Condensed Consolidating Financial Information (Tables)

3 Months Ended

Mar. 31, 2013

Condensed Consolidating Financial Information

Condensed Consolidating Financial Information, Notes Guarantor (Table)

Condensed Consolidating Statements of Financial Position

March 31, 2013

	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	$	—		$	44,789.5	$	6,661.0	$	(366.4	)	$	51,084.1
Fixed maturities, trading	—			279.2		349.7		—			628.9
Equity securities, available-for-sale	—			130.0		17.0		—			147.0
Equity securities, trading	—			0.3		731.9		—			732.2
Mortgage loans	—			10,107.7		1,801.3		(331.1		)	11,577.9
Real estate	—			8.3		1,193.7		—			1,202.0
Policy loans	—			833.5		33.0		—			866.5
Investment in unconsolidated entities	12,036.1			3,321.2		4,666.1		(19,142.0		)	881.4
Other investments	9.0			2,504.8		1,358.1		(1,566.1		)	2,305.8
Cash and cash equivalents	112.7			711.1		751.9		85.5			1,661.2
Accrued investment income	—			518.2		68.0		(1.7		)	584.5
Premiums due and other receivables	—			1,020.6		1,460.9		(1,306.3		)	1,175.2
Deferred acquisition costs	—			2,504.7		210.8		—			2,715.5
Property and equipment	—			395.2		77.4		—			472.6
Goodwill	—			54.3		1,143.1		—			1,197.4
Other intangibles	—			27.6		1,562.7		—			1,590.3
Separate account assets	—			73,423.6		47,482.5		—			120,906.1
Other assets	66.2			983.3		1,660.8		(1,676.0		)	1,034.3
Total assets	$	12,224.0		$	141,613.1	$	71,229.9	$	(24,304.1	)	$	200,762.9
Liabilities
Contractholder funds	$	—		$	35,868.5	$	1,113.9	$	(280.8	)	$	36,701.6
Future policy benefits and claims	—			18,048.2		4,854.2		(212.9		)	22,689.5
Other policyholder funds	—			767.4		44.1		(0.3		)	811.2
Short-term debt	—			—		46.5		—			46.5
Long-term debt	2,448.6			99.4		573.6		(331.1		)	2,790.5
Income taxes currently payable	—			—		82.2		(72.4		)	9.8
Deferred income taxes	—			230.6		686.8		(126.0		)	791.4
Separate account liabilities	—			73,423.6		47,482.5		—			120,906.1
Other liabilities	51.8			5,531.5		4,143.6		(3,596.1		)	6,130.8
Total liabilities	2,500.4			133,969.2		59,027.4		(4,619.6		)	190,877.4
Redeemable noncontrolling interest	—			—		58.9		—			58.9
Stockholders’ equity
Series A preferred stock	—			—		—		—			—
Series B preferred stock	0.1			—		—		—			0.1
Common stock	4.6			2.5		—		(2.5		)	4.6
Additional paid-in capital	9,771.5			5,745.0		9,394.8		(15,139.8		)	9,771.5
Retained earnings	4,971.7			1,318.0		1,986.1		(3,304.1		)	4,971.7
Accumulated other comprehensive income	621.0			578.4		655.2		(1,233.6		)	621.0
Treasury stock, at cost	(5,645.3		)	—		—		—			(5,645.3		)
Total stockholders’ equity attributable to PFG	9,723.6			7,643.9		12,036.1		(19,680.0		)	9,723.6
Noncontrolling interest	—			—		107.5		(4.5		)	103.0
Total stockholders’ equity	9,723.6			7,643.9		12,143.6		(19,684.5		)	9,826.6
Total liabilities and stockholders’ equity	$	12,224.0		$	141,613.1	$	71,229.9	$	(24,304.1	)	$	200,762.9

