SECURITIES AND EXCHANGE COMMISSION |
Washington, D.C. 20549 |
_________________________ |
FORM 8-K |
CURRENT REPORT |
Pursuant to Section 13 or 15(d) of the |
Securities Exchange Act of 1934 |
Date of Report:December 3, 2009 |
(Date of earliest event reported) |
PRINCIPAL FINANCIAL GROUP, INC. |
(Exact name of registrant as specified in its charter) |
Delaware | 1-16725 | 42-1520346 |
(State or other jurisdiction | (Commission file number) | (I.R.S. Employer |
of incorporation) | Identification Number) |
711 High Street, Des Moines, Iowa 50392 | |
(Address of principal executive offices) | |
(515) 247-5111 | |
(Registrant’s telephone number, including area code) | |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the | |
registrant under any of the following provisions: | |
[ ] | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
[ ] | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
[ ] | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR |
240.14d-2(b)) | |
[ ] | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR |
240.13e-4(c)) | |
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Item 7.01 Regulation FD Disclosure | |
The following information is being furnished under Item 7.01 "Regulation FD Disclosure." This | |
information shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act | |
of 1934, as amended (the "Exchange Act") or otherwise subject to the liabilities of that section, nor | |
shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as | |
amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a | |
filing. | |
On December 3, 2009, Principal Financial Group, Inc. announced its outlook for 2010 operating | |
earnings and net income. The text of the announcement is included herewith as Exhibit 99.1. | |
Item 9.01 Financial Statements and Exhibits | |
Exhibit 99.1 Press Release Concerning 2010 Outlook Dated December 3, 2009 | |
Exhibit 99.2 Additional slides concerning 2010 guidance presented at Principal Financial Group, | |
Inc.'s Investor Conference on December 3, 2009 |
SIGNATURE | |
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused | |
this report to be signed on its behalf by the undersigned thereunto duly authorized. | |
PRINCIPAL FINANCIAL GROUP, INC. | |
By: /s/ Tom Graf | |
Name: Tom Graf | |
Title: Senior Vice President – Investor Relations | |
Date: December 3, 2009 |
EXHIBIT INDEX | |
EXHIBIT | |
NUMBER EXHIBIT | |
99.1 | Press Release Concerning 2010 Outlook Dated December 3, 2009 |
99.2 | Additional slides concerning 2010 guidance presented at Principal Financial Group, |
Inc.’s Investor Conference on December 3, 2009 |
&nb sp; EXHIBIT 99.1 | |
RELEASE: | On receipt |
MEDIA CONTACT: | Jeff Rader, 515-247-7883, rader.jeff@principal.com |
INVESTOR RELATIONS CONTACT: | Tom Graf, 515-235-9500, graf.tom@principal.com |
PRINCIPAL FINANCIAL GROUP, INC. ANNOUNCES OUTLOOK FOR 2010 |
Des Moines, IA (December 3, 2009) – Principal Financial Group, Inc. (NYSE:PFG) today announced |
its outlook for 2010: operating earnings per diluted share (EPS) ranging from $2.45 to $2.75; and net |
income available to common stockholders per diluted share ranging from $1.75 to $2.05.1,2,3,4 |
Guidance for 2010 incorporates certain assumptions, including: a 13 to 15 percent increase in average |
assets under management in 2010 compared to 2009 based on an average S&P 500 Index of 1,150 in |
2010; operating losses for the Corporate segment of $90 million to $110 million; and no share |
repurchase activity. Company guidance contemplates additional scaling back of the Investment Only |
business during 2010, from its present level of approximately 25 percent of general account liabilities |
to approximately 20 percent by year-end 2010. Guidance also contemplates a change in operating |
earnings for Principal International due to a pending change in the company’s economic interest in its |
BrasilPrev joint venture.5Guidance does not contemplate any other activity, other than where a |
definitive agreement has been signed by the company and publicly announced. |
The company also announced that it remains committed to its long-term goals: average annual |
improvement in return on equity (ROE)6of roughly 50 basis points; and 11 to 13 percent average |
annual growth in EPS, reflecting the company’s outlook for continued strength in the U.S. and |
international asset management and accumulation businesses.7 |
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1Guidance speaks only as of the date it is made. The company does not undertake to update annual guidance during the year, but |
may do so if significant changes occur in general business conditions or company operations. |
2EPS, which is not measured in accordance with U.S. generally accepted accounting principles (U.S. GAAP), should not be viewed |
as a substitute for net income available to common stockholders (net income) per diluted share determined in accordance with U.S. |
GAAP. EPS is calculated by dividing operating earnings by weighted average shares outstanding. Operating earnings are |
determined by adjusting net income for the effect of net realized capital gains and losses, as adjusted, and other after-tax |
adjustments. After-tax adjustments have occurred in the past and could recur in future reporting periods. While these items may be |
significant components in understanding and assessing the company's consolidated financial performance, management believes the |
presentation of operating earnings per diluted share enhances the understanding of results of operations by highlighting earnings |
