| SECURITIES AND EXCHANGE COMMISSION | |||
| Washington, D.C. 20549 | |||
| FORM 8-K | |||
| CURRENT REPORT | |||
| Pursuant to Section 13 or 15(d) of the | |||
| Securities Exchange Act of 1934 | |||
| Date of Report: January 31, 2013 | |||
| (Date of earliest event reported) | |||
| PRINCIPAL FINANCIAL GROUP, INC. | |||
| (Exact name of registrant as specified in its charter) | |||
| Delaware | 1-16725 | 42-1520346 | |
| (State or other jurisdiction | (Commission file number) | (I.R.S. Employer | |
| of incorporation) | Identification Number) | ||
| 711 High Street, Des Moines, Iowa 50392 | |||
| (Address of principal executive offices) | |||
| (515) 247-5111 | |||
| (Registrant’s telephone number, including area code) | |||
| Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the | |||
| registrant under any of the following provisions: | |||
| [ ] | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | ||
| [ ] | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | ||
| [ ] | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR | ||
| 240.14d-2(b)) | |||
| [ ] | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR | ||
| 240.13e-4(c)) | |||
| ____________________ | |||
|
Item 2.02. Results of Operations and Financial Condition | |
| On January 31, 2013, Principal Financial Group, Inc. publicly announced information regarding its | |
| results of operations and financial condition for the quarter and year ended December 31, 2012. The | |
|
text of the announcement is included herewith as Exhibit 99. | |
|
Item 9.01 Financial Statements and Exhibits |
|
|
99 Fourth Quarter and Calendar Year 2012 Earnings Release | |
|
SIGNATURE | |
| Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this | |
| report to be signed on its behalf by the undersigned thereunto duly authorized. | |
| PRINCIPAL FINANCIAL GROUP, INC. | |
| By: | /s/ Terrance J. Lillis |
| Name: Terrance J. Lillis | |
| Title: Senior Vice President and Chief Financial Officer | |
| Date: January 31, 2013 | |
| Release: | On receipt, Jan. 31, 2013 | |
| Media contact: | Susan Houser, 515-248-2268, houser.susan@principal.com | |
| Investor contact: | John Egan, 515-235-9500, egan.john@principal.com | |
| Principal Financial Group, Inc. Announces Fourth Quarter | ||
| And Full-Year 2012 Results | ||
|
Company Also Announces Common Stock Dividend Increase | ||
| · | Fourth quarter 2012 operating earnings1 of $243.9 million, an increase of 21 percent over | |
| fourth quarter 2011; net income available to common shareholders was $218.6 million, an | ||
| increase of 47 percent over fourth quarter 2011. | ||
| · | Full-year 2012 operating earnings of $808.0 million, a decrease of 4 percent over 2011 (adjusted | |
| operating earnings of $898.7 million2, an increase of 7 percent over full-year 2011); net income | ||
| available to common shareholders of $772.9 million, an increase of 25 percent over 2011. | ||
| · | Year-end 2012 record assets under management of $403.0 billion, an increase of 20 percent | |
| compared to year-end 2011. | ||
| · | First quarter dividend of $0.23 per share of common stock, an increase of 10 percent over the | |
| fourth quarter 2012 dividend. | ||
| (Des Moines, Iowa) – Principal Financial Group, Inc. (NYSE: PFG) today announced results for fourth | ||
| quarter and full year 2012. The company reported operating earnings of $243.9 million for fourth quarter 2012, | ||
| compared to $201.8 million for fourth quarter 2011. Operating earnings per diluted share (EPS) were $0.82 for fourth | ||
| quarter 2012, compared to $0.66 for fourth quarter 2011. The company reported net income available to common | ||
| stockholders of $218.6 million, or $0.74 per diluted share for fourth quarter 2012, compared to $148.5 million, or $0.48 | ||
| per diluted share for fourth quarter 2011, reflecting a strong increase in operating earnings and improvement in credit- | ||
