Schedule II - Condensed Financial Information of Registrant (Parent Only)

12 Months Ended

Dec. 31, 2011

Schedule II - Condensed Financial Information of Registrant (Parent Only)

Schedule II - Condensed Financial Information of Registrant (Parent Only)

Schedule II — Condensed Financial Information of Registrant (Parent Only)

Statements of Financial Position

	December 31,
	2011			2010
	(in millions)
Assets
Fixed maturities, available-for-sale	$	—		$	199.9
Fixed maturities, trading		268.7			274.9
Cash and cash equivalents		226.7			370.9
Other investments		7.0			5.6
Income taxes receivable		18.6			18.8
Deferred income taxes		22.5			21.6
Amounts receivable from subsidiary		0.9			0.8
Other assets		15.7			13.6
Investment in subsidiary		10,447.1			10,195.1
Total assets	$	11,007.2		$	11,101.2
Liabilities
Amounts payable to subsidiary	$	1.4		$	5.5
Long-term debt		1,351.7			1,351.7
Accrued interest payable		15.4			16.1
Other liabilities		1.7			0.1
Total liabilities		1,370.2			1,373.4
Stockholders' equity
Series A preferred stock, par value $.01 per share with liquidation preference of $100 per share — 3.0 million shares authorized, issued and outstanding in 2011 and 2010		—			—
Series B preferred stock, par value $.01 per share with liquidation preference of $25 per share — 10.0 million shares authorized, issued and outstanding in 2011 and 2010		0.1			0.1
Common stock, par value $.01 per share — 2,500.0 million shares authorized, 450.3 million and 448.5 million shares issued, and 301.1 million and 320.4 million shares outstanding in 2011 and 2010		4.5			4.5
Additional paid-in capital		9,634.7			9,563.8
Retained earnings		5,077.5			4,612.3
Accumulated other comprehensive income		201.9			272.4
Treasury stock, at cost (149.2 million and 128.1 million shares in 2011 and 2010)		(5,281.7	)		(4,725.3	)
Total stockholders' equity attributable to Principal Financial Group, Inc.		9,637.0			9,727.8
Total liabilities and stockholders' equity	$	11,007.2		$	11,101.2

See accompanying notes.

Statements of Operations

	For the year ended December 31,
	2011			2010			2009
	(in millions)
Revenues
Fees and other revenues	$	0.2		$	0.1		$	—
Net investment income (loss)		(12.0	)		33.2			3.6
Net realized capital gains		—			0.7			0.1
Total revenues		(11.8	)		34.0			3.7
Expenses
Other operating costs and expenses		116.0			117.0			90.8
Total expenses		116.0			117.0			90.8
Losses before income taxes		(127.8	)		(83.0	)		(87.1	)
Income tax benefits		(50.4	)		(31.6	)		(34.7	)
Equity in the net income of subsidiaries		792.4			750.7			675.1
Net income attributable to Principal Financial Group, Inc.		715.0			699.3			622.7
Preferred stock dividends		33.0			33.0			33.0
Net income available to common stockholders	$	682.0		$	666.3		$	589.7

See accompanying notes.

Statements of Cash Flows

	For the year ended December 31,
	2011			2010			2009
	(in millions)
Operating activities
Net income	$	715.0		$	699.3		$	622.7
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Equity in the net income of subsidiaries		(792.4	)		(750.7	)		(675.1	)
Net realized capital gains		—			(0.7	)		(0.1	)
Net cash flows for trading securities		21.7			111.1			(349.1	)
Current and deferred income tax benefits		(3.7	)		(4.5	)		(6.9	)
Stock-based compensation		1.6			0.8			1.0
Other		(15.5	)		(26.0	)		(35.1	)
Net cash provided by (used in) operating activities		(73.3	)		29.3			(442.6	)
Investing activities
Available-for-sale securities:
Purchases		(4.4	)		(286.8	)		(187.6	)
Sales		200.0			95.5			4.0
Maturities		4.4			117.9			57.1
Net purchases of property and equipment		—			—			(0.1	)
Net change in other investments		(0.2	)		(0.2	)		0.2
Dividends and returns of capital received from (contributions to) unconsolidated entity		506.5			301.8			(795.9	)
Net cash provided by (used in) investing activities		706.3			228.2			(922.3	)
Financing activities
Issuance of common stock		25.9			20.6			1,123.0
Acquisition of treasury stock		(556.4	)		(2.6	)		(4.1	)
Dividends to common stockholders		(213.7	)		(176.2	)		(159.5	)
Dividends to preferred stockholders		(33.0	)		(33.0	)		(33.0	)
Issuance of long-term debt		—			—			745.1
Net cash provided by (used in) financing activities		(777.2	)		(191.2	)		1,671.5
Net increase (decrease) in cash and cash equivalents		(144.2	)		66.3			306.6
Cash and cash equivalents at beginning of year		370.9			304.6			(2.0	)
Cash and cash equivalents at end of year	$	226.7		$	370.9		$	304.6

See accompanying notes.

Notes to Condensed Financial Statements

(1)   Basis of Presentation

        The accompanying condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto of Principal Financial Group, Inc.

        In the parent company only financial statements, our investments in subsidiaries are stated at cost plus equity in undistributed earnings of subsidiaries.

(2)   Cash Dividends and Returns of Capital Received from (Capital Contributed to) Unconsolidated Entity

        The parent company received cash dividends and returns of capital totaling $506.5 million and $301.8 million in 2011 and 2010, respectively, from its unconsolidated entity and contributed capital of $795.9 million to its unconsolidated entity in 2009.