Through the Fourth Quarter Ended December 31, 2016 (unaudited) Financial Supplement · 2017-01-30 · December 31, 2016 (unaudited) Financial Supplement. ... basis in determining

Through the Fourth Quarter Ended

December 31, 2016 (unaudited)

Financial Supplement

Financial Reporting Structure

Exchange Listing

Common stock of the Principal Financial Group, Inc. is traded on the NYSE under the ticker symbol “PFG.”

Fee

Spread

Retirement and Income Solutions

Principal Global Investors

Principal International

Specialty Benefi ts Insurance

Individual Life Insurance

U.S. InsuranceSolutions

Corporate

PRINCIPAL FINANCIAL GROUP, INC.

Principal Financial Group, Inc.

Financial SupplementTable of Contents

Summary Financial and Market Highlights 2-3Income Statement Time Series - Fee, Spread and Risk Businesses 4Consolidated Segment Income Statement Time Series Principal Financial Group, Inc. Retirement and Income Solutions Segment 6 Fee Spread 7 Principal Global Investors Segment Principal International Segment 8 U.S. Insurance Solutions Segment Specialty Benefits Insurance 9 Individual Life Insurance Corporate Segment 10Consolidated Balance Sheet 11Assets Under Management Rollforward Detail by Asset Manager 12 Principal Global Investors - Assets Under Management Rollforward Detail by Asset Class 13 Principal Global Investors - Assets Under Management Detail 14 Principal International - Assets Under Management Rollforward Detail by Country 16-17Selected Segment Financial Highlights Retirement and Income Solutions - Account Values 18 Retirement and Income Solutions - Defined Contribution and Defined Benefit Detail by Employer Size 19 Principal International - Financial Highlights by Country 20 Principal International - Exchange Rates 21 Principal International - Income Statement Detail in Local Currency Assuming 100% Ownership 22 U.S. Insurance Solutions - Specialty Benefits Insurance 24 U.S. Insurance Solutions - Individual Life Insurance 25Consolidated Invested Assets 26Net Realized Capital Gains (Losses) and Net Investment Income 27Non-GAAP Financial Measure Reconciliations 28-30

Use of non-GAAP financial measuresA non-GAAP financial measure is defined as a numerical measure of our performance, financial position, or cash flows that includes adjustments from a comparable financial measure presented in accordance with U.S. GAAP.

We use a number of non-GAAP financial measures that management believes are useful to investors because they illustrate the performance of our normal, ongoing operations, which is important in understanding and evaluating our financial condition and results of operations. While such measures are also consistent with measures utilized by investors to evaluate performance, they are not a substitute for U.S. GAAP financial measures. Therefore, we have provided reconciliations of the non-GAAP financial measures to the most directly comparable U.S. GAAP financial measure, see “Non-GAAP Financial Measures Reconciliations” located on pages 28-30. We adjust U.S. GAAP financial measures for items not directly related to ongoing operations. However, it is possible that these adjusting items have occurred in the past and could recur in the future. Management also uses non-GAAP financial measures for goal setting, as a basis in determining employee and senior management awards and compensation, and to evaluate performance on a basis comparable to that used by securities analysts.

We also use a variety of other operational measures that do not have U.S. GAAP counterparts, and therefore do not fit the definition of non-GAAP financial measures. Assets under management is an example of an operational measure that is not considered a non-GAAP financial measure.

Principal Financial Group, Inc.Summary Financial and Market Highlights

(per share, except as indicated)

Three Months Ended, Twelve Months Ended,31-Dec-16 30-Sep-16 30-Jun-16 31-Mar-16 31-Dec-15 31-Dec-16 31-Dec-15

Basic Earnings Per Common ShareOperating earnings * 1.29$ 1.17$ 1.16$ 0.98$ 1.04$ 4.60$ 4.32$ Net income 1.10$ 1.07$ 1.11$ 1.26$ 0.87$ 4.55$ 4.11$ Weighted average common shares outstanding (in millions) 288.3 288.1 289.9 291.5 292.6 289.4 294.4

Diluted Earnings Per Common ShareOperating earnings * 1.27$ 1.15$ 1.15$ 0.97$ 1.02$ 4.55$ 4.26$ Net income 1.09$ 1.06$ 1.10$ 1.25$ 0.86$ 4.50$ 4.06$ Weighted average common shares outstanding (in millions) 292.0 291.4 292.6 294.3 296.2 292.7 298.0

Book Value Available to Common StockholdersExcluding AOCI * 37.90$ 37.20$ 36.52$ 35.80$ 34.98$ 37.90$ 34.98$ Excluding AOCI, other than foreign currency translation adjustment * 34.09$ 33.60$ 32.98$ 32.25$ 31.04$ 34.09$ 31.04$ End of period common shares outstanding (in millions) 287.7 287.7 288.0 290.4 291.4 287.7 291.4

Operating Return on Average Equity Available to Common Stockholders (trailing twelve months)Excluding AOCI * 12.6% 12.1% 12.1% 12.2% 12.8% 12.6% 12.8%Excluding AOCI, other than foreign currency translation adjustment * 14.1% 13.5% 13.3% 13.4% 14.2% 14.1% 14.2%

Share Repurchase Data Shares repurchased (in millions) 0.5 0.8 2.5 2.3 2.3 6.2 5.5 Cost of shares repurchased (in millions) 32.0$ 35.1$ 104.0$ 85.9$ 112.4$ 257.0$ 275.0$ Average price per share repurchased 58.73$ 41.34$ 42.06$ 36.94$ 49.16$ 41.51$ 50.26$

Dividend Information Dividends per share 0.43$ 0.41$ 0.39$ 0.38$ 0.38$ 1.61$ 1.50$ Dividends paid (in millions) 123.8$ 117.9$ 112.8$ 110.4$ 110.8$ 464.9$ 441.0$

Trading Statistics High 61.34$ 51.72$ 44.90$ 44.30$ 52.21$ 61.34$ 58.02$ Low 50.96$ 38.84$ 38.03$ 33.09$ 43.64$ 33.09$ 41.67$ Close 57.86$ 51.51$ 41.11$ 39.45$ 44.98$ 57.86$ 44.98$ Volume (in millions) 105.8 84.4 105.0 132.4 81.8 427.6 341.3

Valuation Data (Closing Prices) Market capitalization (in millions) 16,646.32$ 14,819.43$ 11,839.68$ 11,456.28$ 13,107.17$ 16,646.32$ 13,107.17$ Price to earnings multiple 12.74 12.01 9.79 9.53 10.56 12.74 10.56 Price to book value multiple 1.53 1.38 1.13 1.10 1.29 1.53 1.29

Investment Performance ~1-Year 51% 59% 72% 73% 88% 51% 88%3-Year 76% 90% 95% 91% 89% 76% 89%5-Year 86% 86% 93% 94% 93% 86% 93%

Period Ended, Period Ended, AUM by Asset Manager (in billions) 31-Dec-16 30-Sep-16 30-Jun-16 31-Mar-16 31-Dec-15 31-Dec-16 31-Dec-15Principal Global Investors 390.5$ 397.3$ 382.8$ 368.3$ 360.8$ 390.5$ 360.8$ Principal International and Other Entities of PFG 142.1 141.0 135.8 125.8 115.5 142.1 115.5 Third Party Asset Managers 59.0 57.5 54.1 53.6 51.1 59.0 51.1 Total 591.6$ 595.8$ 572.7$ 547.7$ 527.4$ 591.6$ 527.4$

* This is a non-GAAP financial measure. See non-GAAP financial measure reconciliations on pages 28-30.~ Represents the percentage of Principal mutual funds, separate accounts and collective investment trusts (CITs) in the top two Morningstar quartiles.

2

Principal Financial Group, Inc.Summary Financial Highlights

(in millions, except as indicated)

Trailing Twelve Months,31-Dec-16 30-Sep-16 30-Jun-16 31-Mar-16 31-Dec-15 31-Dec-14

Retirement and Income Solutions - Fee Net revenue 1,511.1$ 1,499.6$ 1,526.3$ 1,546.7$ 1,573.5$ 1,563.7$ Year over year net revenue growth -4.0% -5.1% -3.7% -1.7% 0.6% 12.6%Pre-tax operating earnings 493.4$ 494.1$ 446.8$ 465.7$ 493.5$ 578.5$ Pre-tax return on net revenue 32.7% 32.9% 29.3% 30.1% 31.4% 37.0%

Retirement and Income Solutions - Spread Net revenue 491.5$ 466.8$ 442.0$ 445.6$ 437.6$ 470.2$ Year over year net revenue growth 12.3% 5.9% -1.6% 0.2% -6.9% -5.3%Pre-tax operating earnings 301.1$ 275.7$ 249.6$ 252.9$ 246.6$ 272.7$ Pre-tax return on net revenue 61.3% 59.1% 56.5% 56.8% 56.4% 58.0%

Principal Global Investors Management fee revenue 1,120.2$ 1,107.4$ 1,092.1$ 1,090.3$ 1,089.2$ 998.2$ Other revenue 266.9 246.9 245.5 233.8 254.3 259.2 Operating revenues 1,387.1$ 1,354.3$ 1,337.6$ 1,324.1$ 1,343.5$ 1,257.4$ Operating revenues less pass-through commissions * ^ 1,224.1$ 1,187.2$ 1,166.8$ 1,147.3$ 1,161.2$ 1,084.4$ Year over year operating revenues less pass-through commissions 5.4% 2.1% 1.9% 2.9% 7.1% 5.5%Pre-tax operating earnings 443.8$ 412.1$ 394.6$ 375.6$ 388.5$ 350.1$ Pre-tax operating earnings, adjusted for noncontrolling interest 449.7$ 417.2$ 399.4$ 380.1$ 392.9$ 362.5$ Pre-tax return on operating revenues less pass-through commissions 36.7% 35.1% 34.2% 33.1% 33.8% 33.4%

Principal International Combined net revenue (at PFG share) * 791.7$ 789.0$ 761.1$ 761.2$ 767.6$ 820.0$ Year over year combined net revenue growth (at PFG share) 3.1% 1.4% -6.0% -7.2% -6.4% 15.8%Pre-tax operating earnings 288.1$ 289.4$ 256.2$ 258.5$ 271.3$ 352.7$ Combined pre-tax return on net revenue (at PFG share) 36.4% 36.7% 33.7% 34.0% 35.3% 43.0%

Specialty Benefits InsurancePremium and fees 1,862.3$ 1,822.4$ 1,782.7$ 1,746.7$ 1,732.6$ 1,591.4$ Year over year premium and fees growth 7.5% 7.2% 6.4% 6.4% 8.9% 6.6%Pre-tax operating earnings 250.9$ 235.8$ 227.3$ 212.2$ 220.4$ 179.2$ Pre-tax return on premium and fees 13.5% 12.9% 12.8% 12.1% 12.7% 11.3%

Individual Life InsurancePremium and fees 996.1$ 986.2$ 984.4$ 973.5$ 966.1$ 935.7$ Year over year premium and fees growth 3.1% 2.6% 2.8% 2.6% 3.2% 3.2%Pre-tax operating earnings 110.3$ 105.1$ 216.3$ 215.9$ 209.1$ 164.9$ Pre-tax return on premium and fees 11.1% 10.7% 22.0% 22.2% 21.6% 17.6%

* This is a non-GAAP financial measure. See non-GAAP financial measure reconciliations on pages 28-30. ^ Operating revenues less pass-through commissions is a non-GAAP financial measure the company has determined is more representative of underlying operating revenues growth for PGI.

Definitions: Net revenue: operating revenues less benefits, claims and settlement expenses less dividends to policyholders. See page 7 for additional detail. Pre-tax operating earnings: operating earnings before income taxes and preferred stock dividends and after noncontrolling interest. Pre-tax return on net revenue: pre-tax operating earnings divided by net revenue. Pre-tax operating earnings, adjusted for noncontrolling interest: operating revenues less total expenses. See page 8 for additional detail. Pre-tax return on operating revenues less pass-through commissions: pre-tax operating earnings, adjusted for noncontrolling interest divided by operating revenues less pass-through commissions. Combined basis: all Principal International companies at 100%. The company has determined combined net revenue (at PFG share) is more representative of underlying net revenue growth for Principal International as it reflects our proportionate share of consolidated and equity method subsidiaries. In addition, using this net revenue metric provides a more meaningful representation of our profit margins.Premium and fees: premiums and other considerations plus fees and other revenues. See pages 9-10 for additional detail. Pre-tax return on premium and fees: pre-tax operating earnings divided by premium and fees.