| related losses. Operating revenues for fourth quarter 2012 were $2,293.1 million compared to $2,103.3 million for the | ||
| same period last year. | ||
| The company reported operating earnings of $808.0 million for the twelve months ended Dec. 31, 2012 | ||
| (which were negatively impacted by a $90.7 million charge from the third quarter actuarial assumption review, | ||
| predominantly due to the lower interest rates), compared to $843.8 million for the twelve months ended Dec. 31, 2011. | ||
| Operating earnings per diluted share (EPS) were $2.69 for the twelve months ended Dec. 31, 2012, compared to $2.66 for | ||
| the twelve months ended Dec. 31, 2011. (Adjusted 2012 EPS of $2.992 is up 12 percent over reported 2011 EPS.) The | ||
| company reported net income available to common stockholders of $772.9 million, or $2.57 per diluted share for the | ||
| twelve months ended Dec. 31, 2012, compared to $619.7 million, or $1.95 per diluted share for the twelve months ended | ||
| Dec. 31, 2011. Operating revenues for the year 2012 were $9,175.4 million compared to $8,281.0 million for the same | ||
| period last year. | ||
| The company also announced today that its board of directors has declared a quarterly dividend of | ||
| $0.23 per share of common stock, an increase of 10 percent over the fourth quarter 2012 dividend. The dividend | ||
| will be payable on March 29, 2013 to shareholders of record as of March 11, 2013. | ||
| 1 Use of non-GAAP financial measures is discussed in this release after segment results. | ||
| 2 2012 operating earnings were negatively impacted by $90.7 million from the third quarter 2012 actuarial assumption | ||
| review. | ||
| “The Principal Financial Group ended a strong 2012 with very strong fourth quarter earnings. The continued | ||
| strength of our underlying business fundamentals and successful execution of our strategy gives us momentum going | ||
| into 2013,” said Larry D. Zimpleman, chairman, president and chief executive officer. “We significantly advanced our | ||
| international strategy with two acquisitions in Latin America last year. Closing on Cuprum will further solidify our | ||
| position as a global investment management leader in 2013 and beyond.” | ||
| Added Terry Lillis, senior vice president and chief financial officer, “Our very strong earnings in the fourth quarter | ||
| and the ability of our fee-based business model to continuously generate deployable capital gives us continued financial | ||
| flexibility, as demonstrated by our strong capital deployment in 2012 and today’s announcement of a 10 percent increase in | ||
| our quarterly common stock dividend. Full-year book value per share (excluding other comprehensive income) increased 7 | ||
| percent over full year 2011 and our investment portfolio is performing very well.” | ||
|
Key Highlights |
||
| Fourth Quarter | ||
| · | Retirement and Investor Services Accumulation sales were up 17 percent in the fourth quarter compared to the | |
| year ago quarter. This includes $3.3 billion for Full Service Accumulation, $4.2 billion for Principal Funds | ||
| and $448 million for Individual Annuities. Net cash flows of $1.6 billion for Full Service Accumulation and | ||
| $1.5 billion for Principal Funds. | ||
| · | Principal Global Investors had record unaffiliated assets under management (AUM) of $98.2 billion. | |
| · | Principal International reported net cash flows of $2.0 billion and record AUM of $69.3 billion (excluding $11.3 | |
| billion of AUM in our asset management joint venture in China, which is not included in reported assets under | ||
| management). | ||
| · | Individual Life sales of $84.8 million, up 56 percent over fourth quarter 2011. | |
| · | Specialty Benefits premium and fee growth of 5 percent over fourth quarter 2011and favorable incurred loss | |
