secondqtrer11.htm - Generated by SEC Publisher for SEC Filing
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Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report: August 1, 2011
(Date of earliest event reported)
(Exact name of registrant as specified in its charter)
                            Delaware                       1-16725            42-1520346 
                 (State or other jurisdiction           (Commission file number)          (I.R.S. Employer 
                of incorporation)      Identification Number) 
711 High Street, Des Moines, Iowa 50392
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(515) 247-5111
(Registrant’s telephone number, including area code)
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Item 2.02. Results of Operations and Financial Condition 
On August 1, 2011, Principal Financial Group, Inc. publicly announced information regarding its 
results of operations and financial condition for the quarter ended June 30, 2011. The text of the 
announcement is included herewith as Exhibit 99. 
Item 9.01 Financial Statements and Exhibits   
99 Second Quarter 2011 Earnings Release   
      Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly 
caused this report to be signed on its behalf by the undersigned thereunto duly authorized. 
                                            PRINCIPAL FINANCIAL GROUP, INC. 
                                                            By:       ___/s/ Terrance J. Lillis                          
                                             Name:  Terrance J. Lillis 
                                             Title:     Senior Vice President and Chief Financial 
Date: August 2, 2011   


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                                                                                                                       EXHIBIT 99 
Release:                 On receipt, August 1, 2011 
Media contact:        Susan Houser, 515-248-2268, 
Investor contact:     John Egan, 515-235-9500, 
Principal Financial Group, Inc. Announces Second Quarter 2011 Results
    •  Second quarter 2011 operating earnings1 of $237 million, an increase of 25 percent over second 
  quarter 2010; net income available to common shareholders of $258 million, an increase of 93 
  percent over second quarter 2010. 
    •  Year-to-date operating earnings of $469 million, an increase of 14 percent over the same period 
  in 2010; year-to-date net income available to common shareholders of $454 million, an increase 
  of 40 percent over the same period in 2010. 
    •  Record assets under management of $335.8 billion at the end of second quarter 2011, an 
  increase of 18 percent compared to second quarter 2010. 
(Des Moines, Iowa) – Principal Financial Group, Inc. (NYSE: PFG) today announced results for second quarter 
2011. The company reported operating earnings of $237.3 million for second quarter 2011, compared to $190.4 
million for second quarter 2010. Operating earnings per diluted share (EPS) were $0.73 for second quarter 
2011, compared to $0.59 for second quarter 2010. The company reported net income available to common 
stockholders of $258.0 million, or $0.80 per diluted share for second quarter 2011, compared to $134.0 million, 
or $0.42 per diluted share for second quarter 2010. Operating revenues for second quarter 2011 were $2,149.0 
million compared to $1,976.2 million for the same period last year. 
  “The Principal® saw very positive results in the second quarter, contributing to a strong first half of 
2011. We ended the quarter once again with record assets under management for the total company as well as 
in Principal International, and record account values in Retirement and Investor Services,” said Larry D. 
Zimpleman, chairman, president and chief executive officer of Principal Financial Group, Inc. “Despite an 
economic recovery that remains fragile, we continue to see strong growth and increasing earnings from our 
  “Additionally, our strong financial position allows us to invest in our businesses for future growth 
and to also return capital to shareholders.” said Zimpleman. “Since the beginning of the year, we’ve agreed to 
invest in future growth with the acquisitions of HSBC’s Mexican mandatory retirement business and in 
majority stakes in two London-based asset managers: Finisterre Capital and Origin Asset Management. We 
also returned capital to shareholders, completing our $250 million share repurchase authorization. We are 
putting capital to work in ways that are accretive to earnings both in the short term and long term; are 
meaningful to our strategy; and are beneficial to our shareholders. As our hybrid business model continues to 
generate increasing amounts of free cash flow, we are on track to surpass our $700 million estimate for capital 
deployment on acquisitions and share repurchase in 2011 and we’ll continue to work closely with our Board 
to be prudent in our deployment of excess capital.” 
