Condensed Consolidating Financial Information (Tables)

9 Months Ended

Sep. 30, 2015

Condensed Consolidating Financial Information

Condensed Consolidating Financial Information, Notes Guarantor (Table)

Condensed Consolidating Statements of Financial Position

September 30, 2015

	Principal			Principal Life		Principal Financial						Principal
	Financial			Insurance		Services, Inc. and						Financial
	Group, Inc.			Company		Other Subsidiaries						Group, Inc.
	Parent Only			Only		Combined			Eliminations			Consolidated
	(in millions)
Assets
Fixed maturities, available-for-sale	$	—		$	43,723.9	$	6,433.3		$	(376.6	)	$	49,780.6
Fixed maturities, trading	—			358.7		351.5			—			710.2
Equity securities, available-for-sale	—			101.5		363.8			—			465.3
Equity securities, trading	—			0.3		868.8			—			869.1
Mortgage loans	—			11,527.0		1,174.3			(469.2		)	12,232.1
Real estate	—			6.4		1,408.6			—			1,415.0
Policy loans	—			792.7		30.1			—			822.8
Investment in unconsolidated entities	12,494.0			2,701.4		5,957.4			(20,562.4		)	590.4
Other investments	9.7			3,827.7		1,573.9			(2,731.3		)	2,680.0
Cash and cash equivalents	578.1			928.6		1,420.0			(412.5		)	2,514.2
Accrued investment income	—			500.3		68.2			(1.7		)	566.8
Premiums due and other receivables	—			1,455.3		2,390.3			(2,444.0		)	1,401.6
Deferred acquisition costs	—			2,925.9		219.1			—			3,145.0
Property and equipment	—			530.6		81.0			—			611.6
Goodwill	—			54.3		950.9			—			1,005.2
Other intangibles	—			24.9		1,374.0			—			1,398.9
Separate account assets	—			92,088.8		41,957.0			—			134,045.8
Other assets	452.7			913.8		3,093.7			(3,349.4		)	1,110.8
Total assets	$	13,534.5		$	162,462.1	$	69,715.9		$	(30,347.1	)	$	215,365.4
Liabilities
Contractholder funds	$	—		$	32,593.0	$	2,838.1		$	(315.9	)	$	35,115.2
Future policy benefits and claims	—			21,564.0		4,461.2			(503.5		)	25,521.7
Other policyholder funds	—			737.9		82.6			(1.0		)	819.5
Short-term debt	—			—		221.6			—			221.6
Long-term debt	3,247.9			—		489.9			(451.7		)	3,286.1
Income taxes currently payable	—			10.1		117.2			(110.6		)	16.7
Deferred income taxes	—			465.9		1,030.2			(617.3		)	878.8
Separate account liabilities	—			92,088.8		41,957.0			—			134,045.8
Other liabilities	666.3			6,480.9		5,958.8			(7,409.8		)	5,696.2
Total liabilities	3,914.2			153,940.6		57,156.6			(9,409.8		)	205,601.6
Redeemable noncontrolling interest	—			—		78.0			—			78.0
Stockholders’ equity
Common stock	4.7			2.5		—			(2.5		)	4.7
Additional paid-in capital	9,524.2			5,322.2		8,984.8			(14,307.0		)	9,524.2
Retained earnings	6,734.7			2,289.7		3,504.1			(5,793.8		)	6,734.7
Accumulated other comprehensive income (loss)	(524.4		)	907.1		(77.8		)	(829.3		)	(524.4		)
Treasury stock, at cost	(6,118.9		)	—		—			—			(6,118.9		)
Total stockholders’ equity attributable to PFG	9,620.3			8,521.5		12,411.1			(20,932.6		)	9,620.3
Noncontrolling interest	—			—		70.2			(4.7		)	65.5
Total stockholders’ equity	9,620.3			8,521.5		12,481.3			(20,937.3		)	9,685.8
Total liabilities and stockholders’ equity	$	13,534.5		$	162,462.1	$	69,715.9		$	(30,347.1	)	$	215,365.4

