[April 23, 2015] |
|
Principal Financial Group, Inc. Announces First Quarter Results; Company Also Announces Common Stock Dividend Increase
Principal Financial Group, Inc. (NYSE: PFG) today announced results for
first quarter 2015.
-
Operating earnings increased 3 percent to $326.4 million for
first quarter 2015, compared to $317.1 million for first quarter 2014.
Operating earnings per diluted share (EPS) increased 3 percent to
$1.09 for first quarter 2015, compared to $1.06 for first quarter 2014
despite the drag from unfavorable macroeconomic conditions.
-
Net income available to common stockholders for first quarter
2015 increased 41 percent to $414.2 million, or $1.39 per diluted
share, compared to $293.7 million, or $0.95 per diluted share for
first quarter 2014 largely due to a deferred tax benefit related to
the merger in Chile.
-
Fee income3 increased 7 percent to $884.8
million for first quarter 2015, compared to $829.6 million for first
quarter 2014 due to strong AUM growth.
-
Operating revenues for first quarter 2015 were $2,544.6
million, an increase of 2 percent, compared to $2,499.3 million for
first quarter 2014 despite lower variable investment income in first
quarter 2015.
-
Quarterly dividend of $0.38 per share of common stock for
second quarter 2015, a 6 percent increase over first quarter 2015,
authorized by its Board of Directors. The dividend will be payable on
June 26, 2015, to shareholders of record as of June 8, 2015.
"First quarter 2015 continued the strong momentum from 2014, with
operating earnings growth despite significant macroeconomic headwinds,
record assets under management of $530 billion and a 14 percent return
on equity, which was a 100 basis point increase over first quarter
2014," says Larry D. Zimpleman, chairman and chief executive officer.
"Our strong investment performance and distribution relationships
resulted in strong sales across our businesses, driving total net cash
flows to $9.4 billion for the quarter. We are very pleased with the
start to 2015."
Added Terry Lillis, executive vice president and chief financial
officer, "With the majority of our earnings coming from our fee-based
businesses, we have the financial flexibility to invest in growth as
well as return capital to shareholders. Today we announced a $0.38
common stock dividend payable in the second quarter. This is our eighth
common stock dividend increase in the past three years, and is a 27
percent increase over the prior year quarter on a trailing twelve month
basis."
Other Highlights Business
-
Assets under management as of March 31, 2015, were a record $530.3
billion. Strong net cash flows of $9.4 billion and investment
performance of $11.7 billion more than offset the $10.4 billion
negative impact from exchange rates in the first quarter 2015.
-
Retirement and Investor Services Accumulation sales were $9.8 billion
in the first quarter. Record account values of $266.0 billion included
sales of $2.8 billion for Full Service Accumulation, $6.6 billion for
Principal Funds, and $0.7 billion for Individual Annuities.
-
Principal Global Investors had record AUM of $324.2 billion, including
strong net cash flows of $5.3 billion.
-
Principal International reported strong net cash flows of $2.3 billion
and investment performance of $3.1 billion, which were masked by the
strengthening U.S. dollar. AUM of $110.9 billion (excluding $20.9
billion of AUM in our joint venture in China, which is not reported in
AUM), was up 23 percent over the year ago quarter on a local currency
basis.
-
Individual Life first quarter premium and fees were up 6 percent over
the year ago quarter.
-
Specialty Benefits sales increased 17 percent over the year ago
quarter and the division continued to have favorable claims experience.
-
Strong investment performance with more than 85 percent of Principal's
investment options in the top half of Morningstar rankings on a one,
three, and five-year basis at quarter end.
Capital
-
A strong capital position with a 2015 capital deployment target of
$800 million to $1.0 billion.
-
Paid a first quarter common stock dividend of $0.36 per share on
March 27, 2015, and announced a second quarter 2015 dividend of
$0.38 per share, a 6 percent increase from the first quarter
dividend. Board of Directors authorized $150 million share
repurchase program during the first quarter.
-
Included in the 2015 range is $335 million of the previously
announced acquisition of AXA's pension business in Hong Kong,
which is scheduled to close in the second half of the year.