Condensed Consolidating Statements of Financial Position

December 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	$	—		$	44,614.6	$	6,681.7	$	(357.0	)	$	50,939.3
Fixed maturities, trading	10.5			284.4		331.8		—			626.7
Equity securities, available-for-sale	—			131.3		5.2		—			136.5
Equity securities, trading	—			0.3		252.5		—			252.8
Mortgage loans	—			10,054.2		1,775.5		(310.0		)	11,519.7
Real estate	—			8.4		1,171.9		—			1,180.3
Policy loans	—			834.0		30.9		—			864.9
Investment in unconsolidated entities	11,853.3			3,309.2		4,808.3		(19,101.8		)	869.0
Other investments	11.1			2,834.0		1,208.4		(1,631.4		)	2,422.1
Cash and cash equivalents	207.1			1,698.4		2,286.9		(15.2		)	4,177.2
Accrued investment income	—			521.6		64.5		(1.7		)	584.4
Premiums due and other receivables	0.1			916.7		1,327.1		(1,159.5		)	1,084.4
Deferred acquisition costs	—			2,394.8		195.2		—			2,590.0
Property and equipment	—			402.2		62.0		—			464.2
Goodwill	—			54.3		489.1		—			543.4
Other intangibles	—			27.9		886.8		—			914.7
Separate account assets	—			69,217.8		12,436.0		—			81,653.8
Other assets	78.0			947.8		1,567.7		(1,586.7		)	1,006.8
Total assets	$	12,160.1		$	138,251.9	$	35,581.5	$	(24,163.3	)	$	161,830.2
Liabilities
Contractholder funds	$	—		$	37,053.3	$	1,011.9	$	(278.7	)	$	37,786.5
Future policy benefits and claims	—			17,944.9		4,679.6		(188.3		)	22,436.2
Other policyholder funds	—			676.5		40.3		(0.4		)	716.4
Short-term debt	—			—		40.8		—			40.8
Long-term debt	2,448.6			99.4		433.3		(310.0		)	2,671.3
Income taxes currently payable	—			—		84.7		(69.4		)	15.3
Deferred income taxes	—			324.5		378.4		(102.9		)	600.0
Separate account liabilities	—			69,217.8		12,436.0		—			81,653.8
Other liabilities	28.1			5,375.1		4,538.4		(3,795.5		)	6,146.1
Total liabilities	2,476.7			130,691.5		23,643.4		(4,745.2		)	152,066.4
Redeemable noncontrolling interest	—			—		60.4		—			60.4
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	9,730.9			5,747.6		9,393.8		(15,141.4		)	9,730.9
Retained earnings	4,862.0			1,167.7		1,783.4		(2,951.1		)	4,862.0
Accumulated other comprehensive income	640.3			642.6		676.1		(1,318.7		)	640.3
Treasury stock, at cost	(5,554.4		)	—		—		—			(5,554.4		)
Total stockholders’ equity attributable to PFG	9,683.4			7,560.4		11,853.3		(19,413.7		)	9,683.4
Noncontrolling interest	—			—		24.4		(4.4		)	20.0
Total stockholders’ equity	9,683.4			7,560.4		11,877.7		(19,418.1		)	9,703.4
Total liabilities and stockholders’ equity	$	12,160.1		$	138,251.9	$	35,581.5	$	(24,163.3	)	$	161,830.2

Condensed Consolidating Statements of Operations

For the three months March 31, 2013

	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	$	—		$	605.1		$	89.6		$	—		$	694.7
Fees and other revenues	—			413.2			404.3			(83.9		)	733.6
Net investment income	—			602.0			179.9			7.4			789.3
Net realized capital gains (losses), excluding impairment losses on available-for-sale securities	6.3			(304.9		)	272.1			0.1			(26.4		)
Total other-than-temporary impairment losses on available-for-sale securities	—			(44.2		)	(0.5		)	—			(44.7		)
Other-than-temporary impairment losses on fixed maturities, available-for-sale reclassified to other comprehensive income	—			20.1			0.1			—			20.2
Net impairment losses on available-for-sale securities	—			(24.1		)	(0.4		)	—			(24.5		)
Net realized capital gains (losses)	6.3			(329.0		)	271.7			0.1			(50.9		)
Total revenues	6.3			1,291.3			945.5			(76.4		)	2,166.7
Expenses
Benefits, claims and settlement expenses	—			950.3			147.3			(3.1		)	1,094.5
Dividends to policyholders	—			48.3			—			—			48.3
Operating expenses	35.0			470.7			362.5			(72.5		)	795.7
Total expenses	35.0			1,469.3			509.8			(75.6		)	1,938.5
Income (loss) before income taxes	(28.7		)	(178.0		)	435.7			(0.8		)	228.2
Income taxes (benefits)	(11.5		)	(88.4		)	138.2			(0.1		)	38.2
Equity in the net income (loss) of subsidiaries	203.7			240.6			(90.3		)	(354.0		)	—
Net income	186.5			151.0			207.2			(354.7		)	190.0
Net income attributable to noncontrolling interest	—			—			3.5			—			3.5
Net income attributable to PFG	186.5			151.0			203.7			(354.7		)	186.5
Preferred stock dividends	8.2			—			—			—			8.2
Net income available to common stockholders	$	178.3		$	151.0		$	203.7		$	(354.7	)	$	178.3
Net income	$	186.5		$	151.0		$	207.2		$	(354.7	)	$	190.0
Other comprehensive income (loss)	(81.3		)	(65.9		)	59.7			67.1			(20.4		)
Comprehensive income	$	105.2		$	85.1		$	266.9		$	(287.6	)	$	169.6

