Principal Financial Group 2015 Annual Report Download

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2015 Annual Report
What’s next.

Table of contents

  • Page 1
    2015 Annual Report What's next.

  • Page 2
    ...; risks arising from acquisitions of businesses; and a computer system failure or security breach could disrupt the company's business and damage its reputation. Principal, Principal and symbol design and Principal Financial Group are trademarks and service marks of Principal Financial Services, Inc...

  • Page 3
    ... (AUM) 19.1 million customers in more than 70 countries More than $1 billion of capital deployed- $335 million for acquisition to drive future growth, and returning $716 million to shareholders, $441 million as common stock dividends and $275 million through share repurchase 2015 Annual Report 1

  • Page 4
    ... is clearly on your mind. It's top of mind for us, as well, as we think about the daily challenges our customers face in achieving their financial goals; highly competitive markets; and differentiating ourselves in a world that's in constant change. So, let's talk about what's next. 2 Principal

  • Page 5
    Dan Houston, President and CEO Larry Zimpleman, Chairman 2015 Annual Report 3

  • Page 6
    ...Bank of England, April 4, 2014. Notable third party recognition-In 2015, Principal was named by Ethisphere magazine as one of the world's most ethical companies. As highlighted on page 18, we were also recognized for top-tier investment performance, as a best place to work and as a leading business...

  • Page 7
    ... income within the retirement plan • Multiple income-oriented funds, such as The Principal EDGE Active Income ETF, which invests across a diversified range of income-generating asset classes • Enhancing our deferred income annuity, making it available as a qualified longevity annuity contract...

  • Page 8
    ... across the organization, including president of the company's two largest operating segments-Retirement & Income Solutions and U.S. Insurance Solutions. Dan has played a critical role in the evolution of Principal from a domestic employee benefits company to a global leader in retirement, long...

  • Page 9
    ... experience and continuity that has served the Board well over the long term. In 2015, we added two new members. In March 2015, Roger Hochschild (president and chief operating officer, Discover Financial Services) joined the Board, bringing his expertise in wealth management, technology and consumer...

  • Page 10
    Rethinking retirement planning: My Virtual Coach 8 Principal

  • Page 11
    ... and take action." says Joleen Workman, assistant vice president of retirement and income solutions. "It's all about making it easy and giving people confidence that there is a clear path to progress." *Principal SDS average enrollment data (based on 2015 Plan Entry Dates). 2015 Annual Report 9

  • Page 12
    Breaking industry conventions: Outcome-based funds 10 Principal

  • Page 13
    ... same way? Or would you build it in a more thoughtful and consistent way? That's exactly what this team has done." Pictured at left are an investment team from Principal Portfolio Strategies. They are, left to right, Julia Lawler, Jessica Bush, Kelly Grossman and Jake Anonson. 2015 Annual Report 11

  • Page 14
    Charting new paths forward: The global aging report 12 Principal

  • Page 15
    ...per 100 working-age adults) are projected to triple between 2010 and 2050 in Brazil, Chile, China, Indonesia and Mexico-all countries with mandatory, private, funded retirement programs.1 As the report explores in detail, pay-as-you-go (or "paygo") pension systems-which fund retirement benefits out...

  • Page 16
    ...for 2015 were 4 percent of beginning of year AUM, as we continued to attract and retain retail, retirement and institutional investors. This helped drive AUM to $527.4 billion at year end. These results demonstrate the benefit of our broad diversification- by business, geography, investment platform...

  • Page 17
    ...millions) Dividends paid...benefit arrangements. 2 See page 22 for a reconciliation of non-GAAP measures to U.S. GAAP. 3 Stockholders' equity available to common stockholders excluding accumulated other comprehensive income (loss) other than foreign currency translation adjustment. 2015 Annual Report...

  • Page 18
    ... Financial Services 7. Daniel J. Houston President and Chief Executive Officer Principal Financial Group 8. Larry D. Zimpleman Chairman and retired Chief Executive Officer Principal Financial Group 9. Elizabeth E. Tallett Principal Hunter Partners, LLC 10. Sandra L. Helton Past Executive Vice...

  • Page 19
    ... Officer, Principal Global Investors 2. Nora Everett President, Retirement and Income Solutions 3. Gary Scholten Executive Vice President and Chief Information Officer 4. Karen Shaff Executive Vice President, General Counsel and Secretary 5. Greg Elming Senior Vice President and Chief Risk Officer...

  • Page 20
    ...to work awards, including recognition from Working Mother magazine and Computerworld. And for a fourth consecutive year, we were named Pension & Investments' Best Place to Work in Money Management. The Principal Financial Group earned the top spot in its category in Pension and Investments' annual...

  • Page 21
    ... benefit pension plans • Employee stock ownership plans • Nonqualified executive benefit plans • Annuities and payout solutions • Bank and Trust services • Investment only 2015 FINANCIAL HIGHLIGHTS • Full-year pre-tax operating earnings of $740 million • Retirement and Income Solutions...

  • Page 22
    ... 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) 2015 FINANCIAL...

  • Page 23
    ...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...

  • Page 24
    ...GAAP financial measures Years Ended Dec. 31, (in millions, except as noted) 2015 2014 2013 2012 2011 Net income available... gains (losses) Net unrecognized postretirement benefit obligation Preferred stock, at par Paid-in capital-preferred stock Noncontrolling interest Stockholders' equity $ 9,...

  • Page 25
    ... options are available in certain 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. 2015 Annual Report 23

  • Page 26
    ...different countries around the globe. 3,500 employees contributed over 22,650 hours of volunteer time off. Our 2015 sustainability achievements include: • The continued advancement of our climate change goals. In 2012, we set a long-term goal to reduce our energy use and our carbon footprint by...

  • Page 27
    ...a.m. CT, May 17, 2016, at the corporate headquarters of Principal Financial Group, Inc. 750 Park St. Des Moines, Iowa 50392 Top 15 Holders* of Principal Financial Group, Inc. Common Stock The Vanguard Group, Inc. Wellington Management Company, LLP Nippon Life Insurance Company State Street Global...

  • Page 28
    Principal Financial Group® 711 High Street Des Moines, Iowa 50392 www.principal.com Annual Report Design by Curran & Connors, Inc. / www.curran-connors.com