Condensed Consolidating Statements of Financial Position

December 31, 2014

	Principal			Principal Life		Principal Financial					Principal
	Financial			Insurance		Services, Inc. and					Financial
	Group, Inc.			Company		Other Subsidiaries					Group, Inc.
	Parent Only			Only		Combined		Eliminations			Consolidated
	(in millions)
Assets
Fixed maturities, available-for-sale	$	—		$	43,649.7	$	6,411.6	$	(390.5	)	$	49,670.8
Fixed maturities, trading	—			298.5		306.1		—			604.6
Equity securities, available-for-sale	—			108.9		14.1		—			123.0
Equity securities, trading	—			0.3		839.9		—			840.2
Mortgage loans	—			10,972.6		1,188.6		(349.6		)	11,811.6
Real estate	—			7.0		1,337.6		—			1,344.6
Policy loans	—			799.0		30.2		—			829.2
Investment in unconsolidated entities	12,446.5			2,787.9		5,745.7		(20,164.3		)	815.8
Other investments	9.5			3,416.7		1,578.5		(2,610.7		)	2,394.0
Cash and cash equivalents	412.4			602.7		1,253.6		(404.8		)	1,863.9
Accrued investment income	—			449.2		58.1		(1.4		)	505.9
Premiums due and other receivables	—			1,237.4		2,165.6		(2,190.0		)	1,213.0
Deferred acquisition costs	—			2,754.6		238.4		—			2,993.0
Property and equipment	—			505.8		84.4		—			590.2
Goodwill	—			54.3		953.1		—			1,007.4
Other intangibles	—			25.7		1,297.8		—			1,323.5
Separate account assets	—			94,328.4		45,744.4		—			140,072.8
Other assets	450.7			873.2		2,768.6		(3,009.0		)	1,083.5
Total assets	$	13,319.1		$	162,871.9	$	72,016.3	$	(29,120.3	)	$	219,087.0
Liabilities
Contractholder funds	$	—		$	33,428.3	$	1,607.5	$	(309.1	)	$	34,726.7
Future policy benefits and claims	—			19,768.1		4,718.2		(449.7		)	24,036.6
Other policyholder funds	—			742.8		70.4		(0.5		)	812.7
Short-term debt	—			—		28.0		—			28.0
Long-term debt	2,448.9			—		417.5		(335.2		)	2,531.2
Income taxes currently payable	—			—		83.1		(71.6		)	11.5
Deferred income taxes	—			629.9		1,022.5		(617.1		)	1,035.3
Separate account liabilities	—			94,328.4		45,744.4		—			140,072.8
Other liabilities	686.2			5,793.0		5,845.5		(6,782.5		)	5,542.2
Total liabilities	3,135.1			154,690.5		59,537.1		(8,565.7		)	208,797.0
Redeemable noncontrolling interest	—			—		58.0		—			58.0
Stockholders’ equity
Series A preferred stock	—			—		—		—			—
Series B preferred stock	0.1			—		—		—			0.1
Common stock	4.6			2.5		—		(2.5		)	4.6
Additional paid-in capital	9,945.5			5,275.0		8,964.2		(14,239.2		)	9,945.5
Retained earnings	6,114.1			1,817.2		2,858.6		(4,675.8		)	6,114.1
Accumulated other comprehensive income	50.4			1,086.7		545.9		(1,632.6		)	50.4
Treasury stock, at cost	(5,930.7		)	—		—		—			(5,930.7		)
Total stockholders’ equity attributable to PFG	10,184.0			8,181.4		12,368.7		(20,550.1		)	10,184.0
Noncontrolling interest	—			—		52.5		(4.5		)	48.0
Total stockholders’ equity	10,184.0			8,181.4		12,421.2		(20,554.6		)	10,232.0
Total liabilities and stockholders’ equity	$	13,319.1		$	162,871.9	$	72,016.3	$	(29,120.3	)	$	219,087.0

Condensed Consolidating Statements of Operations

For the nine months ended September 30, 2015

	Principal			Principal Life			Principal Financial						Principal
	Financial			Insurance			Services, Inc. and						Financial
	Group, Inc.			Company			Other Subsidiaries						Group, Inc.
	Parent Only			Only			Combined			Eliminations			Consolidated
	(in millions)
Revenues
Premiums and other considerations	$	—		$	3,885.3		$	270.6		$	—		$	4,155.9
Fees and other revenues	—			1,522.0			1,523.9			(301.7		)	2,744.2
Net investment income	1.3			1,606.8			1,212.0			(552.8		)	2,267.3
Net realized capital gains (losses), excluding impairment losses on available-for-sale securities	—			50.4			(39.3		)	—			11.1
Net other-than-temporary impairment recoveries on available-for-sale securities	—			6.9			—			—			6.9
Other-than-temporary impairment losses on fixed maturities, available-for-sale reclassified from other comprehensive income	—			(27.9		)	(0.1		)	—			(28.0		)
Net impairment losses on available-for-sale securities	—			(21.0		)	(0.1		)	—			(21.1		)
Net realized capital gains (losses)	—			29.4			(39.4		)	—			(10.0		)
Total revenues	1.3			7,043.5			2,967.1			(854.5		)	9,157.4
Expenses
Benefits, claims and settlement expenses	—			4,685.3			483.8			(8.6		)	5,160.5
Dividends to policyholders	—			123.5			—			—			123.5
Operating expenses	128.5			1,658.7			1,216.9			(252.5		)	2,751.6
Total expenses	128.5			6,467.5			1,700.7			(261.1		)	8,035.6
Income (loss) before income taxes	(127.2		)	576.0			1,266.4			(593.4		)	1,121.8
Income taxes (benefits)	(52.5		)	106.0			74.4			(1.0		)	126.9
Equity in the net income (loss) of subsidiaries	1,055.1			262.6			(127.5		)	(1,190.2		)	—
Net income	980.4			732.6			1,064.5			(1,782.6		)	994.9
Net income attributable to noncontrolling interest	—			—			14.5			—			14.5
Net income attributable to PFG	980.4			732.6			1,050.0			(1,782.6		)	980.4
Preferred stock dividends	16.5			—			—			—			16.5
Excess of redemption value over carrying value of preferred shares redeemed	8.2			—			—			—			8.2
Net income available to common stockholders	$	955.7		$	732.6		$	1,050.0		$	(1,782.6	)	$	955.7
Net income	$	980.4		$	732.6		$	1,064.5		$	(1,782.6	)	$	994.9
Other comprehensive loss	(633.8		)	(181.1		)	(606.7		)	838.1			(583.5		)
Comprehensive income	$	346.6		$	551.5		$	457.8		$	(944.5	)	$	411.4

