Principal Financial Group 2011 Annual Report Download - page 5

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PRINCIPAL FINANCIAL GROUP | 2011 year in review | 3
THE POWER OF 10 YEARS
Reflecting on the 10th anniversary of becoming a
public company, I can’t help but think back to the
strategy we laid out for growth and the long-term
success of the company. At the time, we were largely
an insurance-based company and a retirement leader
in the United States. Our goal was to accelerate
growth in our U.S. defined contribution businesses
and drive growth and profitability in our international
businesses. Our strategy was to continue what we
were doing so successfully in the United States—
building out our advisor-based distribution platform
to provide leading employer-based retirement and
protection solutions to the underserved small and
medium-sized business market.
In addition, we established a strategy to become a
leading global investment manager and to expand our
international operations.
Fast forward 10 years to 2011.
n We are a global investment
management leader—
managing portfolios for investors
in nearly 60 countries.
n We have achieved strong growth—
more than tripling assets under
management and nearly doubling
operating earnings as we continue to shift
to a more fee-based business model.
Throughout that time, and just as we have for
more than 132 years, we’ve remained committed to
helping customers achieve their financial dreams.
Day after day.
Year after year.
Think global. Act local.
Going public gave us access to capital and the identity
we needed to accelerate the growth of our business in
the United States and around the world. It gave us the
foundation to turn our aspirations into reality.
At the end of 2001, only 6 percent of total company
earnings came from Principal Global Investors and
Principal International. In just 10 years, that grew to
26 percent.
Principal International alone grew from breaking
even in 2001 to earning more than $150 million in
2011. It’s been a transformative time for The Principal,
to say the least.
As middle class populations grow at a rapid pace
in emerging markets, such as China, India and Brazil,
we’re helping families plan for and achieve the financial
dreams they might not have ever thought possible.
In the United States we’ve grown our retirement
and long-term savings businesses through a strong
local distribution network, as well as through our
alliance relationships. We’ve grown in emerging
international markets by aligning with top-tier
distribution partners, including:
n China Construction Bank, the second largest
commercial bank in the world
n Banco do Brasil, the largest bank in
Latin America
WE’VE REMAINED committed to helping
growing businesses and individuals
achieve their financial dreams.