Condensed Consolidating Financial Information (Tables)

3 Months Ended

Mar. 31, 2012

Condensed Consolidating Financial Information

Condensed Consolidating Financial Information, Notes Guarantor (Table)

Condensed Consolidating Statements of Financial Position

March 31, 2012

	Principal			Principal Life			Principal Financial						Principal
	Financial			Insurance			Services, Inc. and						Financial
	Group, Inc.			Company			Other Subsidiaries						Group, Inc.
	Parent Only			Only			Combined			Eliminations			Consolidated
	(in millions)
Assets
Fixed maturities, available-for-sale	$	—		$	43,471.8		$	6,389.7		$	(360.2	)	$	49,501.3
Fixed maturities, trading	202.5			335.7			330.5			—			868.7
Equity securities, available-for-sale	—			135.3			3.1			—			138.4
Equity securities, trading	—			0.3			536.1			—			536.4
Mortgage loans	—			9,762.1			1,921.9			(375.1		)	11,308.9
Real estate	—			9.1			1,103.8			(1.0		)	1,111.9
Policy loans	—			845.8			28.1			—			873.9
Investment in unconsolidated entities	10,119.1			3,102.6			4,735.7			(17,094.5		)	862.9
Other investments	5.8			2,252.5			998.4			(1,167.1		)	2,089.6
Cash and cash equivalents	378.3			346.6			941.7			(14.7		)	1,651.9
Accrued investment income	0.3			557.5			68.7			(4.0		)	622.5
Premiums due and other receivables	—			886.8			935.3			(703.3		)	1,118.8
Deferred policy acquisition costs	—			2,409.9			255.7			—			2,665.6
Property and equipment	—			410.5			66.2			—			476.7
Goodwill	—			54.3			436.4			—			490.7
Other intangibles	—			28.9			865.0			—			893.9
Separate account assets	—			66,708.9			10,857.6			—			77,566.5
Other assets	14.0			464.8			1,001.7			(520.9		)	959.6
Total assets	$	10,720.0		$	131,783.4		$	31,475.6		$	(20,240.8	)	$	153,738.2
Liabilities
Contractholder funds	$	—		$	36,528.2		$	664.7		$	(270.4	)	$	36,922.5
Future policy benefits and claims	—			16,437.2			4,281.1			(114.3		)	20,604.0
Other policyholder funds	—			607.6			31.7			(0.2		)	639.1
Short-term debt	—			—			101.2			—			101.2
Long-term debt	1,351.7			99.4			502.4			(382.7		)	1,570.8
Income taxes currently payable	(21.7		)	(400.1		)	(14.4		)	439.1			2.9
Deferred income taxes	(17.6		)	190.8			337.1			(17.5		)	492.8
Separate account liabilities	—			66,708.9			10,857.6			—			77,566.5
Other liabilities	42.7			4,240.0			4,203.6			(2,399.8		)	6,086.5
Total liabilities	1,355.1			124,412.0			20,965.0			(2,745.8		)	143,986.3
Stockholders’ equity
Series A preferred stock	—			—			—			—			—
Series B preferred stock	0.1			—			—			—			0.1
Common stock	4.5			2.5			—			(2.5		)	4.5
Additional paid-in capital	9,669.6			5,721.7			7,881.0			(13,602.7		)	9,669.6
Retained earnings	4,548.5			1,178.1			1,711.6			(2,889.7		)	4,548.5
Accumulated other comprehensive income	488.1			469.1			526.5			(995.6		)	488.1
Treasury stock, at cost	(5,345.9		)	—			—			—			(5,345.9		)
Total stockholders’ equity attributable to PFG	9,364.9			7,371.4			10,119.1			(17,490.5		)	9,364.9
Noncontrolling interest	—			—			391.5			(4.5		)	387.0
Total stockholders’ equity	9,364.9			7,371.4			10,510.6			(17,495.0		)	9,751.9
Total liabilities and stockholders’ equity	$	10,720.0		$	131,783.4		$	31,475.6		$	(20,240.8	)	$	153,738.2

