Principal Financial Group 2013 Annual Report Download

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THIS
IS
WHY.
THIS
IS
HOW.
THE PRINCIPAL FINANCIAL GROUP®
2013 YEAR IN REVIEW

Table of contents

  • Page 1
    THIS IS WHY. THIS IS HOW. T H E P R I N C I PA L F I N A N C I A L G R O U P ® 2013 YEAR IN REVIEW

  • Page 2
    ... on its universal life-type insurance contracts, participating life insurance policies and certain investment contracts may change; the company may need to fund deficiencies in its "Closed Block" assets that support participating ordinary life insurance policies that had a dividend scale in force...

  • Page 3
    ... DAY. The global middle class population is booming. More and more people are personally responsible for their own financial security. Confusion and uncertainty leave many reluctant to save or invest for the long-term. The Principal® is uniquely positioned to help them take action. THIS IS HOW...

  • Page 4
    ... Social Affairs; 2 - U.S. Census Bureau estimate; 3 - Based on Cerulli estimates for 2012; 4 - 2013 Retirement Confidence Survey, Employee Benefits Research Institute, March 2013; 5 - GenY Women in the Workplace, BPW Foundation, April 2011. LARRY ZIMPLEMAN Chairman, President and Chief Executive...

  • Page 5
    ... in Mexico and Brazil, we're now the second largest retirement provider in Latin America6 . Our successful business ventures and partnerships in Asia have also delivered impressive results and hold similar potential over time-as retirement industries develop in markets like China, Malaysia and India...

  • Page 6
    ..., President, Retirement, Insurance and Financial Services; Larry Zimpleman, Chairman, President and Chief Executive Officer; Karen Shaff, Executive Vice President, General Counsel and Secretary Back: Jim McCaughan, President, Global Asset Management; Tim Dunbar, Executive Vice President and Chief...

  • Page 7
    ... compensation practices (pay for performance) is one of the most critical roles the Board plays. We use a compensation process that incorporates proper oversight, benchmarking against investment management peers and independent advice from an outside consultant. The Human Resources Committee reviews...

  • Page 8
    PRINCIPAL FINANCIAL GROUP, INC. 2013 Financial Highlights Customers1 (in millions) Assets Under Management (in billions) Net Income Available to Common Stockholders2 (in millions) Operating Earnings2, 3 (in millions) Operating Return on Average Equity2, 3, 4 483.2 19.5 19.6 19.4 18.5 18.3 403...

  • Page 9
    ...Dividends Paid on Common Stock Total Revenue2 (in millions) Operating Earnings per Diluted Common Share2, 3 Stockholders' Equity Attributable to Principal Financial Group, Inc.2 (in millions) Total Stockholders' Equity Attributable to Principal Financial Group... O U P | 2013 Y E AR IN R EV I EW 7

  • Page 10
    ...!), but now what? You may not know what options are available to make sure your retirement nest egg lasts. How to turn a 401(k) into income. What to even do next. Each long-term savings journey presents its own set of opportunities and challenges. And while the views are vastly different, they have...

  • Page 11
    ... markets and where they're headed, but to really anticipate them," says Nora Everett, president and CEO of Principal Funds (right). "People in retirement need income and protection from inï¬,ation, so we developed strategies like the Global Diversified Income Fund and the Diversified Real Asset...

  • Page 12
    ...EMERGING INVESTORS n today's emerging markets, middle class populations are growing rapidly. Through hard work and dedication, millions of people have moved beyond struggle and into stability. They've turned a profession into prosperity and transformed their uncertainty into security. As they change...

  • Page 13
    ... provide retirement security. With the 2013 purchase of Cuprum, The Principal seized an opportunity to broaden the retirement expertise we're offering to the growing group of savers in Chile. "We're now the second-largest pension provider in Latin America," says Luis Valdés, president of Principal...

  • Page 14
    THIS IS WHY: EACH CLIENT IS UNIQUE I nvesting for long-term success is an exercise in balance. Clients want customized solutions to match their unique financial goals. They want top-tier investment solutions. An efficient, effective firm. A trusted advisor. It can be hard to find all these ...

  • Page 15
    ... Edge Asset Management Spectrum Asset Management Post Advisory Group Morley Financial Services PRINCIPAL GLOBAL INVESTORS Multi-Asset Advisors Liongate Capital Management Macro Currency Group More than a collection of boutiques, Principal Global Investors' multiboutique business model offers...

  • Page 16
    ...nets - looking for talent and creating opportunities globally. "Today's top talent is looking for opportunities to develop themselves as they progress in their careers," says Beth Raymond, senior vice president and chief human resources officer. "That's a universal desire. So to attract top talent...

  • Page 17
    ...plus a chance to work for an innovative company they believe in. The opportunity to develop their innate talents. Build a rewarding career. Do meaningful work. Create a fulfilling personal life. A strong corporate culture is also an imperative. Ralph Eucher, executive vice president, explains, "One...

  • Page 18
    ... • Commercial Mortgages, Bridge and Mezzanine Loans Asset allocation Alternatives and currency management PRINCIPAL INTERNATIONAL Offer long-term savings and retirement solutions in select Latin American and Asian emerging markets: Brazil Chile China Hong Kong India Indonesia Malaysia Mexico...

  • Page 19
    ... Brasilprev ranked No.1 in net deposits from Quantum Axis. (November 2013) n n n CCB-Principal Asset Management received the "Annual Best Asset Management Company Award" from china.com.cn, one of the most important online news portals in China. (April 2013) CIMB-Principal Asset Management was...

  • Page 20
    NON-GAAP FINANCIAL MEASURES Principal Financial Group, Inc. The company uses a number of non-GAAP financial measures that management believes are important in understanding and evaluating the normal, recurring operations of our businesses. Non-GAAP measures included in the Year in Review are ...

  • Page 21
    .... 8) Larry D. Zimpleman Chairman, President and Chief Executive Officer Principal Financial Group Elizabeth E. Tallett Principal Hunter Partners, LLC 4) 10) Michael T. Dan Retired Chairman, President and Chief Executive Officer The Brink's Company 11) Dennis H. Ferro Retired President and Chief...

  • Page 22
    ... Human Resources Officer Jerry W. Patterson Senior Vice President Angie R. Sanders Senior Vice President and Controller Ellen W. Shumway Senior Executive Director Deanna D. Strable Senior Vice President Roberto Walker Senior Vice President and President, Principal Financial Group-Latin America...

  • Page 23
    ... de Seguros de Vida Chile S.A. China CCB Principal Asset Management Company, LTD Hong Kong Principal Asset Management Company (Asia) Limited Principal Insurance Company (Hong Kong) Limited Principal Trust Company (Asia) Limited Principal Global Investors (Asia) Limited India Principal Retirement...

  • Page 24
    ... our initial public offering. TOP 15 HOLDERS* OF PRINCIPAL FINANCIAL GROUP, INC. COMMON STOCK The Annual Meeting of Shareholders will convene at 9 a.m. CT, May 20, 2014, in the auditorium at the corporate headquarters of Principal Financial Group, Inc. 711 High St. Des Moines, Iowa 50392 CONTACT...