Condensed Consolidating Statements of Operations

For the nine months ended September 30, 2014

	Principal			Principal Life			Principal Financial						Principal
	Financial			Insurance			Services, Inc. and						Financial
	Group, Inc.			Company			Other Subsidiaries						Group, Inc.
	Parent Only			Only			Combined			Eliminations			Consolidated
							(in millions)
Revenues
Premiums and other considerations	$	—		$	2,200.5		$	314.3		$	—		$	2,514.8
Fees and other revenues	—			1,407.5			1,451.5			(289.3		)	2,569.7
Net investment income	0.4			1,719.4			1,260.1			(535.8		)	2,444.1
Net realized capital gains (losses), excluding impairment losses on available-for-sale securities	—			674.1			(569.1		)	—			105.0
Net other-than-temporary impairment (losses) recoveries on available-for-sale securities	—			27.7			(9.2		)	—			18.5
Other-than-temporary impairment losses on fixed maturities, available-for-sale reclassified to (from) other comprehensive income	—			(84.5		)	2.0			—			(82.5		)
Net impairment losses on available-for-sale securities	—			(56.8		)	(7.2		)	—			(64.0		)
Net realized capital gains (losses)	—			617.3			(576.3		)	—			41.0
Total revenues	0.4			5,944.7			2,449.6			(825.1		)	7,569.6
Expenses
Benefits, claims and settlement expenses	—			3,083.8			534.5			(8.6		)	3,609.7
Dividends to policyholders	—			134.5			—			—			134.5
Operating expenses	106.8			1,624.3			1,156.4			(239.8		)	2,647.7
Total expenses	106.8			4,842.6			1,690.9			(248.4		)	6,391.9
Income (loss) before income taxes	(106.4		)	1,102.1			758.7			(576.7		)	1,177.7
Income taxes (benefits)	(42.7		)	260.6			65.3			(1.6		)	281.6
Equity in the net income (loss) of subsidiaries	929.1			(125.0		)	266.4			(1,070.5		)	—
Net income	865.4			716.5			959.8			(1,645.6		)	896.1
Net income attributable to noncontrolling interest	—			—			30.7			—			30.7
Net income attributable to PFG	865.4			716.5			929.1			(1,645.6		)	865.4
Preferred stock dividends	24.7			—			—			—			24.7
Net income available to common stockholders	$	840.7		$	716.5		$	929.1		$	(1,645.6	)	$	840.7
Net income	$	865.4		$	716.5		$	959.8		$	(1,645.6	)	$	896.1
Other comprehensive income	129.6			334.8			275.7			(550.0		)	190.1
Comprehensive income	$	995.0		$	1,051.3		$	1,235.5		$	(2,195.6	)	$	1,086.2