3

Principal Financial Group, Inc.Income Statement Time Series - Fee, Spread and Risk Businesses

(in millions)

Principal Financial Group, Inc. -- Fee ◊Three Months Ended, Trailing Twelve Months,

Line Item 31-Dec-16 30-Sep-16 30-Jun-16 31-Mar-16 31-Dec-15 31-Dec-16 31-Dec-15Net revenue * 948.8$ 897.0$ 898.5$ 831.9$ 904.5$ 3,576.2$ 3,572.6$ Pre-tax operating earnings * 323.7$ 328.0$ 311.9$ 261.7$ 294.0$ 1,225.3$ 1,153.3$ Pre-tax return on net revenue 34.1% 36.6% 34.7% 31.5% 32.5% 34.3% 32.3%

Operating earnings (losses) * 261.8$ 260.6$ 250.9$ 214.5$ 234.3$ 987.8$ 951.3$

Principal Financial Group, Inc. -- Spread ~Three Months Ended, Trailing Twelve Months,

Line Item 31-Dec-16 30-Sep-16 30-Jun-16 31-Mar-16 31-Dec-15 31-Dec-16 31-Dec-15Net revenue 133.1$ 122.0$ 121.7$ 114.7$ 108.4$ 491.5$ 437.6$ Pre-tax operating earnings 87.5$ 76.0$ 70.2$ 67.4$ 62.1$ 301.1$ 246.6$ Pre-tax return on net revenue 65.7% 62.3% 57.7% 58.8% 57.3% 61.3% 56.4%

Operating earnings (losses) 60.8$ 53.2$ 49.3$ 47.2$ 43.3$ 210.5$ 172.6$

Principal Financial Group, Inc. -- Risk ^Three Months Ended, Trailing Twelve Months,

Line Item 31-Dec-16 30-Sep-16 30-Jun-16 31-Mar-16 31-Dec-15 31-Dec-16 31-Dec-15Premium and fees 728.0$ 710.3$ 715.0$ 704.9$ 678.2$ 2,858.2$ 2,698.5$ Pre-tax operating earnings 106.9$ 70.2$ 103.6$ 80.5$ 86.6$ 361.2$ 429.5$ Pre-tax return on premium and fees 14.7% 9.9% 14.5% 11.4% 12.8% 12.6% 15.9%

Operating earnings (losses) 71.0$ 47.5$ 69.1$ 54.8$ 58.0$ 242.4$ 286.4$

Principal Financial Group, Inc. -- Percent of Operating Earnings (Losses) (excluding Corporate) Three Months Ended, Trailing Twelve Months,

31-Dec-16 30-Sep-16 30-Jun-16 31-Mar-16 31-Dec-15 31-Dec-16 31-Dec-15Fee 67% 72% 68% 68% 70% 69% 67%Spread 15% 15% 13% 15% 13% 15% 12%Risk 18% 13% 19% 17% 17% 17% 20%

* This is a non-GAAP financial measure. See non-GAAP financial measure reconciliations on pages 28-30. ◊ Fee includes RIS - Fee, Principal Global Investors and Principal International.~ Spread includes RIS - Spread.^ Risk includes U.S. Insurance Solutions.

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Principal Financial Group, Inc.Consolidated Segment Income Statement Time Series

(in millions)

Principal Financial Group, Inc. Three Months Ended, Trailing Twelve Months,

Line Item 31-Dec-16 30-Sep-16 30-Jun-16 31-Mar-16 31-Dec-15 31-Dec-16 31-Dec-15Premiums and other considerations 1,738.0$ 1,002.7$ 1,276.0$ 1,282.4$ 1,154.4$ 5,299.1$ 5,310.2$ Fees and other revenues 940.1 914.9 918.4 856.3 909.0 3,629.7 3,594.1 Net investment income 915.3 896.8 840.7 799.2 828.4 3,452.0 3,216.8 Total operating revenues * 3,593.4 2,814.4 3,035.1 2,937.9 2,891.8 12,380.8 12,121.1

Benefits, claims and settlement expenses 2,121.0 1,508.5 1,657.1 1,654.5 1,534.6 6,941.1 6,682.8 Dividends to policyholders 34.3 45.5 38.0 38.8 40.0 156.6 163.5 Commission expense 213.6 197.6 207.7 208.3 205.7 827.2 835.4 Capitalization of DAC (108.7) (92.1) (98.3) (103.2) (100.9) (402.3) (390.3) Amortization of DAC 69.5 22.8 66.3 60.3 59.6 218.9 258.6 Depreciation and amortization 33.6 33.6 33.3 33.0 30.7 133.5 143.7 Interest expense on corporate debt 40.1 41.3 41.6 41.8 42.0 164.8 153.4 Compensation and other 700.2 638.3 656.6 646.5 690.6 2,641.6 2,628.7 Total expenses * 3,103.6 2,395.5 2,602.3 2,580.0 2,502.3 10,681.4 10,475.8

Pre-tax operating earnings (losses) attributable to noncontrolling interest 25.0 2.5 1.6 1.6 1.6 30.7 8.2 Pre-tax operating earnings (losses) * 464.8 416.4 431.2 356.3 387.9 1,668.7 1,637.1 Income taxes * 92.8 80.7 94.1 70.0 84.7 337.6 341.9 Preferred stock dividends - - - - - - 16.5 Excess of redemption value over carrying value of preferred shares redeemed - - - - - - 8.2 Operating earnings (losses) * 372.0 335.7 337.1 286.3 303.2 1,331.1 1,270.5

Net realized capital gains (losses) * (2.0) (27.5) (14.8) 81.7 (47.6) 37.4 (133.8) Other after-tax adjustments * (52.0) - - - (2.0) (52.0) 72.6 Net income (loss) available to common stockholders 318.0$ 308.2$ 322.3$ 368.0$ 253.6$ 1,316.5$ 1,209.3$

Retirement and Income Solutions Segment Three Months Ended, Trailing Twelve Months,

Line Item 31-Dec-16 30-Sep-16 30-Jun-16 31-Mar-16 31-Dec-15 31-Dec-16 31-Dec-15Premiums and other considerations 1,112.7$ 390.9$ 662.7$ 694.6$ 582.3$ 2,860.9$ 3,011.4$ Fees and other revenues 333.0 335.5 325.2 311.0 332.1 1,304.7 1,338.8 Net investment income 522.0 518.0 486.7 458.4 464.5 1,985.1 1,816.7 Total operating revenues 1,967.7 1,244.4 1,474.6 1,464.0 1,378.9 6,150.7 6,166.9

Benefits, claims and settlement expenses 1,433.5 757.5 971.3 985.4 880.6 4,147.7 4,155.5 Dividends to policyholders - 0.1 0.1 0.2 0.3 0.4 0.3 Commission expense 71.4 64.2 72.2 78.6 71.2 286.4 290.6 Capitalization of DAC (30.6) (24.2) (28.6) (38.0) (33.0) (121.4) (120.3) Amortization of DAC 33.4 9.9 30.4 20.1 24.8 93.8 144.2 Depreciation and amortization 7.7 7.5 7.6 7.6 6.9 30.4 28.3 Interest expense on corporate debt - - - - - - - Compensation and other 240.8 222.5 226.9 228.7 241.3 918.9 928.2 Total expenses 1,756.2 1,037.5 1,279.9 1,282.6 1,192.1 5,356.2 5,426.8

Pre-tax operating earnings (losses) attributable to noncontrolling interest - - - - - - - Pre-tax operating earnings (losses) 211.5$ 206.9$ 194.7$ 181.4$ 186.8$ 794.5$ 740.1$

* This is a non-GAAP financial measure. See non-GAAP financial measure reconciliations on pages 28-30.

6


(in millions)

Retirement and Income Solutions Segment -- FeeThree Months Ended, Trailing Twelve Months,

Line Item 31-Dec-16 30-Sep-16 30-Jun-16 31-Mar-16 31-Dec-15 31-Dec-16 31-Dec-15Premiums and other considerations 0.3$ -$ -$ -$ -$ 0.3$ -$ Fees and other revenues 327.4 329.2 318.8 305.2 327.5 1,280.6 1,319.6 Net investment income 120.9 123.3 110.0 108.1 112.6 462.3 454.4 Total operating revenues 448.6 452.5 428.8 413.3 440.1 1,743.2 1,774.0

Benefits, claims and settlement expenses 47.5 87.6 47.2 49.4 50.2 231.7 200.2 Dividends to policyholders - 0.1 0.1 0.2 0.3 0.4 0.3 Commission expense 53.7 52.6 51.1 51.9 50.8 209.3 215.3 Capitalization of DAC (19.7) (19.3) (18.6) (24.0) (21.9) (81.6) (92.1) Amortization of DAC 23.7 (2.2) 20.0 13.2 17.3 54.7 110.7 Depreciation and amortization 6.5 6.3 6.4 6.4 5.9 25.6 24.0 Interest expense on corporate debt - - - - - - - Compensation and other 212.9 196.5 198.1 202.2 212.8 809.7 822.1 Total expenses 324.6 321.6 304.3 299.3 315.4 1,249.8 1,280.5


Retirement and Income Solutions Segment -- SpreadThree Months Ended, Trailing Twelve Months,

Line Item 31-Dec-16 30-Sep-16 30-Jun-16 31-Mar-16 31-Dec-15 31-Dec-16 31-Dec-15Premiums and other considerations 1,112.4$ 390.9$ 662.7$ 694.6$ 582.3$ 2,860.6$ 3,011.4$ Fees and other revenues 5.6 6.3 6.4 5.8 4.6 24.1 19.2 Net investment income 401.1 394.7 376.7 350.3 351.9 1,522.8 1,362.3 Total operating revenues 1,519.1 791.9 1,045.8 1,050.7 938.8 4,407.5 4,392.9

Benefits, claims and settlement expenses 1,386.0 669.9 924.1 936.0 830.4 3,916.0 3,955.3 Dividends to policyholders - - - - - - - Commission expense 17.7 11.6 21.1 26.7 20.4 77.1 75.3 Capitalization of DAC (10.9) (4.9) (10.0) (14.0) (11.1) (39.8) (28.2) Amortization of DAC 9.7 12.1 10.4 6.9 7.5 39.1 33.5 Depreciation and amortization 1.2 1.2 1.2 1.2 1.0 4.8 4.3 Interest expense on corporate debt - - - - - - - Compensation and other 27.9 26.0 28.8 26.5 28.5 109.2 106.1 Total expenses 1,431.6 715.9 975.6 983.3 876.7 4,106.4 4,146.3


7


(in millions)

Principal Global Investors Segment Three Months Ended, Trailing Twelve Months,

Line Item 31-Dec-16 30-Sep-16 30-Jun-16 31-Mar-16 31-Dec-15 31-Dec-16 31-Dec-15Premiums and other considerations -$ -$ -$ -$ -$ -$ -$ Fees and other revenues 368.8 344.3 348.9 311.1 340.6 1,373.1 1,335.4 Net investment income 11.3 1.9 2.4 (1.6) 6.7 14.0 8.1 Total operating revenues 380.1 346.2 351.3 309.5 347.3 1,387.1 1,343.5

Benefits, claims and settlement expenses - - - - - - - Dividends to policyholders - - - - - - - Commission expense 41.0 41.6 40.6 39.8 45.1 163.0 182.3 Capitalization of DAC - - - - - - - Amortization of DAC - - - - - - - Depreciation and amortization 4.7 4.6 4.8 4.7 4.2 18.8 16.5 Interest expense on corporate debt - - - - - - - Compensation and other 198.9 185.5 187.1 184.1 195.0 755.6 751.8 Total expenses 244.6 231.7 232.5 228.6 244.3 937.4 950.6

Pre-tax operating earnings (losses) attributable to noncontrolling interest 1.8 1.6 1.3 1.2 1.0 5.9 4.4 Pre-tax operating earnings (losses) 133.7$ 112.9$ 117.5$ 79.7$ 102.0$ 443.8$ 388.5$

Principal International Segment Three Months Ended, Trailing Twelve Months,

Line Item 31-Dec-16 30-Sep-16 30-Jun-16 31-Mar-16 31-Dec-15 31-Dec-16 31-Dec-15Premiums and other considerations 75.7$ 68.2$ 74.1$ 56.6$ 61.5$ 274.6$ 252.9$ Fees and other revenues 101.4 105.4 102.3 98.3 101.6 407.4 401.8 Net investment income 135.2 160.8 142.3 131.7 152.9 570.0 565.9 Total operating revenues 312.3 334.4 318.7 286.6 316.0 1,252.0 1,220.6

Benefits, claims and settlement expenses 144.7 148.4 153.0 127.9 148.4 574.0 565.0 Dividends to policyholders - - - - - - - Commission expense 14.5 13.8 13.5 12.2 14.3 54.0 56.8 Capitalization of DAC (6.0) (5.9) (6.6) (6.1) (8.0) (24.6) (33.8) Amortization of DAC 5.6 7.5 4.6 4.4 4.4 22.1 18.7 Depreciation and amortization 12.5 12.9 12.5 12.2 12.1 50.1 69.3 Interest expense on corporate debt 0.6 0.4 0.5 0.3 0.5 1.8 1.4 Compensation and other 73.7 72.2 70.9 67.4 76.5 284.2 275.2 Total expenses 245.6 249.3 248.4 218.3 248.2 961.6 952.6

Pre-tax operating earnings (losses) attributable to noncontrolling interest 0.7 0.9 0.4 0.3 0.5 2.3 (3.3) Pre-tax operating earnings (losses) 66.0$ 84.2$ 69.9$ 68.0$ 67.3$ 288.1$ 271.3$

8


(in millions)

