Principal Financial (PFG) 10-K 2014 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 periods indicated, our ratios of: (1) earnings to fixed charges before interest credited on investment products and (2) earnings to fixed charges.

		For the year ended December 31,
		2014			2013			2012			2011			2010
1.	Income from continuing operations before income taxes	$	1,494.9		$	1,124.0		$	960.0		$	872.8		$	771.4
2.	Interest expense	135.5			143.4			127.1			140.5			122.9
3.	Interest factor of rental expense	5.9			5.7			6.1			6.1			6.4
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
6.	Interest credited on investment products	189.6			256.6			366.3			442.4			579.2
7.	Earnings	$	1,712.0		$	1,422.4		$	1,359.6		$	1,363.3		$	1,349.3
8.	Interest expense	$	135.5		$	143.4		$	127.1		$	140.5		$	122.9
9.	Interest factor of rental expense	5.9			5.7			6.1			6.1			6.4
10.	Preferred stock dividends by registrant	33.0			33.0			33.0			33.0			33.0
11.	Fixed charges before interest credited on investment products	174.4			182.1			166.2			179.6			162.3
12.	Interest credited on investment products	189.6			256.6			366.3			442.4			579.2
13.	Fixed charges	$	364.0		$	438.7		$	532.5		$	622.0		$	741.5
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
15.	Ratio of earnings to fixed charges (Line item 7/Line item 13)	4.7			3.2			2.6			2.2			1.8