Condensed Consolidating Statements of Cash Flows

For the nine months ended September 30, 2015

	Principal			Principal Life			Principal Financial						Principal
	Financial			Insurance			Services, Inc. and						Financial
	Group, Inc.			Company			Other Subsidiaries						Group, Inc.
	Parent Only			Only			Combined			Eliminations			Consolidated
							(in millions)
Operating activities
Net cash provided by (used in) operating activities	$	(40.4	)	$	3,038.3		$	316.7		$	8.4		$	3,323.0
Investing activities
Available-for-sale securities:
Purchases	—			(6,241.4		)	(811.3		)	0.1			(7,052.6		)
Sales	—			834.3			576.5			—			1,410.8
Maturities	—			4,436.6			583.9			—			5,020.5
Mortgage loans acquired or originated	—			(1,573.8		)	(246.5		)	162.3			(1,658.0		)
Mortgage loans sold or repaid	—			1,011.2			205.1			(41.0		)	1,175.3
Real estate acquired	—			(0.3		)	(255.5		)	—			(255.8		)
Net purchases of property and equipment	—			(77.7		)	(18.6		)	—			(96.3		)
Purchases of interests in subsidiaries, net of cash acquired	—			—			(293.7		)	—			(293.7		)
Dividends and returns of capital received from (contributed to) unconsolidated entities	425.5			(1.5		)	225.6			(649.6		)	—
Net change in other investments	1.5			169.7			(167.1		)	(21.1		)	(17.0		)
Net cash provided by (used in) investing activities	427.0			(1,442.9		)	(201.6		)	(549.3		)	(1,766.8		)
Financing activities
Issuance of common stock	71.5			—			—			—			71.5
Acquisition of treasury stock	(188.2		)	—			—			—			(188.2		)
Proceeds from financing element derivatives	—			0.2			—			—			0.2
Payments for financing element derivatives	—			(60.9		)	—			—			(60.9		)
Excess tax benefits from share-based payment arrangements	0.7			5.5			9.0			—			15.2
Purchase of subsidiary shares from noncontrolling interest	—			—			(23.1		)	0.6			(22.5		)
Sale of subsidiary shares to noncontrolling interest	—			—			0.6			(0.6		)	—
Dividends to common stockholders	(330.2		)	—			—			—			(330.2		)
Dividends to preferred stockholders	(16.5		)	—			—			—			(16.5		)
Preferred stock redemption	(550.0		)	—			—			—			(550.0		)
Issuance of long-term debt	791.8			—			167.2			(158.6		)	800.4
Principal repayments of long-term debt	—			—			(94.8		)	42.2			(52.6		)
Net proceeds from short-term borrowings	—			—			197.2			—			197.2
Dividends and capital paid to parent	—			(225.6		)	(424.0		)	649.6			—
Investment contract deposits	—			3,988.0			202.3			—			4,190.3
Investment contract withdrawals	—			(4,966.3		)	(8.0		)	—			(4,974.3		)
Net increase in banking operation deposits	—			—			24.9			—			24.9
Other	—			(10.4		)	—			—			(10.4		)
Net cash provided by (used in) financing activities	(220.9		)	(1,269.5		)	51.3			533.2			(905.9		)
Net increase in cash and cash equivalents	165.7			325.9			166.4			(7.7		)	650.3
Cash and cash equivalents at beginning of period	412.4			602.7			1,253.6			(404.8		)	1,863.9
Cash and cash equivalents at end of period	$	578.1		$	928.6		$	1,420.0		$	(412.5	)	$	2,514.2

Condensed Consolidating Statements of Cash Flows

For the nine months ended September 30, 2014

	Principal			Principal Life			Principal Financial						Principal
	Financial			Insurance			Services, Inc. and						Financial
	Group, Inc.			Company			Other Subsidiaries						Group, Inc.
	Parent Only			Only			Combined			Eliminations			Consolidated
							(in millions)
Operating activities
Net cash provided by (used in) operating activities	$	(42.3	)	$	1,729.9		$	504.6		$	5.4		$	2,197.6
Investing activities
Available-for-sale securities:
Purchases	—			(5,902.2		)	(705.1		)	11.3			(6,596.0		)
Sales	—			1,559.7			311.8			—			1,871.5
Maturities	—			4,149.4			349.9			—			4,499.3
Mortgage loans acquired or originated	—			(1,620.6		)	(118.1		)	124.5			(1,614.2		)
Mortgage loans sold or repaid	—			1,291.5			137.6			(109.3		)	1,319.8
Real estate acquired	—			(0.6		)	(246.2		)	—			(246.8		)
Net purchases of property and equipment	—			(90.3		)	(27.2		)	—			(117.5		)
Dividends and returns of capital received from unconsolidated entities	517.5			263.5			467.5			(1,248.5		)	—
Net change in other investments	(2.0		)	(83.6		)	34.9			107.3			56.6
Net cash provided by (used in) investing activities	515.5			(433.2		)	205.1			(1,114.7		)	(827.3		)
Financing activities
Issuance of common stock	69.6			(0.2		)	0.2			—			69.6
Acquisition of treasury stock	(222.5		)	—			—			—			(222.5		)
Proceeds from financing element derivatives	—			14.9			—			—			14.9
Payments for financing element derivatives	—			(41.5		)	—			—			(41.5		)
Excess tax benefits from share-based payment arrangements	0.3			3.7			4.6			—			8.6
Purchase of subsidiary shares from noncontrolling interest	—			—			(222.7		)	0.3			(222.4		)
Sale of subsidiary shares to noncontrolling interest	—			—			0.3			(0.3		)	—
Dividends to common stockholders	(276.7		)	—			—			—			(276.7		)
Dividends to preferred stockholders	(24.7		)	—			—			—			(24.7		)
Issuance of long-term debt	—			—			138.9			(102.4		)	36.5
Principal repayments of long-term debt	—			(100.0		)	(87.4		)	87.1			(100.3		)
Net repayments of short-term borrowings	—			—			(20.5		)	—			(20.5		)
Dividends and capital paid to parent	—			(467.5		)	(781.0		)	1,248.5			—
Investment contract deposits	—			3,978.2			206.1			—			4,184.3
Investment contract withdrawals	—			(5,857.3		)	(7.0		)	—			(5,864.3		)
Net decrease in banking operation deposits	—			—			(2.3		)	—			(2.3		)
Other	—			(10.1		)	0.1			—			(10.0		)
Net cash used in financing activities	(454.0		)	(2,479.8		)	(770.7		)	1,233.2			(2,471.3		)
Net increase (decrease) in cash and cash equivalents	19.2			(1,183.1		)	(61.0		)	123.9			(1,101.0		)
Cash and cash equivalents at beginning of period	131.5			1,332.2			894.5			13.6			2,371.8
Cash and cash equivalents at end of period	$	150.7		$	149.1		$	833.5		$	137.5		$	1,270.8