1 Use of non-GAAP financial measures is discussed in this release after Segment Highlights 


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  “Second quarter results demonstrate our strong operational leverage, with total company operating 
earnings up 25 percent over the year ago quarter on a 15 percent increase in average assets under management,” 
said Terry Lillis, senior vice president and chief financial officer. “In addition, we saw the best quarter of net 
income since before the financial crisis. On a year-to-date basis, net income is up 40 percent, or $130 million. Book 
value per share was another record this quarter and our excess capital position improved to $2.1 billion, even after 
buying back 7.7 million shares in the quarter. These metrics demonstrate our financial strength and flexibility, 
which will serve us well through the rest of the year and into 2012.” 
Key Highlights for the Second Quarter 
    •  Strong sales in the company’s three key U.S. Retirement and Investor Services products in the second 
  quarter, with $1.7 billion for Full Service Accumulation, $2.6 billion for Principal Funds and $460 
  million for Individual Annuities. In addition, Principal Global Investors was awarded $2.7 billion in new 
    •  Net cash flows of $1.8 billion for Principal International, $990 million for Full Service Accumulation, $530 
  million for Principal Funds and $400 million for unaffiliated assets for Principal Global Investors. 
    •  Record total company assets under management of $335.8 billion, including a record $53.0 billion of assets 
  under management for Principal International. 
    •  Strong capital position with an estimated risk based capital ratio of 445 percent at quarter end and 
  approximately $2.1 billion of excess capital.2 
    •  Principal Financial Group bought back 7.7 million shares of common stock in the second quarter at an 
  average share price of $29.90. The remainder of the $250 million authorization was completed in the first 
  week of July, bringing the year-to-date total number of shares repurchased to 8.4 million. 
    •  Book value per share, excluding AOCI3 increased to a record high of $29.20, up 7 percent over second 
  quarter 2010. 
    •  Operating Return on Average Equity excluding AOCI of 10.1%. 
Net Income 
Net income available to common stockholders of $258.0 million for second quarter 2011 reflects net realized 
capital gains of $21.4 million, which include: 
    •  $46.0 million of gains from the partial sale of our interest in an investment, 
    •  $28.4 million of losses related to credit gains and losses on sales and permanent impairments of fixed 
  maturity securities, including $23.1 million of losses on commercial mortgage backed securities, and 
    •  $2.8 million of losses on commercial mortgage whole loans. 
                                                                     Segment Highlights 
Retirement and Investor Services 
  Segment operating earnings for second quarter 2011 were $161.3 million, compared to $129.0 million 
for the same period in 2010. Full Service Accumulation earnings increased 22 percent from the year ago quarter 
to $83.0 million, reflecting an 18 percent increase in average account values. Principal Funds earnings increased 
28 percent from a year ago to $13.2 million, primarily due to a 24 percent increase in average account values. 
Individual Annuities earnings were $30.6 million compared to $22.6 million for second quarter 2010. The 
positive variance reflects record account values. The accumulation businesses4 had record account values of 
$169.3 billion at June 30, 2011. 
2 Excess capital includes cash at the holding company and capital at the life company above that needed to maintain a 
350 percent NAIC risk based capital ratio for the life company. 
3 Accumulated Other Comprehensive Income 
4 Full Service Accumulation, Principal Funds, Individual Annuities and Bank and Trust Services 


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       Operating revenues for second quarter 2011 were $1,044.1 million compared to $1,021.3 million 
for the same period in 2010, primarily due to higher revenues for the accumulation businesses, which 
improved $60.0 million, or 8 percent, from a year ago quarter. This was partially offset by a $35 million 
decline in revenues in the Investment Only business. 
       Segment assets under management were $183.6 billion as of June 30, 2011, compared to $157.9 
billion as of June 30, 2010. 
Principal Global Investors 
       Segment operating earnings for second quarter 2011 were $20.8 million, compared to $12.3 million in 
the prior year quarter, primarily due to an increase in assets under management and additional operating 
       Operating revenues for second quarter were $136.3 million, compared to $114.3 million for the same 
period in 2010, primarily due to higher management and transaction fees. 