-
Repurchased 1.0 million shares of common stock in the first quarter at
an average price of $50.82.
Net Income
-
First quarter 2015 net income available to common stockholders of
$414.2 million was up 41 percent compared to first quarter 2014
reflecting:
-
Total company operating earnings, which increased 3 percent
compared to first quarter 2014;
-
Net realized capital gains of $13.1 million, which included:
-
$6.5 million of net credit impairments related to sales and
permanent impairments of fixed maturity securities. This is a
43 percent improvement in credit impairments over first
quarter 2014 as we continue to see losses on commercial
mortgage backed securities diminish; and
-
$19.1 million of gains on derivatives and related activities
used for hedging financial risks.
-
Other after-tax adjustments of $74.7 million including a non-cash,
deferred tax benefit of $105.2 million related to the merger in
Chile partially offset by a $30.3 million loss due to an update of
our uncertain tax position in the first quarter.
Segment Results
Retirement and Investor Services - Accumulation4
|
|
|
|
|
|
|
(in millions except percentages or otherwise noted)
|
|
|
Quarter
|
|
|
Trailing Twelve Months
|
|
|
1Q15
|
|
|
1Q14
|
|
|
% Change
|
|
|
1Q15
|
|
|
1Q14
|
|
|
% Change
|
Operating Earnings
|
|
|
$186.2
|
|
|
$184.5
|
|
|
1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Revenue
|
|
|
$649.1
|
|
|
$628.4
|
|
|
3%
|
|
|
$2,579.1
|
|
|
$2,404.6
|
|
|
7%
|
Pretax Return on Net Revenue
|
|
|
32.9%
|
|
|
34.0%
|
|
|
|
|
|
33.5%
|
|
|
32.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
Operating Earnings increased $1.7 million primarily due to an
increase in net revenue. In addition, Full Service Accumulation
benefited from $6.0 million in first quarter 2015 and $15.0 million in
first quarter 2014, predominately due to a dividend accrual true up.
In first quarter 2015, Bank and Trust benefited $3.0 million from the
transition of the Self-Directed Account business to a third party.
-
Net Revenue increased $20.7 million, primarily due to an
increase in account values driven by positive net cash flows partially
offset by a decline in variable investment income.
Retirement and Investor Services - Guaranteed5
|
|
|
|
|
|
|
(in millions except percentages or otherwise noted)
|
|
|
Quarter
|
|
|
Trailing Twelve Months
|
|
|
1Q15
|
|
|
1Q14
|
|
|
% Change
|
|
|
1Q15
|
|
|
1Q14
|
|
|
% Change
|
Operating Earnings
|
|
|
$24.7
|
|
|
$32.0
|
|
|
(23)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Revenue
|
|
|
$43.0
|
|
|
$54.4
|
|
|
(21)%
|
|
|
$187.7
|
|
|
$189.9
|
|
|
(1)%
|
Pretax Return on Net Revenue
|
|
|
80.9%
|
|
|
85.3%
|
|
|
|
|
|
81.0%
|
|
|
81.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
Operating Earnings decreased $7.3 million primarily due to
first quarter 2014 results benefitting from $6.0 million of higher
than expected variable investment income.
-
Net Revenue decreased $11.4 million primarily due to lower
variable investment income.
Principal Global Investors
|
|
|
|
|
|
|
(in millions except percentages or otherwise noted)
|
|
|
Quarter
|
|
|
Trailing Twelve Months
|
|
|
1Q15
|
|
|
1Q14
|
|
|
% Change
|
|
|
1Q15
|
|
|
1Q14
|
|
|
% Change
|
Operating Earnings
|
|
|
$30.7
|
|
|
$26.9
|
|
|
14%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Revenue
|
|
|
$186.6
|
|
|
$171.1
|
|
|
9%
|
|
|
$741.4
|
|
|
$736.6
|
|
|
1%
|
Pretax Margin
|
|
|
26.7%
|
|
|
26.4%
|
|
|
|
|
|
26.6%
|
|
|
25.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total PGI Assets Under Management (billions)
|
|
|
$324.2
|
|
|
$297.9
|
|
|
9%
|
|
|
|
|
|
|
|
|
|
Unaffiliated Assets Under Management (billions)
|
|
|
$118.2
|
|
|
$111.8
|
|
|
6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
Operating Earnings increased $3.8 million. This was primarily
due to revenue growth and scale leading to improved margins.