Condensed Consolidating Financial Information, Shelf Registration Guarantor (Table)

Condensed Consolidating Statements of Financial Position

September 30, 2015

							Principal Life
	Principal			Principal			Insurance Company						Principal
	Financial			Financial			and Other						Financial
	Group, Inc.			Services, Inc.			Subsidiaries						Group, Inc.
	Parent Only			Only			Combined			Eliminations			Consolidated
							(in millions)
Assets
Fixed maturities, available-for-sale	$	—		$	—		$	49,780.6		$	—		$	49,780.6
Fixed maturities, trading	—			—			710.2			—			710.2
Equity securities, available-for-sale	—			—			465.3			—			465.3
Equity securities, trading	—			4.2			864.9			—			869.1
Mortgage loans	—			—			12,232.1			—			12,232.1
Real estate	—			—			1,415.0			—			1,415.0
Policy loans	—			—			822.8			—			822.8
Investment in unconsolidated entities	12,494.0			12,498.9			546.2			(24,948.7		)	590.4
Other investments	9.7			176.3			2,494.0			—			2,680.0
Cash and cash equivalents	578.1			577.2			2,450.0			(1,091.1		)	2,514.2
Accrued investment income	—			0.1			566.7			—			566.8
Premiums due and other receivables	—			13.1			1,544.5			(156.0		)	1,401.6
Deferred acquisition costs	—			—			3,145.0			—			3,145.0
Property and equipment	—			—			611.6			—			611.6
Goodwill	—			—			1,005.2			—			1,005.2
Other intangibles	—			—			1,398.9			—			1,398.9
Separate account assets	—			—			134,045.8			—			134,045.8
Other assets	452.7			232.1			1,091.8			(665.8		)	1,110.8
Total assets	$	13,534.5		$	13,501.9		$	215,190.6		$	(26,861.6	)	$	215,365.4
Liabilities
Contractholder funds	$	—		$	—		$	35,115.2		$	—		$	35,115.2
Future policy benefits and claims	—			—			25,521.7			—			25,521.7
Other policyholder funds	—			—			819.5			—			819.5
Short-term debt	—			—			367.4			(145.8		)	221.6
Long-term debt	3,247.9			156.0			38.2			(156.0		)	3,286.1
Income taxes currently payable	—			—			83.3			(66.6		)	16.7
Deferred income taxes	—			1.0			1,471.5			(593.7		)	878.8
Separate account liabilities	—			—			134,045.8			—			134,045.8
Other liabilities	666.3			933.8			5,002.7			(906.6		)	5,696.2
Total liabilities	3,914.2			1,090.8			202,465.3			(1,868.7		)	205,601.6
Redeemable noncontrolling interest	—			—			78.0			—			78.0
Stockholders’ equity
Common stock	4.7			—			17.8			(17.8		)	4.7
Additional paid-in capital	9,524.2			8,984.8			9,847.5			(18,832.3		)	9,524.2
Retained earnings	6,734.7			3,504.1			2,930.6			(6,434.7		)	6,734.7
Accumulated other comprehensive loss	(524.4		)	(77.8		)	(212.1		)	289.9			(524.4		)
Treasury stock, at cost	(6,118.9		)	—			(2.0		)	2.0			(6,118.9		)
Total stockholders’ equity attributable to PFG	9,620.3			12,411.1			12,581.8			(24,992.9		)	9,620.3
Noncontrolling interest	—			—			65.5			—			65.5
Total stockholders’ equity	9,620.3			12,411.1			12,647.3			(24,992.9		)	9,685.8
Total liabilities and stockholders’ equity	$	13,534.5		$	13,501.9		$	215,190.6		$	(26,861.6	)	$	215,365.4