Condensed Consolidating Statements of Financial Position

December 31, 2011

	Principal			Principal Life			Principal Financial					Principal
	Financial			Insurance			Services, Inc. and					Financial
	Group, Inc.			Company			Other Subsidiaries					Group, Inc.
	Parent Only			Only			Combined		Eliminations			Consolidated
	(in millions)
Assets
Fixed maturities, available-for-sale	$	—		$	43,285.3		$	6,082.4	$	(361.0	)	$	49,006.7
Fixed maturities, trading	268.7			374.8			328.2		—			971.7
Equity securities, available-for-sale	—			73.4			3.7		—			77.1
Equity securities, trading	—			0.3			404.5		—			404.8
Mortgage loans	—			9,271.5			1,831.8		(376.1		)	10,727.2
Real estate	—			9.2			1,084.9		(1.2		)	1,092.9
Policy loans	—			859.3			25.8		—			885.1
Investment in unconsolidated entities	9,828.0			3,115.7			4,718.4		(16,834.8		)	827.3
Other investments	7.0			2,559.0			925.3		(1,332.8		)	2,158.5
Cash and cash equivalents	226.7			1,344.5			1,277.6		(14.9		)	2,833.9
Accrued investment income	1.8			551.1			66.6		(4.3		)	615.2
Premiums due and other receivables	—			969.1			827.7		(600.3		)	1,196.5
Deferred policy acquisition costs	—			2,197.4			230.6		—			2,428.0
Property and equipment	—			395.9			61.3		—			457.2
Goodwill	—			54.3			428.0		—			482.3
Other intangibles	—			29.2			861.4		—			890.6
Separate account assets	—			61,615.1			9,749.3		—			71,364.4
Other assets	14.8			668.9			994.7		(736.1		)	942.3
Total assets	$	10,347.0		$	127,374.0		$	29,902.2	$	(20,261.5	)	$	147,361.7
Liabilities
Contractholder funds	$	—		$	37,356.8		$	586.7	$	(267.1	)	$	37,676.4
Future policy benefits and claims	—			16,373.3			3,937.9		(100.8		)	20,210.4
Other policyholder funds	—			519.7			29.0		(0.1		)	548.6
Short-term debt	—			—			105.2		—			105.2
Long-term debt	1,351.7			99.4			504.8		(391.1		)	1,564.8
Income taxes currently payable	(18.6		)	(218.4		)	34.3		205.8			3.1
Deferred income taxes	(22.5		)	90.6			155.2		(14.6		)	208.7
Separate account liabilities	—			61,615.1			9,749.3		—			71,364.4
Other liabilities	18.5			4,293.3			4,591.5		(2,617.1		)	6,286.2
Total liabilities	1,329.1			120,129.8			19,693.9		(3,185.0		)	137,967.8
Stockholders’ equity
Series A preferred stock	—			—			—		—			—
Series B preferred stock	0.1			—			—		—			0.1
Common stock	4.5			2.5			—		(2.5		)	4.5
Additional paid-in capital	9,634.7			5,718.1			7,870.2		(13,588.3		)	9,634.7
Retained earnings	4,402.3			1,195.0			1,660.3		(2,855.3		)	4,402.3
Accumulated other comprehensive income	258.0			328.6			297.5		(626.1		)	258.0
Treasury stock, at cost	(5,281.7		)	—			—		—			(5,281.7		)
Total stockholders’ equity attributable to PFG	9,017.9			7,244.2			9,828.0		(17,072.2		)	9,017.9
Noncontrolling interest	—			—			380.3		(4.3		)	376.0
Total stockholders’ equity	9,017.9			7,244.2			10,208.3		(17,076.5		)	9,393.9
Total liabilities and stockholders’ equity	$	10,347.0		$	127,374.0		$	29,902.2	$	(20,261.5	)	$	147,361.7

Condensed Consolidating Statements of Operations

For the three months ended March 31, 2012

	Principal			Principal Life			Principal Financial						Principal
	Financial			Insurance			Services, Inc. and						Financial
	Group, Inc.			Company			Other Subsidiaries						Group, Inc.
	Parent Only			Only			Combined			Eliminations			Consolidated
	(in millions)
Revenues
Premiums and other considerations	$	—		$	583.4		$	96.4		$	—		$	679.8
Fees and other revenues	0.1			343.8			329.7			(75.6		)	598.0
Net investment income	1.0			626.8			195.4			1.6			824.8
Net realized capital gains (losses), excluding impairment losses on available-for-sale securities	—			(350.5		)	389.3			(16.7		)	22.1
Total other-than-temporary impairment losses on available-for-sale securities	—			(33.0		)	(0.7		)	—			(33.7		)
Other-than-temporary impairment losses on fixed maturities, available-for-sale reclassified to other comprehensive income	—			4.5			0.4			—			4.9
Net impairment losses on available-for-sale securities	—			(28.5		)	(0.3		)	—			(28.8		)
Net realized capital gains (losses)	—			(379.0		)	389.0			(16.7		)	(6.7		)
Total revenues	1.1			1,175.0			1,010.5			(90.7		)	2,095.9
Expenses
Benefits, claims and settlement expenses	—			1,034.5			181.2			(3.2		)	1,212.5
Dividends to policyholders	—			50.3			—			—			50.3
Operating expenses	30.0			282.0			309.9			(65.9		)	556.0
Total expenses	30.0			1,366.8			491.1			(69.1		)	1,818.8
Income (loss) before income taxes	(28.9		)	(191.8		)	519.4			(21.6		)	277.1
Income taxes (benefits)	(11.2		)	(84.9		)	154.5			(0.2		)	58.2
Equity in the net income (loss) of subsidiaries	227.4			275.1			(128.3		)	(374.2		)	—
Net income	209.7			168.2			236.6			(395.6		)	218.9
Net income attributable to noncontrolling interest	—			—			9.2			—			9.2
Net income attributable to PFG	209.7			168.2			227.4			(395.6		)	209.7
Preferred stock dividends	8.2			—			—			—			8.2
Net income available to common stockholders	$	201.5		$	168.2		$	227.4		$	(395.6	)	$	201.5
Net income	$	209.7		$	168.2		$	236.6		$	(395.6	)	$	218.9
Other comprehensive income	186.3			141.5			96.9			(193.8		)	230.9
Comprehensive income	$	396.0		$	309.7		$	333.5		$	(589.4	)	$	449.8