U.S. Insurance Solutions Segment Three Months Ended, Trailing Twelve Months,

Line Item 31-Dec-16 30-Sep-16 30-Jun-16 31-Mar-16 31-Dec-15 31-Dec-16 31-Dec-15Premiums and other considerations 549.6$ 543.6$ 539.2$ 531.2$ 510.6$ 2,163.6$ 2,045.9$ Fees and other revenues 178.4 166.7 175.8 173.7 167.6 694.6 652.6 Net investment income 200.0 200.1 193.0 186.0 189.7 779.1 742.1 Total operating revenues 928.0 910.4 908.0 890.9 867.9 3,637.3 3,440.6

Benefits, claims and settlement expenses 545.1 604.8 535.2 535.4 508.3 2,220.5 1,964.1 Dividends to policyholders 34.3 45.4 37.9 38.6 39.7 156.2 163.2 Commission expense 74.6 67.8 70.7 67.2 68.3 280.3 276.8 Capitalization of DAC (72.1) (62.0) (63.1) (59.1) (59.9) (256.3) (236.2) Amortization of DAC 30.5 5.4 31.3 35.8 30.4 103.0 95.7 Depreciation and amortization 6.9 6.8 6.7 6.4 5.9 26.8 23.1 Interest expense on corporate debt - - - - - - - Compensation and other 201.8 172.0 185.7 186.1 188.6 745.6 724.4 Total expenses 821.1 840.2 804.4 810.4 781.3 3,276.1 3,011.1


U.S. Insurance Solutions Segment -- Specialty Benefits InsuranceThree Months Ended, Trailing Twelve Months,

Line Item 31-Dec-16 30-Sep-16 30-Jun-16 31-Mar-16 31-Dec-15 31-Dec-16 31-Dec-15Premiums and other considerations 470.1$ 460.1$ 455.1$ 441.0$ 430.5$ 1,826.3$ 1,697.6$ Fees and other revenues 9.0 9.2 9.1 8.7 8.7 36.0 35.0 Net investment income 40.3 41.6 34.0 33.2 34.3 149.1 135.5 Total operating revenues 519.4 510.9 498.2 482.9 473.5 2,011.4 1,868.1

Benefits, claims and settlement expenses 292.9 303.0 284.2 297.2 270.1 1,177.3 1,078.4 Dividends to policyholders - - - - - - - Commission expense 48.2 46.9 47.4 44.7 45.8 187.2 190.6 Capitalization of DAC (18.6) (20.2) (18.2) (15.7) (16.8) (72.7) (66.7) Amortization of DAC 10.4 11.6 10.7 9.8 9.7 42.5 34.3 Depreciation and amortization 4.0 3.8 3.8 3.5 3.3 15.1 13.0 Interest expense on corporate debt - - - - - - - Compensation and other 110.6 91.9 103.8 104.8 104.6 411.1 398.1 Total expenses 447.5 437.0 431.7 444.3 416.7 1,760.5 1,647.7


9


(in millions)

U.S. Insurance Solutions Segment -- Individual Life InsuranceThree Months Ended, Trailing Twelve Months,

Line Item 31-Dec-16 30-Sep-16 30-Jun-16 31-Mar-16 31-Dec-15 31-Dec-16 31-Dec-15Premiums and other considerations 79.5$ 83.5$ 84.1$ 90.2$ 80.1$ 337.3$ 348.3$ Fees and other revenues 169.5 157.5 166.8 165.0 159.0 658.8 617.8 Net investment income 159.7 158.5 159.0 152.8 155.4 630.0 606.6 Total operating revenues 408.7 399.5 409.9 408.0 394.5 1,626.1 1,572.7

Benefits, claims and settlement expenses 252.2 301.8 251.0 238.2 238.2 1,043.2 885.7 Dividends to policyholders 34.3 45.4 37.9 38.6 39.7 156.2 163.2 Commission expense 26.4 20.9 23.3 22.5 22.5 93.1 86.2 Capitalization of DAC (53.5) (41.8) (44.9) (43.4) (43.1) (183.6) (169.5) Amortization of DAC 20.1 (6.2) 20.6 26.0 20.7 60.5 61.4 Depreciation and amortization 2.9 3.0 2.9 2.9 2.6 11.7 10.1 Interest expense on corporate debt - - - - - - - Compensation and other 91.3 80.1 82.0 81.3 84.1 334.7 326.5 Total expenses 373.7 403.2 372.8 366.1 364.7 1,515.8 1,363.6

Pre-tax operating earnings (losses) attributable to noncontrolling interest - - - - - - - Pre-tax operating earnings (losses) 35.0$ (3.7)$ 37.1$ 41.9$ 29.8$ 110.3$ 209.1$

Corporate SegmentThree Months Ended, Trailing Twelve Months,

Line Item 31-Dec-16 30-Sep-16 30-Jun-16 31-Mar-16 31-Dec-15 31-Dec-16 31-Dec-15Premiums and other considerations -$ -$ -$ -$ -$ -$ -$ Fees and other revenues (41.5) (37.0) (33.8) (37.8) (32.9) (150.1) (134.5) Net investment income 46.8 16.0 16.3 24.7 14.6 103.8 84.0 Total operating revenues 5.3 (21.0) (17.5) (13.1) (18.3) (46.3) (50.5)

Benefits, claims and settlement expenses (2.3) (2.2) (2.4) 5.8 (2.7) (1.1) (1.8) Dividends to policyholders - - - - - - - Commission expense 12.1 10.2 10.7 10.5 6.8 43.5 28.9 Capitalization of DAC - - - - - - - Amortization of DAC - - - - - - - Depreciation and amortization 1.8 1.8 1.7 2.1 1.6 7.4 6.5 Interest expense on corporate debt 39.5 40.9 41.1 41.5 41.5 163.0 152.0 Compensation and other (15.0) (13.9) (14.0) (19.8) (10.8) (62.7) (50.9) Total expenses 36.1 36.8 37.1 40.1 36.4 150.1 134.7

Pre-tax operating earnings (losses) attributable to noncontrolling interest 22.5 - (0.1) 0.1 0.1 22.5 7.1 Pre-tax operating earnings (losses) (53.3)$ (57.8)$ (54.5)$ (53.3)$ (54.8)$ (218.9)$ (192.3)$

10

Prin

cipa

l Fin

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roup

, Inc

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heet

(in m

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em

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630

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631

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430

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ets

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d m

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for-

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54

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56,1

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$

55

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53,0

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$

49

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$

48

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55.7

$

49

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27.5

$

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39

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11

Principal Financial Group, Inc.Assets Under Management (AUM) Rollforward Detail by Asset Manager

(in billions)

Three Months Ended, Trailing Twelve Months,31-Dec-16 30-Sep-16 30-Jun-16 31-Mar-16 31-Dec-15 31-Dec-16 31-Dec-15

Principal Global Investors AUM, beginning of period 397.3$ 382.8$ 368.3$ 360.8$ 354.0$ 360.8$ 342.7$ Deposits 17.7 19.6 20.1 19.8 17.8 77.2 76.7 Withdrawals (19.3) (15.4) (14.4) (19.1) (17.1) (68.2) (61.2) Net cash flow (1.6) 4.2 5.7 0.7 0.7 9.0 15.5 Investment performance (3.4) 10.2 9.5 5.4 4.8 21.7 0.6 Other (1.6) 0.2 (0.4) 1.2 1.3 (0.6) 1.2 Operations acquired - - - - - - 1.9 Operations disposed - - - - - - - Effect of exchange rates (0.2) (0.1) (0.3) 0.2 - (0.4) (1.1) AUM, end of period 390.5$ 397.3$ 382.8$ 368.3$ 360.8$ 390.5$ 360.8$

Principal International and Other Entities of PFG AUM, beginning of period 141.0$ 135.8$ 125.8$ 115.5$ 111.5$ 115.5$ 126.1$ Deposits 10.0 9.4 9.3 8.8 9.3 37.5 42.4 Withdrawals (7.7) (6.9) (6.3) (8.3) (7.7) (29.2) (33.9) Net cash flow 2.3 2.5 3.0 0.5 1.6 8.3 8.5 Investment performance 1.2 4.7 2.3 2.1 2.7 10.3 7.6 Other - (0.7) 0.1 (0.5) 0.1 (1.1) (0.5) Operations acquired - - - - - - 0.9 Operations disposed - - - - - - - Effect of exchange rates (2.4) (1.3) 4.6 8.2 (0.4) 9.1 (27.1) AUM, end of period 142.1$ 141.0$ 135.8$ 125.8$ 115.5$ 142.1$ 115.5$

Third Party Asset Managers AUM, beginning of period 57.5$ 54.1$ 53.6$ 51.1$ 50.7$ 51.1$ 50.5$ Deposits 2.4 1.9 2.2 3.8 1.7 10.3 7.3 Withdrawals (2.2) (1.4) (2.9) (1.7) (2.7) (8.2) (8.2) Net cash flow 0.2 0.5 (0.7) 2.1 (1.0) 2.1 (0.9) Investment performance 0.4 2.3 0.9 0.3 1.7 3.9 (0.5) Other 0.9 0.6 0.3 0.1 (0.4) 1.9 0.7 Operations acquired - - - - - - 1.2 Operations disposed - - - - - - - Effect of exchange rates - - - - 0.1 - 0.1 AUM, end of period 59.0$ 57.5$ 54.1$ 53.6$ 51.1$ 59.0$ 51.1$

Total AUM, beginning of period 595.8$ 572.7$ 547.7$ 527.4$ 516.2$ 527.4$ 519.3$ Deposits 30.1 30.9 31.6 32.4 28.8 125.0 126.4 Withdrawals (29.2) (23.7) (23.6) (29.1) (27.5) (105.6) (103.3) Net cash flow 0.9 7.2 8.0 3.3 1.3 19.4 23.1 Investment performance (1.8) 17.2 12.7 7.8 9.2 35.9 7.7 Other (0.7) 0.1 - 0.8 1.0 0.2 1.4 Operations acquired - - - - - - 4.0 Operations disposed - - - - - - - Effect of exchange rates (2.6) (1.4) 4.3 8.4 (0.3) 8.7 (28.1) AUM, end of period 591.6$ 595.8$ 572.7$ 547.7$ 527.4$ 591.6$ 527.4$

12

Principal Financial Group, Inc.Principal Global Investors - Assets Under Management (AUM) Rollforward Detail by Asset Class

(in billions)


Equity Investments AUM, beginning of period ~ 144.5$ 137.9$ 137.3$ 136.7$ 132.4$ 136.7$ 134.2$ Deposits 6.1 7.3 5.7 7.0 6.1 26.1 27.4 Withdrawals (7.7) (6.9) (5.4) (5.8) (6.5) (25.8) (23.3) Net cash flow (1.6) 0.4 0.3 1.2 (0.4) 0.3 4.1 Investment performance 1.0 5.8 2.9 0.3 4.6 10.0 (1.9) Other (0.8) 0.5 (2.4) (0.9) 0.3 (3.6) (0.4) Operations acquired - - - - - - 1.1 Operations disposed - - - - - - - Effect of exchange rates (0.1) (0.1) (0.2) - (0.2) (0.4) (0.4) AUM, end of period ~ 143.0 144.5 137.9 137.3 136.7 143.0 136.7 General account and balance sheet assets 0.1 0.1 0.1 0.2 0.2 0.1 0.2 Total Equity Investments 143.1$ 144.6$ 138.0$ 137.5$ 136.9$ 143.1$ 136.9$

Fixed Income Investments AUM, beginning of period ~ 138.0$ 132.5$ 122.8$ 116.9$ 113.2$ 116.9$ 104.9$ Deposits 6.3 8.7 9.3 7.2 7.2 31.5 32.1 Withdrawals (8.1) (6.0) (5.0) (5.4) (6.5) (24.5) (23.1) Net cash flow (1.8) 2.7 4.3 1.8 0.7 7.0 9.0 Investment performance (3.6) 2.9 4.0 2.6 0.9 5.9 0.6 Other 0.1 (0.1) 1.4 1.5 2.1 2.9 1.7 Operations acquired - - - - - - 0.7 Operations disposed - - - - - - - Effect of exchange rates - - - - - - - AUM, end of period ~ 132.7 138.0 132.5 122.8 116.9 132.7 116.9 General account and balance sheet assets 51.6 52.0 51.3 49.5 47.0 51.6 47.0 Total Fixed Income Investments 184.3$ 190.0$ 183.8$ 172.3$ 163.9$ 184.3$ 163.9$

Alternative Investments AUM, beginning of period ~ 40.6$ 39.0$ 37.5$ 40.0$ 41.8$ 40.0$ 38.3$ Deposits 1.6 1.5 1.1 0.7 1.1 4.9 6.1 Withdrawals (0.8) (0.7) (1.6) (4.3) (1.8) (7.4) (6.3) Net cash flow 0.8 0.8 (0.5) (3.6) (0.7) (2.5) (0.2) Investment performance 0.5 0.6 0.8 0.7 0.3 2.6 1.8 Other 0.1 0.1 1.3 0.2 (1.6) 1.7 0.7 Operations acquired - - - - - - - Operations disposed - - - - - - - Effect of exchange rates (0.2) 0.1 (0.1) 0.2 0.2 - (0.6) AUM, end of period ~ 41.8 40.6 39.0 37.5 40.0 41.8 40.0 General account and balance sheet assets 17.3 17.4 17.2 16.6 16.3 17.3 16.3 Total Alternative Investments 59.1$ 58.0$ 56.2$ 54.1$ 56.3$ 59.1$ 56.3$