Condensed Consolidating Statements of Financial Position

December 31, 2014

						Principal Life
	Principal			Principal		Insurance Company						Principal
	Financial			Financial		and Other						Financial
	Group, Inc.			Services, Inc.		Subsidiaries						Group, Inc.
	Parent Only			Only		Combined			Eliminations			Consolidated
						(in millions)
Assets
Fixed maturities, available-for-sale	$	—		$	—	$	49,670.8		$	—		$	49,670.8
Fixed maturities, trading	—			—		604.6			—			604.6
Equity securities, available-for-sale	—			—		123.0			—			123.0
Equity securities, trading	—			—		840.2			—			840.2
Mortgage loans	—			—		11,811.6			—			11,811.6
Real estate	—			—		1,344.6			—			1,344.6
Policy loans	—			—		829.2			—			829.2
Investment in unconsolidated entities	12,446.5			12,042.5		781.9			(24,455.1		)	815.8
Other investments	9.5			128.2		2,256.3			—			2,394.0
Cash and cash equivalents	412.4			907.2		1,598.0			(1,053.7		)	1,863.9
Accrued investment income	—			—		505.9			—			505.9
Premiums due and other receivables	—			0.3		1,211.8			0.9			1,213.0
Deferred acquisition costs	—			—		2,993.0			—			2,993.0
Property and equipment	—			—		590.2			—			590.2
Goodwill	—			—		1,007.4			—			1,007.4
Other intangibles	—			—		1,323.5			—			1,323.5
Separate account assets	—			—		140,072.8			—			140,072.8
Other assets	450.7			167.6		1,117.7			(652.5		)	1,083.5
Total assets	$	13,319.1		$	13,245.8	$	218,682.5		$	(26,160.4	)	$	219,087.0
Liabilities
Contractholder funds	$	—		$	—	$	34,726.7		$	—		$	34,726.7
Future policy benefits and claims	—			—		24,036.6			—			24,036.6
Other policyholder funds	—			—		812.7			—			812.7
Short-term debt	—			—		182.5			(154.5		)	28.0
Long-term debt	2,448.9			—		82.3			—			2,531.2
Income taxes currently payable	—			4.3		54.1			(46.9		)	11.5
Deferred income taxes	—			—		1,626.1			(590.8		)	1,035.3
Separate account liabilities	—			—		140,072.8			—			140,072.8
Other liabilities	686.2			872.8		4,862.4			(879.2		)	5,542.2
Total liabilities	3,135.1			877.1		206,456.2			(1,671.4		)	208,797.0
Redeemable noncontrolling interest	—			—		58.0			—			58.0
Stockholders’ equity
Series A preferred stock	—			—		—			—			—
Series B preferred stock	0.1			—		—			—			0.1
Common stock	4.6			—		17.8			(17.8		)	4.6
Additional paid-in capital	9,945.5			8,964.2		9,341.0			(18,305.2		)	9,945.5
Retained earnings	6,114.1			2,858.6		2,283.2			(5,141.8		)	6,114.1
Accumulated other comprehensive income	50.4			545.9		480.3			(1,026.2		)	50.4
Treasury stock, at cost	(5,930.7		)	—		(2.0		)	2.0			(5,930.7		)
Total stockholders’ equity attributable to PFG	10,184.0			12,368.7		12,120.3			(24,489.0		)	10,184.0
Noncontrolling interest	—			—		48.0			—			48.0
Total stockholders’ equity	10,184.0			12,368.7		12,168.3			(24,489.0		)	10,232.0
Total liabilities and stockholders’ equity	$	13,319.1		$	13,245.8	$	218,682.5		$	(26,160.4	)	$	219,087.0

Condensed Consolidating Statements of Operations

For the nine months ended September 30, 2015

							Principal Life
	Principal			Principal			Insurance						Principal
	Financial			Financial			Company and						Financial
	Group, Inc.			Services, Inc.			Other Subsidiaries						Group, Inc.
	Parent Only			Only			Combined			Eliminations			Consolidated
							(in millions)
Revenues
Premiums and other considerations	$	—		$	—		$	4,155.9		$	—		$	4,155.9
Fees and other revenues	—			0.2			2,744.7			(0.7		)	2,744.2
Net investment income	1.3			—			2,258.6			7.4			2,267.3
Net realized capital gains (losses), excluding impairment losses on available-for-sale securities	—			(4.1		)	16.8			(1.6		)	11.1
Net other-than-temporary impairment recoveries on available-for-sale securities	—			—			6.9			—			6.9
Other-than-temporary impairment losses on fixed maturities, available-for-sale reclassified from other comprehensive income	—			—			(28.0		)	—			(28.0		)
Net impairment losses on available-for-sale securities	—			—			(21.1		)	—			(21.1		)
Net realized capital losses	—			(4.1		)	(4.3		)	(1.6		)	(10.0		)
Total revenues	1.3			(3.9		)	9,154.9			5.1			9,157.4
Expenses
Benefits, claims and settlement expenses	—			—			5,160.5			—			5,160.5
Dividends to policyholders	—			—			123.5			—			123.5
Operating expenses	128.5			9.3			2,613.8			—			2,751.6
Total expenses	128.5			9.3			7,897.8			—			8,035.6
Income (loss) before income taxes	(127.2		)	(13.2		)	1,257.1			5.1			1,121.8
Income taxes (benefits)	(52.5		)	0.2			179.2			—			126.9
Equity in the net income of subsidiaries	1,055.1			1,063.4			—			(2,118.5		)	—
Net income	980.4			1,050.0			1,077.9			(2,113.4		)	994.9
Net income attributable to noncontrolling interest	—			—			14.5			—			14.5
Net income attributable to PFG	980.4			1,050.0			1,063.4			(2,113.4		)	980.4
Preferred stock dividends	16.5			—			—			—			16.5
Excess of redemption value over carrying value of preferred shares redeemed	8.2			—			—			—			8.2
Net income available to common stockholders	$	955.7		$	1,050.0		$	1,063.4		$	(2,113.4	)	$	955.7
Net income	$	980.4		$	1,050.0		$	1,077.9		$	(2,113.4	)	$	994.9
Other comprehensive loss	(633.8		)	(621.7		)	(700.7		)	1,372.7			(583.5		)
Comprehensive income	$	346.6		$	428.3		$	377.2		$	(740.7	)	$	411.4