Condensed Consolidating Statements of Operations

For the three months ended March 31, 2011

	Principal			Principal Life			Principal Financial						Principal
	Financial			Insurance			Services, Inc. and						Financial
	Group, Inc.			Company			Other Subsidiaries						Group, Inc.
	Parent Only			Only			Combined			Eliminations			Consolidated
	(in millions)
Revenues
Premiums and other considerations	$	—		$	719.0		$	78.1		$	—		$	797.1
Fees and other revenues	—			397.8			300.1			(74.9		)	623.0
Net investment income	10.8			643.8			183.5			21.7			859.8
Net realized capital gains (losses), excluding impairment losses on available-for-sale securities	—			(25.9		)	21.9			(1.6		)	(5.6		)
Total other-than-temporary impairment losses on available-for-sale securities	—			(11.8		)	(2.2		)	—			(14.0		)
Other-than-temporary impairment losses on fixed maturities, available-for-sale reclassified to (from) other comprehensive income	—			(39.2		)	0.8			—			(38.4		)
Net impairment losses on available-for-sale securities	—			(51.0		)	(1.4		)	—			(52.4		)
Net realized capital gains (losses)	—			(76.9		)	20.5			(1.6		)	(58.0		)
Total revenues	10.8			1,683.7			582.2			(54.8		)	2,221.9
Expenses
Benefits, claims and settlement expenses	—			1,052.6			139.7			(3.4		)	1,188.9
Dividends to policyholders	—			53.6			—			—			53.6
Operating expenses	29.2			467.3			286.5			(65.1		)	717.9
Total expenses	29.2			1,573.5			426.2			(68.5		)	1,960.4
Income (loss) before income taxes	(18.4		)	110.2			156.0			13.7			261.5
Income taxes (benefits)	(7.0		)	24.6			35.1			—			52.7
Equity in the net income of subsidiaries	201.6			78.1			99.3			(379.0		)	—
Net income	190.2			163.7			220.2			(365.3		)	208.8
Net income attributable to noncontrolling interest	—			—			18.6			—			18.6
Net income attributable to PFG	190.2			163.7			201.6			(365.3		)	190.2
Preferred stock dividends	8.2			—			—			—			8.2
Net income available to common stockholders	$	182.0		$	163.7		$	201.6		$	(365.3	)	$	182.0
Net income	$	190.2		$	163.7		$	220.2		$	(365.3	)	$	208.8
Other comprehensive income	279.0			229.8			48.8			(298.3		)	259.3
Comprehensive income	$	469.2		$	393.5		$	269.0		$	(663.6	)	$	468.1