       Unaffiliated assets under management were $79.5 billion as of June 30, 2011, compared to $71.2 
billion as of June 30, 2010. 
Principal International 
       Segment operating earnings were $37.5 million in second quarter 2011, compared to $35.0 million 
in the prior year quarter. The improvement was primarily due to an increase in assets under management and a 
$1.7 million after-tax benefit from gains on the sale of bonds in our Brazilian joint venture. Second quarter 2010 
results included two months of a higher economic interest in our Brazilian joint venture. Adjusting for the 
mentioned gains and the change in ownership, year over year earnings grew in line with the 38 percent growth 
in average assets under management. 
       Operating revenues were $227.4 million for second quarter 2011, compared to $188.2 million for the 
same period in 2010, primarily due to growth in assets under management. 
       Segment assets under management were a record $53.0 billion as of June 30, 2011, up from $38.1 
billion as of June 30, 2010. This includes a record $5.9 billion of net cash flows over the trailing twelve 
months, or 15 percent of beginning of period assets under management. Reported assets under management 
do not include an additional $7.2 billion of assets managed by our Chinese joint venture. 
U.S. Insurance Solutions 
       Segment operating earnings for second quarter 2011 were $49.5 million, compared to $50.0 million 
for the same period in 2010. Specialty Benefits earnings were $25.9 million in second quarter 2011, up from 
$24.0 million for the same period in 2010, driven by membership growth and stable loss ratio results. 
Individual Life earnings were $23.6 million in the second quarter, compared to $26.0 million in second 
quarter 2010. This reflects a $4 million shortfall for model and assumption changes and $3 million shortfall due to 
unfavorable mortality experience in second quarter 2011.We believe the run rate for Individual Life remains at $31 to 
$33 million per quarter. 


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       Segment operating revenues for second quarter 2011 were $781.1 million compared to $687.3 million 
for the same period a year ago, primarily due to significantly higher business owner and executive life 
insurance sales and positive trends in both sales and lapses in Specialty Benefits. 
       Operating losses for second quarter 2011 were $31.8 million compared to operating losses of $35.9 
million in second quarter 2010. 
Forward looking and cautionary statements 
This press release contains forward-looking statements, including, without limitation, statements as to 
operating earnings, net income available to common stockholders, net cash flows, realized and unrealized 
gains and losses, capital and liquidity positions, sales and earnings trends, and management's beliefs, 
expectations, goals and opinions. The company does not undertake to update these statements, which are 
based on a number of assumptions concerning future conditions that may ultimately prove to be inaccurate. 
Future events and their effects on the company may not be those anticipated, and actual results may differ 
materially from the results anticipated in these forward-looking statements. The risks, uncertainties and 
factors that could cause or contribute to such material differences are discussed in the company's annual report 
on Form 10-K for the year ended Dec. 31, 2010, and in the company’s quarterly report on Form 10-Q for the 
quarter ended March 31, 2011, filed by the company with the Securities and Exchange Commission, as 
updated or supplemented from time to time in subsequent filings. These risks and uncertainties include, 
without limitation: adverse capital and credit market conditions may significantly affect the company’s ability 
to meet liquidity needs, access to capital and cost of capital; continued difficult conditions in the global capital 
markets and the economy generally; continued volatility or further declines in the equity markets; changes in 
interest rates or credit spreads; the company’s investment portfolio is subject to several risks that may diminish 
the value of its invested assets and the investment returns credited to customers; the company’s valuation of 
securities may include methodologies, estimations and assumptions that are subject to differing interpretations; 
the determination of the amount of allowances and impairments taken on the company’s investments requires 
estimations and assumptions that are subject to differing interpretations; gross unrealized losses may be realized 
or result in future impairments; competition from companies that may have greater financial resources, broader 
arrays of products, higher ratings and stronger financial performance; a downgrade in the company’s financial 
strength or credit ratings; inability to attract and retain sales representatives and develop new distribution 
