Principal Financial Group 2010 Annual Report Download - page 16

SEGMENT OVERVIEW HIGHLIGHTS
n Assets under management for the
segment totaled $220.1 billion in 2010,
an increase of 7 percent over 2009.
n Operating earnings of $58.5 million in
2010, a 53 percent increase over 2009
reflecting strong operating leverage.
n $14.4 billion of deposits from new and
existing non-affiliated institutional clients.
n More than 400 investment professionals
in offices around the world, with clients
in more than 50 countries.
n Record assets under management for the
segment of $52.7 billion (including
China), an increase of 30 percent from 2009.
n Record net cash flow of $4.7 billion, or
14 percent of beginning of year assets
under management.
n Signed a 23-year shareholder agreement
of our BrasilPrev joint venture with the
exclusive right to distribute pension and
asset accumulation products within the
Banco do Brasil bank network
n Joint venture partners include Banco do
Brasil (Brazil), China Construction Bank
(China), CIMB Group (Malaysia) and
Punjab National Bank (India).
n Individual life sales of $164.4 million in
2010, an increase of 21 percent over 2009.
n Specialty benefits sales of $241 million
in 2010.
n Specialty benefits return on equity in
excess of 14 percent.
n Record individual disability sales of
$40 million.
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PRODUCTS & SERVICES
Provides integrated retirement savings,
payout solutions and related investment
products and services to:
n Growing businesses
n Employees and other individuals
n Not-for-profit organizations
n Large financial institutions and
employers
Principal Global Investors and its
affiliates provide a diverse range of asset
management capabilities to institutional
investors globally.
Provides retirement, investment and
related financial 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 Full service accumulation (FSA) products
and services:
฀ •฀ Dened฀contribution฀retirement฀plans฀
(including 401(k) and 403(b) plans)
฀ •฀ Dened฀benet฀pension฀plans
฀ •฀ Employee฀stock฀ownership฀plans
฀ •฀ Nonqualied฀executive฀benet฀plans
n Mutual funds
n Annuities and payout solutions
n Bank and trust services
n Investment only
U.S. INSURANCE SOLUTIONS
Equities:
n Growth, core and value U.S. equities
n Small-, mid- and large-cap U.S. equities
n Global ex-U.S. equities
Fixed income:
n U.S. fixed income
n Global fixed income
n Specialty credit
n Structured
Real estate:
n Equity
n฀ Debt
Foreign currency
n Retirement products and services
n Mutual funds
n Annuities
n Asset management
Offers a broad range of group and
individual insurance products to meet the
financial protection and security needs
of growing businesses and individuals
throughout the United States.
Focused on:
n Businesses
n Employees
n Business owners
n Executives
n Individuals
Individual life insurance:
n Estate planning
n Business continuation
n Executive benefits
n Financial planning
n Nonqualified executive benefit plans
Specialty benefits:
n Group dental and vision insurance
n Group life insurance
n Group and individual disability insurance
n Group wellness programs
Health insurance:
n Currently exiting the group medical
insurance business (announced Sept. 30, 2010;
expected transition period of 36 months)
n FSA sales of $6.6 billion, up 32 percent
from 2009, drove net cash flow of $0.6
billion in 2010, ahead of the industry
average according to Cerulli Associates.
n Record mutual fund sales of $9.3 billion,
up 21 percent from 2009, drove record
net cash flow of $1.6 billion in 2010.
n Strong growth in account values during
the year, with FSA up 12 percent, mutual
funds up 18 percent and individual
annuities up 7 percent in 2010.
n Record operating earnings for the
individual annuities business of
$118.5 million in 2010.
n Strong asset and liability management
of the investment only business resulted
in improving margins and opportunistic
issuance of $0.5 billion.
AT A GLANCE Principal Financial Group, Inc.
RETIREMENT AND INVESTOR SERVICESPRINCIPAL GLOBAL INVESTORSPRINCIPAL INTERNATIONAL
THE PRINCIPAL FINANCIAL GROUP