Condensed Consolidating Statements of Cash Flows

For the three months ended March 31, 2012

	Principal			Principal Life			Principal Financial						Principal
	Financial			Insurance			Services, Inc. and						Financial
	Group, Inc.			Company			Other Subsidiaries						Group, Inc.
	Parent Only			Only			Combined			Eliminations			Consolidated
	(in millions)
Operating activities
Net cash provided by (used in) operating activities	$	79.9		$	930.6		$	(217.8	)	$	109.0		$	901.7
Investing activities
Available-for-sale securities:
Purchases	—			(1,749.5		)	(329.5		)	18.5			(2,060.5		)
Sales	—			412.3			23.6			(7.4		)	428.5
Maturities	—			1,352.1			260.0			—			1,612.1
Mortgage loans acquired or originated	—			(887.1		)	(32.5		)	—			(919.6		)
Mortgage loans sold or repaid	—			389.7			81.5			(109.8		)	361.4
Real estate acquired	—			—			(21.3		)	—			(21.3		)
Net purchases of property and equipment	—			(11.8		)	(5.5		)	—			(17.3		)
Dividends and returns of capital received from unconsolidated entities	189.3			140.0			189.2			(518.5		)	—
Net change in other investments	—			(29.6		)	(25.9		)	(18.3		)	(73.8		)
Net cash provided by (used in) investing activities	189.3			(383.9		)	139.6			(635.5		)	(690.5		)
Financing activities
Issuance of common stock	9.1			—			—			—			9.1
Acquisition of treasury stock	(64.2		)	—			—			—			(64.2		)
Proceeds from financing element derivatives	—			20.4			—			—			20.4
Payments for financing element derivatives	—			(16.2		)	—			—			(16.2		)
Excess tax benefits from share-based payment arrangements	—			4.8			5.1			—			9.9
Dividends to common stockholders	(54.3		)	—			—			—			(54.3		)
Dividends to preferred stockholders	(8.2		)	—			—			—			(8.2		)
Issuance of long-term debt	—			—			1.0			—			1.0
Principal repayments of long-term debt	—			—			(9.0		)	8.2			(0.8		)
Net repayments of short-term borrowings	—			—			(7.5		)	—			(7.5		)
Dividends and capital paid to parent	—			(189.2		)	(329.3		)	518.5			—
Investment contract deposits	—			1,522.7			95.9			—			1,618.6
Investment contract withdrawals	—			(2,885.4		)	(0.5		)	—			(2,885.9		)
Net decrease in banking operation deposits	—			—			(13.4		)	—			(13.4		)
Other	—			(1.7		)	—			—			(1.7		)
Net cash used in financing activities	(117.6		)	(1,544.6		)	(257.7		)	526.7			(1,393.2		)
Net increase (decrease) in cash and cash equivalents	151.6			(997.9		)	(335.9		)	0.2			(1,182.0		)
Cash and cash equivalents at beginning of period	226.7			1,344.5			1,277.6			(14.9		)	2,833.9
Cash and cash equivalents at end of period	$	378.3		$	346.6		$	941.7		$	(14.7	)	$	1,651.9

Condensed Consolidating Statements of Cash Flows

For the three months ended March 31, 2011

	Principal			Principal Life			Principal Financial						Principal
	Financial			Insurance			Services, Inc. and						Financial
	Group, Inc.			Company			Other Subsidiaries						Group, Inc.
	Parent Only			Only			Combined			Eliminations			Consolidated
	(in millions)
Operating activities
Net cash provided by operating activities	$	99.9		$	1,034.6		$	206.0		$	(145.0	)	$	1,195.5
Investing activities
Available-for-sale securities:
Purchases	(4.4		)	(1,426.9		)	(230.3		)	(4.8		)	(1,666.4		)
Sales	200.0			278.3			58.1			—			536.4
Maturities	4.4			1,510.9			210.3			—			1,725.6
Mortgage loans acquired or originated	—			(100.5		)	(41.2		)	17.8			(123.9		)
Mortgage loans sold or repaid	—			301.4			67.5			(45.2		)	323.7
Real estate acquired	—			—			(7.0		)	—			(7.0		)
Net purchases of property and equipment	—			(3.7		)	(0.4		)	—			(4.1		)
Dividends and returns of capital received from unconsolidated entities	206.0			138.9			206.0			(550.9		)	—
Net change in other investments	—			(3.6		)	(64.2		)	(0.6		)	(68.4		)
Net cash provided by investing activities	406.0			694.8			198.8			(583.7		)	715.9
Financing activities
Issuance of common stock	9.1			—			—			—			9.1
Acquisition of treasury stock	(5.9		)	—			—			—			(5.9		)
Proceeds from financing element derivatives	—			19.4			—			—			19.4
Payments for financing element derivatives	—			(12.1		)	—			—			(12.1		)
Excess tax benefits from share-based payment arrangements	—			0.6			1.0			—			1.6
Dividends to preferred stockholders	(8.2		)	—			—			—			(8.2		)
Issuance of long-term debt	—			—			0.6			—			0.6
Principal repayments of long-term debt	—			—			(30.9		)	29.2			(1.7		)
Net proceeds from short-term borrowings	—			—			0.2			—			0.2
Dividends and capital paid to parent	—			(206.0		)	(344.9		)	550.9			—
Investment contract deposits	—			798.6			94.7			—			893.3
Investment contract withdrawals	—			(2,674.2		)	—			—			(2,674.2		)
Net decrease in banking operation deposits	—			—			(25.8		)	—			(25.8		)
Other	—			(0.9		)	—			—			(0.9		)
Net cash used in financing activities	(5.0		)	(2,074.6		)	(305.1		)	580.1			(1,804.6		)
Net increase (decrease) in cash and cash equivalents	500.9			(345.2		)	99.7			(148.6		)	106.8
Cash and cash equivalents at beginning of period	370.9			699.8			719.9			86.8			1,877.4
Cash and cash equivalents at end of period	$	871.8		$	354.6		$	819.6		$	(61.8	)	$	1,984.2