-
Operating Revenue increased $15.5 million due to management
fees, which increased in line with AUM growth, and performance fees.
Principal International
|
|
|
|
|
|
|
(in millions except percentages or otherwise noted)
|
|
|
Quarter
|
|
|
Trailing Twelve Months
|
|
|
1Q15
|
|
|
1Q14
|
|
|
% Change
|
|
|
1Q15
|
|
|
1Q14
|
|
|
% Change
|
Operating Earnings
|
|
|
$59.9
|
|
|
$63.3
|
|
|
(5)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Combined6 Net Revenue
|
|
|
$377.6
|
|
|
$358.4
|
|
|
5%
|
|
|
$1,569.0
|
|
|
$1,397.6
|
|
|
12%
|
Combined Pretax Return on Net Revenue
|
|
|
52.6%
|
|
|
50.7%
|
|
|
|
|
|
51.8%
|
|
|
52.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets Under Management (billions)
|
|
|
$110.9
|
|
|
$109.1
|
|
|
2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
Operating Earnings decreased $3.4 million. Earnings were
reduced by the strengthening of the U.S. dollar. On an adjusted7
local currency basis, Principal International continues to generate
operating earnings growth in the mid-teens.
-
Combined Net Revenue increased $19.2 million primarily due to
the growth in AUM from positive net cash flows and improved market
performance. On a local currency basis, combined net revenue improved
21 percent.
Individual Life
|
|
|
|
|
|
|
(in millions except percentages or otherwise noted)
|
|
|
Quarter
|
|
|
Trailing Twelve Months
|
|
|
1Q15
|
|
|
1Q14
|
|
|
% Change
|
|
|
1Q15
|
|
|
1Q14
|
|
|
% Change
|
Operating Earnings
|
|
|
$25.5
|
|
|
$17.3
|
|
|
47%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premium and Fees
|
|
|
$247.8
|
|
|
$234.6
|
|
|
6%
|
|
|
$948.9
|
|
|
$902.7
|
|
|
5%
|
Pretax Operating Margin
|
|
|
14.2%
|
|
|
9.3%
|
|
|
|
|
|
18.8%*
|
|
|
14.5%
|
|
|
|
*Pretax Operating Margin for the trailing twelve months as of
first quarter 2015 was 12.5 percent after adjusting for the third
quarter 2014 actuarial assumption review.
|
|
-
Operating Earnings increased $8.2 million primarily due to a
return to expected claims experience in first quarter 2015. Results in
first quarter 2014 were negatively impacted by $4.0 million due to
adverse mortality.
-
Premium and Fees increased $13.2 million, above our expected
growth rate.
Specialty Benefits
|
|
|
|
|
|
|
(in millions except percentages or otherwise noted)
|
|
|
Quarter
|
|
|
Trailing Twelve Months
|
|
|
1Q15
|
|
|
1Q14
|
|
|
% Change
|
|
|
1Q15
|
|
|
1Q14
|
|
|
% Change
|
Operating Earnings
|
|
|
$29.6
|
|
|
$26.1
|
|
|
13%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premium and Fees
|
|
|
$435.6
|
|
|
$385.1
|
|
|
13%
|
|
|
$1,641.9
|
|
|
$1,511.1
|
|
|
9%
|
Pretax Operating Margin
|
|
|
10.7%
|
|
|
10.6%
|
|
|
|
|
|
11.3%
|
|
|
11.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Incurred Loss Ratio
|
|
|
63.1%
|
|
|
67.7%
|
|
|
|
|
|
64.5%
|
|
|
66.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
Operating Earnings increased $3.5 million primarily due to the
impact of a recovery of reinsurance premiums partially offset by
higher expenses.
-
Premium and Fees increased $50.5 million reflecting strong
growth across all products and a $17.0 million recovery of reinsurance
premiums.