Condensed Consolidating Statements of Operations

For the nine months ended September 30, 2014

							Principal Life
	Principal			Principal			Insurance						Principal
	Financial			Financial			Company and						Financial
	Group, Inc.			Services, Inc.			Other Subsidiaries						Group, Inc.
	Parent Only			Only			Combined			Eliminations			Consolidated
	(in millions)
Revenues
Premiums and other considerations	$	—		$	—		$	2,514.8		$	—		$	2,514.8
Fees and other revenues	—			0.3			2,569.4			—			2,569.7
Net investment income	0.4			0.5			2,443.2			—			2,444.1
Net realized capital gains, excluding impairment losses on available-for-sale securities	—			—			105.0			—			105.0
Net other-than-temporary impairment recoveries on available-for-sale securities	—			—			18.5			—			18.5
Other-than-temporary impairment losses on fixed maturities, available-for-sale reclassified from other comprehensive income	—			—			(82.5		)	—			(82.5		)
Net impairment losses on available-for-sale securities	—			—			(64.0		)	—			(64.0		)
Net realized capital gains	—			—			41.0			—			41.0
Total revenues	0.4			0.8			7,568.4			—			7,569.6
Expenses
Benefits, claims and settlement expenses	—			—			3,609.7			—			3,609.7
Dividends to policyholders	—			—			134.5			—			134.5
Operating expenses	106.8			3.1			2,537.8			—			2,647.7
Total expenses	106.8			3.1			6,282.0			—			6,391.9
Income (loss) before income taxes	(106.4		)	(2.3		)	1,286.4			—			1,177.7
Income taxes (benefits)	(42.7		)	(3.2		)	327.5			—			281.6
Equity in the net income of subsidiaries	929.1			928.2			—			(1,857.3		)	—
Net income	865.4			929.1			958.9			(1,857.3		)	896.1
Net income attributable to noncontrolling interest	—			—			30.7			—			30.7
Net income attributable to PFG	865.4			929.1			928.2			(1,857.3		)	865.4
Preferred stock dividends	24.7			—			—			—			24.7
Net income available to common stockholders	$	840.7		$	929.1		$	928.2		$	(1,857.3	)	$	840.7
Net income	$	865.4		$	929.1		$	958.9		$	(1,857.3	)	$	896.1
Other comprehensive income	129.6			183.5			163.9			(286.9		)	190.1
Comprehensive income	$	995.0		$	1,112.6		$	1,122.8		$	(2,144.2	)	$	1,086.2