Condensed Consolidating Statements of Operations

For the three months 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	29.9			282.0			309.1			(65.9		)	555.1
Total expenses	29.9			1,366.8			490.3			(69.1		)	1,817.9
Income (loss) before income taxes	(28.8		)	(191.8		)	520.2			(21.6		)	278.0
Income taxes (benefits)	(11.3		)	(84.9		)	153.1			(0.2		)	56.7
Equity in the net income (loss) of subsidiaries	229.6			275.1			(128.3		)	(376.4		)	—
Net income	212.1			168.2			238.8			(397.8		)	221.3
Net income attributable to noncontrolling interest	—			—			9.2			—			9.2
Net income attributable to PFG	212.1			168.2			229.6			(397.8		)	212.1
Preferred stock dividends	8.2			—			—			—			8.2
Net income available to common stockholders	$	203.9		$	168.2		$	229.6		$	(397.8	)	$	203.9
Net income	$	212.1		$	168.2		$	238.8		$	(397.8	)	$	221.3
Other comprehensive income	180.6			141.5			91.2			(188.1		)	225.2
Comprehensive income	$	392.7		$	309.7		$	330.0		$	(585.9	)	$	446.5

Condensed Consolidating Statements of Cash Flows

For the three months March 31, 2013

	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	$	28.0		$	812.7		$	(385.0	)	$	140.2		$	595.9
Investing activities
Available-for-sale securities:
Purchases	—			(2,242.7		)	(206.4		)	2.0			(2,447.1		)
Sales	—			392.7			128.7			(18.3		)	503.1
Maturities	—			1,596.0			194.9			—			1,790.9
Mortgage loans acquired or originated	—			(573.2		)	(59.8		)	22.1			(610.9		)
Mortgage loans sold or repaid	—			519.3			79.2			(42.7		)	555.8
Real estate acquired	—			0.1			(23.5		)	—			(23.4		)
Net (purchases) sales of property and equipment	—			(2.0		)	8.7			—			6.7
Purchases of interests in subsidiaries, net of cash acquired	—			—			(1,268.3		)	—			(1,268.3		)
Dividends and returns of capital received from (contributions to) unconsolidated entities	18.8			25.4			15.8			(60.0		)	—
Net change in other investments	(3.0		)	56.3			(104.0		)	18.5			(32.2		)
Net cash provided by (used in) investing activities	15.8			(228.1		)	(1,234.7		)	(78.4		)	(1,525.4		)
Financing activities
Issuance of common stock	20.3			—			—			—			20.3
Acquisition of treasury stock	(90.9		)	—			—			—			(90.9		)
Proceeds from financing element derivatives	—			14.3			—			—			14.3
Payments for financing element derivatives	—			(12.7		)	—			—			(12.7		)
Excess tax benefits from share-based payment arrangements	—			1.3			2.5			—			3.8
Purchase of subsidiary shares from noncontrolling interest	—			—			(30.6		)	—			(30.6		)
Dividends to common stockholders	(67.6		)	—			—			—			(67.6		)
Issuance of long-term debt	—			—			3.5			—			3.5
Principal repayments of long-term debt	—			—			20.7			(21.1		)	(0.4		)
Capital received from (dividends and capital paid to) parent	—			(15.8		)	(44.2		)	60.0			—
Investment contract deposits	—			1,292.1			127.6			—			1,419.7
Investment contract withdrawals	—			(2,850.3		)	(1.7		)	—			(2,852.0		)
Net increase in banking operation deposits	—			—			6.9			—			6.9
Other	—			(0.8		)	—			—			(0.8		)
Net cash provided by (used in) financing activities	(138.2		)	(1,571.9		)	84.7			38.9			(1,586.5		)
Net decrease in cash and cash equivalents	(94.4		)	(987.3		)	(1,535.0		)	100.7			(2,516.0		)
Cash and cash equivalents at beginning of period	207.1			1,698.4			2,286.9			(15.2		)	4,177.2
Cash and cash equivalents at end of period	$	112.7		$	711.1		$	751.9		$	85.5		$	1,661.2