| ratio of 64.3 percent. | ||
| Full Year Results | ||
| · | Record AUM of $403.0 billion, up 20 percent compared to year-end 2011. | |
| · | Total company net cash flows of $29.8 billion. | |
| · | Strong capital position with an estimated risk based capital ratio of 415-420 percent at year end and $2.5 billion | |
| of excess capital.3 | ||
| · | Book value per share, excluding AOCI4 was $29.20, up 7 percent over 2011. | |
| · | Four quarterly dividends to common stockholders in 2012 totaling $0.78 cents per share, up 11 percent over | |
| 2011. | ||
| · | Repurchased 9.9 million shares of common stock in 2012 at an average price of $25.92. | |
| Net Income | ||
| Fourth Quarter | ||
| · Net income available to common stockholders of $218.6 million for fourth quarter 2012, up 47 percent compared | ||
| to fourth quarter 2011 reflecting: | ||
| · | Net realized capital losses of $0.5 million, which includes: | |
| · $15.0 million of net losses, down 48 percent from a year ago quarter, related to sales and | ||
| permanent impairments of fixed maturity securities. This includes $11.1 million of losses on | ||
| commercial mortgage backed securities, which is down 51 percent from $22.6 million loss in | ||
| fourth quarter 2011. | ||
| · | Other after-tax adjustment loss of $24.8 million, which reflects expenses incurred extinguishing $400 | |
| million of long-term debt that was scheduled to mature in 2014. | ||
| 3 Excess capital includes cash at the holding company and capital at the life company above the amount needed to maintain a | ||
| 350 percent NAIC risk based capital ratio for the life company. | ||
| 4 Accumulated Other Comprehensive Income | ||
| Full Year Results | |
| Net income available to common stockholders of $772.9 million for the twelve months ended Dec. 31, 2012, | |
| reflects net realized capital gains of $39.1 million, up $180.9 million from a $141.8 loss in 2011. This includes: | |
| · | A net gain of $141.2 million as a result of Catalyst Health Solutions, Inc.’s merger into a subsidiary of SXC |
| Health Solutions Corp. (SXC), and our subsequent sale of our interest in SXC (now known as Catamaran | |
| Corporation); | |
| · | $76.8 million of net losses, a 36 percent improvement over 2011 related to sales and permanent impairments |
| of fixed maturity securities, including: | |
| · $60.1 million of losses on commercial mortgage backed securities, which is down 34 percent from | |
| $90.5 million loss in 2011. | |
| Segment Results | |
| Retirement and Investor Services | |
| Segment operating earnings for fourth quarter 2012 were $152.3 million, compared to $124.5 million for | |
| the same period in 2011. Full Service Accumulation earnings increased 39 percent from a year ago quarter to $81.3 | |
| million reflecting an $8 million after-tax benefit as more companies paid extraordinary and accelerated dividends in | |
| fourth quarter 2012. Principal Funds earnings were up 25 percent compared to the year-ago quarter to $13.2 million, | |
| primarily due to an increase in average account values. Individual Annuities earnings were $31.1 million compared to | |
| $27.8 million for fourth quarter 2011 reflecting $3 million after tax of favorable variable investment income. Bank | |
| and Trust Services operating earnings were $7.9 million, compared to $8.5 million for fourth quarter 2011. The | |
| guaranteed businesses, which consist of Investment Only and Full Service Payout, earned $18.8 million in the fourth | |
| quarter 2012 compared to $19.0 million in fourth quarter 2011. | |
| Operating revenues for the fourth quarter 2012 were $1,127.9 million compared to $1,016.9 million for | |
| the same period in 2011 primarily due to higher fee revenue in the accumulations businesses and higher premiums | |
| in the guaranteed businesses. | |
