Principal Financial Group 2014 Annual Report Download

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CONNECTED.
THE PRINCIPAL FINANCIAL GROUP® 2014 ANNUAL REPORT

Table of contents

  • Page 1
    CONNECTED. T H E P R I N C I PA L FI N A N C I A L G R O U P ® 2 01 4 A N N UA L R E P O R T

  • Page 2
    ... OUR CHIEF EXECUTIVE OFFICER 5 LETTER FROM OUR BOARD 6 2014 FINANCIAL HIGHLIGHTS 8 INNOVATION 12 PERFORMANCE 16 GROWTH 20 BUSINESSES 22 BOARD OF DIRECTORS 23 SENIOR MANAGEMENT 24 2014 NON-GAAP FINANCIAL MEASURES 25 REPORTABLE SEGMENTS AND PRINCIPAL FUNDS This 2014 Annual Report provides a company...

  • Page 3
    ... of our mission to provide long-term financial security for more people, in more ways, in more places. Our connected organization is the sum of its diverse and dynamic parts. Balancing expertise, discipline and reliable results with a bold pioneering philosophy, The Principal builds momentum toward...

  • Page 4
    ... João invest in his first pension plan. Darrin and McKenna just welcomed their son Jackson and know they need life insurance to protect their growing family, but the lengthy purchasing process seems cumbersome. With accelerated underwriting, the team at the Principal Financial Group is able to give...

  • Page 5
    ...: - We can meet all of a client's long-term financial security needs across life stages-save, invest, protect and manage income when it's time to reap the benefits. Our deep global investment management expertise enables us to meet the needs of retail investors and retirement investors as well as...

  • Page 6
    ...providing superior value to long-term investors. I urge you to vote your shares before the annual meeting on May 19. What you have to say matters to our Board, to our employees and to me. Larry Zimpleman Chairman and CEO In November 2014, Dan Houston was named president and chief operating officer...

  • Page 7
    ... ask senior management to provide their future vision of The Principal, and we use that work to help inform the Board's deliberations over the next few years. In short, we are proud of the company's strategic planning process, and we believe it will allow us to continue to drive long-term value for...

  • Page 8
    ... year at a record $519 billion. Record results. Ongoing momentum. Strong financial position. The Principal is poised for continued long-term growth. Customers1 (in millions) Assets Under Management (in billions) Dividends Paid on Common Stock 19.7 19.6 18.5 18.3 $483 $0.98 $403 $319 $335 $0.55...

  • Page 9
    ...to Principal Financial Group, Inc. (in millions) $10,184 $9,683 $9,684 $9,090 $8,952 Total Assets (in...benefit arrangements. 2. See page 24 for a reconciliation of non-GAAP measures to U.S. GAAP. 3. Stockholders' equity available to common stockholders excluding accumulated other comprehensive income...

  • Page 10
    ... vice president and chief information officer of U.S. Insurance Solutions, was named to Insurance and Technology magazine's Elite 8, recognizing the eight most successful and inspiring technology executives in the industry. We also continued progress on our corporate campus renovations in Des Moines...

  • Page 11

  • Page 12
    ... in Pensions & Investments' annual survey of the Best Places to Work in Money Management3 • One of Computerworld 's 100 Best Places to Work in Information Technology for the 13th year • One of the 2014 National Association for Female Executives' Top 50 Companies for Executive Women Such best-in...

  • Page 13
    ... to an industry low of 35 days and removing communication barriers to facilitate relationships between underwriters and advisors. "We've always looked for ways to improve the underwriting process," says Greg Linde, senior vice president of Individual Life at The Principal. "It's helped us to gain...

  • Page 14
    ...of retirement assets managed by Principal Global Investors • A record year in unaffiliated assets under management • More than 85 percent of our funds in the top half of Morningstar rankings on a one-, three- and five-year basis Pictured left to right are Kelly Rush, chief investment officer of...

  • Page 15

  • Page 16
    ...October 2014 3. Principal Funds, recognized by Lipper for the Principal Global Real Estate Securities Fund, 2014 4. CIMB-Principal Asset Management, recognized by Alpha Southeast Asia for its 8th Annual Best Financial Institutions Awards (Marquee Awards), June 2014 5. Principal Hong Kong, recognized...

  • Page 17
    ... in assets under management, thanks to a growing team with diverse expertise and a track record of proven performance. As clients continue to show interest in more exposure to globally diverse markets, The Principal real estate investment group is now focused on preparing to meet those developing...

  • Page 18
    ... top fund families work with 100,000+. Principal Funds closed 2014 with a network of 50,000+ advisors-and ample room to increase our distribution in 2015 and beyond. Pictured left to right are members of the sales team from Brasilprev: Guilherme Rossi - commercial director retail, Mauro de Souza...

  • Page 19

  • Page 20
    ...with an ever-increasing number of consumers who need the kinds of long-term savings solutions we provide. In the United States, only 35 percent of millennials have a financial advisor, and 44 percent haven't set a retirement savings goal.1 Among our Cuprum customers in Latin America, only 10 percent...

  • Page 21
    ... says Michael Garvin, chief financial officer, Latin America region. That surefooted strategy paid off. Now, 20 years later-and four years into a 23-year extension of the original joint venture-Brasilprev has become a strong proof point for our long-term vision for global growth. In 2014, our assets...

  • Page 22
    ... Group earned the top spot in its category for the third year in a row in Pensions & Investments' annual survey of Best Places to Work in Money Management.* (December 2014) • Principal Real Estate Investors is a Top 10 manager of real estate. Managers ranked by total worldwide real estate assets...

  • Page 23
    ...universal and term life insurance - Nonqualified deferred compensation • Specialty Benefits: Employer-paid and voluntary work-site solutions - Group life insurance - Group dental and vision - Group and multi-life disability income - Individual disability insurance - Critical illness 2014 FINANCIAL...

  • Page 24
    ... Ventures 6 Luca Maestri Senior Vice President and Chief Financial Officer Apple, Inc. 9 Larry D. Zimpleman Chairman and Chief Executive Officer Principal Financial Group 12 Dennis H. Ferro Retired President and Chief Executive Officer Evergreen Investment Management Company Not pictured Roger...

  • Page 25
    Senior Management Principal Financial Group, Inc., March 2015 Larry D. Zimpleman Chairman and Chief Executive Officer Daniel J. Houston President and Chief Operating Officer Nora Everett President, Retirement and Investor Services James P. McCaughan President, Global Asset Management, and Chief ...

  • Page 26
    Non-GAAP Financial Measures Principal Financial Group, Inc. Year Ended Dec. 31 (in millions, except as noted) 2014 2013 2012 2011 2010 Net income available to common stockholders per diluted share Operating earnings per diluted share Net realized capital gains (losses) Other after-tax ...

  • Page 27
    ...variable annuity and variable life insurance contracts. Mutual funds and variable contracts are distributed by Principal Funds Distributor, Inc., a member of the Principal Financial Group, Des Moines, Iowa 50392-0200. Phone 1-800-222-5852. The contents of this publication are for general information...

  • Page 28
    ... charters • Director independence standards • Corporate code of business conduct ethics ANNUAL MEETING The Annual Meeting of Shareholders will convene at 9 a.m. CT, May 19, 2015, at the corporate headquarters of Principal Financial Group, Inc. 750 Park St. Des Moines, Iowa 50392 CONTACT INVESTOR...