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, |
| |||||||||||||
|
|
| 2009 |
| 2008 |
| 2007 |
| 2006 |
| 2005 |
| |||||
|
|
| ($ in millions) |
| |||||||||||||
1. | Income from continuing operations before income taxes |
| $ | 745.8 |
| $ | 461.3 |
| $ | 1,072.4 |
| $ | 1,351.6 |
| $ | 1,138.6 |
|
2. | Interest expense |
| 118.0 |
| 110.3 |
| 115.3 |
| 86.0 |
| 77.8 |
| |||||
3. | Interest factor of rental expense |
| 6.7 |
| 8.8 |
| 12.3 |
| 11.1 |
| 7.0 |
| |||||
4. | Undistributed income from equity investees |
| (69.4 | ) | (20.4 | ) | (71.6 | ) | (62.7 | ) | (34.1 | ) | |||||
5. | Earnings before interest credited on investment products |
| 801.1 |
| 560.0 |
| 1,128.4 |
| 1,386.0 |
| 1,189.3 |
| |||||
6. | Interest credited on investment products |
| 725.3 |
| 993.5 |
| 988.3 |
| 901.1 |
| 832.2 |
| |||||
7. | Earnings |
| $ | 1,526.4 |
| $ | 1,553.5 |
| $ | 2,116.7 |
| $ | 2,287.1 |
| $ | 2,021.5 |
|
8. | Interest expense |
| $ | 118.0 |
| $ | 110.3 |
| $ | 115.3 |
| $ | 86.0 |
| $ | 77.8 |
|
9. | Interest factor of rental expense |
| 6.7 |
| 8.8 |
| 12.3 |
| 11.1 |
| 7.0 |
| |||||
10. | Preferred stock dividends by registrant |
| 33.0 |
| 33.0 |
| 33.0 |
| 33.0 |
| 17.7 |
| |||||
11. | Fixed charges before interest credited on investment products |
| 157.7 |
| 152.1 |
| 160.6 |
| 130.1 |
| 102.5 |
| |||||
12. | Interest credited on investment products |
| 725.3 |
| 993.5 |
| 988.3 |
| 901.1 |
| 832.2 |
| |||||
13. | Fixed charges |
| $ | 883.0 |
| $ | 1,145.6 |
| $ | 1,148.9 |
| $ | 1,031.2 |
| $ | 934.7 |
|
14. | Ratio of earnings to fixed charges before interest credited on investment products (Line item 5/Line item 11) |
| 5.1 |
| 3.7 |
| 7.0 |
| 10.7 |
| 11.6 |
| |||||
15. | Ratio of earnings to fixed charges (Line item 7/Line item 13) |
| 1.7 |
| 1.4 |
| 1.8 |
| 2.2 |
| 2.2 |
| |||||