Principal Financial Group 2011 Annual Report Download

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THE PRINCIPAL FINANCIAL GROUP® | 2011 YEAR IN REVIEW
THE
POWER OF

Table of contents

  • Page 1
    THE POWER OF T H E PR I N C I PA L F I N A N C I A L G R O U P ® | 201 1 YEAR IN R EV IEW

  • Page 2
    ... REPORTABLE SEGMENTS AND PRINCIPAL FUNDS This 2011 Year in Review provides a company overview, financial highlights and summary financial statements. For complete financial statements, including notes and management's discussion and analysis of financial condition and results of operations...

  • Page 3
    2011 M ARKE D 1 0 YE A RS since the ® Principal Financial Group became a public company. It's been a powerful decade. A lot has happened. Much has changed. THE POWER OF What hasn't changed is our focus, our ability to execute and our commitment to shareholders, customers and advisors. That's ...

  • Page 4
    ... FI NAN CI AL G R O U P to our shareholders since The Principal completed its initial public offering. Becoming a public company set the stage for a decade of growth as The Principal continued its evolution from a largely insurance-based organization to a global investment management leader. What...

  • Page 5
    ... retirement and protection solutions to the underserved small and medium-sized business market. In addition, we established a strategy to become a leading global investment manager and to expand our international operations. Fast forward 10 years to 2011. n Think global. Act local. Going public...

  • Page 6
    ... of the company's ability to execute is our deployment of capital throughout 2011. 1 Principal Global Investors manages assets for 10 of the 25 largest world pension plans. The list is derived from "P&I/Watson Wyatt World 300: The Largest Retirement Funds" report on the largest pension plans dated...

  • Page 7
    ... on May 22, 2012. Larry Zimpleman Chairman, President and Chief Executive Officer ThE POWER OF ThE NEXT 10 YEARS Rapid change is inevitable over the next 10 years. The Principal is ready. We'll continue to: n Grow as a global investment management leader n Shift to a more fee-based business model...

  • Page 8
    ... in 2011. And our Specialty Benefits business-including group dental, life, disability and vision insurance- gives employers the ï¬,exibility to offer these valued benefits on an employer-paid or voluntary basis. 10 YEARS THE PRinciPAl 10 bEST cOmPAniES FOR EmPlOYEE FinAnciAl SEcuRiTY...

  • Page 9
    .... Today, about onethird of the smaller U.S. business market prefers to work with a third-party administrator, or TPA, for their retirement solutions. The Principal has a service model that aligns well with TPAs and their clients. As a result, 2011 TPA retirement sales grew more than 80 percent over...

  • Page 10
    ... on providing lifetime income solutions. Our Principal Retirement Income EdgeSM program, for example, offers a broad spectrum of products-from mutual funds to annuities to bank CDs-so retirees and their financial professionals can choose the right combination to fit their needs. And we're meeting...

  • Page 11
    ... to provide targeted, on-site education. And that's where The Principal really shines. Our innovative worksite solutions program, for instance, brings experienced financial counselors directly to the workplace. In addition to educating employees in groups, these counselors also meet individually...

  • Page 12
    ... the same long-term savings needs. Thanks to forward thinking that began over a decade ago, Principal International already has a strong presence in these key emerging markets: n Brazil n Indonesia n Chile n Malaysia n China n Mexico n Hong Kong n Singapore n India n Thailand 1 2 Boston Consulting...

  • Page 13
    ... individual savings. The global growth of privatized retirement pension plans represents a tremendous opportunity for The Principal over the coming decades. Not only do we have the right PEOPlE cuRREnTlY SAvinG FOR RETiREmEnT in EmERGinG mARKETS1 OnlY OnlY OnlY 1in5 1in7 1in8 bRAZil inDiA cHinA...

  • Page 14
    ...world. 1 Principal Global Investors manages assets for 10 of the 25 largest world pension plans. The list is derived from "P&I/Watson Wyatt World 300: The Largest Retirement Funds" report on the largest pension plans dated Sept. 5, 2011 compared to our internal records. 2 "The Brave New World of...

  • Page 15
    ... offerings- such as our Principal Total Retirement SuiteSM and our worksite solutions- wouldn't be possible without the technology we've developed. We'll continue to use technology to serve customers and financial professionals faster and give them the edge they need to succeed. n Grow globally...

  • Page 16
    ... work in a global environment. WORKING ACROSS 2001 2011 7% 23 % numbER OF nOn-u.S. EmPlOYEES AT THE PRinciPAl The global success of The Principal provides opportunities not only for the company and our shareholders but for our employees as well. So we're giving them the global exposure, training...