Other AUM, beginning of period ~ 0.2$ 0.2$ 0.2$ 0.2$ 0.2$ 0.2$ 0.2$ Deposits - 0.1 - - 0.1 0.1 0.1 Withdrawals (0.1) - - - - (0.1) - Net cash flow (0.1) 0.1 - - 0.1 - 0.1 Investment performance - - - - - - - Other 0.1 (0.1) - - (0.1) - (0.1) Operations acquired - - - - - - - Operations disposed - - - - - - - Effect of exchange rates - - - - - - - AUM, end of period ~ 0.2 0.2 0.2 0.2 0.2 0.2 0.2 General account and balance sheet assets 3.8 4.5 4.6 4.2 3.5 3.8 3.5 Total Other 4.0$ 4.7$ 4.8$ 4.4$ 3.7$ 4.0$ 3.7$

Total AUM, beginning of period ~ 323.3$ 309.6$ 297.8$ 293.8$ 287.6$ 293.8$ 277.6$ Deposits 14.0 17.6 16.1 14.9 14.5 62.6 65.7 Withdrawals (16.7) (13.6) (12.0) (15.5) (14.8) (57.8) (52.7) Net cash flow (2.7) 4.0 4.1 (0.6) (0.3) 4.8 13.0 Investment performance (2.1) 9.3 7.7 3.6 5.8 18.5 0.5 Other (0.5) 0.4 0.3 0.8 0.7 1.0 1.9 Operations acquired - - - - - - 1.8 Operations disposed - - - - - - - Effect of exchange rates (0.3) - (0.3) 0.2 - (0.4) (1.0) AUM, end of period ~ 317.7 323.3 309.6 297.8 293.8 317.7 293.8 General account and balance sheet assets 72.8 74.0 73.2 70.5 67.0 72.8 67.0 Total Principal Global Investors AUM 390.5$ 397.3$ 382.8$ 368.3$ 360.8$ 390.5$ 360.8$

~ Excludes general account and balance sheet assets.

13

Principal Financial Group, Inc.Principal Global Investors - Assets Under Management Detail

(in billions)

Principal Global Investors Assets Under Management by Boutique and Asset ClassPeriod Ended, Period Ended,

Principal Global Investors AUM by Boutique 31-Dec-16 30-Sep-16 30-Jun-16 31-Mar-16 31-Dec-15 31-Dec-16 31-Dec-15 Aligned Investors 18.5$ 18.0$ 16.8$ 16.5$ 16.5$ 18.5$ 16.5$ Columbus Circle Investors 8.3 10.6 11.5 12.7 14.2 8.3 14.2 Edge Asset Management 25.0 23.5 22.3 21.3 20.9 25.0 20.9 Finisterre Capital 2.9 3.0 2.8 2.8 2.8 2.9 2.8 Macro Currency Group 3.4 3.6 3.5 4.2 7.7 3.4 7.7 Morley Financial Services 17.7 17.5 17.2 17.0 16.7 17.7 16.7 Origin Asset Management 3.6 3.9 3.7 3.7 3.4 3.6 3.4 Post Advisory Group 14.7 14.9 14.0 12.1 11.1 14.7 11.1 Principal Global Equities 75.8 74.1 70.0 67.1 65.7 75.8 65.7 Principal Global Fixed Income 95.2 99.4 97.4 91.8 86.2 95.2 86.2 Principal Real Estate - CMBS 8.6 9.1 9.0 7.7 7.4 8.6 7.4 Principal Real Estate - Private Real Estate 50.7 49.6 48.1 46.6 45.2 50.7 45.2 Principal Real Estate - REITs 12.8 13.8 13.1 12.0 10.9 12.8 10.9 Spectrum Asset Management 20.9 22.9 21.5 19.8 19.7 20.9 19.7 Other Sub-Advised 30.5 31.7 30.2 31.5 30.9 30.5 30.9 Other 1.9 1.7 1.7 1.5 1.5 1.9 1.5 Total Principal Global Investors AUM 390.5$ 397.3$ 382.8$ 368.3$ 360.8$ 390.5$ 360.8$

Period Ended, Period Ended,Principal Global Investors AUM by Asset Class 31-Dec-16 30-Sep-16 30-Jun-16 31-Mar-16 31-Dec-15 31-Dec-16 31-Dec-15Equity Investments: Global Equity 34.3$ 34.3$ 32.4$ 31.6$ 30.9$ 34.3$ 30.9$ U.S. Equity 96.0 96.5 92.5 93.8 95.1 96.0 95.1 REITS 12.8 13.8 13.1 12.1 10.9 12.8 10.9 Total Equity Investments 143.1 144.6 138.0 137.5 136.9 143.1 136.9 Fixed Income Investments: CMBS 8.6 9.1 9.0 7.7 7.4 8.6 7.4 Other Fixed Income 175.7 180.9 174.8 164.6 156.5 175.7 156.5 Total Fixed Income Investments 184.3 190.0 183.8 172.3 163.9 184.3 163.9 Alternative Investments: Private Real Estate 50.7 49.6 48.1 46.6 45.2 50.7 45.2 Other Alternatives 8.4 8.4 8.1 7.5 11.1 8.4 11.1 Total Alternative Investments 59.1 58.0 56.2 54.1 56.3 59.1 56.3 Other 4.0 4.7 4.8 4.4 3.7 4.0 3.7 Total Principal Global Investors AUM 390.5$ 397.3$ 382.8$ 368.3$ 360.8$ 390.5$ 360.8$

Principal Global Investors Institutional~ AUM Three Months Ended, Trailing Twelve Months,

31-Dec-16 30-Sep-16 30-Jun-16 31-Mar-16 31-Dec-15 31-Dec-16 31-Dec-15AUM, beginning of period 135.2$ 129.6$ 122.7$ 122.0$ 120.2$ 122.0$ 114.0$ Deposits 5.3 8.0 7.8 5.8 5.6 26.9 29.1 Withdrawals (6.5) (5.9) (4.3) (7.3) (5.5) (24.0) (21.3) Net cash flow (1.2) 2.1 3.5 (1.5) 0.1 2.9 7.8 Investment performance (3.0) 3.3 3.5 1.9 1.5 5.7 1.4 Other (0.2) 0.2 0.2 0.2 0.2 0.4 (0.5) Operations acquired - - - - - - - Operations disposed - - - - - - - Effect of exchange rates (0.2) - (0.3) 0.1 - (0.4) (0.7) AUM, end of period 130.6$ 135.2$ 129.6$ 122.7$ 122.0$ 130.6$ 122.0$

Principal Global Investors - Mutual Funds Complex ^ Period Ended, Period Ended,

31-Dec-16 30-Sep-16 30-Jun-16 31-Mar-16 31-Dec-15 31-Dec-16 31-Dec-15Retail 79.5$ 80.2$ 76.4$ 74.6$ 73.9$ 79.5$ 73.9$ Retirement 49.4 49.8 48.3 47.3 47.5 49.4 47.5 Other 1.2 1.2 1.2 1.1 0.9 1.2 0.9 Total 130.1$ 131.2$ 125.9$ 123.0$ 122.3$ 130.1$ 122.3$

~ Includes Principal Global Investors Undertakings for the Collective Investment of Transferable Securities (UCITS) funds, Principal Global Opportunity Series funds, Australian funds, collective investment trusts, business trusts, real estate funds, stable value funds, hedge funds, and other funds.^ Retail and Other AUM generates earnings for Principal Funds, while Retirement AUM generates earnings for RIS - Fee.

14


Principal Financial Group, Inc.Principal International - Assets Under Management Rollforward Detail by Country ◊

(in USD billions)


Brazil AUM, beginning of period 58.8$ 56.0$ 46.1$ 38.8$ 36.2$ 38.8$ 44.6$ Deposits 4.8 3.5 4.3 2.2 2.7 14.8 12.1 Withdrawals (1.8) (1.7) (1.4) (1.2) (1.3) (6.1) (5.2) Net cash flow 3.0 1.8 2.9 1.0 1.4 8.7 6.9 Investment performance 1.5 1.8 1.6 1.7 1.2 6.6 4.2 Other (0.1) (0.1) - - (0.1) (0.2) (0.4) Operations acquired - - - - - - - Operations disposed - - - - - - - Effect of exchange rates (0.1) (0.7) 5.4 4.6 0.1 9.2 (16.5) AUM, end of period 63.1$ 58.8$ 56.0$ 46.1$ 38.8$ 63.1$ 38.8$

Chile AUM, beginning of period 43.2$ 41.5$ 40.7$ 38.2$ 37.8$ 38.2$ 40.7$ Deposits 1.4 1.4 1.4 1.2 1.3 5.4 5.6 Withdrawals (2.1) (1.6) (1.3) (1.1) (1.1) (6.1) (4.3) Net cash flow (0.7) (0.2) 0.1 0.1 0.2 (0.7) 1.3 Investment performance (0.1) 1.8 0.2 0.3 1.0 2.2 2.5 Other - (0.1) 0.1 (0.1) (0.2) (0.1) (0.1) Operations acquired - - - - - - - Operations disposed - - - - - - - Effect of exchange rates (0.7) 0.2 0.4 2.2 (0.6) 2.1 (6.2) AUM, end of period 41.7$ 43.2$ 41.5$ 40.7$ 38.2$ 41.7$ 38.2$

Chile Cuprum AFP customer funds balance (included in Chile AUM) 35.1$ 36.5$ 35.1$ 34.6$ 32.6$ 35.1$ 32.6$

Mexico AUM, beginning of period 9.5$ 10.3$ 10.8$ 10.4$ 10.5$ 10.4$ 11.9$ Deposits 1.0 0.8 1.2 0.9 1.0 3.9 4.7 Withdrawals (1.0) (1.0) (1.2) (0.8) (1.1) (4.0) (4.8) Net cash flow - (0.2) - 0.1 (0.1) (0.1) (0.1) Investment performance (0.2) 0.2 0.2 0.3 0.1 0.5 0.4 Other (0.1) (0.3) - (0.1) - (0.5) (0.1) Operations acquired - - - - - - - Operations disposed - - - - - - - Effect of exchange rates (0.5) (0.5) (0.7) 0.1 (0.1) (1.6) (1.7) AUM, end of period 8.7$ 9.5$ 10.3$ 10.8$ 10.4$ 8.7$ 10.4$

Mexico AFORE customer funds balance (included in Mexico AUM) 7.2$ 7.9$ 8.4$ 8.9$ 8.6$ 7.2$ 8.6$

Total Latin America AUM, beginning of period 111.5$ 107.8$ 97.6$ 87.4$ 84.5$ 87.4$ 97.2$ Deposits 7.2 5.7 6.9 4.3 5.0 24.1 22.4 Withdrawals (4.9) (4.3) (3.9) (3.1) (3.5) (16.2) (14.3) Net cash flow 2.3 1.4 3.0 1.2 1.5 7.9 8.1 Investment performance 1.2 3.8 2.0 2.3 2.3 9.3 7.1 Other (0.2) (0.5) 0.1 (0.2) (0.3) (0.8) (0.6) Operations acquired - - - - - - - Operations disposed - - - - - - - Effect of exchange rates (1.3) (1.0) 5.1 6.9 (0.6) 9.7 (24.4) AUM, end of period 113.5$ 111.5$ 107.8$ 97.6$ 87.4$ 113.5$ 87.4$

Hong Kong AUM, beginning of period 7.8$ 7.4$ 7.2$ 7.2$ 7.1$ 7.2$ 3.8$ Deposits 0.3 0.3 0.3 0.3 0.3 1.2 1.0 Withdrawals (0.2) (0.3) (0.2) (0.2) (0.2) (0.9) (0.7) Net cash flow 0.1 - 0.1 0.1 0.1 0.3 0.3 Investment performance (0.3) 0.4 0.1 (0.1) - 0.1 (0.1) Other - - - - (0.1) - 0.1 Operations acquired - - - - 0.1 - 3.1 Operations disposed - - - - - - - Effect of exchange rates - - - - - - - AUM, end of period 7.6$ 7.8$ 7.4$ 7.2$ 7.2$ 7.6$ 7.2$

India AUM, beginning of period 0.8$ 0.7$ 0.6$ 0.7$ 0.7$ 0.7$ 0.8$ Deposits 1.1 0.9 1.0 3.2 2.5 6.2 12.3 Withdrawals (1.1) (0.9) (0.9) (3.3) (2.5) (6.2) (12.4) Net cash flow - - 0.1 (0.1) - - (0.1) Investment performance (0.1) 0.1 - - 0.1 - 0.1 Other - - - - - - - Operations acquired - - - - - - - Operations disposed - - - - - - - Effect of exchange rates - - - - (0.1) - (0.1) AUM, end of period 0.7$ 0.8$ 0.7$ 0.6$ 0.7$ 0.7$ 0.7$

16

Principal Financial Group, Inc.Principal International - Assets Under Management Rollforward Detail by Country ◊

(in USD billions)


