Principal Financial Group 2014 Annual Report Download - page 23

U.S. INSURANCE SOLUTIONS
SEGMENT OVERVIEW
Protect employers, business owners, employees and individuals
against risk and loss during working years and beyond, while
building and protecting wealth for retirement.
PRODUCTS AND SERVICES
• Individual Life: Protection, accumulation and deferred
compensation solutions
— Business planning services
— Retail universal, variable universal, indexed 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 HIGHLIGHTS
• U.S. Insurance Solutions 2014 operating earnings were a
record $231 million.
• The business market strategy continues to be a differentiator
for Individual Life, with 2014 being the second highest year
of non-qualified deferred compensation sales.
• Specialty Benefits had record full-year sales of nearly $300
million, up 10 percent over 2013.
RECOGNITION AND ACCOMPLISHMENTS
• Recognized by PLANSPONSOR magazine as the No. 2
non-qualified deferred compensation provider based on
number of plans. (July 2014)
• Ranked as the No. 4 provider of group benefit (dental, life
and disability) insurance based on 2013 LIMRA data on fully
insured employer contracts in force. (April 2014)
• Ranked as the No. 3 provider of non-cancelable individual
disability income insurance based on 2013 LIMRA data of
annualized new sale premium. (February 2015)
• Ranked as the No. 17 provider of life insurance based on 2013
LIMRA data on total life new sales premium. (March 2014)
• Delivered a series of innovative products and solutions in
2014, including group managed care vision, an “exchange-
certified” pediatric dental benefit, individual disability core
value (middle income) solution, indexed universal life and
VUL-Business products.
• Deployed our group benefit solutions on nine private
exchanges, expanding options for employers and employees
looking for accessible, flexible benefit options.
• Introduced our Individual Life Accelerated Underwriting pro-
gram, which leverages advanced analytics to streamline the
underwriting process. This innovative approach reduces
underwriting time to two to four days, compared to a 30+
day industry average, and eliminates lab testing and medi-
cal exams for qualified applicants, providing us a significant
competitive advantage.
PRINCIPAL INTERNATIONAL
SEGMENT OVERVIEW
Offer long-term savings and retirement solutions in select
Latin American and Asian emerging markets:
Brazil
Chile
China
Hong Kong, SAR
India
Indonesia
Malaysia
Mexico
Singapore
Thailand
PRODUCTS AND SERVICES
• Annuities
• Asset management
• Islamic asset management
• Islamic mutual funds
• Mutual funds
• Pensions
• Retirement advisory services
Joint venture partners
• Banco do Brasil (Brazil)
• China Construction Bank (China)
• CIMB Group (Southeast Asia)
• Punjab National Bank (India)
Mutual fund/asset management boutique
• Claritas (Brazil)
2014 FINANCIAL HIGHLIGHTS
• Principal International 2014 operating earnings were a record
$268 million.
• Principal International reported assets under management of
$115 billion at year end (excluding $19 billion of AUM in our
joint venture in China, which is not reported in AUM).
• Record full-year net cash flows of $13 billion were up 54 per-
cent over 2013 and up 68 percent on a local currency basis.
RECOGNITION AND ACCOMPLISHMENTS
• Brasilprev reached BRL$100 billion in assets under
management. (August 2014)
• Principal Chile:
— Ranked first in the APV according to the Asociación de
Adminstradoras de Fondos Mutuos de Chile. APV is a vol-
untary pension product that complements the mandatory
pension system in Chile. (as of November 2014)
— Cuprum recognized as the leader in Customer Loyalty
in the mandatory pension market by Alco Consultores, SA.
(November 2014)
• CIMB-Principal Asset Management was named the Best
Asset Manager in Southeast Asia for the fifth year in a row
by Alpha Southeast Asia in its “Best Financial Institutions
Awards” (Marquee Awards). (June 2014)
• Principal Hong Kong was named the “Asset Management
Company of the Year, Hong Kong MPF” by The Asset.
(June 2014)
• Principal International recently announced the planned
acquisition of AXA’s pension business in Hong Kong,
expected to close in the second half of 2015. The acquisition
will make us the fifth largest mandatory pension provider
in Hong Kong, expanding our brand and presence in Asia.
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