Principal Financial (PFG) 10-K 2008 FY Annual report

Exhibit 12

Principal Financial Group, Inc.

Computation of Earnings to Fixed Charges Ratio

The ratio of earnings to fixed charges is a measure of our ability to cover fixed costs with current period earnings. A high ratio indicates that earnings are sufficiently covering committed expenses. The following table sets forth, for the years indicated, our ratios of:

·earnings to fixed charges before interest credited on investment products and

·earnings to fixed charges.

		For the years ended December 31,
		2008			2007			2006			2005			2004
		($ in millions)
1.	Income from continuing operations before income taxes	$	453.6		$	1,048.2		$	1,331.3		$	1,121.6		$	878.7
2.	Interest expense	110.3			115.3			86.0			77.8			93.5
3.	Interest factor of rental expense	8.8			12.3			11.1			7.0			4.6
4.	Undistributed income from equity investees	(20.4		)	(71.6		)	(62.7		)	(34.1		)	(19.4		)
5.	Earnings before interest credited on investment products	552.3			1,104.2			1,365.7			1,172.3			957.4
6.	Interest credited on investment products	993.5			988.3			901.1			832.2			763.7
7.	Earnings	$	1,545.8		$	2,092.5		$	2,266.8		$	2,004.5		$	1,721.1
8.	Interest expense	$	110.3		$	115.3		$	86.0		$	77.8		$	93.5
9.	Interest factor of rental expense	8.8			12.3			11.1			7.0			4.6
10.	Preferred stock dividends by registrant	33.0			33.0			33.0			17.7			—
11.	Fixed charges before interest credited on investment products	152.1			160.6			130.1			102.5			98.1
12.	Interest credited on investment products	993.5			988.3			901.1			832.2			763.7
13.	Fixed charges	$	1,145.6		$	1,148.9		$	1,031.2		$	934.7		$	861.8
14.	Ratio of earnings to fixed charges before interest credited on investment products (Line item 5/Line item 11)	3.6			6.9			10.5			11.4			9.8
15.	Ratio of earnings to fixed charges (Line item 7/Line item 13)	1.3			1.8			2.2			2.1			2.0

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