Principal Financial Group 2012 Annual Report Download - page 5

Our work on behalf of the clients and advisors who rely on
us delivers unparalleled long-term value – not only for them,
but also for the shareholders who invest in us.
Achieving strong organic growth.
We ended 2012 with record assets under management –
exceeding $400 billion and refl ecting $30 billion in total net
cash fl ows.
• Full Service Accumulation had record sales of $11.5 billion
in 2012 and record full-year net cash fl ows of $7 billion.
• Driven by strong investment performance, Principal Funds
rose to 19th in market share for advisor-sold funds and
11th in net cash fl ows, based on rankings by Strategic
Insight.
• Both Principal Global Investors and Principal International
closed the year with record assets under management.
• U.S. Insurance Solutions delivered growth in both
Life Insurance and Specialty Benefi ts.
Contributing to these growth results is our unique and
extensive U.S. distribution network – including proprietary
agents, independent fi nancial advisors and consultants,
banks, and local market wholesale and service teams.
We also work with some of the leading wealth management
fi rms, such as Edward Jones, UBS and Merrill Lynch. They
choose The Principal because we’re a single source for a
broad array of proven retirement, investment and insurance
solutions. We share their commitment to make a difference
in customers’ lives. And we’re focused on helping them
achieve success.
In emerging international markets, we have enviable, long-
term relationships with several of the world’s largest and
most respected fi nancial entities. In China, we partner 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.
And in India, we have a partnership with Punjab National
Bank, the largest national bank in India. By building strong
local relationships, these partnerships – and others – enable
us to speak the language, share the dreams and serve the
unique needs of each market and culture.
Expanding our global footprint.
Just two years ago, the world’s population surpassed
7 billion. Since 2010, The Principal has completed six
strategic transactions that give us strong competitive
positions in markets that comprise half that global
population. What’s even more compelling is that, every
minute, record numbers of people are entering the middle
class in these emerging markets.
We continued to expand our global footprint in 2012. Two
signifi cant Latin America acquisitions solidifi ed our position
as a retirement leader in this region’s fast-growing emerging
markets.
• In April, we acquired Claritas, a Brazilian retail mutual
fund and asset management company. Claritas
complements our existing pension leadership position in
Brazil, where BrasilPrev, our joint venture with Banco do
Brasil, is the fastest-growing pension company.
• In October, we announced our intent to acquire Cuprum, a
premier mandatory and voluntary pension provider in
Chile. The transaction closed in February 2013, further
positioning The Principal as a retirement leader in that
market.
Staying the course. Rewarding investors.
Our Investment Management Plus strategy has been in
place for more than a decade. This strategy not only
remains unchanged, it has proven itself to be more relevant
and appropriate than ever. As a result of that strategy, we
have achieved our goal of becoming a global investment
management leader. And we are positioned for greater
growth and success in the years ahead.
None of these accomplishments would be possible without
the skills, experience and dedication of our employees
2012 YEAR IN REVIEW | THE PRINCIPAL FINANCIAL GROUP 3