| Segment assets under management were a record $212.0 billion as of Dec. 31, 2012, compared to | |
| $179.8 billion as of Dec. 31, 2011, reflecting asset appreciation and strong net cash flows from Full Service | |
| Accumulation and Principal Funds. | |
| Principal Global Investors | |
| Segment operating earnings for fourth quarter 2012 were $26.2 million, up strongly from $17.5 million in | |
| the prior year quarter, primarily due to an increase in assets under management and the year ago quarter having | |
| one-time acquisition costs. | |
| Operating revenues for fourth quarter were $168.0 million, compared to $151.8 million for the same | |
| period in 2011, primarily a result of higher management and transaction fees. | |
| Unaffiliated assets under management were a record $98.2 billion as of Dec. 31, 2012, compared to $82.4 | |
| billion as of Dec. 31, 2011 as a result of strong net cash flows and strong investment performance. | |
| Principal International | |
| Segment operating earnings were $45.1 million in fourth quarter 2012, compared to $50.1 million in the | |
| prior year quarter. Fourth quarter 2011 benefited from $10.4 million of one-time earnings. | |
| Operating revenues were $265.8 million for fourth quarter 2012, compared to $255.6 million for the same | |
| period last year primarily due to 31 percent growth in assets under management, which were partially offset by one-time | |
| revenues in the year ago quarter. | |
| Segment assets under management were a record $69.3 billion as of Dec. 31, 2012, compared to $52.8 |
| billion as of Dec. 31, 2011. This includes a record $9.3 billion of net cash flows for the full year, or 18 percent of |
| beginning of the year assets under management. |
| U.S. Insurance Solutions |
| Segment operating earnings for fourth quarter 2012 were $59.4 million, compared to $52.8 million for |
| the same period in 2011. Individual Life earnings were $27.8 million in the fourth quarter 2012 compared to $27.2 |
| million in fourth quarter 2011. Specialty Benefits earnings were $31.6 million in fourth quarter 2012, up 23 |
| percent from $25.6 million in the same period a year ago primarily due to favorable claims experience in the |
| current quarter. |
|
Segment operating revenues for fourth quarter 2012 were $779.7 million compared to $737.9 million |
| for the same period a year ago. |
| Corporate |
| Operating losses for fourth quarter 2012 were $39.1 million compared to operating losses of $43.1 million |
| in fourth quarter 2011. The fourth quarter 2011 was negatively impacted from an active credit strategy on excess |
| capital at the holding company, which was wound down in 2012. |
| Forward looking and cautionary statements |
| This press release contains forward-looking statements, including, without limitation, statements as to operating |
| earnings, net income available to common stockholders, net cash flows, realized and unrealized gains and losses, |
| capital and liquidity positions, sales and earnings trends, and management's beliefs, expectations, goals and |
| opinions. The company does not undertake to update these statements, which are based on a number of |
| assumptions concerning future conditions that may ultimately prove to be inaccurate. Future events and their |
| effects on the company may not be those anticipated, and actual results may differ materially from the results |
| anticipated in these forward-looking statements. The risks, uncertainties and factors that could cause or contribute |
| to such material differences are discussed in the company's annual report on Form 10-K for the year ended Dec. |
| 31, 2011, and in the company’s quarterly report on Form 10-Q for the quarter ended Sept.30, 2012, filed by the |
| company with the Securities and Exchange Commission, as updated or supplemented from time to time in |