attributable to the normal, ongoing operations of the company's businesses. |
3The range of $1.75 to $2.05 reflects the company's estimate for 2010 mortgage and credit losses only. There are a number of items |
the company does not predict that could significantly affect net income per diluted share, including, but not limited to: mark-to- |
market on derivatives; changes to laws, regulations, or accounting standards; and gains or losses from discontinued operations. |
4The company’s estimate of mortgage and credit losses for 2010 ranges from 65 cents to 75 cents per diluted share. The company’s |
outlook for net income per diluted share is based on the mid-point of that range. |
5As announced on October 27, 2009, the company has signed a Memorandum of Understanding with Banco do Brasil. Following |
completion of all necessary approvals and transactions, the pension and long-term asset accumulation joint venture in Brazil would |
be extended for 23 years and The Principal’s economic interest in the joint venture would change to 25 percent, from 46 percent. |
6Operating return on average equity excluding accumulated other comprehensive income, calculated over the trailing twelve month |
period. |
7Long-term EPS and ROE targets assume domestic equity market performance improvement of roughly two percent per quarter. |
Principal Financial Group, Inc. Announces Outlook for 2010—page 2 |
Forward looking and cautionary statements |
This press release contains forward-looking statements, including, without limitation, statements as to operating |
earnings, net income available to common stockholders, net cash flows, realized and unrealized losses, capital and |
liquidity positions, sales and earnings trends, and management's beliefs, expectations, goals and opinions. The |
company does not undertake to update or revise these statements, which are based on a number of assumptions |
concerning future conditions that may ultimately prove to be inaccurate. Future events and their effects on the |
company may not be those anticipated, and actual results may differ materially from the results anticipated in these |
forward-looking statements. The risks, uncertainties and factors that could cause or contribute to such material |
differences are discussed in the company's annual report on Form 10-K for the year ended December 31, 2008, and |
in company’s quarterly report on Form 10-Q for the quarter ended September 30, 2009, filed by the company with |
the Securities and Exchange Commission, as updated or supplemented from time to time in subsequent filings. |
These risks and uncertainties include, without limitation: adverse capital and credit market conditions that may |
significantly affect the company’s ability to meet liquidity needs, access to capital and cost of capital; a continuation |
of difficult conditions in the global capital markets and the general economy that may materially adversely affect the |
company’s business and results of operations; the actions of the U.S. government, Federal Reserve and other |
governmental and regulatory bodies for purposes of stabilizing the financial markets might not achieve the intended |
effect; the risk from acquiring new businesses, which could result in the impairment of goodwill and/or intangible |
assets recognized at the time of acquisition; impairment of other financial institutions that could adversely affect the |
company; investment risks which may diminish the value of the company’s invested assets and the investment |
returns credited to customers, which could reduce sales, revenues, assets under management and net income; |
requirements to post collateral or make payments related to declines in market value of specified assets may |
adversely affect company liquidity and expose the company to counterparty credit risk; changes in laws, regulations |
or accounting standards that may reduce company profitability; fluctuations in foreign currency exchange rates that |
could reduce company profitability; Principal Financial Group, Inc.’s primary reliance, as a holding company, on |
dividends from its subsidiaries to meet debt payment obligations and regulatory restrictions on the ability of |
subsidiaries to pay such dividends; competitive factors; volatility of financial markets; decrease in ratings; interest |
rate changes; inability to attract and retain sales representatives; international business risks; a pandemic, terrorist |
attack or other catastrophic event; and default of the company’s re-insurers. |
About the Principal Financial Group |
The Principal Financial GroupÒ(The Principal®)8is a leader in offering businesses, individuals and |
institutional clients a wide range of financial products and services, including retirement and investment |
services, life and health insurance, and banking through its diverse family of financial services companies. |
A member of the Fortune 500, the Principal Financial Group has $280.4 billion in assets under |
management9and serves some 18.6 million customers worldwide from offices in Asia, Australia, Europe, |
Latin America and the United States. Principal Financial Group, Inc. is traded on the New York Stock |
Exchange under the ticker symbol PFG. For more information, visitwww.principal.com. |
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8"The Principal Financial Group" and “The Principal” are registered service marks of Principal Financial Services, Inc., a member of the |
Principal Financial Group. |
9As of September 30, 2009 |