Principal Financial Group 2009 Annual Report Download - page 6

LETTER TO SHAREHOLDERS
There are definite signs of economic improvement, but
recovery is likely to be slow; growth in the job markets
will be key to our results returning to more normal levels.
Ready for the future
Our strategy to focus on the financial security needs of
growing businesses and their employees is more relevant
than ever. While guiding our business through the
challenges of 2009, we were also preparing The Principal
for growth in the United States and around the world.
n In the United States, 78 million baby boomers are
approaching or entering retirement3, so our full service
accumulation business is key. Our Principal Total
Retirement SuiteSM remains a competitive advantage,
representing 65 percent of 2009 sales. We introduced
Principal Retirement Income EdgeSM to provide
advisors a complete set of resources, tools and
products to meet 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.
n Principal International grew market share in Brazil,
Mexico, Chile and Malaysia in 2009. The company
now has operations in nine countries with large
middle-class populations where expected asset growth
is greater than the United States. The future potential
is great; we expect continued growth as middle-class
populations increase. Positioning ourselves for
the long-term, we’ve signed a Memorandum of
Understanding to extend our joint venture agreement
in Brazil for 23 years.
n Principal Global Investors’ multi-boutique strategy
continues to be a differentiator for us. With strong
expertise in multiple asset classes, we’re well-
positioned regardless of where the market opportunities
evolve. And we continue to earn new business from
some of the largest pension and sovereign wealth
funds, including Japan’s Government Pension
Investment Fund.
n In our insurance businesses, we’re addressing
customers’ increased desire to protect their financial
security in the wake of the recent crisis. Sales in
our voluntary benefits business are on the rise (up
19 percent in 2009), meaning more companies are
tapping into this affordable way to provide
meaningful benefits. Additionally, we made significant
progress in transitioning our health business,
establishing proprietary networks in several key states,
with more planned for 2010.
We’re excited about our future and our ability to meet
advisor and customer needs and generate shareholder
value—whatever the future throws at us.
the principal financial group
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Risk management is an area of real distinction for
The Principal. Throughout more than 130 years in business,
we’ve focused on thoughtful and prudent decision-
making to keep the company strong. Critical to our
risk management is a constant, multi-directional flow of
communication. We’re continuously sharing thoughts and
ideas on where and how the company should grow...
and where it shouldn’t.
All employees play a role. The breadth of experience and
perspectives offered by so many employees—at all levels—
makes us stronger and our decisions smarter. Pictured here
are just a few of the many individuals working each day to
effectively manage risk at The Principal.
3U.S. Bureau of the Census