Southeast Asia AUM, beginning of period 16.2$ 15.0$ 15.6$ 14.6$ 13.9$ 14.6$ 12.8$ Deposits 1.3 2.4 1.1 1.0 1.4 5.8 6.2 Withdrawals (1.2) (1.3) (1.1) (1.3) (1.2) (4.9) (5.2) Net cash flow 0.1 1.1 - (0.3) 0.2 0.9 1.0 Investment performance 0.1 0.4 - - 0.1 0.5 0.6 Other - - (0.1) - 0.2 (0.1) 2.1 Operations acquired - - - - (0.1) - 0.9 Operations disposed - - - - - - - Effect of exchange rates (1.1) (0.3) (0.5) 1.3 0.3 (0.6) (2.8) AUM, end of period 15.3$ 16.2$ 15.0$ 15.6$ 14.6$ 15.3$ 14.6$

Total Asia AUM, beginning of period 24.8$ 23.1$ 23.4$ 22.5$ 21.7$ 22.5$ 17.4$ Deposits 2.7 3.6 2.4 4.5 4.2 13.2 19.5 Withdrawals (2.5) (2.5) (2.2) (4.8) (3.9) (12.0) (18.3) Net cash flow 0.2 1.1 0.2 (0.3) 0.3 1.2 1.2 Investment performance (0.3) 0.9 0.1 (0.1) 0.2 0.6 0.6 Other - - (0.1) - 0.1 (0.1) 2.2 Operations acquired - - - - 0.0 - 4.0 Operations disposed - - - - - - - Effect of exchange rates (1.1) (0.3) (0.5) 1.3 0.2 (0.6) (2.9) AUM, end of period 23.6$ 24.8$ 23.1$ 23.4$ 22.5$ 23.6$ 22.5$

Principal International AUM, beginning of period 136.3$ 130.9$ 121.0$ 109.9$ 106.2$ 109.9$ 114.6$ Deposits 9.9 9.3 9.3 8.8 9.2 37.3 41.9 Withdrawals (7.4) (6.8) (6.1) (7.9) (7.4) (28.2) (32.6) Net cash flow 2.5 2.5 3.2 0.9 1.8 9.1 9.3 Investment performance 0.9 4.7 2.1 2.2 2.5 9.9 7.7 Other (0.2) (0.5) - (0.2) (0.2) (0.9) 1.6 Operations acquired - - - - - - 4.0 Operations disposed - - - - - - - Effect of exchange rates (2.4) (1.3) 4.6 8.2 (0.4) 9.1 (27.3) AUM, end of period 137.1 136.3 130.9 121.0 109.9 137.1 109.9 Add: China ^ 101.3 127.2 101.0 56.5 41.8 101.3 41.8 Combined AUM ~ 238.4$ 263.5$ 231.9$ 177.5$ 151.7$ 238.4$ 151.7$


China AUM, beginning of period 127.2$ 101.0$ 56.5$ 41.8$ 41.5$ 41.8$ 19.1$ Deposits 47.1 64.4 87.4 67.9 31.6 266.8 152.3 Withdrawals (70.2) (37.8) (42.6) (51.0) (31.9) (201.6) (131.0) Net cash flow (23.1) 26.6 44.8 16.9 (0.3) 65.2 21.3 Investment performance 0.7 1.1 0.5 (0.9) 0.7 1.4 2.8 Other - 0.1 - - 0.1 0.1 0.1 Operations acquired - - - - - - - Operations disposed - - - - - - - Effect of exchange rates (3.5) (1.6) (0.8) (1.3) (0.2) (7.2) (1.5) AUM, end of period 101.3$ 127.2$ 101.0$ 56.5$ 41.8$ 101.3$ 41.8$

◊ Represents assets under management by source.

^ Includes CCB Principal Asset Management Company, LTDA AUM not included in Principal International reported AUM since Principal Financial Group's ownership in this joint venture is 25%.

~ Combined AUM includes 100% of the AUM from unconsolidated and consolidated subsidiaries. Unconsolidated subsidiaries consist of a 25% economic interest in Brasilprev Seguros e Previdencia S.A. (with 50.01% ownership of common stock), a 40% interest in CIMB- Principal Asset Management Berhad in Malaysia with a presence in Southeast Asian countries, and a 25% interest in CCB Principal Asset Management Company, Ltd. in China.

17

Principal Financial Group, Inc.Retirement and Income Solutions - Account Values

(in billions)

Account Value Rollforwards Three Months Ended, Trailing Twelve Months,

31-Dec-16 30-Sep-16 30-Jun-16 31-Mar-16 31-Dec-15 31-Dec-16 31-Dec-15FeeAccount Values, beginning of period 192.2$ 184.5$ 181.1$ 176.7$ 173.3$ 176.7$ 176.7$ Transfer deposits 3.3 2.6 2.3 4.2 2.5 12.4 9.9 Recurring deposits 4.5 4.6 4.9 5.0 4.2 19.0 17.9 Deposits 7.8 7.2 7.2 9.2 6.7 31.4 27.8 Withdrawals (8.0) (5.8) (7.2) (6.2) (8.3) (27.2) (27.3) Net cash flow (0.2) 1.4 - 3.0 (1.6) 4.2 0.5 Credited investment performance 2.0 6.5 3.6 1.5 5.2 13.6 0.2 Other (0.2) (0.2) (0.2) (0.1) (0.2) (0.7) (0.7) Operations acquired - - - - - - - Operations disposed - - - - - - - Effect of exchange rates - - - - - - - Account Values, end of period 193.8$ 192.2$ 184.5$ 181.1$ 176.7$ 193.8$ 176.7$

SpreadAccount Values, beginning of period 36.4$ 36.2$ 34.7$ 33.3$ 32.3$ 33.3$ 31.1$ Deposits 2.4 0.7 2.7 3.7 2.0 9.5 6.2 Withdrawals (1.4) (0.8) (1.5) (2.6) (1.1) (6.3) (4.8) Net cash flow 1.0 (0.1) 1.2 1.1 0.9 3.2 1.4 Credited investment performance 0.2 0.3 0.4 0.2 0.2 1.1 1.0 Other - - - - (0.1) - (0.1) Operations acquired - - - - - - - Operations disposed - - - - - - - Effect of exchange rates - - (0.1) 0.1 - - (0.1) Account Values, end of period 37.6$ 36.4$ 36.2$ 34.7$ 33.3$ 37.6$ 33.3$

Total Retirement and Income Solutions Account Values, beginning of period 228.6$ 220.7$ 215.8$ 210.0$ 205.6$ 210.0$ 207.8$ Deposits 10.2 7.9 9.9 12.9 8.7 40.9 34.0 Withdrawals (9.4) (6.6) (8.7) (8.8) (9.4) (33.5) (32.1) Net cash flow 0.8 1.3 1.2 4.1 (0.7) 7.4 1.9 Credited investment performance 2.2 6.8 4.0 1.7 5.4 14.7 1.2 Other (0.2) (0.2) (0.2) (0.1) (0.3) (0.7) (0.8) Operations acquired - - - - - - - Operations disposed - - - - - - - Effect of exchange rates - - (0.1) 0.1 - - (0.1) Account Values, end of period 231.4$ 228.6$ 220.7$ 215.8$ 210.0$ 231.4$ 210.0$

Account Value DetailPeriod Ended, Period Ended,

31-Dec-16 30-Sep-16 30-Jun-16 31-Mar-16 31-Dec-15 31-Dec-16 31-Dec-15Fee General Account ◊ 10.7$ 10.6$ 10.5$ 10.5$ 10.4$ 10.7$ 10.4$ Separate Account ^ 55.5 54.3 51.3 49.5 48.1 55.5 48.1 Proprietary Funds ~ 54.9 56.1 54.4 53.4 53.1 54.9 53.1 Non-Proprietary Funds 50.4 49.2 46.8 46.8 44.3 50.4 44.3 Employer Securities 13.3 13.0 12.7 12.1 12.1 13.3 12.1 Individual Variable Annuities 9.0 9.0 8.8 8.8 8.7 9.0 8.7 Total Fee 193.8 192.2 184.5 181.1 176.7 193.8 176.7

Spread 37.6 36.4 36.2 34.7 33.3 37.6 33.3

Total Account Value 231.4$ 228.6$ 220.7$ 215.8$ 210.0$ 231.4$ 210.0$

◊ Includes guaranteed separate accounts.^ Excludes proprietary mutual funds wrapped in a separate account.~ Includes mutual fund, collective investment trust and stable value account value.

18

Principal Financial Group, Inc.Retirement and Income Solutions - Defined Contribution and Defined Benefit Detail by Employer Size

(in billions, except number of plans data)

Number of Plans ^Period Ended, Period Ended,

31-Dec-16 30-Sep-16 30-Jun-16 31-Mar-16 31-Dec-15 31-Dec-16 31-Dec-15Defined Contribution < 100 employees 30,041 29,958 29,818 29,715 29,361 30,041 29,361 100-499 employees 4,548 4,486 4,455 4,449 4,326 4,548 4,326 500-999 employees 707 697 701 692 681 707 681 1000+ employees 660 656 644 636 621 660 621 Total 35,956 35,797 35,618 35,492 34,989 35,956 34,989 Defined Benefit 2,142 2,175 2,192 2,200 2,220 2,142 2,220 Total 38,098 37,972 37,810 37,692 37,209 38,098 37,209

Average Number of Employees per Plan 134 132 131 131 132 134 132

Account Values ^Period Ended, Period Ended,

Account Values 31-Dec-16 30-Sep-16 30-Jun-16 31-Mar-16 31-Dec-15 31-Dec-16 31-Dec-15Defined Contribution < 100 employees 37.1$ 36.9$ 35.5$ 34.8$ 34.8$ 37.1$ 34.8$ 100-499 employees 38.6 37.9 36.4 35.5 34.8 38.6 34.8 500-999 employees 17.1 16.6 15.9 15.9 15.7 17.1 15.7 1000+ employees 72.3 71.5 68.5 67.3 65.5 72.3 65.5 Total 165.1 162.9 156.3 153.5 150.8 165.1 150.8 Defined Benefit 19.3 20.0 19.0 18.5 16.9 19.3 16.9 Total 184.4$ 182.9$ 175.3$ 172.0$ 167.7$ 184.4$ 167.7$

^ Excludes individual variable annuities.

19

Principal Financial Group, Inc.Principal International - Financial Highlights by Country

(in USD millions, except as indicated)

Three Months Ended, Trailing Twelve Months,Pre-Tax Operating Earnings (Losses) 31-Dec-16 30-Sep-16 30-Jun-16 31-Mar-16 31-Dec-15 31-Dec-16 31-Dec-15Brazil 37.0$ 38.6$ 31.4$ 27.2$ 27.0$ 134.2$ 102.2$ Chile 24.5 42.4 33.5 31.9 32.7 132.3 150.5 Mexico 6.2 2.3 9.8 11.5 13.9 29.8 52.2 Latin America 67.7 83.3 74.7 70.6 73.6 296.3 304.9

China 11.2 11.2 8.8 11.4 6.5 42.6 21.5 Hong Kong 4.2 3.3 3.0 3.5 5.4 14.0 11.5 India (0.6) (0.3) (0.8) (1.3) (1.3) (3.0) (5.8) Southeast Asia 3.1 3.3 3.1 0.9 1.8 10.4 9.4 Asia 17.9 17.5 14.1 14.5 12.4 64.0 36.6

Principal International Corporate (19.6) (16.6) (18.9) (17.1) (18.7) (72.2) (70.2)

Total pre-tax operating earnings 66.0$ 84.2$ 69.9$ 68.0$ 67.3$ 288.1$ 271.3$

Three Months Ended, Trailing Twelve Months,Combined Net Revenue (at PFG share) * 31-Dec-16 30-Sep-16 30-Jun-16 31-Mar-16 31-Dec-15 31-Dec-16 31-Dec-15Brazil 50.9$ 52.4$ 42.8$ 37.0$ 37.8$ 183.1$ 165.8$ Chile 64.9 81.4 67.5 63.4 70.3 277.2 290.4 Mexico 24.0 21.2 28.1 30.0 33.4 103.3 131.1 Latin America eliminations - - - - - - (0.4) Latin America 139.8 155.0 138.4 130.4 141.5 563.6 586.9

China 22.0 22.0 19.0 19.4 15.9 82.4 52.2 Hong Kong 22.4 24.1 22.6 22.2 24.2 91.3 66.8 India 1.4 1.4 1.3 1.1 1.3 5.2 5.3 Southeast Asia 12.4 13.3 12.6 11.7 12.4 50.0 56.9 Asia 58.2 60.8 55.5 54.4 53.8 228.9 181.2

Principal International Corporate (0.2) (0.2) (0.3) (0.1) (0.2) (0.8) (0.5)

Total combined net revenue (at PFG share) 197.8$ 215.6$ 193.6$ 184.7$ 195.1$ 791.7$ 767.6$

Combined Pre-Tax Return on Net Revenue Three Months Ended, Trailing Twelve Months, (at PFG share) 31-Dec-16 30-Sep-16 30-Jun-16 31-Mar-16 31-Dec-15 31-Dec-16 31-Dec-15Brazil 72.7% 73.7% 73.4% 73.5% 71.4% 73.3% 61.6%Chile 37.8% 52.1% 49.6% 50.3% 46.5% 47.7% 51.8%Mexico 25.8% 10.8% 34.9% 38.3% 41.6% 28.8% 39.8%Latin America 48.4% 53.7% 54.0% 54.1% 52.0% 52.6% 52.0%

China 50.9% 50.9% 46.3% 58.8% 40.9% 51.7% 41.2%Hong Kong 18.8% 13.7% 13.3% 15.8% 22.3% 15.3% 17.2%India -42.9% -21.4% -61.5% -118.2% -100.0% -57.7% -109.4%Southeast Asia 25.0% 24.8% 24.6% 7.7% 14.5% 20.8% 16.5%Asia 30.8% 28.8% 25.4% 26.7% 23.0% 28.0% 20.2%

Principal International Corporate NM NM NM NM NM NM NM

Principal International 33.4% 39.1% 36.1% 36.8% 34.5% 36.4% 35.3%

* This is a non-GAAP financial measure. See non-GAAP financial measure reconciliations on pages 28-30.

