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| new emerging market products and strategies, and further strengthen its well-established multi- |
| boutique model. Finisterre Capital will benefit from access to The Principal’s global presence and |
| strong distribution network, as well as leveraging Principal’s product development expertise and best- |
| practice support infrastructure. |
| The transaction is expected to close early in third quarter, pending regulatory approval. It is |
| part of the Principal Financial Group’s 2011 capital deployment strategy of spending approximately |
| $700 million on executing attractive M&A opportunities and a share repurchase program. Excluding |
| transaction and integration costs, The Principal estimates the acquisition will be EPS neutral in 2011 |
| and accretive in 2012. |
| Sandler O'Neill + Partners advised The Principal on the transaction and Fenchurch Advisory |
| Partners advised Finisterre Capital. |
| For more news and insights from The Principal, connect with us on Twitter at: |
| http://twitter.com/ThePrincipal. |
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| 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 Dec. 31, |
| 2010, 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; continued difficult conditions in the |
| global capital markets and the economy generally that may materially adversely affect the company’s |
| business and results of operations; 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. |