Condensed Consolidating Financial Information, Shelf Registration Guarantor (Table)

Condensed Consolidating Statements of Financial Position

March 31, 2012

							Principal Life
	Principal			Principal			Insurance Company						Principal
	Financial			Financial			and Other						Financial
	Group, Inc.			Services, Inc.			Subsidiaries						Group, Inc.
	Parent Only			Only			Combined			Eliminations			Consolidated
	(in millions)
Assets
Fixed maturities, available-for-sale	$	—		$	—		$	49,501.3		$	—		$	49,501.3
Fixed maturities, trading	202.5			—			666.2			—			868.7
Equity securities, available-for-sale	—			—			138.4			—			138.4
Equity securities, trading	—			—			536.4			—			536.4
Mortgage loans	—			—			11,308.9			—			11,308.9
Real estate	—			—			1,111.9			—			1,111.9
Policy loans	—			—			873.9			—			873.9
Investment in unconsolidated entities	10,119.1			10,078.2			862.8			(20,197.2		)	862.9
Other investments	5.8			3.0			2,080.8			—			2,089.6
Cash and cash equivalents	378.3			621.9			1,587.0			(935.3		)	1,651.9
Accrued investment income	0.3			—			622.2			—			622.5
Premiums due and other receivables	—			—			1,118.8			—			1,118.8
Deferred policy acquisition costs	—			—			2,665.6			—			2,665.6
Property and equipment	—			—			476.7			—			476.7
Goodwill	—			—			490.7			—			490.7
Other intangibles	—			—			893.9			—			893.9
Separate account assets	—			—			77,566.5			—			77,566.5
Other assets	14.0			11.5			933.2			0.9			959.6
Total assets	$	10,720.0		$	10,714.6		$	153,435.2		$	(21,131.6	)	$	153,738.2
Liabilities
Contractholder funds	$	—		$	—		$	36,922.5		$	—		$	36,922.5
Future policy benefits and claims	—			—			20,604.0			—			20,604.0
Other policyholder funds	—			—			639.1			—			639.1
Short-term debt	—			50.0			421.3			(370.1		)	101.2
Long-term debt	1,351.7			—			219.1			—			1,570.8
Income taxes currently payable	(21.7		)	0.3			1.5			22.8			2.9
Deferred income taxes	(17.6		)	(22.6		)	552.5			(19.5		)	492.8
Separate account liabilities	—			—			77,566.5			—			77,566.5
Other liabilities	42.7			567.8			6,043.5			(567.5		)	6,086.5
Total liabilities	1,355.1			595.5			142,970.0			(934.3		)	143,986.3
Stockholders’ equity
Series A preferred stock	—			—			—			—			—
Series B preferred stock	0.1			—			—			—			0.1
Common stock	4.5			—			17.8			(17.8		)	4.5
Additional paid-in capital	9,669.6			7,881.0			7,596.1			(15,477.1		)	9,669.6
Retained earnings	4,548.5			1,711.6			1,940.3			(3,651.9		)	4,548.5
Accumulated other comprehensive income	488.1			526.5			526.0			(1,052.5		)	488.1
Treasury stock, at cost	(5,345.9		)	—			(2.0		)	2.0			(5,345.9		)
Total stockholders’ equity attributable to PFG	9,364.9			10,119.1			10,078.2			(20,197.3		)	9,364.9
Noncontrolling interest	—			—			387.0			—			387.0
Total stockholders’ equity	9,364.9			10,119.1			10,465.2			(20,197.3		)	9,751.9
Total liabilities and stockholders’ equity	$	10,720.0		$	10,714.6		$	153,435.2		$	(21,131.6	)	$	153,738.2

