The Principal Financial Group®: Built on Strength
04/26/13
When the going gets tough, you need a solid, experienced company you can trust. For more than 130 years, The Principal® has been helping our clients with their financial goals in all kinds of markets.
Whether you're an individual preparing for retirement, someone just starting out, or a business owner managing benefit costs, we have the longevity, experience and solutions you need.
Strong operating results
| Summary of Operating Results Three Months Ending | |||
|---|---|---|---|
| 3/31/2012 Reported |
3/31/2013 Reported |
% change | |
| Assets Under Management (AUM) (in billions) | $364.1 B | $456.1 B | +25% |
| Operating Earnings (in millions) | $215.3 M | $233.3 M | +8% |
| Earnings per Share | $0.71 | $0.79 | +11% |
| Net Income (in millions) | $203.9 M | $178.3 M | (13)% |
Our success is rooted in more than 130 years of experience. How do we do it? Amid short-term pressures, we focus on the long-term view. We have a mix of products and investments that provide us flexibility. And we remain committed to working with our clients for greater financial security, in good times and bad. Through recession and recovery, challenge and opportunity, we've relied on a disciplined, long-term investing approach to help keep things on track.
19 million customers worldwide trust the Principal Financial Group, and here's why:
- We're a member of the Fortune 500.
- We're a Top 20 Retirement Leader[1].
- We manage assets for 10 of the 25 largest pension plans in the world[2].
- We're #3 in Pensions in Brazil[3].
- We're the number two nonqualified deferred compensation plan service provider[4].
- We're the 4th largest provider of group benefits (dental, life and disability insurance) based on in-force contracts[5].
Our most recent financial results (March 31, 2013) reflect the strength of our business under challenging conditions. Highlights of 1Q 2013 results include:
- Record Assets Under management of $456.1 billion.
- Retirement and Investor Services Accumulation sales were up 15 percent in the first quarter compared to the year ago quarter. This includes $2.9 billion for Full Service Accumulation, a record $5.2 billion for Principal Funds and $419 million for Individual Annuities. Net cash flows were $0.7 billion for Full Service Accumulation and $2.4 billion for Principal Funds.
- Principal Global Investors had unaffiliated net cash flows of $1.8 billion and record unaffiliated assets under management (AUM) of $102.7 billion as of quarter end.
- Principal International reported net cash flows of $2.5 billion and record AUM of $107.4 billion as of quarter end (excluding $12.1 billion of AUM in our asset management joint venture in China, which is not reported in AUM).
- U.S. Insurance Solutions had strong sales in the first quarter, with Individual Life sales up 49 percent and Specialty Benefits sales up 20 percent, both over first quarter 2012.
» For more details, see first quarter 2013 results or view financials on the investor relations site.
Strong financial strength ratings
We continue to earn strong financial strength ratings from all the major ratings agencies[6].
- A.M. Best: A+ (2nd highest of 16) Superior
- Fitch Rating: AA- (4th highest of 21) Very Strong
- Moody's: Aa3 (4th highest of 21) Excellent
- Standard & Poor's Rating Group: A+ (5th highest of 21) Strong
For customers, these "strong" ratings mean they can continue to have confidence in the ability of Principal Life Insurance Company to meet its long-term obligations. For shareholders, they validate the continued solid business performance of Principal Life and the strength of our capital and liquidity positions. Our strong relative ratings speak to our ongoing ability to compete for new business and retain existing business, across product lines.
» For more details, view our credit ratings.
- [1]
- PLANSPONSOR magazine (March 2013).
- [2]
- Determined by comparing Pensions & Investments/Towers Watson World 300: The Largest Retirement Funds issue Sept. 3, 2012, with company internal records as of March 31, 2013.
- [3]
- Assets under management, Fenaprevi (Oct. 2012).
- [4]
- Based on number of plans record kept, PLANSPONSOR magazine (Dec. 2012).
- [5]
- Based on 2011 LIMRA data on fully insured employer contracts in force.
- [6]
- Third party ratings relate only to Principal Life Insurance Company, the largest member company of the Principal Financial Group and Principal National Life Insurance Company, and do not reflect any ratings actions or notices relating to the US life insurance sector generally.
