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 six months |
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| ended June 30, |
| For the year ended December 31, |
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| 2017 |
| 2016 |
| 2016 |
| 2015 |
| 2014 |
| 2013 |
| 2012 |
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| (in millions) |
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1. | Income from continuing operations before income taxes |
| $ | 779.6 |
| $ | 839.7 |
| $ | 1,591.7 |
| $ | 1,430.8 |
| $ | 1,494.9 |
| $ | 1,124.0 |
| $ | 960.0 |
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2. | Interest expense |
| 74.1 |
| 84.1 |
| 165.8 |
| 178.5 |
| 135.5 |
| 143.4 |
| 127.1 |
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3. | Interest factor of rental expense |
| 2.5 |
| 2.4 |
| 5.1 |
| 4.9 |
| 5.9 |
| 5.7 |
| 6.1 |
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4. | Undistributed income from equity investees |
| (93.2) |
| (54.6) |
| (142.2) |
| (106.3) |
| (113.9) |
| (107.3) |
| (99.9) |
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5. | Earnings before interest credited on investment products |
| 763.0 |
| 871.6 |
| 1,620.4 |
| 1,507.9 |
| 1,522.4 |
| 1,165.8 |
| 993.3 |
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6. | Interest credited on investment products |
| 90.8 |
| 84.5 |
| 173.9 |
| 152.0 |
| 189.6 |
| 256.6 |
| 366.3 |
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7. | Earnings |
| $ | 853.8 |
| $ | 956.1 |
| $ | 1,794.3 |
| $ | 1,659.9 |
| $ | 1,712.0 |
| $ | 1,422.4 |
| $ | 1,359.6 |
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8. | Interest expense |
| $ | 74.1 |
| $ | 84.1 |
| $ | 165.8 |
| $ | 178.5 |
| $ | 135.5 |
| $ | 143.4 |
| $ | 127.1 |
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9. | Interest factor of rental expense |
| 2.5 |
| 2.4 |
| 5.1 |
| 4.9 |
| 5.9 |
| 5.7 |
| 6.1 |
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10. | Preferred stock dividends by registrant |
| — |
| — |
| — |
| 16.5 |
| 33.0 |
| 33.0 |
| 33.0 |
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11 | Excess of redemption value over carrying value of preferred shares redeemed |
| — |
| — |
| — |
| 8.2 |
| — |
| — |
| — |
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12. | Fixed charges before interest credited on investment products |
| 76.6 |
| 86.5 |
| 170.9 |
| 208.1 |
| 174.4 |
| 182.1 |
| 166.2 |
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13. | Interest credited on investment products |
| 90.8 |
| 84.5 |
| 173.9 |
| 152.0 |
| 189.6 |
| 256.6 |
| 366.3 |
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14. | Fixed charges |
| $ | 167.4 |
| $ | 171.0 |
| $ | 344.8 |
| $ | 360.1 |
| $ | 364.0 |
| $ | 438.7 |
| $ | 532.5 |
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15. | Ratio of earnings to fixed charges before interest credited on investment products (Line item 5/Line item 12) |
| 10.0 |
| 10.1 |
| 9.5 |
| 7.2 |
| 8.7 |
| 6.4 |
| 6.0 |
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16. | Ratio of earnings to fixed charges (Line item 7/Line item 14) |
| 5.1 |
| 5.6 |
| 5.2 |
| 4.6 |
| 4.7 |
| 3.2 |
| 2.6 |
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