EX-99.(11) 7 c26089bpexv99wx11y.htm FINANCIAL STATEMENT SCHEDULES exv99wx11y
 

Report of Independent Registered Public Accounting Firm on Schedules
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, 2007 and 2006, and for each of the three years in the period ended December 31, 2007, and have issued our report thereon dated March 7, 2008. Our audits included the financial statement schedules listed in Item 24(a)(iii) of the Registration Statement of this Form N-4. These schedules are the responsibility of the Company’s management. Our responsibility is to express an opinion 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 certain non-monetary exchanges of similar productive assets (primarily real estate) effective July 1, 2005, its pension and other post-retirement benefits effective December 31, 2006, and for the treatment of modifications or exchange of insurance contracts and income tax contingencies effective January 1, 2007.
Des Moines, Iowa
March 7, 2008


 

Exhibit 11
Principal Life Insurance Company
Schedule I — Summary of Investments
Other than Investments in Related Parties
As of December 31, 2007
                         
                    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
  $ 618.9     $ 647.6     $ 647.6  
States, municipalities and political subdivisions
    1,867.6       1,896.5       1,896.5  
Foreign governments
    419.4       453.9       453.9  
Public utilities
    2,707.3       2,786.1       2,786.1  
Convertibles and bonds with warrants attached
                 
Redeemable preferred
    188.5       175.5       175.5  
All other corporate bonds
    28,455.9       28,696.6       28,696.6  
Mortgage-backed and other asset-backed securities
    9,926.2       9,580.5       9,580.5  
 
                 
Total fixed maturities, available for sale
    44,183.8       44,236.7       44,236.7  
 
                 
 
                       
Fixed maturities, trading
    302.1       302.1       302.1  
 
                       
Equity securities, available-for-sale
                       
Common stocks:
                       
Banks, trust and insurance companies
    3.5       4.2       4.2  
Public utilities
                 
Industrial, miscellaneous and all other
    9.0       14.6       14.6  
Non-redeemable preferred stock
    302.1       290.9       290.9  
 
                 
Total equity securities, available-for-sale
    314.6       309.7       309.7  
 
                       
Equity securities, trading
    223.9       223.9       223.9  
 
                       
Mortgage loans
    12,149.5     XXXX     12,101.0  
 
                       
Real estate, net:
                       
Real estate acquired in satisfaction of debt
    10.0     XXXX     10.0  
Other real estate
    849.6     XXXX     849.6  
 
                       
Policy loans
    853.7     XXXX     853.7  
Other investments
    1,335.9     XXXX     1,335.1  
 
                       
 
                 
Total investments
  $ 60,223.1     XXXX   $ 60,221.8  
 
                 

 


 

Principal Life Insurance Company
Schedule III — Supplementary Insurance Information
As of December 31, 2007, 2006 and 2005 and for each of the years then ended
                                                                 
                                                    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)
2007:
                                                               
U.S. Asset Accumulation
  $ 1,163.3     $ 8,147.7     $ 37,635.5     $ 710.8     $ 2,732.9     $ 2,807.7     $ 255.0     $ 798.0  
Global Asset Management
                            33.6                   410.9  
Life & Health Insurance
    1,463.4       7,472.6       3,402.8       3,671.6       689.1       3,111.4       96.4       1,011.4  
Mortgage Banking
                                               
Corporate & Other
          2.6       (244.2 )     5.3       96.9       (10.5 )           (107.6 )
     
Principal Life Insurance Company
  $ 2,626.7     $ 15,622.9     $ 40,794.1     $ 4,387.7     $ 3,552.5     $ 5,908.6     $ 351.4     $ 2,112.7  
     
 
                                                               
2006:
                                                               
U.S. Asset Accumulation
  $ 985.6     $ 7,719.3     $ 34,570.0     $ 462.3     $ 2,536.6     $ 2,391.3     $ 170.6     $ 729.9  
Global Asset Management
                            52.1                   338.5  
Life & Health Insurance
    1,280.3       7,282.2       3,045.0       3,598.7       692.5       2,910.3       66.2       1,021.8  
Mortgage Banking
                                               
Corporate & Other
          2.7       (218.7 )     5.2       71.6       (8.3 )           (96.0 )
     
Principal Life Insurance Company
  $ 2,265.9     $ 15,004.2     $ 37,396.3     $ 4,066.2     $ 3,352.8     $ 5,293.3     $ 236.8     $ 1,994.2  
     
 
                                                               
2005:
                                                               
U.S. Asset Accumulation
  $ 889.6     $ 7,516.7     $ 31,527.5     $ 455.2     $ 2,374.3     $ 2,260.4     $ 148.7     $ 666.1  
Global Asset Management
                            30.5                   305.8  
Life & Health Insurance
    1,180.3       7,130.1       2,923.6       3,267.1       676.9       2,620.2       90.2       956.9  
Mortgage Banking
                                               
Corporate & Other
          3.5       (198.4 )     5.1       49.3       (7.0 )           (104.7 )
     
Principal Life Insurance Company
  $ 2,069.9     $ 14,650.3     $ 34,252.7     $ 3,727.4     $ 3,131.0     $ 4,873.6     $ 238.9     $ 1,824.1  
     

 


 

Principal Life Insurance Company
Schedule IV — Reinsurance
As of December 31, 2007, 2006 and 2005 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
     
2007:
                                       
Life insurance inforce
  $ 238,424.2     $ 61,442.3     $ 2,823.5     $ 179,805.4       1.6 %
             
 
                                       
Premiums:
                                       
Life insurance
  $ 1,528.0     $ 107.9     $ 160.1     $ 1,580.2       10.1 %
Accident and health insurance
    2,976.4       168.8       (0.1 )     2,807.5       0.0 %
             
Total
  $ 4,504.4     $ 276.7     $ 160.0     $ 4,387.7       3.6 %
 
                                       
2006:
                                       
Life insurance inforce
  $ 218,876.7     $ 53,308.8     $ 3,078.9     $ 168,646.8       1.8 %
             
 
                                       
Premiums:
                                       
Life insurance
  $ 1,302.2     $ 98.3     $ 117.2     $ 1,321.1       8.9 %
Accident and health insurance
    2,927.1       182.1       0.1       2,745.1       0.0 %
             
Total
  $ 4,229.3     $ 280.4     $ 117.3     $ 4,066.2       2.9 %
             
 
                                       
2005:
                                       
Life insurance inforce
  $ 196,223.5     $ 49,062.0     $ 2,895.1     $ 150,056.6       1.9 %
 
                                       
Premiums:
                                       
Life insurance
  $ 1,323.7     $ 82.3     $ 56.6     $ 1,298.0       4.4 %
Accident and health insurance
    2,642.9       213.5             2,429.4       0.0 %
             
Total
  $ 3,966.6     $ 295.8     $ 56.6     $ 3,727.4       1.5 %