Exhibit 12
Principal Financial Group, Inc.
Computation of Earnings to Fixed Charges Ratio
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| For the |
| For the year ended December 31, |
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| 2005 |
| 2004 |
| 2004 |
| 2003 |
| 2002 |
| 2001 |
| 2000 |
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| ($ in millions) |
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Income from continuing operations before income taxes |
| $ | 280.5 |
| $ | 207.8 |
| $ | 881.6 |
| $ | 824.3 |
| $ | 371.5 |
| $ | 249.9 |
| $ | 751.1 |
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Interest expense |
| 12.6 |
| 29.0 |
| 93.3 |
| 114.7 |
| 106.5 |
| 94.2 |
| 116.8 |
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Interest factor of rental expense |
| 1.2 |
| 1.2 |
| 4.6 |
| 4.7 |
| 8.0 |
| 9.4 |
| 15.1 |
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Undistributed income from equity investees |
| (5.5 | ) | — |
| (19.4 | ) | (18.3 | ) | 4.3 |
| (17.4 | ) | (27.1 | ) | |||||||
Earnings before interest credited on investment products |
| 288.8 |
| 238.0 |
| 960.1 |
| 925.4 |
| 490.3 |
| 336.1 |
| 855.9 |
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Interest credited on investment products |
| 201.0 |
| 179.7 |
| 763.7 |
| 735.7 |
| 743.4 |
| 773.1 |
| 723.5 |
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Earnings |
| $ | 489.8 |
| $ | 417.7 |
| $ | 1,723.8 |
| $ | 1,661.1 |
| $ | 1,233.7 |
| $ | 1,109.2 |
| $ | 1,579.4 |
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Interest expense |
| $ | 12.6 |
| $ | 29.0 |
| $ | 93.3 |
| $ | 114.7 |
| $ | 106.5 |
| $ | 94.2 |
| $ | 116.8 |
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Interest factor of rental expense |
| 1.2 |
| 1.2 |
| 4.6 |
| 4.7 |
| 8.0 |
| 9.4 |
| 15.1 |
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Preferred stock dividend requirements of majority-owned subsidiaries (non-intercompany) |
| — |
| — |
| — |
| 1.2 |
| 0.4 |
| — |
| — |
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Fixed charges before interest credited on investment products |
| 13.8 |
| 30.2 |
| 97.9 |
| 120.6 |
| 114.9 |
| 103.6 |
| 131.9 |
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Interest credited on investment products. |
| 201.0 |
| 179.7 |
| 763.7 |
| 735.7 |
| 743.4 |
| 773.1 |
| 723.5 |
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Fixed charges |
| $ | 214.8 |
| $ | 209.9 |
| $ | 861.6 |
| $ | 856.3 |
| $ | 858.3 |
| $ | 876.7 |
| $ | 855.4 |
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Ratio of earnings to fixed charges before interest credited on investment products (Line item 5/Line item 11) |
| 21.0 |
| 7.9 |
| 9.8 |
| 7.7 |
| 4.3 |
| 3.2 |
| 6.5 |
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Ratio of earnings to fixed charges (Line item 7/Line item 13) |
| 2.3 |
| 2.0 |
| 2.0 |
| 1.9 |
| 1.4 |
| 1.3 |
| 1.8 |
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79