20

Principal Financial Group, Inc.Principal International - Exchange Rates

Average Currency Exchange Rates ~ Three Months Ended, Trailing Twelve Months,

31-Dec-16 30-Sep-16 30-Jun-16 31-Mar-16 31-Dec-15 31-Dec-16 31-Dec-15Brazil (Brazilian Real) 3.30 3.25 3.51 3.91 3.85 3.49 3.33 Chile (Chilean Peso) 665.42 661.32 677.42 701.60 697.73 676.44 654.25 Mexico (Mexican Peso) 19.84 18.76 18.10 18.04 16.75 18.68 15.86 China (Chinese Yuan) ^ 6.75 6.64 6.51 6.52 6.36 6.60 6.26 Hong Kong (Hong Kong Dollar) 7.76 7.76 7.76 7.78 7.75 7.76 7.75 India (Indian Rupee) 67.39 66.96 66.90 67.50 65.94 67.19 64.16 Southeast Asia (Malaysian Ringgit) 4.32 4.05 4.01 4.20 4.28 4.14 3.90

Spot Currency Exchange Rates ~ Period Ended, Period Ended,

31-Dec-16 30-Sep-16 30-Jun-16 31-Mar-16 31-Dec-15 31-Dec-16 31-Dec-15Brazil (Brazilian Real) 3.25 3.25 3.20 3.54 3.96 3.25 3.96 Chile (Chilean Peso) 669.78 658.91 662.06 668.86 708.60 669.78 708.60 Mexico (Mexican Peso) 20.60 19.35 18.45 17.14 17.27 20.60 17.27 China (Chinese Yuan) ^ 6.89 6.68 6.58 6.55 6.40 6.89 6.40 Hong Kong (Hong Kong Dollar) 7.75 7.76 7.76 7.76 7.75 7.75 7.75 India (Indian Rupee) 67.87 66.58 67.50 66.22 66.16 67.87 66.16 Southeast Asia (Malaysian Ringgit) 4.49 4.14 4.03 3.90 4.29 4.49 4.29

~ Principal International financial results are impacted by fluctuations of the foreign currency to U.S. dollar exchange rates for the countries in which we have operations. Ending AUM of our foreign businesses is translated into U.S. dollar equivalents using spot currency exchange rates in effect on the last day of the reporting period. Pre-tax operating earnings, net revenue, net cash flow, and investment performance for our foreign businesses are translated into U.S. dollar equivalents using the average currency exchange rates for the reporting period. The average currency exchange rates represent monthly averages.

^ The exchange rates for China are on a one-month lag for all periods.

21

Principal Financial Group, Inc.Principal International - Income Statement Detail in Local Currency Assuming 100% Ownership

Brazil Three Months Ended, Trailing Twelve Months,(Brazilian Real in millions) 31-Dec-16 30-Sep-16 30-Jun-16 31-Mar-16 31-Dec-15 31-Dec-16 31-Dec-15Premiums and other considerations 116.6 132.4 122.9 91.5 113.8 463.4 464.9 Fees and other revenues 573.9 557.4 510.9 466.0 459.3 2,108.2 1,689.9 Net investment income 4,967.3 5,118.8 4,681.9 4,429.1 4,468.3 19,197.1 14,944.1 Total operating revenues 5,657.8 5,808.6 5,315.7 4,986.6 5,041.4 21,768.7 17,098.9

Benefits, claims and settlement expenses 4,999.7 5,140.6 4,724.9 4,417.4 4,465.2 19,282.6 14,936.0 Operating expenses 158.1 147.9 133.7 135.7 149.9 575.4 634.2 Total expenses 5,157.8 5,288.5 4,858.6 4,553.1 4,615.1 19,858.0 15,570.2

Pre-tax operating earnings (losses) 500.0 520.1 457.1 433.5 426.3 1,910.7 1,528.7

Chile Three Months Ended, Trailing Twelve Months,(Chilean Peso in billions) 31-Dec-16 30-Sep-16 30-Jun-16 31-Mar-16 31-Dec-15 31-Dec-16 31-Dec-15Premiums and other considerations 50.4 45.1 50.2 39.7 43.0 185.4 165.7 Fees and other revenues 36.4 36.8 36.9 36.4 35.5 146.5 138.7 Net investment income 45.7 60.0 57.7 50.7 64.6 214.1 240.2 Total operating revenues 132.5 141.9 144.8 126.8 143.1 546.0 544.6

Benefits, claims and settlement expenses 88.1 86.8 98.0 81.6 93.1 354.5 351.0 Operating expenses 27.7 26.6 23.7 22.8 27.0 100.8 94.6 Total expenses 115.8 113.4 121.7 104.4 120.1 455.3 445.6

Pre-tax operating earnings (losses) 16.7 28.5 23.1 22.4 23.0 90.7 99.0

Mexico Three Months Ended, Trailing Twelve Months,(Mexican Peso in millions) 31-Dec-16 30-Sep-16 30-Jun-16 31-Mar-16 31-Dec-15 31-Dec-16 31-Dec-15Premiums and other considerations 0.7 - 0.9 0.7 0.3 2.3 2.0 Fees and other revenues 460.5 473.9 469.4 455.6 479.9 1,859.4 1,891.3 Net investment income 151.4 150.0 77.2 183.5 171.9 562.1 473.8 Total operating revenues 612.6 623.9 547.5 639.8 652.1 2,423.8 2,367.1

Benefits, claims and settlement expenses 137.3 230.9 38.7 99.2 92.7 506.1 290.2 Operating expenses 352.4 354.0 333.3 331.0 328.2 1,370.7 1,250.2 Total expenses 489.7 584.9 372.0 430.2 420.9 1,876.8 1,540.4

Pre-tax operating earnings (losses) 122.9 39.0 175.5 209.6 231.2 547.0 826.7

22


Principal Financial Group, Inc. U.S. Insurance Solutions - Specialty Benefits Insurance


Premium and FeesThree Months Ended, Trailing Twelve Months,

31-Dec-16 30-Sep-16 30-Jun-16 31-Mar-16 31-Dec-15 31-Dec-16 31-Dec-15Group dental and vision 183.1$ 179.9$ 177.3$ 174.5$ 171.0$ 714.8$ 670.8$ Group life 103.8 100.9 100.6 98.1 94.1 403.4 365.8 Group disability 109.4 105.8 105.8 99.6 96.1 420.6 374.2 Individual disability 82.8 82.7 80.5 77.5 78.0 323.5 321.8 Total 479.1$ 469.3$ 464.2$ 449.7$ 439.2$ 1,862.3$ 1,732.6$

Sales (annualized premium)Three Months Ended, Trailing Twelve Months,

31-Dec-16 30-Sep-16 30-Jun-16 31-Mar-16 31-Dec-15 31-Dec-16 31-Dec-15Group dental and vision 39.8$ 29.0$ 27.7$ 42.9$ 32.5$ 139.4$ 128.9$ Group life 14.6 11.9 10.6 29.2 13.4 66.3 58.7 Group disability 24.9 13.9 13.6 31.8 16.9 84.2 73.6 Individual disability 14.5 16.1 13.6 11.7 14.1 55.9 53.0 Total 93.8$ 70.9$ 65.5$ 115.6$ 76.9$ 345.8$ 314.2$

Lapse Rates (based on premium)Three Months Ended, Trailing Twelve Months,

31-Dec-16 30-Sep-16 30-Jun-16 31-Mar-16 31-Dec-15 31-Dec-16 31-Dec-15Group dental and vision 3.7% 3.6% 2.6% 6.6% 3.5% 16.6% 17.2%Group life 2.2% 2.5% 2.0% 4.7% 2.0% 11.3% 12.4%Group disability 2.7% 2.6% 2.1% 5.6% 2.6% 13.0% 13.9%Individual disability 1.2% 1.3% 1.2% 1.4% 1.3% 5.0% 5.2%

Incurred Loss RatiosThree Months Ended, Trailing Twelve Months,

31-Dec-16 30-Sep-16 30-Jun-16 31-Mar-16 31-Dec-15 31-Dec-16 31-Dec-15Group dental and vision 60.9% 60.3% 65.5% 68.4% 61.9% 63.7% 65.0%Group life 64.6% 67.4% 59.1% 67.4% 57.7% 64.6% 61.9%Group disability 62.5% 67.4% 60.0% 65.5% 69.4% 63.8% 65.7%Individual disability 56.9% 69.1% 58.8% 61.6% 56.8% 61.6% 54.8%Total 61.4% 65.0% 61.7% 66.4% 61.7% 63.6% 62.6%

24

Principal Financial Group, Inc.U.S Insurance Solutions - Individual Life Insurance


Premium and FeesThree Months Ended, Trailing Twelve Months,

31-Dec-16 30-Sep-16 30-Jun-16 31-Mar-16 31-Dec-15 31-Dec-16 31-Dec-15Universal and Variable Universal LifeFees 164.8$ 152.9$ 162.7$ 161.2$ 155.3$ 641.6$ 603.7$ Reinsurance premiums (60.6) (49.8) (52.7) (42.8) (55.4) (205.9) (183.9) Total 104.2 103.1 110.0 118.4 99.9 435.7 419.8

Traditional Life Insurance ~Premiums 161.5 151.1 155.8 148.9 153.9 617.2 597.3 Fees 4.7 4.6 4.1 3.8 3.7 17.2 14.1 Reinsurance premiums (21.4) (17.8) (19.0) (15.9) (18.4) (74.0) (65.1) Total 144.8 137.9 140.9 136.8 139.2 560.4 546.3 Total Individual Life Insurance 249.0$ 241.0$ 250.9$ 255.2$ 239.1$ 996.1$ 966.1$

SalesThree Months Ended, Trailing Twelve Months,

31-Dec-16 30-Sep-16 30-Jun-16 31-Mar-16 31-Dec-15 31-Dec-16 31-Dec-15Universal and Variable Universal Life 39.5$ 19.7$ 26.9$ 28.7$ 34.3$ 114.8$ 116.6$ Traditional Life Insurance 19.8 17.0 16.2 14.0 13.5 67.0 54.1 Total 59.3$ 36.7$ 43.1$ 42.7$ 47.8$ 181.8$ 170.7$

Account Value RollforwardThree Months Ended, Trailing Twelve Months,

31-Dec-16 30-Sep-16 30-Jun-16 31-Mar-16 31-Dec-15 31-Dec-16 31-Dec-15Account Values, beginning of period 9,271.6$ 9,012.5$ 8,983.7$ 8,927.0$ 8,745.7$ 8,927.0$ 8,663.9$ Deposits 262.9 225.3 253.3 251.7 267.4 993.2 980.6 Withdrawals and benefits (74.8) (67.3) (71.3) (89.8) (80.7) (303.2) (283.0) Net customer flows 188.1 158.0 182.0 161.9 186.7 690.0 697.6 Interest credited and market value change 88.3 265.4 10.9 56.3 155.8 420.9 187.6 Policy charges (172.4) (164.3) (164.1) (161.5) (161.2) (662.3) (622.1) Account Values, end of period 9,375.6$ 9,271.6$ 9,012.5$ 8,983.7$ 8,927.0$ 9,375.6$ 8,927.0$

Face Amount of Life Insurance In ForcePeriod Ended, Period Ended,

31-Dec-16 30-Sep-16 30-Jun-16 31-Mar-16 31-Dec-15 31-Dec-16 31-Dec-15Universal and Variable Universal Life 86,511.3$ 85,706.8$ 85,320.0$ 84,958.2$ 84,551.1$ 86,511.3$ 84,551.1$ Traditional Life Insurance 209,112.2 198,720.7 190,145.0 182,437.0 175,874.7 209,112.2 175,874.7 Total 295,623.5$ 284,427.5$ 275,465.0$ 267,395.2$ 260,425.8$ 295,623.5$ 260,425.8$

~ Traditional life insurance includes participating whole life, adjustable life products and non-participating term life insurance products.