| subsequent filings. These risks and uncertainties include, without limitation: adverse capital and credit market |
| conditions may significantly affect the company’s ability to meet liquidity needs, access to capital and cost of |
| capital; continued difficult conditions in the global capital markets and the economy generally; continued volatility |
| or further declines in the equity markets; changes in interest rates or credit spreads; the company’s investment |
| portfolio is subject to several risks that may diminish the value of its invested assets and the investment returns |
| credited to customers; the company’s valuation of securities may include methodologies, estimations and |
| assumptions that are subject to differing interpretations; the determination of the amount of allowances and |
| impairments taken on the company’s investments requires estimations and assumptions that are subject to differing |
| interpretations; gross unrealized losses may be realized or result in future impairments; competition from |
| companies that may have greater financial resources, broader arrays of products, higher ratings and stronger |
| financial performance; a downgrade in the company’s financial strength or credit ratings; inability to attract and |
| retain sales representatives and develop new distribution sources; international business risks; the company’s |
| actual experience could differ significantly from its pricing and reserving assumptions; the company’s ability to |
| pay stockholder dividends and meet its obligations may be constrained by the limitations on dividends or |
| distributions Iowa insurance laws impose on Principal Life; the pattern of amortizing the company’s DPAC and |
| other actuarial balances on its universal life-type insurance contracts, participating life insurance policies and |
| certain investment contracts may change; the company may need to fund deficiencies in its “Closed Block” assets |
| that support participating ordinary life insurance policies that had a dividend scale in force at the time of Principal |
| Life’s 1998 conversion into a stock life insurance company; the company’s reinsurers could default on their |
| obligations or increase their rates; risks arising from the company's ability to obtain regulatory approval and |
| consummate the acquisition of A.F.P. Cuprum S.A. and from other acquisitions of businesses; changes in laws, |
| regulations or accounting standards; a computer system failure or security breach could disrupt the company’s |
| business, and damage its reputation; results of litigation and regulatory investigations; from time to time the |
| company may become subject to tax audits, tax litigation or similar proceedings, and as a result it may owe |
| additional taxes, interest and penalties in amounts that may be material; fluctuations in foreign currency exchange |
| rates; and applicable laws and the company’s certificate of incorporation and by-laws may discourage takeovers | |
| and business combinations that some stockholders might consider in their best interests. | |
| Use of Non-GAAP Financial Measures | |
| The company uses a number of non-GAAP financial measures that management believes are useful to investors | |
| because they illustrate the performance of normal, ongoing operations, which is important in understanding and | |
| evaluating the company’s financial condition and results of operations. They are not, however, a substitute for U.S. | |
| GAAP financial measures. Therefore, the company has provided reconciliations of the non-GAAP measures to the | |
| most directly comparable U.S. GAAP measure at the end of the release. The company adjusts U.S. GAAP measures | |
| for items not directly related to ongoing operations. However, it is possible these adjusting items have occurred in | |
| the past and could recur in future reporting periods. Management also uses non-GAAP measures for goal setting, | |