-
Incurred Loss Ratio was better than our expected range
primarily due to the recovery of reinsurance premiums. Adjusting for
this, the incurred loss ratio was 65.8 percent.
Corporate
|
|
|
|
(in millions except percentages or otherwise noted)
|
|
|
Quarter
|
|
|
1Q15
|
|
|
1Q14
|
|
|
% Change
|
Operating Earnings
|
|
|
$(30.2)
|
|
|
$(33.0)
|
|
|
8%
|
|
|
|
|
|
|
|
|
|
|
-
Operating Losses of $30.2 million were slightly below the
expected range.
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, 2014, 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; conditions in
the global capital markets and the economy generally; continued
volatility or declines in the equity, bond or real estate 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 DAC 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 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 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 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 Friday, April 24, 2015 at 10:00
a.m. (ET), Chairman and Chief Executive Officer Larry Zimpleman,
President and Chief Operating Officer Dan Houston, and Executive 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 www.principal.com/investor
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 866-427-0175 (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 21890644.
-
Replay of the earnings call via telephone is available by dialing
855-859-2056 (U.S. and Canadian callers) or 404-537-3406
(International callers). The access code is 21890644. This replay will
be available approximately two hours after the completion of the live
earnings call through the end of day May 1, 2015.
-
Replay of the earnings call via webcast as well as a transcript of the
call will be available after the call at: www.principal.com/investor.
The company's financial supplement and a slide detailing normalizing
items for first quarter 2015 are currently available at www.principal.com/investor,
and may be referred to during the call. Other slides related to the call
will be available at www.principal.com/investor
approximately one-half hour prior to call start time.
About the Principal Financial Group The Principal Financial
Group® (The Principal®)8 is a global
investment management leader offering retirement services, insurance
solutions and asset management. The Principal offers businesses,
individuals and institutional clients a wide range of financial products
and services, including retirement, asset management and insurance
through its diverse family of financial services companies. Founded in
1879 and a member of the FORTUNE 500®, the Principal
Financial Group has $530.3 billion in assets under management9 and
serves some 19.9 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 www.principal.com.
|
Summary of Segment and Principal Financial Group, Inc.
Results
|
Segment
|
|
|
|
|
|
Operating Earnings (Loss)*
in millions
|
|
|
Three Months Ended,
|
|
|
3/31/15
|
|
|
3/31/14
|
Retirement and Investor Services
|
|
|
$
|
210.9
|
|
|
|
$
|
216.5
|
|
Principal Global Investors
|
|
|
|
30.7
|
|
|
|
|
26.9
|
|
Principal International
|
|
|
|
59.9
|
|
|
|
|
63.3
|
|
U.S. Insurance Solutions
|
|
|
|
55.1
|
|
|
|
|
43.4
|
|
Corporate
|
|
|
|
(30.2
|
)
|
|
|
|
(33.0
|
)
|
Operating Earnings
|
|
|
$
|
326.4
|
|
|
|
$
|
317.1
|
|
Net realized capital gains (losses), as adjusted
|
|
|
|
13.1
|
|
|
|
|
(22.9
|
)
|
Other after-tax adjustments
|
|
|
|
74.7
|
|
|
|
|
(0.5
|
)
|
Net income available to common stockholders
|
|
|
$
|
414.2
|
|
|
|
$
|
293.7
|
|
|
|
|
|
Per Diluted Share
|
|
|
Three Months Ended,
|
|
|
3/31/15
|
|
|
3/31/14
|
Operating Earnings
|
|
|
$
|
1.09
|
|
|
|
$
|
1.06
|
|
Net realized capital gains (losses), as adjusted
|
|
|
|
0.05
|
|
|
|
|
(0.08
|
)
|
Other after-tax adjustments
|
|
|
|
0.25
|
|
|
|
|
0.00
|
|
Adjustment for redeemable noncontrolling interest
|
|
|
|
0.00
|
|
|
|
|
(0.03
|
)
|
Net income
|
|
|
$
|
1.39
|
|
|
|
$
|
0.95
|
|
Weighted-average diluted common shares outstanding
|
|
|
|
298.5
|
|
|
|
|
299.5
|
|
|
|
|
|
|
|
|
*Operating earnings versus U.S. GAAP (GAAP) net income available to
common stockholders Management uses operating earnings, which
excludes the effect of net realized capital gains and losses, as
adjusted, and other after-tax adjustments, for goal setting, as a basis
for determining employee compensation, and evaluating performance on a
basis comparable to that used by investors and securities analysts.
