Principal Financial Group 2009 Annual Report Download - page 4

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Ready to take action
In 2009, The Principal benefited from the same
fundamentals that have guided our business and
ensured success since 1879, including:
n Our legacy of strong enterprise risk management,
which has kept our exposure to risk at a
manageable level.
n Our well-diversified, high-quality investment portfolio,
disciplined portfolio management and strong asset-
liability matching, which allowed us to hold
investments to maturity.
Smart decisions throughout the year demonstrated we
were ready to take action as the crisis evolved:
n Every employee of The Principal contributed as we
worked to align expenses with declining revenues.
Together, we exceeded our goal, reducing our
operating expenses by $375 million, or 12 percent.
n We strengthened our capital position with capital
raises totaling $1.9 billion. This demonstrated
the confidence equity and debt investors have in our
company, our performance and our strategy.
n We increased liquidity by $4 billion during the worst
of the crisis from April 2008 through September 2009.
Through these decisive actions, we demonstrated our
ability to manage our business effectively and respond
swiftly to environmental changes.
Ready to help customers and financial advisors
when they needed us most
The past year was a testament to our dedicated employees.
While facing the same difficult financial realities as
everyone else, they rallied to help customers and advisors
when it mattered most.
F O R A D V I S O R S – Advisors have never been more
important to The Principal, and their jobs 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.
In 2009, the continued economic crisis and


The Principal® strong. And staying ready means
we’re well positioned for growth.
LETTER TO SHAREHOLDERS
the principal financial group
2