| as a basis for determining employee and senior management awards and compensation, and evaluating | |
|
performance on a basis comparable to that used by investors and securities analysts. | |
| Earnings Conference Call | |
| On Friday, Feb. 1, 2013 at 10:00 a.m. (ET), Chairman, President and Chief Executive Officer Larry Zimpleman | |
| and Senior Vice President and Chief Financial Officer Terry Lillis will lead a discussion of results, asset quality | |
| and capital adequacy during a live conference call, which can be accessed as follows: | |
| · | Via live Internet webcast. Please go to www.principal.com/investor at least 10-15 minutes prior to the start of |
| the call to register, and to download and install any necessary audio software. | |
| · | Via telephone by dialing 800-374-1609 (U.S. and Canadian callers) or 706-643-7701 (International callers) |
| approximately 10 minutes prior to the start of the call. The access code is 83659918. | |
| · | Replay of the earnings call via telephone is available by dialing 855-859-2056 (U.S. and Canadian callers) or |
| 404-537-3406 (International callers). The access code is 83659918. This replay will be available | |
| approximately two hours after the completion of the live earnings call through the end of day Feb. 8, 2013. | |
| · | Replay of the earnings call via webcast as well as a transcript of the call will be available after the call at: |
| www.principal.com/investor. | |
| The company's financial supplement and additional investment portfolio detail for fourth quarter 2012 is | |
| currently available at www.principal.com/investor, and may be referred to during the call. Slides related to the | |
| call will be available at www.principal.com/investor approximately one-half hour prior to call start time. | |
| About the Principal Financial Group | |
| The Principal Financial Group®(The Principal ®)5 is a global investment management leader offering | |
| retirement services, insurance solutions and asset management. The Principal offers businesses, individuals | |
| and institutional clients a wide range of financial products and services, including retirement, asset | |
| management and insurance through its diverse family of financial services companies. Founded in 1879 and a | |
| member of the FORTUNE 500®, the Principal Financial Group has $403.0 billion in assets under | |
| management6 and serves some 18.3 million customers worldwide from offices in Asia, Australia, Europe, | |
| Latin America and the United States. Principal Financial Group, Inc. is traded on the New York Stock | |
|
Exchange under the ticker symbol PFG. For more information, visit www.principal.com. | |
| ### | |
| 5 “The Principal Financial Group” and “The Principal” are registered service marks of Principal Financial Services, Inc., a member of the Principal | |
| Financial Group. | |
| 6 As of Dec.31, 2012 | |
| Summary of Segment and Principal Financial Group, Inc. Results | ||||
| Operating Earnings (Loss)* | ||||
| in millions | ||||
| Three Months Ended, | Twelve Months Ended, | |||
| Segment | 12/31/12 | 12/31/11 | 12/31/12 | 12/31/11 |
| Retirement and Investor Services | $ 152.3 | $ 124.5 | $ 575.1 | $ 562.9 |
| Principal Global Investors | 26.2 | 17.5 | 81.2 | 74.0 |
| Principal International | 45.1 | 50.1 | 153.3 | 149.5 |
| U.S. Insurance Solutions | 59.4 | 52.8 | 138.2 | 204.3 |
| Corporate | (39.1) | (43.1) | (139.8) | (146.9) |
| Operating Earnings | $ 243.9 | $ 201.8 | $ 808.0 | $ 843.8 |
| Net realized capital gains (losses), as adjusted | (0.5) | (53.6) | 39.1 | (141.8) |
| Other after-tax adjustments | (24.8) | 0.3 | (74.2) | (82.3) |
| Net income available to common stockholders | $ 218.6 | $ 148.5 | $ 772.9 | $ 619.7 |
| Per Diluted Share | ||||
| Three Months Ended, | Twelve Months Ended, | |||