Segment operating earnings are determined by adjusting U.S. GAAP net
income available to common stockholders for net realized capital gains
and losses, as adjusted, and other after-tax adjustments the company
believes are not indicative of overall operating trends. Note: it is
possible these adjusting items have occurred in the past and could recur
in future reporting periods. While these items may be significant
components in understanding and assessing our consolidated financial
performance, management believes the presentation of segment operating
earnings enhances the understanding of results of operations by
highlighting earnings attributable to the normal, ongoing operations of
the company's businesses.
|
Principal Financial Group, Inc.
|
Results of Operations
|
(in millions)
|
|
|
|
|
|
|
|
Three Months Ended,
|
|
|
|
3/31/15
|
|
|
3/31/14
|
Premiums and other considerations
|
|
|
$
|
916.4
|
|
|
|
$
|
803.5
|
|
Fees and other revenues
|
|
|
|
884.8
|
|
|
|
|
829.6
|
|
Net investment income
|
|
|
|
743.4
|
|
|
|
|
866.2
|
|
Total operating revenues
|
|
|
|
2,544.6
|
|
|
|
|
2,499.3
|
|
|
|
|
|
|
|
|
Benefits, claims and settlement expenses
|
|
|
|
1,227.3
|
|
|
|
|
1,223.5
|
|
Dividends to policyholders
|
|
|
|
41.7
|
|
|
|
|
45.7
|
|
Commissions
|
|
|
|
216.6
|
|
|
|
|
190.7
|
|
Capitalization of DAC
|
|
|
|
(99.8
|
)
|
|
|
|
(95.9
|
)
|
Amortization of DAC
|
|
|
|
48.8
|
|
|
|
|
67.1
|
|
Depreciation and amortization
|
|
|
|
29.3
|
|
|
|
|
28.9
|
|
Interest expense on corporate debt
|
|
|
|
32.6
|
|
|
|
|
35.0
|
|
Compensation and other
|
|
|
|
640.1
|
|
|
|
|
593.6
|
|
Total expenses
|
|
|
|
2,136.6
|
|
|
|
|
2,088.6
|
|
|
|
|
|
|
|
|
Operating earnings before tax, noncontrolling interest and preferred
stock dividends
|
|
|
|
408.0
|
|
|
|
|
410.7
|
|
Less:
|
|
|
|
|
|
|
Income tax
|
|
|
|
71.7
|
|
|
|
|
63.2
|
|
Operating earnings attributable to noncontrolling interest
|
|
|
|
1.7
|
|
|
|
|
22.2
|
|
Preferred stock dividends
|
|
|
|
8.2
|
|
|
|
|
8.2
|
|
Operating earnings
|
|
|
$
|
326.4
|
|
|
|
$
|
317.1
|
|
|
|
|
|
|
|
|
Net realized capital gains (losses), as adjusted
|
|
|
|
13.1
|
|
|
|
|
(22.9
|
)
|
Other after-tax adjustments
|
|
|
|
74.7
|
|
|
|
|
(0.5
|
)
|
Net income available to common stockholders
|
|
|
$
|
414.2
|
|
|
|
$
|
293.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Balance Sheet Statistics
|
|
|
|
|
|
|
|
Period Ended,
|
|
|
3/31/15
|
|
|
12/31/14
|
|
|
3/31/14
|
Total assets (in billions)
|
|
|
$
|
222.5
|
|
|
$
|
219.1
|
|
|
$
|
211.2
|
Total common equity (in millions)
|
|
|
$
|
9,880.6
|
|
|
$
|
9,642.0
|
|
|
$
|
9,445.9
|
Total common equity excluding accumulated other comprehensive income
(in millions)
|
|
|
$
|
9,852.6
|
|
|
$
|
9,591.6
|
|
|
$
|
9,084.1
|
End of period common shares outstanding (in millions)
|
|
|
|
294.4
|
|
|
|
293.9
|
|
|
|
294.8
|
Book value per common share
|
|
|
$
|
33.56
|
|
|
$
|
32.81
|
|
|
$
|
32.04
|
Book value per common share excluding accumulated other
comprehensive income
|
|
|
$
|
33.47
|
|
|
$
|
32.64
|
|
|
$
|
30.81
|
|
|
|
|
|
|
|
|
|
|
|
Principal Financial Group, Inc.
