Schedule II - Condensed Financial Information of Registrant (Parent Only)

12 Months Ended

Dec. 31, 2019

Schedule II - Condensed Financial Information of Registrant (Parent Only)

Schedule II - Condensed Financial Information of Registrant (Parent Only)

Schedule II - Condensed Financial Information of Registrant (Parent Only)

Statements of Financial Position

	December 31,
	2019		2018
	(in millions)
Assets
Fixed maturities, available-for-sale	$	265.8	$	211.5
Fixed maturities, trading		268.2		308.9
Other investments		10.4		10.7
Cash and cash equivalents		394.9		334.9
Income taxes receivable		11.1		16.9
Deferred income taxes		344.4		331.0
Amounts receivable from subsidiaries		3.8		5.2
Other assets		25.5		23.3
Investment in unconsolidated entities		17,539.6		13,862.4
Total assets	$	18,863.7	$	15,104.8
Liabilities
Long-term debt	$	3,625.5	$	3,129.8
Accrued investment payable		25.4		23.1
Pension liability		590.6		557.9
Other liabilities		4.2		4.0
Total liabilities		4,245.7		3,714.8
Stockholders' equity
Common stock, par value $.01 per share - 2,500 million shares authorized, 479.3 million and 476.7 million shares issued, and 276.6 million and 279.5 million shares outstanding in 2019 and 2018		4.8		4.8
Additional paid-in capital		10,182.6		10,060.7
Retained earnings		11,074.3		10,290.2
Accumulated other comprehensive income (loss)		1,037.9		(1,565.1)
Treasury stock, at cost (202.7 million and 197.2 million shares in 2019 and 2018)		(7,681.6)		(7,400.6)
Total stockholders' equity attributable to Principal Financial Group, Inc.		14,618.0		11,390.0
Total liabilities and stockholders' equity	$	18,863.7	$	15,104.8

See accompanying notes.

Statements of Operations

	For the year ended December 31,
	2019		2018		2017
	(in millions)
Revenues
Fees and other revenues	$	—	$	—	$	7.8
Net investment income		19.4		25.8		9.7
Net realized capital gains (losses)		12.3		(8.2)		(0.6)
Total revenues		31.7		17.6		16.9
Expenses
Other operating costs and expenses		210.9		191.9		238.1
Total expenses		210.9		191.9		238.1
Loss before income taxes		(179.2)		(174.3)		(221.2)
Income taxes (benefits)		(44.2)		(62.5)		63.1
Equity in the net income of subsidiaries		1,529.2		1,658.3		2,594.7
Net income attributable to Principal Financial Group, Inc.	$	1,394.2	$	1,546.5	$	2,310.4

See accompanying notes.

Statements of Cash Flows

	For the year ended December 31,
	2019		2018		2017
	(in millions)
Operating activities
Net income	$	1,394.2	$	1,546.5	$	2,310.4
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Net realized capital (gains) losses		(12.3)		8.2		0.6
Stock-based compensation		1.3		2.9		3.0
Equity in the net income of subsidiaries		(1,529.2)		(1,658.3)		(2,594.7)
Changes in:
Net cash flows for trading securities and equity securities with operating intent		48.7		32.4		(352.6)
Current and deferred income taxes (benefits)		(31.0)		15.7		163.8
Other		135.4		(79.8)		26.3
Net cash provided by (used in) operating activities		7.1		(132.4)		(443.2)
Investing activities
Fixed maturities available-for-sale and equity securities with intent to hold:
Purchases		(251.5)		(210.9)		—
Maturities		200.0		2.3		—
Net purchases of property and equipment		(0.1)		(0.1)		(0.1)
Net change in other investments		(34.0)		(2.2)		(1.1)
Dividends and returns of capital received from unconsolidated entities		494.2		1,041.6		1,002.5
Net cash provided by investing activities		408.6		830.7		1,001.3
Financing activities
Issuance of common stock		37.7		64.0		162.5
Acquisition of treasury stock		(281.0)		(671.6)		(220.4)
Dividends to common stockholders		(606.0)		(598.6)		(540.0)
Issuance of long-term debt		493.6		—		—
Net cash used in financing activities		(355.7)		(1,206.2)		(597.9)
Net increase (decrease) in cash and cash equivalents		60.0		(507.9)		(39.8)
Cash and cash equivalents at beginning of year		334.9		842.8		882.6
Cash and cash equivalents at end of year	$	394.9	$	334.9	$	842.8

See accompanying notes.

(1)   Basis of Presentation

The accompanying condensed financial information should be read in conjunction with the consolidated financial statements and notes thereto of Principal Financial Group, Inc.

In the parent company only financial statements, our investment in unconsolidated entities is stated at cost plus equity in undistributed earnings of subsidiaries.

Principal Financial Group, Inc. sponsors nonqualified benefit plans for select employees and agents and is responsible for the obligations of these plans. Nonqualified plan assets are held in Rabbi trusts for the benefit of all nonqualified plan participants. The invested assets and benefit plan liabilities reported in the statements of financial position exclude amounts held in these trusts. The Rabbi trusts had $731.9 million and $671.7 million of plan assets and $593.7 million and $542.4 million of benefit plan liabilities as of December 31, 2019 and 2018, respectively.

(2)   Dividends and Returns of Capital Received from (Contributions to) Unconsolidated Entities

The parent company received cash dividends and returns of capital totaling $494.2 million, $1,041.6 million and $1,002.5 million from subsidiaries in 2019, 2018 and 2017, respectively.