Report of Independent Registered Public Accounting Firm

The Board of Directors and Stockholder

Principal Life Insurance Company

We have audited the consolidated financial statements of Principal Life Insurance Company

(the Company) as of December 31, 2012 and 2011, and for each of the three years in the period ended December 31, 2012, and have issued our report thereon dated March 20, 2013. Our audits also included the financial statement schedules listed in Item 24(a)(3) of this Registration Statement. These schedules are the responsibility of the Company's management. Our responsibility is to express an opinion on these schedules based on our audits.

In our opinion, the financial statement schedules referred to above, when considered in relation to the basic financial statements taken as a whole, present fairly in all material respects the information set forth therein. As discussed in Note 1 to the consolidated financial statements, in response to new accounting standards, the Company changed its methods of accounting for the capitalization of deferred policy acquisition costs effective January 1, 2012; for credit derivatives embedded in beneficial interests in securitized financial assets effective July 1, 2010; for variable interest entities effective January 1, 2010. In addition, the Company has elected to change its methods of accounting for the cost of long duration universal life and variable universal life reinsurance contracts and for the estimated gross profits of these contracts effective

January 1, 2012.

/s/Ernst & Young LLP

Des Moines, Iowa

March 20, 2013

Principal Life Insurance Company
Schedule I - Summary of Investments - Other than Investments in Related Parties
As of December 31, 2012
					Amount at Which
					Shown in the
					Statement of
Type of investment	Cost		Value		Financial Position
	(in millions)
Fixed maturities, available-for-sale:
U.S. Treasury securities and obligations of U.S.
Government corporations and agencies	$	851.7	$	882.2	$	882.2
States, municipalities and political subdivisions	2,940.4		3,178.8		3,178.8
Non-U.S governments	545.5		663.4		663.4
Public utilities	4,064.3		4,532.4		4,532.4
Redeemable preferred	82.4		87.4		87.4
All other corporate bonds	24,669.4		26,796.6		26,796.6
Residential mortgage-backed securities	2,997.8		3,199.7		3,199.7
Commercial mortgage-backed securities	4,094.8		3,897.4		3,897.4
Collaterialized debt obligations	428.8		379.2		379.2
Other debt obligations	3,756.9		3,779.2		3,779.2
Total fixed maturities, available for sale	44,432.0		47,396.3		47,396.3
Fixed maturities, trading	398.4		398.4		398.4
Equity securities, available-for-sale
Common stocks:
Banks, trust and insurance companies	65.8		63.2		63.2
Industrial, miscellaneous and all other	2.1		2.5		2.5
Non-redeemable preferred stock	61.5		65.6		65.6
Total equity securities, available-for-sale	129.4		131.3		131.3
Equity securities, trading	131.9		131.9		131.9
Mortgage loans	10,921.7		XXXX		10,825.4
Real estate, net:
Real estate acquired in satisfaction of debt	234.1		XXXX		234.1
Other real estate	938.4		XXXX		938.4
Policy loans	834.0		XXXX		834.0
Other investments	1,786.5		XXXX		1,785.2
Total investments	$	59,806.4	XXXX		$	62,675.0

Principal Life Insurance Company
Schedule III - Supplementary Insurance Information
As of December 31, 2012 and 2011 and for each of the years ended December 31, 2012, 2011 and 2010
															Amortization
	Deferred		Future		Contractholder							Benefits,			of Deferred
	Policy		Policy		and other					Net		claims and			Policy			Other
	Acquisition		Benefits		policyholder			Premium		investment		settlement			Acquisition			operating
	Costs		and claims		funds			revenue		income		expenses			Costs			expenses
	(in millions)
December 31, 2012
Retirement and Investor Services	$	699.4	$	9,702.7	$	32,801.4		$	1,162.6	$	2,075.1	$	2,629.1		$	84.8		$	936.8
Principal Global Investors	—		—		—			—		14.9		—			—			423.6
U.S. Insurance Solutions	1,695.3		8,153.4		4,925.5			1,769.3		674.2		1,935.5			(2.5		)	642.2
Corporate	—		50.4		(274.5		)	3.0		47.6		(8.0		)	—			69.6
Principal Life Insurance Company	$	2,394.7	$	17,906.5	$	37,452.4		$	2,934.9	$	2,811.8	$	4,556.6		$	82.3		$	2,072.2
December 31, 2011
Retirement and Investor Services	$	792.2	$	8,563.1	$	33,275.9		$	390.4	$	2,182.3	$	1,933.3		$	119.4		$	879.8
Principal Global Investors	—		—		—			—		14.6		—			—			396.8
U.S. Insurance Solutions	1,405.1		7,721.3		4,594.2			1,724.0		669.3		1,725.1			143.6			611.0
Corporate	—		68.7		(260.0		)	512.1		51.8		376.5			—			169.9
Principal Life Insurance Company	$	2,197.3	$	16,353.1	$	37,610.1		$	2,626.5	$	2,918.0	$	4,034.9		$	263.0		$	2,057.5
December 31, 2010
Retirement and Investor Services								$	332.2	$	2,366.1	$	2,122.7		$	136.7		$	830.9
Principal Global Investors								—		13.1		—			—			353.7
U.S. Insurance Solutions								1,685.7		649.7		1,600.2			128.3			577.7
Corporate								1,282.4		56.9		983.6			—			365.6
Principal Life Insurance Company								$	3,300.3	$	3,085.8	$	4,706.5		$	265.0		$	2,127.9

Principal Life Insurance Company
Schedule IV - Reinsurance
As of December 31, 2012, 2011 and 2010 and for each of the years then ended
									Percentage
			Ceded to		Assumed				of amount
	Gross		Other		from Other				Assumed to
	Amount		Companies		Companies		Net Amount		Net
	(in millions)
December 31, 2012
Life insurance inforce	$	283,990.0	$	113,869.5	$	1,606.2	$	171,726.7	0.9	%
Premiums:
Life insurance	$	1,947.4	$	173.6	$	59.3	$	1,833.1	3.2	%
Accident and health insurance	1,264.7		162.9		—		1,101.8		0.0	%
Total	$	3,212.1	$	336.5	$	59.3	$	2,934.9	2.0	%
December 31, 2011
Life insurance inforce	$	255,618.9	$	94,096.0	$	1,814.9	$	163,337.8	1.1	%
Premiums:
Life insurance	$	1,198.5	$	157.8	$	30.1	$	1,070.8	2.8	%
Accident and health insurance	1,714.8		159.1		—		1,555.7		0.0	%
Total	$	2,913.3	$	316.9	$	30.1	$	2,626.5	1.1	%
December 31, 2010
Life insurance inforce	$	240,532.3	$	83,494.0	$	2,051.9	$	159,090.2	1.3	%
Premiums:
Life insurance	$	1,173.6	$	145.5	$	11.9	$	1,040.0	1.1	%
Accident and health insurance	2,421.9		161.6		—		2,260.3		0.0	%
Total	$	3,595.5	$	307.1	$	11.9	$	3,300.3	0.4	%