25

Principal Financial Group, Inc.Consolidated Invested Assets


Consolidated Investment Portfolio Composition

Period Ended, 31-Dec-16 31-Dec-15 31-Dec-14

Carrying Percent Carrying Percent Carrying Percent Amount of Total Amount of Total Amount of Total

Fixed maturity securities, available-for-sale 54,846.1$ 69.8% 49,966.5$ 69.0% 49,670.8$ 70.7%Fixed maturity securities, trading 398.4 0.5% 686.8 0.9% 604.6 0.9%Equity securities, available-for-sale 98.9 0.1% 104.5 0.1% 123.0 0.2%Equity securities, trading 1,413.4 1.8% 1,202.7 1.7% 840.2 1.2%Mortgage loans Commercial 12,027.8 15.3% 11,237.8 15.5% 10,696.9 15.2% Residential 1,202.4 1.5% 1,101.6 1.5% 1,114.7 1.6% Sub-Total 13,230.2 16.8% 12,339.4 17.0% 11,811.6 16.8%Real estate Held for sale 130.7 0.2% 169.7 0.2% 174.0 0.2%Held for investment 1,238.1 1.6% 1,282.1 1.8% 1,170.6 1.7% Sub-Total 1,368.8 1.7% 1,451.8 2.0% 1,344.6 1.9%Policy loans 823.8 1.0% 817.1 1.1% 829.2 1.2%Other investments 3,655.9 4.7% 3,251.7 4.5% 3,209.8 4.6%Total invested assets 75,835.5 96.5% 69,820.5 96.5% 68,433.8 97.3%Cash and cash equivalents 2,719.6 3.5% 2,564.8 3.5% 1,863.9 2.7%Total invested assets and cash 78,555.1$ 100.0% 72,385.3$ 100.0% 70,297.7$ 100.0%

Consolidated Fixed Maturity Securities by Type of Issuer



U.S. government and agencies 1,433.0$ 2.6% 1,702.7$ 3.4% 1,121.8$ 2.2%States and political subdivisions 5,628.9 10.2% 4,808.5 9.5% 4,329.4 8.6%Non-U.S. governments 979.9 1.8% 862.8 1.7% 995.9 2.0%Corporate-public 22,249.2 40.3% 19,300.7 38.1% 19,512.8 38.8%Corporate-private 12,149.1 22.0% 12,050.7 23.8% 12,265.0 24.4%Mortgage-backed securities Residential pass-through securities 2,854.6 5.2% 2,653.4 5.2% 2,857.3 5.7%Commercial MBS 4,098.4 7.4% 3,922.1 7.7% 3,977.0 7.9%Collateralized mortgage obligations 1,828.8 3.3% 1,568.0 3.1% 1,306.2 2.6% Sub-total 8,781.8 15.9% 8,143.5 16.1% 8,140.5 16.2%Asset-backed securities Credit cards 264.8 0.5% 295.4 0.6% 416.2 0.8%Automobile receivables 1,418.4 2.6% 1,341.6 2.6% 1,404.3 2.8%Collateralized debt obligations 769.2 1.4% 702.6 1.4% 543.5 1.1%Lease receivables 417.7 0.8% 472.8 0.9% 502.3 1.0%Home equity 252.8 0.5% 283.7 0.6% 311.5 0.6%Other 899.7 1.6% 688.3 1.4% 732.2 1.5% Sub-total 4,022.6 7.3% 3,784.4 7.5% 3,910.0 7.8%Total 55,244.5$ 100.0% 50,653.3$ 100.0% 50,275.4$ 100.0%

U.S. Invested Assets



Fixed maturity securities NAIC designation 1 34,031.5$ 47.8% 30,712.8$ 46.8% 30,140.6$ 47.0% 2 14,155.0 19.9% 12,827.2 19.6% 13,184.7 20.6% 3 2,611.8 3.7% 2,829.1 4.3% 2,879.3 4.5% 4 604.3 0.8% 547.3 0.8% 637.3 1.0% 5 120.4 0.2% 139.7 0.2% 120.0 0.2% 6 67.0 0.1% 42.7 0.1% 66.2 0.1%Total fixed maturity securities 51,590.0 72.5% 47,098.8 71.8% 47,028.1 73.4%Equity securities, available-for-sale 96.4 0.1% 101.8 0.2% 108.9 0.2%Equity securities, trading 246.2 0.3% 204.4 0.3% 191.6 0.3%Mortgage loans Commercial 11,940.5 16.8% 11,194.9 17.1% 10,657.2 16.6%Residential 680.5 1.0% 596.1 0.9% 507.2 0.8% Sub-Total 12,621.0 17.7% 11,791.0 18.0% 11,164.4 17.4%Real estate Held for sale 128.7 0.2% 166.8 0.3% 171.8 0.3%Held for investment 1,236.5 1.7% 1,280.4 2.0% 1,168.6 1.8% Sub-Total 1,365.2 1.9% 1,447.2 2.2% 1,340.4 2.1%Policy loans 800.7 1.1% 796.3 1.2% 806.5 1.3%Other investments 2,088.7 2.9% 1,877.4 2.9% 1,688.0 2.6%Total invested assets 68,808.2 96.7% 63,316.9 96.5% 62,327.9 97.2%Cash and cash equivalents 2,335.5 3.3% 2,292.9 3.5% 1,762.5 2.8%Total invested assets and cash 71,143.7$ 100.0% 65,609.8$ 100.0% 64,090.4$ 100.0%

26

Principal Financial Group, Inc.Net Realized Capital Gains (Losses) and Net Investment Income


Consolidated Invested AssetsAfter-Tax Net Realized Capital Gains (Losses) ^

Three Months Ended, Trailing Twelve Months,Source 31-Dec-16 30-Sep-16 30-Jun-16 31-Mar-16 31-Dec-15 31-Dec-16 31-Dec-15Fixed maturities, available-for-sale - credit impairments ~ (18.8)$ (7.1)$ (5.4)$ (31.3)$ (5.9)$ (62.6)$ (19.7)$ Commercial mortgages 0.3 (0.7) (0.7) 0.2 (0.2) (0.9) (2.2) Other - credit impairments 0.1 1.3 (0.1) 1.4 1.0 2.7 2.2 Total credit impairments (18.4) (6.5) (6.2) (29.7) (5.1) (60.8) (19.7)

Fixed maturities - non-credit (15.8) 11.5 30.5 6.2 (1.9) 32.4 1.0

Derivatives and related hedge activities 3.9 6.0 (33.8) 111.7 (49.7) 87.8 (87.5)

Other (8.6) 14.1 (0.8) 23.4 (0.2) 28.1 (18.7)

DAC Amortization 36.9 (52.6) (4.5) (29.9) 9.3 (50.1) (8.9) Net realized capital gains (losses) * (2.0)$ (27.5)$ (14.8)$ 81.7$ (47.6)$ 37.4$ (133.8)$

Consolidated Invested Assets Net Investment Income

Three Months Ended, Trailing Twelve Months,Investment Type 31-Dec-16 30-Sep-16 30-Jun-16 31-Mar-16 31-Dec-15 31-Dec-16 31-Dec-15Fixed maturity securities, available-for-sale 580.4$ 573.4$ 565.1$ 548.8$ 550.2$ 2,267.7$ 2,154.2$ Fixed maturity securities, trading 4.6 4.2 5.9 5.5 3.9 20.2 21.4 Equity securities, available-for-sale 5.9 5.5 4.7 4.0 9.3 20.1 15.0 Equity securities, trading (2.7) 16.8 3.2 14.1 9.2 31.4 35.2 Mortgage loans Commercial 135.5 127.5 125.2 125.2 133.9 513.4 505.8 Residential 13.9 15.2 16.4 15.0 17.8 60.5 69.3 Real estate 71.1 18.3 18.9 19.6 16.6 127.9 97.1 Policy loans 11.8 11.8 11.4 11.3 11.3 46.3 46.3 Other investments 102.4 129.0 94.6 64.6 82.2 390.6 318.3 Derivatives 10.2 12.9 13.0 8.0 11.4 44.1 22.7 Cash and cash equivalents 3.6 3.4 3.5 3.7 2.3 14.2 8.5 Gross investment income 936.7 918.0 861.9 819.8 848.1 3,536.4 3,293.8

Gross investment expense 21.4 21.2 21.2 20.6 19.7 84.4 77.0 Net investment income * 915.3$ 896.8$ 840.7$ 799.2$ 828.4$ 3,452.0$ 3,216.8$ Annualized Investment Yield, Before Tax ◊ 4.8% 4.7% 4.5% 4.4% 4.7% 4.7% 4.6%

U.S. Invested Assets Net Investment Income

Three Months Ended, Trailing Twelve Months,Investment Type 31-Dec-16 30-Sep-16 30-Jun-16 31-Mar-16 31-Dec-15 31-Dec-16 31-Dec-15Fixed maturity securities, available-for-sale 531.0$ 523.3$ 514.1$ 497.9$ 491.3$ 2,066.3$ 1,949.0$ Fixed maturity securities, trading 2.3 2.7 3.2 3.2 2.1 11.4 11.5 Equity securities, available-for-sale 1.3 1.4 1.3 1.4 1.4 5.4 5.6 Equity securities, trading 0.6 0.2 0.5 10.7 0.2 12.0 9.8 Mortgage loans Commercial 135.5 127.5 125.2 125.2 133.9 513.4 505.8 Residential 5.2 5.0 5.0 5.1 5.4 20.3 19.9 Real estate 71.2 18.2 18.8 19.5 16.5 127.7 96.6 Policy loans 10.3 10.6 10.2 10.2 10.2 41.3 41.4 Other investments 32.7 55.6 28.7 6.4 24.5 123.4 71.6 Derivatives 7.9 9.6 9.0 5.1 7.4 31.6 8.2 Cash and cash equivalents 3.0 2.7 3.0 3.1 1.6 11.8 6.1 Gross investment income 801.0 756.8 719.0 687.8 694.5 2,964.6 2,725.5

Gross investment expense 20.9 20.8 20.6 20.3 19.0 82.6 74.6 Net investment income * 780.1$ 736.0$ 698.4$ 667.5$ 675.5$ 2,882.0$ 2,650.9$ Annualized Investment Yield, Before Tax ◊ 4.5% 4.3% 4.1% 4.1% 4.2% 4.3% 4.2%

* This is a non-GAAP financial measure. See non-GAAP financial measure reconciliations on pages 28-30. ^ Amounts include gains/losses that have yet to be monetized (i.e., mark-to-market adjustments, impairments of securities that have yet to be sold, etc.).~ Amounts include credit impairments as well as gains or losses from sales of fixed maturity securities to reduce credit risk. ◊ Calculated using a simple average of asset classes at the beginning and end of the reporting period.

27

Exhibit 1 Principal Financial Group, Inc.Non-GAAP Financial Measure Reconciliations


Three Months Ended, Twelve Months Ended,31-Dec-16 30-Sep-16 30-Jun-16 31-Mar-16 31-Dec-15 31-Dec-16 31-Dec-15

Basic Earnings Per Common ShareOperating earnings 1.29$ 1.17$ 1.16$ 0.98$ 1.04$ 4.60$ 4.32$ Net realized capital gains (losses) (0.01) (0.10) (0.05) 0.28 (0.16) 0.13 (0.46) Other after-tax adjustments (0.18) - - - (0.01) (0.18) 0.25 Adjustment for redeemable noncontrolling interest - - - - - - - Net income 1.10$ 1.07$ 1.11$ 1.26$ 0.87$ 4.55$ 4.11$

Diluted Earnings Per Common ShareOperating earnings 1.27$ 1.15$ 1.15$ 0.97$ 1.02$ 4.55$ 4.26$ Net realized capital gains (losses) (0.01) (0.09) (0.05) 0.28 (0.15) 0.13 (0.44) Other after-tax adjustments (0.17) - - - (0.01) (0.18) 0.24 Adjustment for redeemable noncontrolling interest - - - - - - - Net income 1.09$ 1.06$ 1.10$ 1.25$ 0.86$ 4.50$ 4.06$

Period Ended, Period Ended,31-Dec-16 30-Sep-16 30-Jun-16 31-Mar-16 31-Dec-15 31-Dec-16 31-Dec-15

Stockholders' Equity x-AOCI Available to Common Stockholders Stockholders' equity x-AOCI available to common stockholders 10,902.5$ 10,702.8$ 10,519.0$ 10,397.7$ 10,194.1$ 10,902.5$ 10,194.1$ Foreign currency translation adjustment (1,093.8) (1,035.1) (1,019.5) (1,031.3) (1,148.2) (1,093.8) (1,148.2) Stockholders' equity, x-AOCI other than foreign currency translation adjustment, available to common stockholders 9,808.7 9,667.7 9,499.5 9,366.4 9,045.9 9,808.7 9,045.9 Net unrealized capital gains (losses) 827.0 1,553.1 1,434.4 1,117.4 715.9 827.0 715.9 Net unrecognized postretirement benefit obligation (408.4) (426.2) (434.2) (442.2) (450.2) (408.4) (450.2) Noncontrolling interest 66.5 69.2 68.0 68.0 65.8 66.5 65.8 Stockholders' Equity 10,293.8$ 10,863.8$ 10,567.7$ 10,109.6$ 9,377.4$ 10,293.8$ 9,377.4$

Book Value Per Common Share x-AOCI Book value x-AOCI 37.90$ 37.20$ 36.52$ 35.80$ 34.98$ 37.90$ 34.98$ Foreign currency translation (3.81) (3.60) (3.54) (3.55) (3.94) (3.81) (3.94)

