Principal Financial Group 2012 Annual Report Download

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2012 YEAR IN REVIEW
THE P RINCIPAL FINANCIAL GROUP
THE RIGHT STRATEGY.
THE RIGHT MARKETS.
THE RIGHT TIME.
The Principal Financial Group® is a global leader in
helping growing businesses and individuals save,
invest, insure and achieve financial security at a
time of historic growth and opportunity. We have
proven expertise and partnerships in the world’s
most attractive and fast growing long-term savings
markets. We are executing on our strategy,
giving our customers and shareholders an edge.

Table of contents

  • Page 1
    ... Financial Group® is a global leader in helping growing businesses and individuals save, invest, insure and achieve financial security at a time of historic growth and opportunity. We have proven expertise and partnerships in the world's most attractive and fast growing long-term savings markets...

  • Page 2
    ... STRATEGY, RIGHT MARKETS, RIGHT TIME THE PRINCIPAL AT A GLANCE BOARD OF DIRECTORS SENIOR MANAGEMENT 2012 NON-GAAP FINANCIAL MEASURES REPORTABLE SEGMENTS AND PRINCIPAL FUNDS This 2012 Year in Review provides a company overview and financial highlights. For complete financial statements, including...

  • Page 3
    ...right markets at the right time. More than an investment company, more than a retirement company, more than an insurance company, The Principal® is a global leader in helping our customers build long-term savings and invest to grow, while insuring and managing their lifetime incomes. Our Investment...

  • Page 4
    ...a business owner feels when her succession plan is in place. And I'm inspired by the millions of families in emerging markets who finally have the opportunity to dream, to plan and to save. Larry Zimpleman Chairman, President and Chief Executive Officer 2 SHAREHOLDER LETTER | 2012 YEAR IN REVIEW

  • Page 5
    ... with China Construction Bank, the second-largest commercial bank in the world. In Brazil, our partnership with Banco do Brasil, the largest bank in Latin America, extends until 2033. In key markets in Southeast Asia, we partner with CIMB Group, one of that region's leading universal banking groups...

  • Page 6
    ... as long-term, performance-based compensation. • Financial management. The Finance Committee meets several times each year to review company policies and practices related to capital management, investments and financial plans and projections. • Social responsibility. In 2012, the charter of...

  • Page 7
    PRINCIPAL FINANCIAL GROUP, INC. 2012 Financial Highlights $403 19.7 19.5 19.6 $773 $630 $524 $396 $807 $682 $844 $803 18.5 18.3 $285 $247 $335 $319 $620 $808 08 09 10 11 1 12 08 09 10 11 12 08 09 10 11 12 08 09 10 11 12 Customers (in millions) Assets Under Management (in ...

  • Page 8
    ... the best of both our companies. The Principal is a first-rate partner - and our true collaboration enables us to offer quality financial services to Brazil's growing middle class." Alexandre Corrêa Abreu Vice President-Retail Business Banco do Brasil 6 THE RIGHT STRATEGY | 2012 YEAR IN REVIEW

  • Page 9
    ... fast-growing middle class markets in Latin America and Asia." - Luis Valdés, President - Principal International, The Principal Financial Group s a global leader in investment management, we help more than 18 million customers around the world save, invest, insure their assets and achieve their...

  • Page 10
    ... strong investment experience and local market knowledge. That breadth and depth of expertise helps me serve clients around the world. I'm able to help the portfolio management team deliver on clients' current needs, anticipate where the investor appetite is going and help position Principal Global...

  • Page 11
    ... companies and high-wealth individuals. The emerging markets of Latin America and Asia represent huge future growth potential for Principal International. Within these markets, 72,000 families are entering the middle class each day.1 There is an exploding need for asset accumulation and management...

  • Page 12
    ..., along with the flexibility to create innovative and personalized solutions. Sustained by a persistent focus on client outcomes, the result is a win for our clients and for both of our companies." Andrew M. Sieg, Head of Global Wealth and Retirement Solutions, Bank of America Merrill Lynch 10 THE...

  • Page 13
    ...create lifelong income and achieve financial security. It may be the era of personal responsibility, but our customers never have to go it alone. WORLDWIDE GROWTH OF THE MIDDLE CLASS 2022 (projected) 2012 1960 Poverty Middle Class Affluent 2012 YEAR IN REVIEW | THE PRINCIPAL FINANCIAL GROUP 11

  • Page 14
    ... Offer long-term savings and retirement solutions in select Latin American and Asian emerging markets. n n n n n n n n n n Brazil: Annuities, pensions, mutual funds, asset management Chile: Annuities, mutual funds, pensions China: Asset management, mutual funds Hong Kong: Asset management...

  • Page 15
    ... mutual fund and asset management capabilities in Brazil. (Announced March 2012. Closed April 2012.) • Cuprum is a leading provider of mandatory and voluntary pension products in Chile. (Announced October 2012. Closed February 2013.) n Entered new pension markets in Asia: • CIMB Principal...

  • Page 16
    ... and Data Systems, Inc. 9) Elizabeth E. Tallett Principal Hunter Partners, LLC 11) Dennis H. Ferro Retired President and Chief Executive Officer Evergreen Investment Management Company 5) Luca Maestri Vice President and Corporate Controller Apple, Inc. 14 LEADERSHIP | 2012 YEAR IN REVIEW

  • Page 17
    ...2013 Larry D. Zimpleman Chairman, President and Chief Executive Officer Daniel J. Houston President, Retirement, Insurance and Financial Services James P. McCaughan President, Global Asset Management Luis Valdés President, Principal International Ralph C. Eucher Executive Vice President Karen...

  • Page 18
    ... 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.1 Net income ROE available to common stockholders (including OCI) Operating...

  • Page 19
    ... Company Principal Bank Principal Financial Advisors, Inc. Principal Funds Distributor, Inc. Principal Life Insurance Company Principal Management Corporation Principal Shareholder Services, Inc. Princor Financial Services Corporation PRINCIPAl GlobAl INVESToRS Columbus Circle Investors Edge Asset...

  • Page 20
    ..., please contact: The Principal Financial Group - Investor Relations 711 High Street, S-006-E41 Des Moines, Iowa 50392-0420 Phone: 1-800-986-3343 | Fax: 515-235-5491 Email: [email protected] TRANSFER AGENT Nippon Life Insurance Company Capital Research Global Investors (U.S.) n The...