2018 financial highlights

  • Total assets under management

    • $627
    • $669
    • $592
    • $527
    • $519

  • Net income available to common stockholders1

    • $1,547
    • $2,310
    • $1,317
    • $1,209
    • $1,111

  • Non-GAAP operating earnings2

    • $1,598
    • $1,479
    • $1,331
    • $1,271
    • $1,318

  • Total revenue

    • $14,237
    • $14,093
    • $12,394
    • $11,964
    • $10,478

  • Total customers3

    • 24.2
    • 22.8
    • 22.1
    • 19.1
    • 19.7

  • Non-GAAP operating earnings per diluted common share2

    • $5.53
    • $5.04
    • $4.55
    • $4.26
    • $4.41

  • Dividends declared per common share

    • $2.10
    • $1.87
    • $1.61
    • $1.50
    • $1.28

  • Closing PFG common stock price

    • $44.17
    • $70.53
    • $57.86
    • $44.98
    • $51.94

  • Total stockholders’ equity attributable to PFG

    • $11,390
    • $12,849
    • $10,227
    • $9,312
    • $10,184

  • Non-GAAP operating earnings ROE available to common stockholders, excluding AOCI other than FCTA2,4

    • 13.6%
    • 13.7%
    • 14.1%
    • 14.2%
    • 15.1%

Non-GAAP financial measure reconciliations

  For the year ended Dec. 31
  2018 2017 2016 2015 2014
Net income available to common stockholders
Net income available to common stockholders 1,546.5 2,310.4 1,316.5 1,209.3 1,111.1
Net realized capital gains (losses), as adjusted2 51.0 (307.3) (37.4) 133.8 100.5
Other after-tax adjustments - (524.5) 52.0 (72.6) 106.3
Non-GAAP operating earnings $1,597.5 $1,478.6 $1,333.1 $1,270.5 $1,317.9
 
Net realized capital gains (losses)
GAAP net realized capital gains (losses) $(75.4) $524.2 $171.1 $(51.1) $14.7
Recognition of front-end fee revenues 0.4 (0.2) 0.2 (0.1) 0.7
Market value adjustments to fee revenues 0.1 (0.1) (2.5) (1.1) -
Net realized capital gains (losses) related to equity method investments (5.4) 1.4 0.1 - -
Derivative and hedging-related adjustments (64.9) (59.4) (94.1) (111.7) (92.8)
Sponsored investment fund adjustments 12.9 6.3 6.1 1.3 -
Amortization of deferred acquisition costs (25.6) 47.4 (66.2) (12.2) (37.7)
Capital gains distributed - operating expenses 15.7 (38.9) 3.7 15.4 (10.6)
Amortization of other actuarial balances (1.4) 7.6 (11.2) (1.8) (11.6)
Market value adjustments of embedded derivatives 18.5 48.1 50.0 (0.2) 4.8
Capital gains distributed - cost of interest credited (1.3) (16.1) (10.9) (9.2) (10.6)
Net realized capital gains (losses) tax adjustments 71.4 (209.1) 6.6 45.6 43.6
Net realized capital gains (losses) attributable to noncontrolling interest, after-tax 4.0 (3.9) (15.5) (8.8) (1.0)
Net realized capital gains (losses) associated with exited group medical insurance business, after-tax - - - 0.1 -
Total net realized capital gains (losses) after-tax adjustments 24.4 (216.9) (133.7) (82.7) (115.2)
Net realized capital gains (losses), as adjusted (51.0) 307.3 37.4 (133.8) (100.5)
 
Diluted earnings per common share
Net income 5.36 7.88 4.50 4.06 3.65
Net realized capital (gains) losses, as adjusted 0.17 (1.05) (0.13) 0.44 0.34
Other after-tax adjustments - (1.79) 0.18 (0.24) 0.36
Adjustment for redeemable noncontrolling interest - - - - 0.06
Non-GAAP operating earnings 5.53 5.04 4.55 4.26 4.41
 
Stockholders' equity
Stockholders' equity 11,456.0 12,921.9 10,293.8 9,377.4 10,232.0
Noncontrolling interest (66.0) (72.6) (66.5) (65.8) (48.0)
Stockholders' equity attributable to Principal Financial Group, Inc. 11,390.0 12,849.3 10,227.3 9,311.6 10,184.0
Net unrealized capital (gains) losses (207.3) (1,455.1) (827.0) (715.9) (1,148.3)
Net unrecognized postretirement benefit obligation 512.9 371.1 408.4 450.2 411.1
Preferred stock, at par - - - - (0.1)
Paid-in capital - preferred stock - - - - (541.9)
Stockholders' equity, excluding AOCI other than FCTA, available to common stockholders 11,695.6 11,765.3 9,808.7 9,045.9 8,904.8
 
Net income ROE available to common stockholders (including AOCI)
Net income ROE available to common stockholders (including AOCI) 12.8 20.0 13.5 12.8 11.8
Net unrealized capital gains (losses) 0.9 2.1 1.1 1.3 1.2
Net unrecongnized postretirement benefit obligation -0.5 -0.7 -0.6 -0.6 -0.3
Net income ROE available to common stockholders (x-AOCI, other than FCTA) 13.2 21.4 14.0 13.5 12.7
Net realized capital (gains) losses 0.4 -2.8 -0.5 1.5 1.2
Other after-tax adjustment 0.0 -4.9 0.6 -0.8 1.2
Operating earnings ROE (x-AOCI other than FCTA) 13.6 13.7 14.1 14.2 15.1

1 2017 net income available to common stockholders reflects a $568 million net benefit from the U.S. Tax Cuts and Jobs Act and a $411 million benefit from a real estate transaction.

2 This is a non-GAAP financial measure. See reconciliation to closest GAAP measure on this page.

3 The number of customers to whom we provide a product or service, including employees and their dependents; some duplication occurs.

4 Non-GAAP operating earnings return on equity equals trailing twelve months non-GAAP operating earnings divided by average stockholders’ equity available to common stockholders excluding accumulated other comprehensive income (loss) (AOCI) other than foreign currency translation adjustment (FCTA).