|
Reconciliation of Non-GAAP Financial Measures to U.S. GAAP
|
(in millions, except as indicated)
|
|
|
|
|
|
|
|
Three Months Ended,
|
|
|
|
3/31/15
|
|
|
3/31/14
|
Diluted Earnings Per Common Share:
|
|
|
|
|
|
|
Operating earnings
|
|
|
$
|
1.09
|
|
|
|
$
|
1.06
|
|
Net realized capital gains (losses)
|
|
|
|
0.05
|
|
|
|
|
(0.08
|
)
|
Other after-tax adjustments
|
|
|
|
0.25
|
|
|
|
|
-
|
|
Adjustment for redeemable noncontrolling interest
|
|
|
|
-
|
|
|
|
|
(0.03
|
)
|
Net income
|
|
|
$
|
1.39
|
|
|
|
$
|
0.95
|
|
|
|
|
|
|
|
|
Book Value Per Common Share Excluding Accumulated Other
Comprehensive Income:
|
|
|
|
|
|
|
Book value per common share excluding accumulated other
comprehensive income
|
|
|
$
|
33.47
|
|
|
|
$
|
30.81
|
|
Net unrealized capital gains
|
|
|
|
4.23
|
|
|
|
|
3.12
|
|
Foreign currency translation
|
|
|
|
(2.78
|
)
|
|
|
|
(1.37
|
)
|
Net unrecognized postretirement benefit obligations
|
|
|
|
(1.36
|
)
|
|
|
|
(0.52
|
)
|
Book value per common share including accumulated other
comprehensive income
|
|
|
$
|
33.56
|
|
|
|
$
|
32.04
|
|
|
|
|
|
|
|
|
Operating Revenues:
|
|
|
|
|
|
|
Retirement and Investor Services
|
|
|
$
|
1,319.4
|
|
|
|
$
|
1,261.2
|
|
Principal Global Investors
|
|
|
|
186.6
|
|
|
|
|
171.1
|
|
Principal International
|
|
|
|
236.2
|
|
|
|
|
300.4
|
|
U.S. Insurance Solutions
|
|
|
|
861.7
|
|
|
|
|
804.4
|
|
Corporate
|
|
|
|
(59.3
|
)
|
|
|
|
(37.8
|
)
|
Total operating revenues
|
|
|
|
2,544.6
|
|
|
|
|
2,499.3
|
|
Net realized capital gains (losses) net of related revenue
adjustments
|
|
|
|
45.6
|
|
|
|
|
(21.1
|
)
|
Other income on a tax indemnification
|
|
|
|
66.9
|
|
|
|
|
-
|
|
Exited group medical insurance business
|
|
|
|
0.2
|
|
|
|
|
0.4
|
|
Total GAAP revenues
|
|
|
$
|
2,657.3
|
|
|
|
$
|
2,478.6
|
|
|
|
|
|
|
|
|
Operating Earnings:
|
|
|
|
|
|
|
Retirement and Investor Services
|
|
|
$
|
210.9
|
|
|
|
$
|
216.5
|
|
Principal Global Investors
|
|
|
|
30.7
|
|
|
|
|
26.9
|
|
Principal International
|
|
|
|
59.9
|
|
|
|
|
63.3
|
|
U.S. Insurance Solutions
|
|
|
|
55.1
|
|
|
|
|
43.4
|
|
Corporate
|
|
|
|
(30.2
|
)
|
|
|
|
(33.0
|
)
|
Total operating earnings
|
|
|
|
326.4
|
|
|
|
|
317.1
|
|
Net realized capital gains (losses)
|
|
|
|
13.1
|
|
|
|
|
(22.9
|
)
|
Other after-tax adjustments
|
|
|
|
74.7
|
|
|
|
|
(0.5
|
)
|
Net income available to common stockholders
|
|
|
$
|
414.2
|
|
|
|
$
|
293.7
|
|
|
|
|
|
|
|
|
Net Realized Capital Gains (Losses):
|
|
|
|
|
|
|
Net realized capital gains (losses), as adjusted
|
|
|
$
|
13.1
|
|
|
|
$
|
(22.9
|
)
|
