Through the Fourth Quarter Ended December 31, 2018

Through the Fourth Quarter Ended December 31, 2018 (unaudited)

Financial Supplement As Recasted*

* Effective January 1, 2019, we made changes to the allocation of certain compensation and other expensesand net investment income among the business units. These allocation changes were made as a result of aglobal financial process improvement project. The expense allocation changes simplify the allocation processes,increase transparency and allow for more effective expense management across the enterprise. The netinvestment income allocation changes better align our internal capital allocation with enterprise capital targets.Results for prior periods were recast so they are reported on a comparable basis, with no impact to totalcompany financial results. In order to provide investors the opportunity to become familiar with these changesprior to publication of first quarter 2019 results, the company is providing this recasted financial supplement forillustrative purposes using historical financial results.

Provides retirement and related financial products and services primarily to businesses, their employees and other individuals. The segment is organized into:

• Retirement and Income Solutions – Fee, which includes full service accumulation, trust services and individual variable annuities; and

• Retirement and Income Solutions – Spread, which includes individual fixed annuities, investment only, pension risk transfer (formerly known as full service payout) and banking services.

Provides asset management services using a multi-boutique strategy and U.S. and global fund platforms to deliver diverse investment capabilities including equity, fixed income, real estate and other alternative investment strategies to clients. Other capabilities include asset allocation, stable value management and other structured investment strategies. Services are provided to clients in our asset accumulation business, in our insurance operations, to our Corporate segment, and for third-party clients.

Has operations in Latin America (Brazil, Chile and Mexico) and Asia (China, Hong Kong Special Administrative Region, India and Southeast Asia). We focus on locations with large middle classes, favorable demographics and growing long-term savings, ideally with voluntary or mandatory pension markets. We entered these locations through acquisitions, start-up operations and joint ventures.

Focuses on solutions for individuals and small-to-medium sized businesses and their employees. The segment is organized into:

• Specialty Benefits insurance, which provides group dental and vision insurance, individual disability insurance, group disability insurance (including short-term disability, long-term disability, critical illness and accident), group life insurance and non-medical fee-for-service claims administration; and

• Individual Life insurance, which provides universal and variable universal life insurance (including indexed universal life) and traditional life insurance (including participating whole life, adjustable life products and non-participating term life insurance).

Manages the assets representing capital that has not been allocated to any other segment. Financial results of the Corporate segment primarily reflect our financing activities (including financing costs), income on capital not allocated to other segments, inter segment eliminations, income tax risks and certain income, expenses and other adjustments not allocated to the segments based on the nature of such items. Results of Principal Securities, Inc., our retail broker-dealer and registered investment advisor; RobustWealth, our financial technology company; and our exited group medical and long-term care insurance businesses are reported in this segment.

Principal Financial Group, Inc. Reportable Segments

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

Retirement and Income Solutions

Principal Global Investors

Principal International

U.S. Insurance Solutions

Corporate

Principal Financial Group, Inc.

Financial SupplementTable of Contents

Summary Financial and Market Highlights 2-3Non-GAAP Operating Earnings Information Time Series - Fee, Spread and Risk Businesses 4Principal Financial Group, Inc. Consolidated Financial Information Consolidated U.S. GAAP Income Statement and Reconciliation to Non-GAAP Pre-Tax Operating Earnings 6 Consolidated Financial Metrics 7Segment Pre-Tax Operating Earnings Statements Time Series Retirement and Income Solutions Segment Fee 8 Spread Principal Global Investors Segment 9 Principal International Segment U.S. Insurance Solutions Segment 10 Specialty Benefits Insurance Individual Life Insurance 11 Corporate Segment 12Consolidated Balance Sheet 13Assets Under Management Rollforward Detail by Asset Manager 14 Principal Global Investors - Assets Under Management Rollforward Detail by Asset Class 15 Principal Global Investors - Assets Under Management Detail 16 Principal International - Assets Under Management Rollforward Detail by Country 18-19Selected Segment Financial Highlights Retirement and Income Solutions - Account Values 20 Retirement and Income Solutions - Defined Contribution and Defined Benefit Detail by Employer Size 21 Principal International - Financial Highlights by Country 22 Principal International - Exchange Rates 23 Principal International - Pre-tax Operating Earnings Statement Detail in Local Currency Assuming 100% Ownership 24 U.S. Insurance Solutions - Specialty Benefits Insurance 26 U.S. Insurance Solutions - Individual Life Insurance 27Consolidated Invested Assets 28Net Realized Capital Gains (Losses) and Net Investment Income 29Non-GAAP Financial Measure Reconciliations 30-32

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 measures. See “Non-GAAP Financial Measures Reconciliations” located on pages 30-32. 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 comparableto 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-18 30-Sep-18 30-Jun-18 31-Mar-18 31-Dec-17 31-Dec-18 31-Dec-17

Basic Earnings Per Common ShareNon-GAAP operating earnings * 1.12$ 1.69$ 1.37$ 1.41$ 1.21$ 5.59$ 5.12$ Net income 0.84$ 1.60$ 1.59$ 1.37$ 2.91$ 5.41$ 8.00$ Weighted average common shares outstanding (in millions) 282.5 284.9 286.4 289.4 289.3 285.8 288.9

