Principal Financial Group 2010 Annual Report Download

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THINK AGAIN. DREAM AGAIN.
2010 YEAR IN REVIEW

Table of contents

  • Page 1
    2010 YEAR IN REVIEW THINK AGAIN. DREAM AGAIN.

  • Page 2
    ...SHAREHOLDERS THINK AGAIN AT A GLANCE INVESTING FOR THE FUTURE FINANCIAL HIGHLIGHTS SUMMARY CONSOLIDATED FINANCIALS BOARD OF DIRECTORS SENIOR MANAGEMENT REPORTABLE SEGMENTS AND PRINCIPAL FUNDS WE DEVOTED 2010 TO This 2010 Year in Review provides a company overview, financial highlights and summary...

  • Page 3
    HELPING OUR CUSTOMERS REBUILD. Connecting them with trusted advisors. Providing them with tools they need. Helping them assess their financial situations. And inviting them to think again about their futures. What we found along the way inspired us. People's financial realities may be different....

  • Page 4
    ... businesses. n We achieved record assets under management, ending 2010 at $319 billion. Our 2010 operating earnings of $845 million were up 15 percent over 2009. Book value per share* finished the year at a record $27.82. n LARRY ZIMPLEMAN CHAIRMAN, PRESIDENT AND CEO n And today, The Principal...

  • Page 5
    ... they need their savings to last. 2. Global competition for employees - Employers need top-notch benefit plans to attract and retain the best employees, yet there are real limits on what they can spend. small business is hard work. That's why The Principal has spent the last seven decades focused...

  • Page 6
    ... strategy that enables us to provide diverse investment capabilities through our network of specialized affiliates. We're managing assets for 10 of the 25 largest pension funds in the world, including the Social Security Fund of China. focused on employees, business owners and individuals. Phil...

  • Page 7
    ... free cash ï¬,ow We remain disciplined in managing expenses and investing in the highest growth areas. As a result, we made the difficult decision to exit the medical insurance business in September 2010. This action will enable us Larry Zimpleman Chairman, President and Chief Executive Officer...

  • Page 8
    THINK AGAIN ABOUT OPPORTUNITY TO DIFFERENCE IN LIVES OF MILLIONS OF PEOPLE. THE THE MAKE A MEANINGFUL

  • Page 9
    ...MILLION BABY BOOMERS in the An advisor helped Joan set up a customized retirement income plan through Principal Retirement Income EdgeSM with products like the PFI Global Diversified Income Fund. This multi-manager, multi-strategy fund aims for high current income with the potential to continue to...

  • Page 10
    ...America China Construction Bank, the world's second largest commercial bank CIMB Group, the second largest financial services provider in Malaysia n n The result? Principal International now operates in 10 markets and holds top-10 market positions in Brazil, Chile, Hong Kong, Malaysia and Mexico...

  • Page 11
    AROUND THE WORLD.

  • Page 12
    THINK AGAIN ABOUT EMPLOYEES WHO CARE.

  • Page 13
    ...sure all employees of Principal Chile in Santiago were okay. They were. The next goal was to get operations in Chile back online as soon as possible. We did. By Monday morning, Principal Chile was open for business, thanks to the efforts of many employees in Chile, Mexico and the United States. Once...

  • Page 14
    ...We've created the Dreamcatcher, an online tool and social application at www.principal.com/ dreamagain that can help you imagine the life you want some day. Then your advisor can help you make a plan to get there. Get started right now at www.principal.com/dreamagain It's time. Dream Again. With The...

  • Page 15
    DREAM AGAIN

  • Page 16
    ...nancial services to: n 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...

  • Page 17
    ... customers globally (including clients in China). BrasilPrev ranked #1 in the private pension segment for The Most Admired Companies Award by Carta Capital magazine. (September 2010) CIMB-Principal Asset Management Berhad (Malaysia) named Best Fund House by Asia Asset Management in its annual Best...