Certain derivative and hedging-related adjustments
|
|
|
|
19.7
|
|
|
|
|
21.8
|
|
Amortization of DAC and other actuarial balances
|
|
|
|
16.0
|
|
|
|
|
9.7
|
|
Certain market value adjustments of embedded derivatives
|
|
|
|
0.9
|
|
|
|
|
(0.4
|
)
|
Capital gains (losses) distributed
|
|
|
|
(4.8
|
)
|
|
|
|
3.1
|
|
Tax impacts
|
|
|
|
17.6
|
|
|
|
|
(10.6
|
)
|
Noncontrolling interest capital gains
|
|
|
|
2.8
|
|
|
|
|
-
|
|
Recognition of front-end fee revenues
|
|
|
|
(0.2
|
)
|
|
|
|
(0.1
|
)
|
Certain market value adjustments to fee revenues
|
|
|
|
1.1
|
|
|
|
|
-
|
|
GAAP net realized capital gains
|
|
|
$
|
66.2
|
|
|
|
$
|
0.6
|
|
|
|
|
|
|
|
|
Other After-Tax Adjustments:
|
|
|
|
|
|
|
Losses associated with exited group medical insurance business
|
|
|
$
|
(0.2
|
)
|
|
|
$
|
(0.5
|
)
|
Impact of a court ruling on some uncertain tax positions
|
|
|
|
(30.3
|
)
|
|
|
|
-
|
|
Deferred tax impact of Chile merger
|
|
|
|
105.2
|
|
|
|
|
-
|
|
Total other after-tax adjustments
|
|
|
$
|
74.7
|
|
|
|
$
|
(0.5
|
)
|
|
|
|
|
|
|
|
|
Principal Financial Group, Inc.
|
Principal International Net Revenue Reconciliation
|
(in millions)
|
|
|
|
|
|
|
|
Three Months Ended,
|
|
|
|
3/31/15
|
|
|
3/31/14
|
Total combined net revenue
|
|
|
$
|
377.6
|
|
|
$
|
358.4
|
Add:
|
|
|
|
|
|
|
Principal International's share of unconsolidated joint ventures'
net income
|
|
|
|
26.2
|
|
|
|
21.1
|
Less:
|
|
|
|
|
|
|
Unconsolidated joint ventures' net revenue at 100%
|
|
|
|
251.5
|
|
|
|
222.3
|
Other adjustments
|
|
|
|
1.4
|
|
|
|
1.3
|
Net revenue*
|
|
|
$
|
150.9
|
|
|
$
|
155.9
|
|
|
|
|
|
|
|
* Net revenue is defined as total operating revenues less
benefits, claims and settlement expenses and dividends to
policyholders.
|
|
1 Use of non-GAAP financial measures is discussed in this
release after segment results. Operating Earnings is after tax. 2
Return on equity is excluding AOCI (Accumulated Other Comprehensive
Income). 3 Fee Income = Fees and other revenue as
reported in our results of operations. 4 RIS
Accumulation: includes Full Service Accumulation, Principal Funds,
Individual Annuities, and Bank and Trust Services. 5 RIS
Guaranteed: includes Investment Only and Full Service Payout. 6
Combined basis: all Principal International companies (including
joint ventures) at 100%. 7 Adjusted for low inflation in
Chile in first quarter 2015. 8 "The Principal Financial
Group" and "The Principal" are registered service marks of Principal
Financial Services, Inc., a member of the Principal Financial Group. 9
As of March 31, 2015.
[ Back To TMCnet.com's Homepage ]
|