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 periods indicated, our ratios of: (1) earnings to fixed charges before interest credited on investment products and (2) earnings to fixed charges.
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| For the year ended December 31, |
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| 2014 |
| 2013 |
| 2012 |
| 2011 |
| 2010 |
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1. | Income from continuing operations before income taxes |
| $ | 1,494.9 |
| $ | 1,124.0 |
| $ | 960.0 |
| $ | 872.8 |
| $ | 771.4 |
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2. | Interest expense |
| 135.5 |
| 143.4 |
| 127.1 |
| 140.5 |
| 122.9 |
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3. | Interest factor of rental expense |
| 5.9 |
| 5.7 |
| 6.1 |
| 6.1 |
| 6.4 |
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4. | Undistributed income from equity investees |
| (113.9 | ) | (107.3 | ) | (99.9 | ) | (98.5 | ) | (130.6 | ) | |||||
5. | Earnings before interest credited on investment products |
| 1,522.4 |
| 1,165.8 |
| 993.3 |
| 920.9 |
| 770.1 |
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6. | Interest credited on investment products |
| 189.6 |
| 256.6 |
| 366.3 |
| 442.4 |
| 579.2 |
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7. | Earnings |
| $ | 1,712.0 |
| $ | 1,422.4 |
| $ | 1,359.6 |
| $ | 1,363.3 |
| $ | 1,349.3 |
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8. | Interest expense |
| $ | 135.5 |
| $ | 143.4 |
| $ | 127.1 |
| $ | 140.5 |
| $ | 122.9 |
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9. | Interest factor of rental expense |
| 5.9 |
| 5.7 |
| 6.1 |
| 6.1 |
| 6.4 |
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10. | Preferred stock dividends by registrant |
| 33.0 |
| 33.0 |
| 33.0 |
| 33.0 |
| 33.0 |
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11. | Fixed charges before interest credited on investment products |
| 174.4 |
| 182.1 |
| 166.2 |
| 179.6 |
| 162.3 |
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12. | Interest credited on investment products |
| 189.6 |
| 256.6 |
| 366.3 |
| 442.4 |
| 579.2 |
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13. | Fixed charges |
| $ | 364.0 |
| $ | 438.7 |
| $ | 532.5 |
| $ | 622.0 |
| $ | 741.5 |
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14. | Ratio of earnings to fixed charges before interest credited on investment products (Line item 5/Line item 11) |
| 8.7 |
| 6.4 |
| 6.0 |
| 5.1 |
| 4.7 |
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15. | Ratio of earnings to fixed charges (Line item 7/Line item 13) |
| 4.7 |
| 3.2 |
| 2.6 |
| 2.2 |
| 1.8 |
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