Condensed Consolidating Statements of Financial Position

December 31, 2011

							Principal Life
	Principal			Principal			Insurance Company						Principal
	Financial			Financial			and Other						Financial
	Group, Inc.			Services, Inc.			Subsidiaries						Group, Inc.
	Parent Only			Only			Combined			Eliminations			Consolidated
	(in millions)
Assets
Fixed maturities, available-for-sale	$	—		$	—		$	49,006.7		$	—		$	49,006.7
Fixed maturities, trading	268.7			—			703.0			—			971.7
Equity securities, available-for-sale	—			—			77.1			—			77.1
Equity securities, trading	—			—			404.8			—			404.8
Mortgage loans	—			—			10,727.2			—			10,727.2
Real estate	—			—			1,092.9			—			1,092.9
Policy loans	—			—			885.1			—			885.1
Investment in unconsolidated entities	9,828.0			9,762.9			827.2			(19,590.8		)	827.3
Other investments	7.0			3.0			2,148.5			—			2,158.5
Cash and cash equivalents	226.7			702.4			2,787.9			(883.1		)	2,833.9
Accrued investment income	1.8			—			613.4			—			615.2
Premiums due and other receivables	—			—			1,195.2			1.3			1,196.5
Deferred policy acquisition costs	—			—			2,428.0			—			2,428.0
Property and equipment	—			—			457.2			—			457.2
Goodwill	—			—			482.3			—			482.3
Other intangibles	—			—			890.6			—			890.6
Separate account assets	—			—			71,364.4			—			71,364.4
Other assets	14.8			10.4			926.1			(9.0		)	942.3
Total assets	$	10,347.0		$	10,478.7		$	147,017.6		$	(20,481.6	)	$	147,361.7
Liabilities
Contractholder funds	$	—		$	—		$	37,676.4		$	—		$	37,676.4
Future policy benefits and claims	—			—			20,210.4			—			20,210.4
Other policyholder funds	—			—			548.6			—			548.6
Short-term debt	—			50.0			318.9			(263.7		)	105.2
Long-term debt	1,351.7			—			213.1			—			1,564.8
Income taxes currently payable	(18.6		)	(0.9		)	12.0			10.6			3.1
Deferred income taxes	(22.5		)	(22.9		)	270.8			(16.7		)	208.7
Separate account liabilities	—			—			71,364.4			—			71,364.4
Other liabilities	18.5			624.5			6,264.1			(620.9		)	6,286.2
Total liabilities	1,329.1			650.7			136,878.7			(890.7		)	137,967.8
Stockholders’ equity
Series A preferred stock	—			—			—			—			—
Series B preferred stock	0.1			—			—			—			0.1
Common stock	4.5			—			17.8			(17.8		)	4.5
Additional paid-in capital	9,634.7			7,870.2			7,543.4			(15,413.6		)	9,634.7
Retained earnings	4,402.3			1,660.3			1,907.5			(3,567.8		)	4,402.3
Accumulated other comprehensive income	258.0			297.5			296.2			(593.7		)	258.0
Treasury stock, at cost	(5,281.7		)	—			(2.0		)	2.0			(5,281.7		)
Total stockholders’ equity attributable to PFG	9,017.9			9,828.0			9,762.9			(19,590.9		)	9,017.9
Noncontrolling interest	—			—			376.0			—			376.0
Total stockholders’ equity	9,017.9			9,828.0			10,138.9			(19,590.9		)	9,393.9
Total liabilities and stockholders’ equity	$	10,347.0		$	10,478.7		$	147,017.6		$	(20,481.6	)	$	147,361.7

Condensed Consolidating Statements of Operations

For the three months ended March 31, 2012

							Principal Life
	Principal			Principal			Insurance						Principal
	Financial			Financial			Company and						Financial
	Group, Inc.			Services, Inc.			Other Subsidiaries						Group, Inc.
	Parent Only			Only			Combined			Eliminations			Consolidated
	(in millions)
Revenues
Premiums and other considerations	$	—		$	—		$	679.8		$	—		$	679.8
Fees and other revenues	0.1			—			598.2			(0.3		)	598.0
Net investment income	1.0			—			823.5			0.3			824.8
Net realized capital gains, excluding impairment losses on available-for-sale securities	—			—			22.1			—			22.1
Total other-than-temporary impairment losses on available-for-sale securities	—			—			(33.7		)	—			(33.7		)
Other-than-temporary impairment losses on fixed maturities, available-for-sale reclassified to other comprehensive income	—			—			4.9			—			4.9
Net impairment losses on available-for-sale securities	—			—			(28.8		)	—			(28.8		)
Net realized capital losses	—			—			(6.7		)	—			(6.7		)
Total revenues	1.1			—			2,094.8			—			2,095.9
Expenses
Benefits, claims and settlement expenses	—			—			1,212.5			—			1,212.5
Dividends to policyholders	—			—			50.3			—			50.3
Operating expenses	30.0			0.3			525.7			—			556.0
Total expenses	30.0			0.3			1,788.5			—			1,818.8
Income (loss) before income taxes	(28.9		)	(0.3		)	306.3			—			277.1
Income taxes (benefits)	(11.2		)	(1.7		)	71.1			—			58.2
Equity in the net income of subsidiaries	227.4			226.0			—			(453.4		)	—
Net income	209.7			227.4			235.2			(453.4		)	218.9
Net income attributable to noncontrolling interest	—			—			9.2			—			9.2
Net income attributable to PFG	209.7			227.4			226.0			(453.4		)	209.7
Preferred stock dividends	8.2			—			—			—			8.2
Net income available to common stockholders	$	201.5		$	227.4		$	226.0		$	(453.4	)	$	201.5
Net income	$	209.7		$	227.4		$	235.2		$	(453.4	)	$	218.9
Other comprehensive income	186.3			230.0			230.5			(415.9		)	230.9
Comprehensive income	$	396.0		$	457.4		$	465.7		$	(869.3	)	$	449.8