Condensed Consolidating Statements of Cash Flows

For the nine months ended September 30, 2015

							Principal Life
	Principal			Principal			Insurance						Principal
	Financial			Financial			Company and						Financial
	Group, Inc.			Services, Inc.			Other Subsidiaries						Group, Inc.
	Parent Only			Only			Combined			Eliminations			Consolidated
	(in millions)
Operating activities
Net cash provided by (used in) operating activities	$	(40.4	)	$	185.2		$	3,462.8		$	(284.6	)	$	3,323.0
Investing activities
Available-for-sale securities:
Purchases	—			—			(7,052.6		)	—			(7,052.6		)
Sales	—			—			1,410.8			—			1,410.8
Maturities	—			—			5,020.5			—			5,020.5
Mortgage loans acquired or originated	—			—			(1,658.0		)	—			(1,658.0		)
Mortgage loans sold or repaid	—			—			1,175.3			—			1,175.3
Real estate acquired	—			—			(255.8		)	—			(255.8		)
Net purchases of property and equipment	—			—			(96.3		)	—			(96.3		)
Purchases of interests in subsidiaries, net of cash acquired	—			—			(293.7		)	—			(293.7		)
Dividends and returns of capital received from unconsolidated entities	425.5			212.7			—			(638.2		)	—
Net change in other investments	1.5			(458.4		)	45.5			394.4			(17.0		)
Net cash provided by (used in) investing activities	427.0			(245.7		)	(1,704.3		)	(243.8		)	(1,766.8		)
Financing activities
Issuance of common stock	71.5			—			—			—			71.5
Acquisition of treasury stock	(188.2		)	—			—			—			(188.2		)
Proceeds from financing element derivatives	—			—			0.2			—			0.2
Payments for financing element derivatives	—			—			(60.9		)	—			(60.9		)
Excess tax benefits from share-based payment arrangements	0.7			—			14.5			—			15.2
Purchase of subsidiary shares from noncontrolling interest	—			—			(22.5		)	—			(22.5		)
Dividends to common stockholders	(330.2		)	—			—			—			(330.2		)
Dividends to preferred stockholders	(16.5		)	—			—			—			(16.5		)
Preferred stock redemption	(550.0		)	—			—			—			(550.0		)
Issuance of long-term debt	791.8			156.0			50.9			(198.3		)	800.4
Principal repayments of long-term debt	—			—			(94.9		)	42.3			(52.6		)
Net proceeds from short-term borrowings	—			—			188.4			8.8			197.2
Dividends and capital paid to parent	—			(425.5		)	(212.7		)	638.2			—
Investment contract deposits	—			—			4,190.3			—			4,190.3
Investment contract withdrawals	—			—			(4,974.3		)	—			(4,974.3		)
Net increase in banking operation deposits	—			—			24.9			—			24.9
Other	—			—			(10.4		)	—			(10.4		)
Net cash used in financing activities	(220.9		)	(269.5		)	(906.5		)	491.0			(905.9		)
Net increase (decrease) in cash and cash equivalents	165.7			(330.0		)	852.0			(37.4		)	650.3
Cash and cash equivalents at beginning of period	412.4			907.2			1,598.0			(1,053.7		)	1,863.9
Cash and cash equivalents at end of period	$	578.1		$	577.2		$	2,450.0		$	(1,091.1	)	$	2,514.2

Condensed Consolidating Statements of Cash Flows

For the nine months ended September 30, 2014

							Principal Life
	Principal			Principal			Insurance						Principal
	Financial			Financial			Company and						Financial
	Group, Inc.			Services, Inc.			Other Subsidiaries						Group, Inc.
	Parent Only			Only			Combined			Eliminations			Consolidated
	(in millions)
Operating activities
Net cash provided by (used in) operating activities	$	(42.3	)	$	(373.5	)	$	2,335.4		$	278.0		$	2,197.6
Investing activities
Available-for-sale securities:
Purchases	—			—			(6,596.0		)	—			(6,596.0		)
Sales	—			—			1,871.5			—			1,871.5
Maturities	—			—			4,499.3			—			4,499.3
Mortgage loans acquired or originated	—			—			(1,614.2		)	—			(1,614.2		)
Mortgage loans sold or repaid	—			—			1,319.8			—			1,319.8
Real estate acquired	—			—			(246.8		)	—			(246.8		)
Net purchases of property and equipment	—			—			(117.5		)	—			(117.5		)
Dividends and returns of capital received from unconsolidated entities	517.5			714.0			—			(1,231.5		)	—
Net change in other investments	(2.0		)	(98.7		)	185.2			(27.9		)	56.6
Net cash provided by (used in) investing activities	515.5			615.3			(698.7		)	(1,259.4		)	(827.3		)
Financing activities
Issuance of common stock	69.6			—			—			—			69.6
Acquisition of treasury stock	(222.5		)	—			—			—			(222.5		)
Proceeds from financing element derivatives	—			—			14.9			—			14.9
Payments for financing element derivatives	—			—			(41.5		)	—			(41.5		)
Excess tax benefits from share-based payment arrangements	0.3			—			8.3			—			8.6
Purchase of subsidiary shares from noncontrolling interest	—			—			(222.4		)	—			(222.4		)
Dividends to common stockholders	(276.7		)	—			—			—			(276.7		)
Dividends to preferred stockholders	(24.7		)	—			—			—			(24.7		)
Issuance of long-term debt	—			—			36.5			—			36.5
Principal repayments of long-term debt	—			—			(100.3		)	—			(100.3		)
Net repayments of short-term borrowings	—			—			(113.5		)	93.0			(20.5		)
Dividends and capital paid to parent	—			(517.5		)	(714.0		)	1,231.5			—
Investment contract deposits	—			—			4,184.3			—			4,184.3
Investment contract withdrawals	—			—			(5,864.3		)	—			(5,864.3		)
Net decrease in banking operation deposits	—			—			(2.3		)	—			(2.3		)
Other	—			—			(10.0		)	—			(10.0		)
Net cash used in financing activities	(454.0		)	(517.5		)	(2,824.3		)	1,324.5			(2,471.3		)
Net increase (decrease) in cash and cash equivalents	19.2			(275.7		)	(1,187.6		)	343.1			(1,101.0		)
Cash and cash equivalents at beginning of period	131.5			688.7			2,384.0			(832.4		)	2,371.8
Cash and cash equivalents at end of period	$	150.7		$	413.0		$	1,196.4		$	(489.3	)	$	1,270.8