Condensed Consolidating Statements of Cash Flows

For the three months 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 Financial Information, Shelf Registration Guarantor (Table)

Condensed Consolidating Statements of Financial Position

March 31, 2013

						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	$	—		$	—	$	51,084.1		$	—		$	51,084.1
Fixed maturities, trading	—			—		628.9			—			628.9
Equity securities, available-for-sale	—			—		147.0			—			147.0
Equity securities, trading	—			—		732.2			—			732.2
Mortgage loans	—			—		11,577.9			—			11,577.9
Real estate	—			—		1,202.0			—			1,202.0
Policy loans	—			—		866.5			—			866.5
Investment in unconsolidated entities	12,036.1			10,819.4		872.7			(22,846.8		)	881.4
Other investments	9.0			52.1		2,244.7			—			2,305.8
Cash and cash equivalents	112.7			584.8		1,755.9			(792.2		)	1,661.2
Accrued investment income	—			—		584.5			—			584.5
Premiums due and other receivables	—			990.8		2,176.4			(1,992.0		)	1,175.2
Deferred acquisition costs	—			—		2,715.5			—			2,715.5
Property and equipment	—			—		472.6			—			472.6
Goodwill	—			—		1,197.4			—			1,197.4
Other intangibles	—			—		1,590.3			—			1,590.3
Separate account assets	—			—		120,906.1			—			120,906.1
Other assets	66.2			82.8		1,071.0			(185.7		)	1,034.3
Total assets	$	12,224.0		$	12,529.9	$	201,825.7		$	(25,816.7	)	$	200,762.9
Liabilities
Contractholder funds	$	—		$	—	$	36,701.6		$	—		$	36,701.6
Future policy benefits and claims	—			—		22,689.5			—			22,689.5
Other policyholder funds	—			—		811.2			—			811.2
Short-term debt	—			—		2,353.4			(2,306.9		)	46.5
Long-term debt	2,448.6			—		341.9			—			2,790.5
Income taxes currently payable	—			18.3		49.1			(57.6		)	9.8
Deferred income taxes	—			—		899.8			(108.4		)	791.4
Separate account liabilities	—			—		120,906.1			—			120,906.1
Other liabilities	51.8			475.5		6,091.8			(488.3		)	6,130.8
Total liabilities	2,500.4			493.8		190,844.4			(2,961.2		)	190,877.4
Redeemable noncontrolling interest	—			—		58.9			—			58.9
Stockholders’ equity
Series A preferred stock	—			—		—			—			—
Series B preferred stock	0.1			—		—			—			0.1
Common stock	4.6			—		17.8			(17.8		)	4.6
Additional paid-in capital	9,771.5			9,394.8		8,306.5			(17,701.3		)	9,771.5
Retained earnings	4,971.7			1,986.1		1,854.8			(3,840.9		)	4,971.7
Accumulated other comprehensive income	621.0			655.2		642.3			(1,297.5		)	621.0
Treasury stock, at cost	(5,645.3		)	—		(2.0		)	2.0			(5,645.3		)
Total stockholders’ equity attributable to PFG	9,723.6			12,036.1		10,819.4			(22,855.5		)	9,723.6
Noncontrolling interest	—			—		103.0			—			103.0
Total stockholders’ equity	9,723.6			12,036.1		10,922.4			(22,855.5		)	9,826.6
Total liabilities and stockholders’ equity	$	12,224.0		$	12,529.9	$	201,825.7		$	(25,816.7	)	$	200,762.9

