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EXHIBIT 12.01
PRINCIPAL FINANCIAL GROUP, INC.
COMPUTATION OF EARNINGS TO FIXED CHARGES RATIO
For the
Nine Months
Ended For the
September 30, Year Ended December 31,
-------------------- -------------------------------------------------------
2003 2002 2002 2001 2000 1999 1998
-------- -------- -------- -------- -------- -------- --------
($ in millions)
1. Income from continuing operations
before income taxes ............ $ 791.5 $ 543.3 $ 665.8 $ 464.1 $ 840.2 $ 1,069.1 $ 735.2
2. Interest expense .................. 77.4 71.8 99.2 96.7 116.8 145.4 96.9
3. Interest factor of rental expense . 6.7 7.7 8.9 10.3 16.1 10.5 10.7
4. Net (undistributed) distributed
income from equity investees ... (19.0) 3.5 4.3 (17.4) (27.1) (99.7) (12.9)
-------- -------- -------- -------- -------- -------- --------
5. Earnings before interest credited
on investment products ......... 856.6 626.3 778.2 553.7 946.0 1,125.3 829.9
6. Interest credited on investment
products ....................... 551.4 558.8 743.4 773.1 723.5 709.5 582.7
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7. Earnings .......................... $ 1,408.0 $ 1,185.1 $ 1,521.6 $ 1,326.8 $ 1,669.5 $ 1,834.8 $ 1,412.6
======== ======== ======== ======== ======== ======== ========
8. Interest expense ................. $ 77.4 $ 71.8 $ 99.2 $ 96.7 $ 116.8 $ 145.4 $ 96.9
9. Interest factor of rental expense 6.7 7.7 8.9 10.3 16.1 10.5 10.7
10. Preferred stock dividend
requirements of majority-owned
subsidiaries (non-intercompany) 0.6 0.2 0.4 -- -- -- --
-------- -------- -------- -------- -------- -------- --------
11. Fixed charges before interest
credited on investment products 84.7 79.7 108.5 107.0 132.9 155.9 107.6
12. Interest credited on investment
products ...................... 551.4 558.8 743.4 773.1 723.5 709.5 582.7
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13. Fixed charges .................... $ 636.1 $ 638.5 $ 851.9 $ 880.1 $ 856.4 $ 865.4 $ 690.3
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14. Ratio of earnings to fixed charges
before interest credited on
investment products (Line item
5/Line item 11) ............... 10.1 7.9 7.2 5.2 7.1 7.2 7.7
15. Ratio of earnings to fixed charges
(Line item 7/Line item 13) .... 2.2 1.9 1.8 1.5 1.9 2.1 2.0