Book value x-AOCI other than foreign currency translation adjustment 34.09 33.60 32.98 32.25 31.04 34.09 31.04 Net unrealized capital gains (losses) 2.88 5.40 4.99 3.85 2.46 2.88 2.46 Net unrecognized postretirement benefit obligation (1.42) (1.48) (1.51) (1.52) (1.55) (1.42) (1.55) Book Value Per Common Share including AOCI 35.55$ 37.52$ 36.46$ 34.58$ 31.95$ 35.55$ 31.95$

Operating Earnings ROE (x-AOCI) Available to Common Stockholders (trailing twelve months) Operating earnings ROE (x-AOCI) 12.6% 12.1% 12.1% 12.2% 12.8% 12.6% 12.8%Foreign currency translation 1.5% 1.4% 1.2% 1.2% 1.4% 1.5% 1.4%Operating earnings ROE (x-AOCI, other than foreign currency translation adjustment) 14.1% 13.5% 13.3% 13.4% 14.2% 14.1% 14.2%Net realized capital gains (losses) 0.5% -0.1% 0.0% -0.8% -1.5% 0.5% -1.5%Other after-tax adjustments -0.6% 0.0% 0.0% 0.0% 0.8% -0.6% 0.8%Net income ROE available to common stockholders (x-AOCI, other than foreign currency translation adjustment) 14.0% 13.4% 13.3% 12.6% 13.5% 14.0% 13.5%Net unrealized capital (gains) losses -1.1% -1.6% -1.5% -1.4% -1.3% -1.1% -1.3%Net unrecognized postretirement benefit obligation 0.6% 0.5% 0.5% 0.5% 0.6% 0.6% 0.6%Net Income ROE Available to Common Stockholders (including AOCI) 13.5% 12.3% 12.3% 11.7% 12.8% 13.5% 12.8%


Net Revenue Fee 948.8$ 897.0$ 898.5$ 831.9$ 904.5$ 3,576.2$ 3,572.6$ Spread 133.1 122.0 121.7 114.7 108.4 491.5 437.6 Risk 348.6 260.2 334.9 316.9 319.9 1,260.6 1,313.3 Corporate 7.6 (18.8) (15.1) (18.9) (15.6) (45.2) (48.7) Net revenue 1,438.1$ 1,260.4$ 1,340.0$ 1,244.6$ 1,317.2$ 5,283.1$ 5,274.8$ Operating expenses (948.3) (841.5) (907.2) (886.7) (927.7) (3,583.7) (3,629.5) Pre-tax operating earnings (losses) attributable to noncontrolling interest (25.0) (2.5) (1.6) (1.6) (1.6) (30.7) (8.2) Pre-tax net realized capital gains (losses) (4.4) (30.1) (16.0) 96.8 (64.2) 46.3 (170.7) Pre-tax other adjustments (86.4) - - - (3.0) (86.4) 11.7 Certain adjustments related to equity method investments and noncontrolling interest 7.3 (15.6) (15.3) (13.3) (11.7) (36.9) (47.3) Income (Loss) Before Income Taxes 381.3$ 370.7$ 399.9$ 439.8$ 309.0$ 1,591.7$ 1,430.8$

Pre-Tax Operating Earnings (Losses) Fee 323.7$ 328.0$ 311.9$ 261.7$ 294.0$ 1,225.3$ 1,153.3$ Spread 87.5 76.0 70.2 67.4 62.1 301.1 246.6 Risk 106.9 70.2 103.6 80.5 86.6 361.2 429.5 Corporate (53.3) (57.8) (54.5) (53.3) (54.8) (218.9) (192.3) Pre-tax operating earnings (losses) 464.8$ 416.4$ 431.2$ 356.3$ 387.9$ 1,668.7$ 1,637.1$ Pre-tax net realized capital gains (losses) (4.4) (30.1) (16.0) 96.8 (64.2) 46.3 (170.7) Pre-tax other adjustments (86.4) - - - (3.0) (86.4) 11.7 Certain adjustments related to equity method investments and noncontrolling interest 7.3 (15.6) (15.3) (13.3) (11.7) (36.9) (47.3) Income (Loss) Before Income Taxes 381.3$ 370.7$ 399.9$ 439.8$ 309.0$ 1,591.7$ 1,430.8$

28


(in millions)


Operating Earnings (Losses) Fee 261.8$ 260.6$ 250.9$ 214.5$ 234.3$ 987.8$ 951.3$ Spread 60.8 53.2 49.3 47.2 43.3 210.5 172.6 Risk 71.0 47.5 69.1 54.8 58.0 242.4 286.4 Corporate (21.6) (25.6) (32.2) (30.2) (32.4) (109.6) (139.8) Operating earnings (losses) 372.0$ 335.7$ 337.1$ 286.3$ 303.2$ 1,331.1$ 1,270.5$ Net realized capital gains (losses) (2.0) (27.5) (14.8) 81.7 (47.6) 37.4 (133.8) Other after-tax adjustments (52.0) - - - (2.0) (52.0) 72.6 Net Income (Loss) Available to Common Stockholders 318.0$ 308.2$ 322.3$ 368.0$ 253.6$ 1,316.5$ 1,209.3$

Net Investment Income Net investment income - U.S. 780.1$ 736.0$ 698.4$ 667.5$ 675.5$ 2,882.0$ 2,650.9$ Net investment income - PI 135.2 160.8 142.3 131.7 152.9 570.0 565.9 Total net investment income 915.3 896.8 840.7 799.2 828.4 3,452.0 3,216.8 Certain derivative and hedging-related adjustments (19.6) (24.2) (26.0) (24.3) (31.4) (94.1) (111.7) Certain adjustments related to sponsored investment funds 1.1 1.7 1.9 1.4 0.8 6.1 1.3 Certain adjustments related to equity method investments (17.3) (18.2) (17.4) (14.6) (13.3) (67.5) (55.5) Exited group medical insurance business - - - - 0.3 - 1.2 Total GAAP Net Investment Income 879.5$ 856.1$ 799.2$ 761.7$ 784.8$ 3,296.5$ 3,052.1$

Operating Revenues Operating revenues 3,593.4$ 2,814.4$ 3,035.1$ 2,937.9$ 2,891.8$ 12,380.8$ 12,121.1$ Net realized capital gains (losses), net of related revenue adjustments (61.9) 21.7 7.5 113.6 (71.8) 80.9 (162.7) Certain adjustments related to equity method investments (17.7) (18.1) (16.9) (14.9) (13.3) (67.6) (55.5) Other income on a tax indemnification - - - - - - 60.2 Exited group medical insurance business - - - - 0.3 - 1.3 Total GAAP Revenues 3,513.8$ 2,818.0$ 3,025.7$ 3,036.6$ 2,807.0$ 12,394.1$ 11,964.4$

Total Expenses Total expenses 3,103.6$ 2,395.5$ 2,602.3$ 2,580.0$ 2,502.3$ 10,681.4$ 10,475.8$ Net realized capital gains (losses) expense related adjustments (57.5) 51.8 23.5 16.8 (7.6) 34.6 8.0 Pre-tax other adjustments 86.4 - - - 3.3 86.4 49.8 Total GAAP Expenses 3,132.5$ 2,447.3$ 2,625.8$ 2,596.8$ 2,498.0$ 10,802.4$ 10,533.6$

Income Taxes Income taxes 92.8$ 80.7$ 94.1$ 70.0$ 84.7$ 337.6$ 341.9$ Tax expense (benefit) related to net realized capital gains (losses), as adjusted 2.3 (19.4) (4.3) 14.8 (19.7) (6.6) (45.6) Tax expense (benefit) related to other after-tax adjustments (34.4) - - - (1.0) (34.4) (63.2) Certain adjustments related to equity method investments and noncontrolling interest (17.6) (18.0) (16.9) (14.2) (13.3) (66.7) (55.5) Total GAAP Income Taxes 43.1$ 43.3$ 72.9$ 70.6$ 50.7$ 229.9$ 177.6$

Net Realized Capital Gains (Losses) Total net realized capital gains (losses) (2.0)$ (27.5)$ (14.8)$ 81.7$ (47.6)$ 37.4$ (133.8)$ Certain derivative and hedging-related adjustments 19.6 24.2 26.0 24.3 31.4 94.1 111.7 Amortization of deferred acquisition costs and other actuarial balances (56.9) 80.8 7.2 46.3 (14.4) 77.4 14.0 Certain market value adjustments of embedded derivatives (0.4) (46.4) (0.8) (2.4) (1.8) (50.0) 0.2 Certain adjustments related to sponsored investment funds (1.1) (1.7) (1.9) (1.4) (0.8) (6.1) (1.3) Capital gains distributed (0.2) 17.4 17.1 (27.1) 8.6 7.2 (6.2) Certain adjustments related to equity method investments (0.4) 0.1 0.5 (0.3) - (0.1) - Noncontrolling interest capital gains (losses) (4.7) 16.8 3.1 0.3 3.1 15.5 8.8 Tax impacts 2.3 (19.4) (4.3) 14.8 (19.7) (6.6) (45.6) Recognition of front-end fee revenues 0.3 (0.2) - (0.3) 0.1 (0.2) 0.1 Net realized capital gains (losses) associated with exited group medical insurance business - - - - - - (0.1) Certain market value adjustments to fee revenues 0.1 0.1 1.6 0.7 - 2.5 1.1 GAAP Net Realized Capital Gains (Losses) (43.4)$ 44.2$ 33.7$ 136.6$ (41.1)$ 171.1$ (51.1)$

Other After-Tax Adjustments Early extinguishment of debt (52.0)$ -$ -$ -$ -$ (52.0)$ -$ Exited group medical insurance business - - - - (2.0) - (2.3) Impact of a court ruling on some uncertain tax positions - - - - - - (30.3) Change in deferred tax balances related to merged Chilean entities - - - - - - 105.2 Total Other After-Tax Adjustments (52.0)$ -$ -$ -$ (2.0)$ (52.0)$ 72.6$


Principal International Combined Net Revenue (at PFG Share)Combined net revenue (at PFG share) 197.8$ 215.6$ 193.6$ 184.7$ 195.1$ 791.7$ 767.6$ Less: Combined operating expenses (at PFG share) 131.8 131.4 123.7 116.7 127.8 503.6 496.3 Total Principal International Pre-Tax Operating Earnings 66.0$ 84.2$ 69.9$ 68.0$ 67.3$ 288.1$ 271.3$

29


(in millions)

Trailing Twelve Months,31-Dec-16 30-Sep-16 30-Jun-16 31-Mar-16 31-Dec-15 31-Dec-14

Principal Global Investors Operating Revenues Less Pass-Through CommissionsOperating revenues less pass-through commissions 1,224.1$ 1,187.2$ 1,166.8$ 1,147.3$ 1,161.2$ 1,084.4$ Plus: Commission expense 163.0 167.1 170.8 176.8 182.3 173.0 Operating revenues 1,387.1$ 1,354.3$ 1,337.6$ 1,324.1$ 1,343.5$ 1,257.4$

Principal International Combined Net Revenue (at PFG Share)Combined net revenue (at PFG share) 791.7$ 789.0$ 761.1$ 761.2$ 767.6$ 820.0$ Less: Combined operating expenses (at PFG share) 503.6 499.6 504.9 502.7 496.3 467.3 Total Principal International Pre-Tax Operating Earnings 288.1$ 289.4$ 256.2$ 258.5$ 271.3$ 352.7$

30

Principal Financial Group, Inc.

711 High Street

Des Moines, IA 50392-0001

1+ 800.986.3343

Corporate Headquarters

Institutional and individual owners, as well as equity

analysts contact:

John Egan, Vice President

711 High Street

Des Moines, IA 50392-0420

Offi ce: 515.235.9500 | Fax: 515.235.5491

[email protected]

FinancialInquiries

Principal | principal.com

Investor Relations | principal.com/investor

Find usOnline

Principal Financial Group

c/o Computershare

PO Box 30170

College Station, TX 77842-3170

1+ 866.781.1368

computershare.com/investor

Transfer Agent

Quarter Ended Mar. 31, 2017

Apr. 27, 2017

Quarter Ended Jun. 30, 2017

Jul. 27, 2017

Scheduled Earnings

Release Dates

A.M. Best Company . . . . . . . . . . . . . . . . . . A+ (Superior)

Moody’s Investors Service . . . . . . . . . . . . . . . A1 (Good)

Standard & Poors Ratings Group . . . . . . . . A+ (Strong)

Fitch Ratings . . . . . . . . . . . . . . . . . . . . AA- (Very Strong)

Financial Strength Ratings*

* Principal Life Insurance Company and Principal National Life

Insurance Company only

Principal Life Insurance Company | Des Moines, Iowa 50392-0001, www.principal.com

Insurance products and plan administrative services are provided by Principal Life Insurance Company,

Des Moines, IA 50392-0001. Securities off ered through Principal Securities, Inc., Des Moines, IA 50392-2080,

800.247.4123. Member NASD and SIPC. Principal Life and Principal Securities are member companies of

the Principal Financial Group®.

EE8783Q416 | 01/2017

Documents

Through the Fourth Quarter Ended December 31, 2016 (unaudited) Financial Supplement · 2017-01-30 · December 31, 2016 (unaudited) Financial Supplement. ... basis in determining