Condensed Consolidating Statements of Financial Position

December 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	$	—		$	—	$	50,939.3		$	—		$	50,939.3
Fixed maturities, trading	10.5			—		616.2			—			626.7
Equity securities, available-for-sale	—			—		136.5			—			136.5
Equity securities, trading	—			—		252.8			—			252.8
Mortgage loans	—			—		11,519.7			—			11,519.7
Real estate	—			—		1,180.3			—			1,180.3
Policy loans	—			—		864.9			—			864.9
Investment in unconsolidated entities	11,853.3			10,632.1		860.2			(22,476.6		)	869.0
Other investments	11.1			39.6		2,371.4			—			2,422.1
Cash and cash equivalents	207.1			612.5		4,241.3			(883.7		)	4,177.2
Accrued investment income	—			—		584.4			—			584.4
Premiums due and other receivables	0.1			1,122.1		2,206.7			(2,244.5		)	1,084.4
Deferred acquisition costs	—			—		2,590.0			—			2,590.0
Property and equipment	—			—		464.2			—			464.2
Goodwill	—			—		543.4			—			543.4
Other intangibles	—			—		914.7			—			914.7
Separate account assets	—			—		81,653.8			—			81,653.8
Other assets	78.0			51.0		1,003.5			(125.7		)	1,006.8
Total assets	$	12,160.1		$	12,457.3	$	162,943.3		$	(25,730.5	)	$	161,830.2
Liabilities
Contractholder funds	$	—		$	—	$	37,786.5		$	—		$	37,786.5
Future policy benefits and claims	—			—		22,436.2			—			22,436.2
Other policyholder funds	—			—		716.4			—			716.4
Short-term debt	—			—		2,564.1			(2,523.3		)	40.8
Long-term debt	2,448.6			—		222.7			—			2,671.3
Income taxes currently payable	—			0.1		47.2			(32.0		)	15.3
Deferred income taxes	—			—		686.1			(86.1		)	600.0
Separate account liabilities	—			—		81,653.8			—			81,653.8
Other liabilities	28.1			603.9		6,117.8			(603.7		)	6,146.1
Total liabilities	2,476.7			604.0		152,230.8			(3,245.1		)	152,066.4
Redeemable noncontrolling interest	—			—		60.4			—			60.4
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	9,730.9			9,393.8		8,287.7			(17,681.5		)	9,730.9
Retained earnings	4,862.0			1,783.4		1,666.7			(3,450.1		)	4,862.0
Accumulated other comprehensive income	640.3			676.1		661.9			(1,338.0		)	640.3
Treasury stock, at cost	(5,554.4		)	—		(2.0		)	2.0			(5,554.4		)
Total stockholders’ equity attributable to PFG	9,683.4			11,853.3		10,632.1			(22,485.4		)	9,683.4
Noncontrolling interest	—			—		20.0			—			20.0
Total stockholders’ equity	9,683.4			11,853.3		10,652.1			(22,485.4		)	9,703.4
Total liabilities and stockholders’ equity	$	12,160.1		$	12,457.3	$	162,943.3		$	(25,730.5	)	$	161,830.2

Condensed Consolidating Statements of Operations

For the three months March 31, 2013

							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	$	—		$	—		$	694.7		$	—		$	694.7
Fees and other revenues	—			—			733.7			(0.1		)	733.6
Net investment income	—			0.7			788.5			0.1			789.3
Net realized capital gains (losses), excluding impairment losses on available-for-sale securities	6.3			2.1			(34.8		)	—			(26.4		)
Total other-than-temporary impairment losses on available-for-sale securities	—			—			(44.7		)	—			(44.7		)
Other-than-temporary impairment losses on fixed maturities, available-for-sale reclassified to other comprehensive income	—			—			20.2			—			20.2
Net impairment losses on available-for-sale securities	—			—			(24.5		)	—			(24.5		)
Net realized capital gains (losses)	6.3			2.1			(59.3		)	—			(50.9		)
Total revenues	6.3			2.8			2,157.6			—			2,166.7
Expenses
Benefits, claims and settlement expenses	—			—			1,094.5			—			1,094.5
Dividends to policyholders	—			—			48.3			—			48.3
Operating expenses	35.0			8.2			752.5			—			795.7
Total expenses	35.0			8.2			1,895.3			—			1,938.5
Income (loss) before income taxes	(28.7		)	(5.4		)	262.3			—			228.2
Income taxes (benefits)	(11.5		)	(1.0		)	50.7			—			38.2
Equity in the net income of subsidiaries	203.7			208.1			—			(411.8		)	—
Net income	186.5			203.7			211.6			(411.8		)	190.0
Net income attributable to noncontrolling interest	—			—			3.5			—			3.5
Net income attributable to PFG	186.5			203.7			208.1			(411.8		)	186.5
Preferred stock dividends	8.2			—			—			—			8.2
Net income available to common stockholders	$	178.3		$	203.7		$	208.1		$	(411.8	)	$	178.3
Net income	$	186.5		$	203.7		$	211.6		$	(411.8	)	$	190.0
Other comprehensive loss	(81.3		)	(21.9		)	(21.0		)	103.8			(20.4		)
Comprehensive income	$	105.2		$	181.8		$	190.6		$	(308.0	)	$	169.6