Condensed Consolidating Statements of Operations

For the three months ended March 31, 2011

							Principal Life
	Principal			Principal			Insurance						Principal
	Financial			Financial			Company and						Financial
	Group, Inc.			Services, Inc.			Other Subsidiaries						Group, Inc.
	Parent Only			Only			Combined			Eliminations			Consolidated
	(in millions)
Revenues
Premiums and other considerations	$	—		$	—		$	797.1		$	—		$	797.1
Fees and other revenues	—			—			623.2			(0.2		)	623.0
Net investment income (loss)	10.8			(1.3		)	850.1			0.2			859.8
Net realized capital losses, excluding impairment losses on available-for-sale securities	—			(0.1		)	(5.5		)	—			(5.6		)
Total other-than-temporary impairment losses on available-for-sale securities	—			—			(14.0		)	—			(14.0		)
Other-than-temporary impairment losses on fixed maturities, available-for-sale reclassified from other comprehensive income	—			—			(38.4		)	—			(38.4		)
Net impairment losses on available-for-sale securities	—			—			(52.4		)	—			(52.4		)
Net realized capital losses	—			(0.1		)	(57.9		)	—			(58.0		)
Total revenues	10.8			(1.4		)	2,212.5			—			2,221.9
Expenses
Benefits, claims and settlement expenses	—			—			1,188.9			—			1,188.9
Dividends to policyholders	—			—			53.6			—			53.6
Operating expenses	29.2			0.3			688.4			—			717.9
Total expenses	29.2			0.3			1,930.9			—			1,960.4
Income (loss) before income taxes	(18.4		)	(1.7		)	281.6			—			261.5
Income taxes (benefits)	(7.0		)	(2.7		)	62.4			—			52.7
Equity in the net income of subsidiaries	201.6			200.6			—			(402.2		)	—
Net income	190.2			201.6			219.2			(402.2		)	208.8
Net income attributable to noncontrolling interest	—			—			18.6			—			18.6
Net income attributable to PFG	190.2			201.6			200.6			(402.2		)	190.2
Preferred stock dividends	8.2			—			—			—			8.2
Net income available to common stockholders	$	182.0		$	201.6		$	200.6		$	(402.2	)	$	182.0
Net income	$	190.2		$	201.6		$	219.2		$	(402.2	)	$	208.8
Other comprehensive income	279.0			258.5			262.6			(540.8		)	259.3
Comprehensive income	$	469.2		$	460.1		$	481.8		$	(943.0	)	$	468.1