| 12/31/12 | 12/31/11 | 12/31/12 | 12/31/11 | |
| Operating Earnings | $ 0.82 | $ 0.66 | $ 2.69 | $ 2.66 |
| Net realized capital gains (losses), as adjusted | - | (0.18) | 0.13 | (0.45) |
| Other after-tax adjustments | (0.08) | - | (0.25) | (0.26) |
| Net income available to common stockholders | $ 0.74 | $ 0.48 | $ 2.57 | $ 1.95 |
| Weighted-average diluted common shares outstanding(in | ||||
| millions) | 297.3 | 307.9 | 300.4 | 317.6 |
|
|
| *Operating earnings versus U.S. GAAP (GAAP) net income available to common stockholders |
| Management uses operating earnings, which excludes the effect of net realized capital gains and losses, as adjusted, and other after-tax |
| adjustments, for goal setting, as a basis for determining employee compensation, and evaluating performance on a basis comparable to that |
| used by investors and securities analysts. Segment operating earnings are determined by adjusting U.S. GAAP net income available to |
| common stockholders for net realized capital gains and losses, as adjusted, and other after-tax adjustments the company believes are not |
| indicative of overall operating trends. Note: it is possible these adjusting items have occurred in the past and could recur in future |
| reporting periods. While these items may be significant components in understanding and assessing our consolidated financial |
| performance, management believes the presentation of segment operating earnings enhances the understanding of results of operations by |
| highlighting earnings attributable to the normal, ongoing operations of the company’s businesses. |
| Principal Financial Group, Inc. | ||||||
| Results of Operations | ||||||
| (in millions) | ||||||
| Three Months Ended, | Twelve Months Ended, | |||||
| 12/31/12 | 12/31/11 | 12/31/12 | 12/31/11 | |||
| Premiums and other considerations | $ 700.0 | $ 635.1 | $ 3,216.5 | $ 2,385.5 | ||
| Fees and other revenues | 717.7 | 616.4 | 2,606.9 | 2,423.3 | ||
| Net investment income | 875.4 | 851.8 | 3,352.0 | 3,472.2 | ||
| Total operating revenues | 2,293.1 | 2,103.3 | 9,175.4 | 8,281.0 | ||
| Benefits, claims and settlement expenses | 1,155.3 | 1,093.8 | 5,128.6 | 4,236.9 | ||
| Dividends to policyholders | 48.2 | 51.5 | 197.7 | 210.2 | ||
| Commissions | 179.2 | 149.7 | 657.9 | 592.0 | ||
| Capitalization of DPAC | (132.2) | (95.3) | (435.3) | (349.6) | ||
| Amortization of DPAC | 64.9 | 51.5 | 121.4 | 236.9 | ||
| Depreciation and amortization | 19.9 | 16.1 | 90.2 | 68.4 | ||
| Interest expense on corporate debt | 39.9 | 31.5 | 132.7 | 123.7 | ||
| Compensation and other | 612.4 | 552.8 | 2,244.7 | 2,051.1 | ||
| Total expenses | 1,987.6 | 1,851.6 | 8,137.9 | 7,169.6 | ||
| Operating earnings before tax, noncontrolling | ||||||
| interest and preferred stock dividends | 305.5 | 251.7 | 1,037.5 | 1,111.4 | ||
| Less: | ||||||
| Income tax | 49.9 | 43.2 | 186.0 | 230.0 | ||
| Operating earnings (loss) attributable to | ||||||
| noncontrolling interest | 3.4 | (1.6) | 10.5 | 4.6 | ||
| Preferred stock dividends | 8.3 | 8.3 | 33.0 | 33.0 | ||
| Operating earnings | $ 243.9 | $ 201.8 | $ 808.0 | $ 843.8 | ||
| Net realized capital gains (losses), as adjusted | (0.5) | (53.6) | 39.1 | (141.8) | ||
| Other after-tax adjustments | (24.8) | 0.3 | (74.2) | (82.3) | ||
| Net income available to common stockholders | $ 218.6 | $ 148.5 | $ 772.9 | $ 619.7 | ||
| Selected Balance Sheet Statistics | ||||||
| Period Ended, | ||||||
| 12/31/12 | 12/31/11 | 12/31/10 | ||||
| Total assets (in billions) | $ 161.9 | $ 147.4 | $ 144.7 | |||
| Total common equity (in millions) | $ 9,211.2 | $ 8,475.9 | $ 8,607.2 | |||
| Total common equity excluding accumulated | ||||||
| other comprehensive income (in millions) | $ 8,579.3 | $ 8,217.9 | $ 8,300.5 | |||
| End of period common shares outstanding (in | ||||||
| millions) | 293.8 | 301.1 | 320.4 | |||