Condensed Consolidating Statements of Operations

For the three months 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	29.9			0.4			524.8			—			555.1
Total expenses	29.9			0.4			1,787.6			—			1,817.9
Income (loss) before income taxes	(28.8		)	(0.4		)	307.2			—			278.0
Income taxes (benefits)	(11.3		)	(1.7		)	69.7			—			56.7
Equity in the net income of subsidiaries	229.6			228.3			—			(457.9		)	—
Net income	212.1			229.6			237.5			(457.9		)	221.3
Net income attributable to noncontrolling interest	—			—			9.2			—			9.2
Net income attributable to PFG	212.1			229.6			228.3			(457.9		)	212.1
Preferred stock dividends	8.2			—			—			—			8.2
Net income available to common stockholders	$	203.9		$	229.6		$	228.3		$	(457.9	)	$	203.9
Net income	$	212.1		$	229.6		$	237.5		$	(457.9	)	$	221.3
Other comprehensive income	180.6			224.3			224.9			(404.6		)	225.2
Comprehensive income	$	392.7		$	453.9		$	462.4		$	(862.5	)	$	446.5

Condensed Consolidating Statements of Cash Flows

For the three months March 31, 2013

							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	$	28.0		$	(19.8	)	$	712.4		$	(124.7	)	$	595.9
Investing activities
Available-for-sale securities:
Purchases	—			—			(2,447.1		)	—			(2,447.1		)
Sales	—			—			503.1			—			503.1
Maturities	—			—			1,790.9			—			1,790.9
Mortgage loans acquired or originated	—			—			(610.9		)	—			(610.9		)
Mortgage loans sold or repaid	—			—			555.8			—			555.8
Real estate acquired	—			—			(23.4		)	—			(23.4		)
Net sales of property and equipment	—			—			6.7			—			6.7
Purchases of interests in subsidiaries, net of cash acquired	—			—			(1,268.3		)	—			(1,268.3		)
Dividends and returns of capital received from (contributions to) unconsolidated entities	18.8			21.4			—			(40.2		)	—
Net change in other investments	(3.0		)	(10.5		)	(18.7		)	—			(32.2		)
Net cash provided by (used in) investing activities	15.8			10.9			(1,511.9		)	(40.2		)	(1,525.4		)
Financing activities
Issuance of common stock	20.3			—			—			—			20.3
Acquisition of treasury stock	(90.9		)	—			—			—			(90.9		)
Proceeds from financing element derivatives	—			—			14.3			—			14.3
Payments for financing element derivatives	—			—			(12.7		)	—			(12.7		)
Excess tax benefits from share-based payment arrangements	—			—			3.8			—			3.8
Purchase of subsidiary shares from noncontrolling interest	—			—			(30.6		)	—			(30.6		)
Dividends to common stockholders	(67.6		)	—			—			—			(67.6		)
Issuance of long-term debt	—			—			3.5			—			3.5
Principal repayments of long-term debt	—			—			(0.4		)	—			(0.4		)
Net repayments of short-term borrowings	—			—			(216.2		)	216.2			—
Capital received from (dividends and capital paid to) parent	—			(18.8		)	(21.4		)	40.2			—
Investment contract deposits	—			—			1,419.7			—			1,419.7
Investment contract withdrawals	—			—			(2,852.0		)	—			(2,852.0		)
Net increase in banking operation deposits	—			—			6.9			—			6.9
Other	—			—			(0.8		)	—			(0.8		)
Net cash used in financing activities	(138.2		)	(18.8		)	(1,685.9		)	256.4			(1,586.5		)
Net decrease in cash and cash equivalents	(94.4		)	(27.7		)	(2,485.4		)	91.5			(2,516.0		)
Cash and cash equivalents at beginning of period	207.1			612.5			4,241.3			(883.7		)	4,177.2
Cash and cash equivalents at end of period	$	112.7		$	584.8		$	1,755.9		$	(792.2	)	$	1,661.2

Condensed Consolidating Statements of Cash Flows

For the three months 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