Condensed Consolidating Statements of Cash Flows

For the three months ended March 31, 2012

							Principal Life
	Principal			Principal			Insurance						Principal
	Financial			Financial			Company and						Financial
	Group, Inc.			Services, Inc.			Other Subsidiaries						Group, Inc.
	Parent Only			Only			Combined			Eliminations			Consolidated
	(in millions)
Operating activities
Net cash provided by (used in) operating activities	$	79.9		$	(56.7	)	$	824.3		$	54.2		$	901.7
Investing activities
Available-for-sale securities:
Purchases	—			—			(2,060.5		)	—			(2,060.5		)
Sales	—			—			428.5			—			428.5
Maturities	—			—			1,612.1			—			1,612.1
Mortgage loans acquired or originated	—			—			(919.6		)	—			(919.6		)
Mortgage loans sold or repaid	—			—			361.4			—			361.4
Real estate acquired	—			—			(21.3		)	—			(21.3		)
Net purchases of property and equipment	—			—			(17.3		)	—			(17.3		)
Dividends and returns of capital received from unconsolidated entities	189.3			165.5			—			(354.8		)	—
Net change in other investments	—			—			(73.8		)	—			(73.8		)
Net cash provided by (used in) investing activities	189.3			165.5			(690.5		)	(354.8		)	(690.5		)
Financing activities
Issuance of common stock	9.1			—			—			—			9.1
Acquisition of treasury stock	(64.2		)	—			—			—			(64.2		)
Proceeds from financing element derivatives	—			—			20.4			—			20.4
Payments for financing element derivatives	—			—			(16.2		)	—			(16.2		)
Excess tax benefits from share-based payment arrangements	—			—			9.9			—			9.9
Dividends to common stockholders	(54.3		)	—			—			—			(54.3		)
Dividends to preferred stockholders	(8.2		)	—			—			—			(8.2		)
Issuance of long-term debt	—			—			1.0			—			1.0
Principal repayments of long-term debt	—			—			(0.8		)	—			(0.8		)
Net proceeds from (repayments of) short-term borrowings	—			—			98.9			(106.4		)	(7.5		)
Dividends and capital paid to parent	—			(189.3		)	(165.5		)	354.8			—
Investment contract deposits	—			—			1,618.6			—			1,618.6
Investment contract withdrawals	—			—			(2,885.9		)	—			(2,885.9		)
Net decrease in banking operation deposits	—			—			(13.4		)	—			(13.4		)
Other	—			—			(1.7		)	—			(1.7		)
Net cash used in financing activities	(117.6		)	(189.3		)	(1,334.7		)	248.4			(1,393.2		)
Net increase (decrease) in cash and cash equivalents	151.6			(80.5		)	(1,200.9		)	(52.2		)	(1,182.0		)
Cash and cash equivalents at beginning of period	226.7			702.4			2,787.9			(883.1		)	2,833.9
Cash and cash equivalents at end of period	$	378.3		$	621.9		$	1,587.0		$	(935.3	)	$	1,651.9

Condensed Consolidating Statements of Cash Flows

For the three months ended March 31, 2011

							Principal Life
	Principal			Principal			Insurance						Principal
	Financial			Financial			Company and						Financial
	Group, Inc.			Services, Inc.			Other Subsidiaries						Group, Inc.
	Parent Only			Only			Combined			Eliminations			Consolidated
	(in millions)
Operating activities
Net cash provided by operating activities	$	99.9		$	114.0		$	1,098.7		$	(117.1	)	$	1,195.5
Investing activities
Available-for-sale securities:
Purchases	(4.4		)	—			(1,662.0		)	—			(1,666.4		)
Sales	200.0			—			336.4			—			536.4
Maturities	4.4			—			1,721.2			—			1,725.6
Mortgage loans acquired or originated	—			—			(123.9		)	—			(123.9		)
Mortgage loans sold or repaid	—			—			323.7			—			323.7
Real estate acquired	—			—			(7.0		)	—			(7.0		)
Net purchases of property and equipment	—			—			(4.1		)	—			(4.1		)
Dividends and returns of capital received from unconsolidated entities	206.0			209.4			—			(415.4		)	—
Net change in other investments	—			1.4			(69.8		)	—			(68.4		)
Net cash provided by investing activities	406.0			210.8			514.5			(415.4		)	715.9
Financing activities
Issuance of common stock	9.1			—			—			—			9.1
Acquisition of treasury stock	(5.9		)	—			—			—			(5.9		)
Proceeds from financing element derivatives	—			—			19.4			—			19.4
Payments for financing element derivatives	—			—			(12.1		)	—			(12.1		)
Excess tax benefits from share-based payment arrangements	—			—			1.6			—			1.6
Dividends to preferred stockholders	(8.2		)	—			—			—			(8.2		)
Issuance of long-term debt	—			—			0.6			—			0.6
Principal repayments of long-term debt	—			—			(1.7		)	—			(1.7		)
Net proceeds from (repayments of) short-term borrowings	—			(0.5		)	13.3			(12.6		)	0.2
Dividends and capital paid to parent	—			(206.0		)	(209.4		)	415.4			—
Investment contract deposits	—			—			893.3			—			893.3
Investment contract withdrawals	—			—			(2,674.2		)	—			(2,674.2		)
Net decrease in banking operation deposits	—			—			(25.8		)	—			(25.8		)
Other	—			—			(0.9		)	—			(0.9		)
Net cash used in financing activities	(5.0		)	(206.5		)	(1,995.9		)	402.8			(1,804.6		)
Net increase (decrease) in cash and cash equivalents	500.9			118.3			(382.7		)	(129.7		)	106.8
Cash and cash equivalents at beginning of period	370.9			519.7			1,821.7			(834.9		)	1,877.4
Cash and cash equivalents at end of period	$	871.8		$	638.0		$	1,439.0		$	(964.6	)	$	1,984.2