  • Page 18
    ...third-party administrator > In investment choice > In the services they want The Principal to take the lead on, including participant education, local service support, annual plan and investment reviews n Mobile compensation services - The Principal Advisor Compensation Application provides direct...

  • Page 19
    ...-based pricing provides plan sponsors and financial professionals an expanded array of service and installation options that can help meet their needs for new retirement plans with up to $1 million in plan assets under management. n Fee disclosure education website - Principal.com/feedisclosure...

  • Page 20
    ... Banco do Brasil network for 23 years. n Workplace benefits - Our annual search for The Principal® 10 Best Companies for Employee Financial Security highlights best practices in employee benefits. n New฀China฀Qualified฀Domestic฀Institutional฀Investor฀ (QDII)฀Fund฀- During 2010...

  • Page 21
    ...n Ranked #49 on Computerworld magazine's 100 Best Places to Work in IT. (June 2010) n Currently recognized as a Platinum Well Workplace by the Wellness Councils of America. n Scored a 95 out of 100 on the Human Rights Campaign Foundation Corporate Equality Index. (October 2010) Innovation n Named to...

  • Page 22
    ... 09 10 06 07 08 09 10 CUSTOMERS (in millions) 2 ASSETS UNDER MANAGEMENT (in billions) We've been well-served by our hybrid business model and purposeful diversification. We're excited about the unprecedented opportunities for long-term growth in the United States and key emerging international...

  • Page 23
    ... 10 06 07 08 09 10 06 07 08 09 10 TOTAL REVENUE (in millions) NET INCOME AVAILABLE TO COMMON STOCKHOLDERS (in millions) OPERATING EARNINGS3,4 (in millions) 15.1% $3.64 12.8%...,4 STOCKHOLDERS' EQUITY ATTRIBUTABLE TO PRINCIPAL FINANCIAL GROUP, INC. (in millions) T H E P R I N C I PA L ...

  • Page 24
    ...to฀policyholders฀ Operating expenses Total expenses Income before income taxes Income taxes (benefits) Net income Net income attributable to noncontrolling interest Net income attributable to Principal Financial Group, Inc. Preferred stock dividends Net income available to common stockholders...

  • Page 25
    ...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 (2010 includes $433.6 million related to consolidated variable...

  • Page 26
    ...฀ Dividends฀to฀preferred฀stockholders฀ Issuance of long-term debt Principal repayments of long-term debt Net proceeds from (repayments of) short-term borrowings Investment contract deposits Investment contract withdrawals Net increase in banking operation deposits Other Net cash provided...

  • Page 27
    ... gains (losses) Foreign currency translation Net unrecognized post-retirement benefit obligations Preferred stock, at par Paid-in capital - preferred stock Stockholders' equity attributable to Principal Financial Group, Inc. Net income ROE available to common stockholders (including OCI) Operating...

  • Page 28
    ...'s Stern School of Business, St. John's University, New York and Cambridge University's Judge Business School 8) Larry฀D.฀Zimpleman Chairman, President and Chief Executive Officer Principal Financial Group 10)฀ ฀ Michael฀T.฀Dan Chairman, President and Chief Executive Officer The Brink...

  • Page 29
    ... President, Retirement, Insurance and Financial Services James P. McCaughan President, Global Asset Management Norman R. Sorensen Chairman, Principal International Luis Valdés President, Principal International Karen E. Shaff Executive Vice President and General Counsel Rex Auyeung Senior Vice...

  • Page 30
    ... Company,฀LTD Hong Kong Principal Asset Management Company (Asia) Limited Principal Insurance Company (Hong Kong) Limited Principal Trust Company (Asia) Limited Principal Global Investors (Asia) Limited Princorp Wealth Advisors (Asia) Limited India PNB Principal Financial Planners Private Limited...

  • Page 31
    ...Financial Group - Investor 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...

  • Page 32
    WE'LL GIVE YOU AN EDGE® DES MOINES, IOWA 50392 1-800-986-EDGE (3343) WWW.PRINCIPAL.COM BB1345-16