Exhibit 12
Principal Financial Group, Inc.
Computation of Earnings to Fixed Charges Ratio
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| For the six months |
| For the years ended |
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| 2006 |
| 2005 |
| 2005 |
| 2004 |
| 2003 |
| 2002 |
| 2001 |
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| (in millions) |
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1. | Income from continuing operations before income taxes |
| $ | 670.1 |
| $ | 562.5 |
| $ | 1,124.3 |
| $ | 879.1 |
| $ | 820.3 |
| $ | 371.5 |
| $ | 249.9 |
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2. | Interest expense |
| 42.8 |
| 41.3 |
| 81.1 |
| 96.9 |
| 117.5 |
| 99.7 |
| 97.2 |
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3. | Interest factor of rental expense |
| 3.5 |
| 2.3 |
| 7.0 |
| 4.6 |
| 4.8 |
| 8.0 |
| 9.4 |
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4. | Undistributed (income) loss from equity investees |
| (30.3 | ) | (15.6 | ) | (34.1 | ) | (19.4 | ) | (18.3 | ) | 4.3 |
| (17.4 | ) | |||||||
5. | Earnings before interest credited on investment products |
| 686.1 |
| 590.5 |
| 1,178.3 |
| 961.2 |
| 924.3 |
| 483.5 |
| 339.1 |
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6. | Interest credited on investment products |
| 433.7 |
| 409.1 |
| 832.2 |
| 763.7 |
| 735.7 |
| 743.4 |
| 773.1 |
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7. | Earnings |
| $ | 1,119.8 |
| $ | 999.6 |
| $ | 2,010.5 |
| $ | 1,724.9 |
| $ | 1,660.0 |
| $ | 1,226.9 |
| $ | 1,112.2 |
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8. | Interest expense |
| $ | 42.8 |
| $ | 41.3 |
| $ | 81.1 |
| $ | 96.9 |
| $ | 117.5 |
| $ | 99.7 |
| $ | 97.2 |
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9. | Interest factor of rental expense |
| 3.5 |
| 2.3 |
| 7.0 |
| 4.6 |
| 4.8 |
| 8.0 |
| 9.4 |
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10. | Preferred stock dividends by registrant |
| 16.5 |
| — |
| 17.7 |
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| — |
| — |
| — |
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11. | Preferred stock dividend requirements of majority-owned subsidiaries (non-intercompany) |
| — |
| — |
| — |
| — |
| 1.2 |
| 0.4 |
| — |
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12. | Fixed charges before interest credited on investment products |
| 62.8 |
| 43.6 |
| 105.8 |
| 101.5 |
| 123.5 |
| 108.1 |
| 106.6 |
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13. | Interest credited on investment products |
| 433.7 |
| 409.1 |
| 832.2 |
| 763.7 |
| 735.7 |
| 743.4 |
| 773.1 |
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14. | Fixed charges |
| $ | 496.5 |
| $ | 452.7 |
| $ | 938.0 |
| $ | 865.2 |
| $ | 859.2 |
| $ | 851.5 |
| $ | 879.7 |
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15. | Ratio of earnings to fixed charges before interest credited on investment products (Line item 5/Line item 12) |
| 10.9 |
| 13.5 |
| 11.1 |
| 9.5 |
| 7.5 |
| 4.5 |
| 3.2 |
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16. | Ratio of earnings to fixed charges (Line item 7/Line item 14) |
| 2.3 |
| 2.2 |
| 2.1 |
| 2.0 |
| 1.9 |
| 1.4 |
| 1.3 |
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94