  • Page 17
    ...but vital-values like honesty and integrity. In short, treating our customers, advisors and employees right. It also drives us to care for the communities in which we operate. We do this by: n Donating generously to deserving organizations that support education, arts and culture, human services and...

  • Page 18
    ...advisor's business through additional support and marketing tools. PREPARE BABY BOOMERS FOR RETIREMENT n Offer broad suite of investment and income solutions- Principal Funds continues to expand its array of strategies focused on investors nearing or in retirement. In 2011, we launched the Global...

  • Page 19
    ... 2011 Governor's Award, which recognizes exemplary Iowa employers. Best company for working mothers-For the 10th MEET GLOBAL INVESTOR DEMAND n Grow global investment capabilities-In 2011, Principal Global Investors acquired a majority stake in Finisterre Capital and Origin Asset Management...

  • Page 20
    ...Businesses n Employees and other individuals n Institutions Principal International has operations in Brazil, Chile, China, Hong Kong, India, Indonesia, Malaysia, Mexico, Singapore and Thailand. n n n n Retirement products and services Mutual funds Annuities Asset management n n n n Reported...

  • Page 21
    ...) CIMB-Principal Asset Management Berhad (Malaysia) named Best Fund House by Asia Asset Management in its annual Best of the Best Country Awards. (February 2011) n n n Principal PNB India won the ICRA 5 Star Award 2011 for its Principal Ultra Short-Term Fund. (February 2011) Principal Hong Kong...

  • Page 22
    ... we became a public company in 20011- a compounded annual growth rate of 13 percent. With a strategy that is focused on businesses that offer potential for significant long-term growth, our outlook remains positive for continuing growth. As a global investment management leader, our business mix is...

  • Page 23
    ... $2.45 $7,422 $9,728 $9,637 $7,894 $2,473 07 08 09 10 11 07 08 09 10 11 07 08 09 10 11 TOTAL REVENUE (in millions) OPERATING EARNINGS PER DILUTED COMMON ShARE3 STOCKhOLDERS' EQUITY ATTRIBUTABLE TO PRINCIPAL FINANCIAL GROUP, INC. (in millions)

  • Page 24
    ... statements of operations in the Principal Financial Group, Inc.'s 2011 Form 10-K. For complete financial statements, including notes and management's discussion and analysis of financial condition and results of operations, please refer to the 2011 Form 10-K filed by the company with the...

  • Page 25
    ... intangibles Separate account assets Other assets 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 (2011...

  • Page 26
    ... of cash ï¬,ows in the Principal Financial Group, Inc.'s 2011 Form 10-K. For complete financial statements, including notes and management's discussion and analysis of financial condition and results of operations, please refer to the 2011 Form 10-K filed by the company with the Securities and...

  • Page 27
    ... L MEASURES Principal Financial Group, Inc. The company uses a number of non-GAAP financial measures that management believes are important in understanding and evaluating the normal, recurring operations of our businesses. Non-GAAP measures included in the Year in Review are operating earnings per...

  • Page 28
    ... President TechEd Ventures Larry฀D.฀Zimpleman Chairman, President and Chief Executive Officer Principal Financial Group Elizabeth E. Tallett Principal Hunter Partners, LLC Arjun K. Mathrani Adjunct Professor - New York University's Stern School of Business, St. John's University, New York...

  • Page 29
    ... | 2011 y ear i n revie4 | 27 senior management Principal Financial Group | March 2012 Larry฀D.฀Zimpleman Chairman, President and Chief Executive Officer Daniel฀J.฀Houston President, Retirement, Insurance and Financial Services James P. McCaughan President, Global Asset Management Luis...

  • Page 30
    ...in certain variable annuity and variable life insurance contracts. Mutual฀funds฀and฀variable฀contracts฀are฀distributed฀by฀Principal฀Funds฀Distributor,฀Inc.฀ and Princor Financial Services Corporation, members of the Principal Financial Group, Des฀Moines,฀Iowa฀50392-0200...

  • Page 31
    ... Relations 711 High Street, S-006-E41 Des Moines, Iowa 50392-0420 Phone: 1-800-986-3343 | Fax: 515-235-5491 E-mail: [email protected] Transfer Agent Principal Financial Group, Inc. shareholder inquiries should be addressed to our transfer agent, Computershare. Computershare can assist...

  • Page 32
    we'll give you an edge ® DES MOINES, IOWA 50392 1-800-986-EDGE (3343) WWW.PRINCIPAL.COM BB1345-17