sources; international business risks; the company’s actual experience could differ significantly from its pricing 
and reserving assumptions; the company’s ability to pay stockholder dividends and meet its obligations may be 
constrained by the limitations on dividends or distributions Iowa insurance laws impose on Principal Life; the 
pattern of amortizing the company’s DPAC and other actuarial balances on its universal life-type insurance 
contracts, participating life insurance policies and certain investment contracts may change; the company may 
need to fund deficiencies in its “Closed Block” assets that support participating ordinary life insurance policies 
that had a dividend scale in force at the time of Principal Life’s 1998 conversion into a stock life insurance 
company; the company’s reinsurers could default on their obligations or increase their rates; risks arising from 
acquisitions of businesses; changes in laws, regulations or accounting standards; a computer system failure or 
security breach could disrupt the company’s business, and damage its reputation; results of litigation and 
regulatory investigations; from time to time the company may become subject to tax audits, tax litigation or 
similar proceedings, and as a result it may owe additional taxes, interest and penalties in amounts that may be 
material; fluctuations in foreign currency exchange rates; and applicable laws and the company’s stockholder 
rights plan, certificate of incorporation and by-laws may discourage takeovers and business combinations that 
some stockholders might consider in their best interests. 
Use of Non-GAAP Financial Measures 
The company uses a number of non-GAAP financial measures that management believes are useful to 
investors because they illustrate the performance of normal, ongoing operations, which is important in 
understanding and evaluating the company’s financial condition and results of operations. They are not, 
however, a substitute for U.S. GAAP financial measures. Therefore, the company has provided 
reconciliations of the non-GAAP measures to the most directly comparable U.S. GAAP measure at the end 


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of the release. The company adjusts U.S. GAAP measures for items not directly related to ongoing operations. 
However, it is possible these adjusting items have occurred in the past and could recur in the future reporting 
periods. Management also uses non-GAAP measures for goal setting, as a basis for determining employee 
and senior management awards and compensation, and evaluating performance on a basis comparable to 
that used by investors and securities analysts. 
Earnings Conference Call 
On Tuesday, August 2, 2011 at 10:00 a.m. (ET), Chairman, President and Chief Executive Officer Larry 
Zimpleman and Senior Vice President and Chief Financial Officer Terry Lillis will lead a discussion of 
results, asset quality and capital adequacy during a live conference call, which can be accessed as follows: 
    •  Via live Internet webcast. Please go to at least 10-15 minutes prior to the 
  start of the call to register, and to download and install any necessary audio software. 
    •  Via telephone by dialing 800-374-1609 (U.S. and Canadian callers) or 706-643-7701 (International 
  callers) approximately 10 minutes prior to the start of the call. The access code is 79538107. 
    •  Replay of the earnings call via telephone is available by dialing 800-642-1687 (U.S. and Canadian 
  callers) or 706-645-9291 (International callers). The access code is 79538107. This replay will be 
  available approximately two hours after the completion of the live earnings call through the end of day 
  August 9, 2011. 
    •  Replay of the earnings call via webcast as well as a transcript of the call will be available after the call at: 
The company's financial supplement and additional investment portfolio detail for second quarter 2011 is 
currently available at, and may be referred to during the call. 
About the Principal Financial Group 
The Principal Financial Group® (The Principal ® )5 is a leader in offering businesses, individuals and 
institutional clients a wide range of financial products and services, including retirement and investment 
services, insurance, and banking through its diverse family of financial services companies. A member of the 
Fortune 500, the Principal Financial Group has $335.8 billion in assets under management6 and serves some 
16.5 million customers worldwide from offices in Asia, Australia, Europe, Latin America and the United 
States. Principal Financial Group, Inc. is traded on the New York Stock Exchange under the ticker symbol 
PFG. For more information, visit 
5 “The Principal Financial Groupand “The Principal” are registered service marks of Principal Financial Services, 
Inc., a member of the Principal Financial Group. 
6 As of June 30, 2011