| Book value per common share | $ 31.35 | $ 28.15 | $ 26.86 | |||
| Book value per common share excluding | ||||||
| accumulated other comprehensive income | $ 29.20 | $ 27.29 | $ 25.91 | |||
| Principal Financial Group, Inc. | ||||
| Reconciliation of Non-GAAP Financial Measures to U.S. GAAP | ||||
| (in millions, except as indicated) | ||||
| Three Months Ended, | Twelve Months Ended, | |||
| 12/31/12 | 12/31/11 | 12/31/12 | 12/31/11 | |
| Diluted Earnings Per Common Share: | ||||
| Operating earnings | $ 0.82 | $ 0.66 | $ 2.69 | $ 2.66 |
| Net realized capital gains (losses) | - | (0.18) | 0.13 | (0.45) |
| Other after-tax adjustments | (0.08) | - | (0.25) | (0.26) |
| Net income available to common stockholders | $ 0.74 | $ 0.48 | $ 2.57 | $ 1.95 |
| Book Value Per Common Share Excluding Accumulated | ||||
| Other Comprehensive Income: | ||||
| Book value per common share excluding accumulated other | ||||
| comprehensive income | $ 29.20 | $ 27.29 | $ 29.20 | $ 27.29 |
| Net unrealized capital gains | 4.20 | 2.42 | 4.20 | 2.42 |
| Foreign currency translation | (0.39) | (0.36) | (0.39) | (0.36) |
| Net unrecognized postretirement benefit obligations | (1.66) | (1.20) | (1.66) | (1.20) |
| Book value per common share including accumulated other | ||||
| comprehensive income | $ 31.35 | $ 28.15 | $ 31.35 | $ 28.15 |
| Operating Revenues: | ||||
| RIS | $ 1,127.9 | $ 1,016.9 | $ 4,834.9 | $ 4,075.0 |
| PGI | 168.0 | 151.8 | 591.2 | 546.3 |
| PI | 265.8 | 255.6 | 942.7 | 909.0 |
| USIS | 779.7 | 737.9 | 2,994.7 | 2,939.9 |
| Corporate | (48.3) | (58.9) | (188.1) | (189.2) |
| Total operating revenues | 2,293.1 | 2,103.3 | 9,175.4 | 8,281.0 |
| Net realized capital gains (losses) and related adjustments | 1.9 | (97.4) | 14.7 | (216.6) |
| Exited group medical insurance business | 0.9 | 52.9 | 25.0 | 606.3 |
| Total GAAP revenues | $ 2,295.9 | $ 2,058.8 | $ 9,215.1 | $ 8,670.7 |
| Operating Earnings: | ||||
| RIS | $ 152.3 | $ 124.5 | $ 575.1 | $ 562.9 |
| PGI | 26.2 | 17.5 | 81.2 | 74.0 |
| PI | 45.1 | 50.1 | 153.3 | 149.5 |
| USIS | 59.4 | 52.8 | 138.2 | 204.3 |
| Corporate | (39.1) | (43.1) | (139.8) | (146.9) |
| Total operating earnings | 243.9 | 201.8 | 808.0 | 843.8 |
| Net realized capital gains (losses) and related adjustments | (0.5) | (53.6) | 39.1 | (141.8) |
| Other after-tax adjustments | (24.8) | 0.3 | (74.2) | (82.3) |
| Net income available to common stockholders | $ 218.6 | $ 148.5 | $ 772.9 | $ 619.7 |
| Net Realized Capital Gains (Losses): | ||||
| Net realized capital gains (losses), as adjusted | $ (0.5) | $ (53.6) | $ 39.1 | $ (141.8) |
| Certain derivative and hedging-related adjustments | 30.5 | 25.6 | 98.9 | 98.8 |
| Amortization of DPAC and sale inducement costs | (1.9) | (16.0) | (36.6) | 21.5 |
| Certain market value adjustments of embedded derivatives | (0.8) | (0.9) | 0.6 | (65.6) |
| Capital gains distributed | 3.5 | 1.1 | 12.2 | 3.1 |
| Tax impacts | 1.5 | (29.2) | (8.7) | (70.5) |
| Noncontrolling interest capital gains | 0.1 | 1.2 | 8.3 | 31.6 |
| Recognition of front-end fee revenues | 0.2 | 0.5 | 0.2 | 0.3 |
| Certain market value adjustments to fee revenues | 0.3 | - | 0.3 | 0.1 |
| Net realized capital gains (losses) associated with exited group | ||||
| medical business | - | - | (0.2) | 0.2 |
| GAAP net realized capital gains (losses) | $ 32.9 | $ (71.3) | $ 114.1 | $ (122.3) |
| Other After-Tax Adjustments: | ||||
| Exited group medical insurance businesses | $ - | $ 0.1 | $ (9.6) | $ 50.9 |
| Court ruling regarding some uncertain tax positions | - | - | - | (68.9) |
| ELNY liquidation estimated obligation | - | 0.2 | - | (10.3) |
| Contribution to PFG Foundation | - | - | (39.8) | (19.5) |
| Early extinguishment of debt | (24.8) | - | (24.8) | - |
| Assumption change within the Individual Life business | - | - | - | (34.5) |
| Total other after-tax adjustments | $ (24.8) | $ 0.3 | $ (74.2) | $ (82.3) |