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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 |
| gains and losses, capital and liquidity positions, sales and earnings trends, and management's beliefs, |
| expectations, goals and opinions. The company does not undertake to update 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; 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 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. |
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| Use of Non-GAAP Financial Measures |
| The company uses a number of non-GAAP financial measures that management believes are useful to investors |
| because they illustrate the performance of normal, ongoing operations, which is important in understanding and |
| evaluating the company’s financial condition and results of operations. They are not, however, a substitute for |
| U.S. GAAP financial measures. Therefore, the company has provided reconciliations of the non-GAAP |
| measures to the most directly comparable U.S. GAAP measure at the end of the release. The company adjusts |
| U.S. GAAP measures for items not directly related to ongoing operations. However, it is possible these |
| adjusting items have occurred in the past and could recur in the future reporting periods. Management also uses |
| non-GAAP measures for goal setting, as a basis for determining employee and senior management |
| awards and compensation, and evaluating performance on a basis comparable to that used by investors |
| and securities analysts. |
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| Earnings Conference Call |
| On Tuesday, May 3, 2011 at 10:00 a.m. (ET), Chairman, President and Chief Executive Officer Larry |
| Zimpleman and Senior Vice President and Chief Financial Officer Terry Lillis will lead a discussion of |
| results, asset quality and capital adequacy during a live conference call, which can be accessed as follows: |
| • | Via live Internet webcast. Please go to www.principal.com/investor at least 10-15 minutes prior to the |
| | start of the call to register, and to download and install any necessary audio software. |
| • | Via telephone by dialing 800-374-1609 (U.S. and Canadian callers) or 706-643-7701 (International |
| | callers) approximately 10 minutes prior to the start of the call. The access code is 54521548. |
