Principal Financial Group 2010 Annual Report Download - page 7

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7
Fourth: Global mutual funds and retirement. There is
a massive demographic change happening. Each minute,
40 new families enter the middle class in emerging
countries like China, India and Brazil. They, too, dream
of financial security.
How do we know? Because we have been in these
countries and seven others for more than a decade.
We speak the language, know the culture and
understand their dreams.
Working with some of the best local partners in these
countries, we export our retirement saving and asset
management expertise to the places that need it most.
THINK AGAIN: BUSINESS MIX
Ours is a hybrid business model with purposeful
diversification. What does that mean for investors? It
means we have the right mix of asset-based and risk-
based businesses combined with best-in-class product
solutions that are meaningful to our clients and advisors.
This leads to:
n Above-market growth
n Higher return on equity
n Greater free cash flow
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
to invest in other areas of the company that have greater
growth potential. I am proud (but not at all surprised)
of how employees reacted to this decision—and how
committed they’ve been to their clients and advisors
during the transition.
THINK AGAIN. DREAM AGAIN.
Everyone has a dream. The Principal believes that with
the right financial edge, any dream can be made possible.
We’ve been helping our clients with their financial
goals and dreams for more than 130 years. 2011 will
be no different.
Visit us at www.principal.com/dreamagain.
We look forward to seeing you there.
It’s time to dream again. With The Principal.
On behalf of everyone at the Principal Financial Group,
thank you for your continued investment in us. And
please be sure to cast your vote in time for the Annual
Meeting of Shareholders, May 17, 2011.
Larry Zimpleman
Chairman, President and Chief Executive Officer
THE PRINCIPAL FINANCIAL GROUP