On May 1, 2017, Principal Life sold its ownership interest in Principal Global Investors, LLC to Principal Life’s direct parent, PFS, in connection with a corporate reorganization designed to better utilize and allocate capital internally. Subsequent to the sale, Principal Life paid an extraordinary dividend of $1,068.4 million to its parent, which was approved by the Commissioner, primarily from proceeds received from the sale. In 2017, total stockholder dividends paid by Principal Life to its parent were $1,818.4 million, all of which was extraordinary and approved by the Commissioner.
Operations. Our primary consolidated cash flow sources are premiums from insurance products, pension and annuity deposits, asset management fee revenues, administrative services fee revenues, income from investments and proceeds from the sales or maturity of investments. Cash outflows consist primarily of payment of benefits to policyholders and beneficiaries, income and other taxes, current operating expenses, payment of dividends to policyholders, payments in connection with investments acquired, payments made to acquire subsidiaries, payments relating to policy and contract surrenders, withdrawals, policy loans, interest payments and repayment of short-term debt and long-term debt. Our investment strategies are generally intended to provide adequate funds to pay benefits without forced sales of investments. For a discussion of our investment objectives and strategies, see “Investments.”
Cash Flows. All cash flow activity, as reported in our consolidated statements of cash flows, provides relevant information regarding our sources and uses of cash. The following discussion of our operating, investing and financing portions of the cash flows excludes cash flows attributable to the separate accounts.
Net cash provided by operating activities was $5,493.2 million, $5,156.5 million and $4,188.0 million for the years ended December 31, 2019, 2018 and 2017, respectively. Our insurance businesses typically generate positive cash flows from operating activities, as premiums collected from our insurance products and income received from our investments exceed acquisition costs, benefits paid, redemptions and operating expenses. These positive cash flows are then invested to support the obligations of our insurance and investment products and required capital supporting these products. Our cash flows from operating activities are affected by the timing of premiums, fees and investment income received and benefits and expenses paid. The increase in cash provided by operating activities in 2019 compared to 2018 was primarily due to fluctuations in receivables and payables associated with the timing of settlements. The increase in cash provided by operating activities in 2018 compared to 2017 was primarily due to growth in the business and a decrease in net cash outflows for trading securities and equity securities with operating intent.
Net cash used in investing activities was $7,688.5 million, $5,702.5 million and $4,052.8 million for the years ended December 31, 2019, 2018 and 2017, respectively. The increase in cash used in investing activities in 2019 compared to 2018 was primarily due to $1,209.6 million of cash paid for the Acquired Business. Additionally, cash used in investing activities increased as a result of portfolio mix variances, including net purchases of fixed maturities available-for-sale and equity securities with intent to hold. The increase in cash used in investing activities in 2018 compared to 2017 was driven by increased net purchases of fixed maturities available-for-sale and equity securities with intent to hold, an increase in mortgage loans acquired or originated and a decrease in cash provided from the sale of real estate.
Net cash provided by financing activities was $1,733.7 million and $1,052.7 million for the years ended December 31, 2019 and 2018, respectively, compared to net cash used in financing activities of $384.0 million for the year ended December 31, 2017. The increase in cash provided by financing activities in 2019 compared to 2018 was primarily the result of the $500.0 million senior note issuance in 2019, the proceeds of which were used to fund a portion of the purchase price of the Acquired Business. The increase in cash provided by financing activities in 2018 compared to 2017 was the result of higher net investment contract deposits in 2018 as compared to 2017.
Shelf Registration. On May 3, 2017, our shelf registration statement was filed with the SEC and became effective. The shelf registration replaced the shelf registration that had been in effect since May 2014. Under our current shelf registration, we have the ability to issue, in unlimited amounts, unsecured senior debt securities or subordinated debt securities, junior subordinated debt, preferred stock, common stock, warrants, depositary shares, purchase contracts and purchase units of PFG. Our wholly owned subsidiary, PFS, may guarantee, fully and unconditionally or otherwise, our obligations with respect to any non-convertible securities, other than common stock, described in the shelf registration. For information on senior notes issued from our shelf registration, see Item 8. “Financial Statements and Supplementary Data, Notes to Consolidated Financial Statements, Note 9, Debt.”
Short-Term Debt. For short-term debt information, see the previous Liquidity section and Item 8. “Financial Statements and Supplementary Data, Notes to Consolidated Financial Statements, Note 9, Debt.”
