Principal Financial Group 2011 Annual Report Download - page 6

n CIMB Group, the fifth largest banking group by
assets in Southeast Asia
n Punjab National Bank, the second largest public
sector bank in India
The success we’ve achieved in Principal
International is only part of the outstanding
international growth we’ve achieved in the last 10
years. We’ve also successfully executed a multi-
boutique strategy in Principal Global Investors to
provide a broad range of asset classes, investment
styles and portfolio structures. The result? We now
manage portfolios for investors around the world,
spanning nearly 60 countries and including 10 of the
world’s 25 largest pension plans.1
Looking back on 2011
Now, 10 years since going public, The Principal is at
the strongest financial position in our 132-year history.
We entered 2011 with a sense of optimism—U.S. and
most global markets were up, we saw increasing signs
of growth and momentum in our businesses and the U.S.
economy was starting to rebuild.
Optimism continued throughout the year, and
despite external challenges, including choppy market
conditions, the widening of credit spreads and a low
interest rate environment, 2011 results were solid.
n Total company operating earnings were
$878 million as of Dec. 31, 2011.
n Assets under management ended the year at
$335 billion.
More importantly, the fundamentals of our
business remained strong in 2011. Growth metrics
such as sales, client retention and net cash flows
increased across our businesses, contributing to
increased momentum going into 2012.
n Full Service Accumulation had its second highest
sales year on record at $8.4 billion, an increase
of 27 percent over 2010, as well as record client
retention, resulting in positive net cash flows of
$3.8 billion.
n Principal Funds had record sales of $11.2 billion,
an increase of 20 percent over 2010, and record
net cash flows of $2.2 billion.
n Principal Global Investors had $11 billion in
mandates awarded in 2011, more than double
the amount awarded in 2010.
n Principal International ended the year with
assets under management of $52.8 billion,
including record net cash flows of
$5.5 billion.
n Individual Life sales were $186 million in
2011 and Specialty Benefits Division sales
were $285 million, both double-digit
increases over 2010.
These strong results demonstrate our ability to
execute our strategy and focus on the things we can
control. In our 132-year history we’ve faced many
headwinds and have weathered two of the worst
financial crises in U.S. history. Yet here we are
today, stronger than ever and poised for continued
long-term growth.
2011: a year of focused execution
I am very pleased with how well our employees
executed on our strategy in 2011, which is reflected
in strong sales and customer retention. Another key
example of the company’s ability to execute is our
deployment of capital throughout 2011.
HERE WE ARE TODAY, stronger
than ever and poised for
continued long-term growth.
4 | 2011 year in review | PRINCIPAL FINANCIAL GROUP
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.