
capital in 2009.
n The Bank and Trust segment had record
operating earnings of $24.9 million.
n Our U.S. retirement sales force was nearly
120 strong in 42 local offices, maintaining
relationships with more than 11,000 independent
brokers, consultants and agents. We had more
than 170 local retirement service representatives,
focused on the needs of plan sponsors and
110 education specialists to provide support to
retirement plan participants.
n FSA serves more than 35,000 retirement plans
and 3.6 million plan participants.
n Longest client retention (an average of 10.3
years vs. an industry average of 8.4 years)
in the Boston Research Group’s Defined
Contribution study. (September 2009)
n Earned 82 “Best in Class” awards from
Chatham Partners Survey of defined benefit,
defined contribution and combo clients
with more than $5 million in assets.
(December 2009)
n Recognized as the #1 recordkeeper of defined
benefit plans by Investment Advisor
magazine. (November 2009)
n Recognized as the #1 recordkeeper in the
number of defined contribution plans, SEP
plans and SIMPLE plans in PLANSPONSOR
magazine’s Recordkeeping Survey. (June 2009)
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 2009)
n Principal Funds holds the #16 spot on the list
of top advisor-sold mutual fund companies
in the United States, according to the Financial
Research Corporation. (December 2009)
n Three of our mutual funds were recognized
as Lipper Leaders. We received awards in Equity
Income Fund, High Yield Fund—Institutional and
Capital Appreciation Fund. (April 2009)
n Assets under management for the segment
totaled $205 billion in 2009, an increase of
8 percent from 2008.
n More than 400 investment professionals in
offices around the world, with clients 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 The 28th largest institutional manager, out of
725 managers profiled. Managers ranked
by total worldwide institutional assets under
management as of Dec. 31, 2008. “Largest
Money Managers,” Pensions & Investments.
(May 2009)
n The 16th largest manager of U.S. institutional
tax-exempt assets, out of more than 700
managers profiled. Managers ranked by U.S.
institutional, tax-exempt assets as of Dec. 31,
2008. Pensions & Investments, 2009 Databook.
(December 2009)
n The 13th largest manager of defined
contribution assets, out of 268 managers
profiled. Managers ranked by U.S. institutional,
tax-exempt assets, as of Dec. 31, 2008.
Pensions & Investments, 2009 Databook.
(December 2009)
n The 31st largest manager of U.S. client assets,
out of 738 managers profiled. Assets as of
Dec. 31, 2008. Pensions & Investments, 2009
Databook. (December 2009)
n The fourth largest manager of real estate, ranked
by U.S. institutional tax-exempt real estate
assets, out of 99 managers profiled, as of
June 30, 2009, “Real Estate Managers,”
Pensions & Investments. (October 2009)
n Record assets under management for the
segment, totaling $34.6 billion.
n Record net cash flows of $3.2 billion, or
14 percent of beginning of year assets under
management.
n Joint venture partners include China
Construction Bank (China), Banco do Brasil
(Brazil), CIMB Group (Malaysia) and Punjab
National Bank (India).
n Principal International serves 7.9 million
clients globally1.
n BrasilPrev (joint venture with Banco do Brasil)
ranked first in Private Pensions in the Marcas de
Confianca (Trusted Brands) survey. (July 2009)
n CIMB-Principal Asset Management Berhad
(Malaysia) named Best Institutional House by
Asia Asset Management in its annual Best of the
Best Awards. (December 2009)
n Principal Hong Kong won three Lipper awards in
equity asset categories. (March 2009)
n Principal Chile awarded the Platinum
Performance Award for its Principal LifeTime
2020 mutual fund in the Aggressive Balanced
category. (2009)
n Principal PNB India won a Lipper award for Best
Fund over Five Years—Mixed Asset Indian Rupee
(INR) Balanced. (2009)
n Individual term life sales increased 25 percent in
2009 to $14.5 million.
n Voluntary sales increased 19 percent to
$60.5 million in 2009.
n Specialty benefits return on equity totaled
15.2 percent for the trailing 12 months ended
Dec. 31, 2009.
n In our life and health businesses, we had more
than 900 career agents; more than 170 medical,
non-medical, life and disability wholesalers;
and more than 125 service representatives.
Our agent retention rate remains better than
the historical industry average.
n Segment services approximately 68,000 group
employers and more than 4.6 million group
covered members.
n Principal Life Insurance Company is the
eighth largest U.S. life insurer based on
HIGHLINEDATA 2009.
n Recognized as the #4 provider of non-medical
insurance (dental, life and disability) based on
LIMRA data of 2008 employer coverages in
force. (2009)
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 #2 deferred compensation provider based
on number of plans administered.
(December 2009)
n Principal Life Insurance Company is one of only
14 life and health insurers that has been rated
A or higher by A.M. Best Company for 75
consecutive years, Best’s Review. (July 2009)
HiGHLiGHTS
the principal financial group 15
1Excluding clients in China