Diluted Earnings Per Common ShareNon-GAAP operating earnings * 1.11$ 1.67$ 1.35$ 1.40$ 1.19$ 5.53$ 5.04$ Net income 0.83$ 1.59$ 1.58$ 1.36$ 2.87$ 5.36$ 7.88$ Weighted average common shares outstanding (in millions) 285.2 287.8 289.2 292.9 293.5 288.8 293.1

Book Value Available to Common StockholdersExcluding AOCI * 46.35$ 46.01$ 44.90$ 43.99$ 43.89$ 46.35$ 43.89$ Excluding AOCI, other than foreign currency translation adjustment * 41.84$ 41.90$ 40.88$ 40.83$ 40.71$ 41.84$ 40.71$ End of period common shares outstanding (in millions) 279.5 283.6 284.6 287.7 289.0 279.5 289.0

Non-GAAP Operating Earnings Return on Average Equity Available to Common Stockholders (trailing twelve months)Excluding AOCI * 12.5% 13.1% 12.7% 12.8% 12.5% 12.5% 12.5%Excluding AOCI, other than foreign currency translation adjustment * 13.6% 14.3% 13.9% 13.9% 13.7% 13.6% 13.7%

Share Repurchase Data Shares repurchased (in millions) 4.4 1.1 3.4 2.9 - 11.8 3.1 Cost of shares repurchased (in millions) 210.1$ 64.9$ 196.4$ 178.6$ -$ 650.0$ 193.0$ Average price per share repurchased 47.73$ 56.50$ 58.61$ 62.18$ -$ 55.21$ 61.72$

Dividend Information Dividends per share 0.54$ 0.53$ 0.52$ 0.51$ 0.49$ 2.10$ 1.87$ Dividends paid (in millions) 152.1$ 150.7$ 148.5$ 147.3$ 141.5$ 598.6$ 540.0$

Trading Statistics High 61.12$ 60.15$ 62.07$ 75.58$ 72.23$ 75.58$ 72.23$ Low 40.42$ 52.39$ 52.31$ 57.62$ 64.46$ 40.42$ 56.12$ Close 44.17$ 58.59$ 52.95$ 60.91$ 70.53$ 44.17$ 70.53$ Volume (in millions) 128.7 82.2 104.4 97.6 65.9 413.0 275.5

Valuation Data (Closing Prices) Market capitalization (in millions) 12,345.52$ 16,616.12$ 15,069.57$ 17,523.81$ 20,383.17$ 12,345.52$ 20,383.17$ Price to earnings multiple 7.99 10.44 10.14 11.76 13.97 7.99 13.97 Price to book value multiple 0.95 1.27 1.18 1.38 1.61 0.95 1.61

Investment Performance ~1-Year 41% 74% 83% 80% 76% 41% 76%3-Year 52% 68% 70% 72% 69% 52% 69%5-Year 78% 89% 86% 86% 83% 78% 83%

Period Ended, Period Ended, AUM by Asset Manager (in billions) 31-Dec-18 30-Sep-18 30-Jun-18 31-Mar-18 31-Dec-17 31-Dec-18 31-Dec-17Principal Global Investors 393.5$ 426.5$ 429.8$ 423.8$ 430.9$ 393.5$ 430.9$ Other Entities of PFG 155.9 157.5 157.4 173.8 163.6 155.9 163.6 Third Party Asset Managers 77.4 83.8 79.4 76.2 74.1 77.4 74.1 Total 626.8$ 667.8$ 666.6$ 673.8$ 668.6$ 626.8$ 668.6$

* This is a non-GAAP financial measure. See non-GAAP financial measure reconciliations on pages 30-32.~ Represents the percentage of Principal actively managed mutual funds, exchange traded funds (ETFs), insurance separate accounts, and collective investment trusts (CITs) in the top two Morningstar quartiles. Excludes Money Market, Stable Value, Liability Driven Investment, Hedge Fund Separate Account, and US Property Separate Account.

2

Principal Financial Group, Inc.Summary Financial Highlights

(in millions, except as indicated)

Trailing Twelve Months,31-Dec-18 30-Sep-18 30-Jun-18 31-Mar-18 31-Dec-17 31-Dec-16

Retirement and Income Solutions - Fee Net revenue 1,573.8$ 1,602.1$ 1,562.9$ 1,561.7$ 1,549.7$ 1,466.7$ Year over year net revenue growth 1.6% 6.7% 3.9% 4.7% 5.7% -5.1%Pre-tax operating earnings 492.7$ 529.6$ 487.8$ 499.5$ 507.5$ 474.0$ Pre-tax return on net revenue 31.3% 33.1% 31.2% 32.0% 32.7% 32.3%

Retirement and Income Solutions - Spread Net revenue 587.7$ 572.4$ 558.5$ 576.1$ 577.9$ 524.0$ Year over year net revenue growth 1.7% -6.6% -6.2% 2.3% 10.3% 14.4%Pre-tax operating earnings 429.5$ 423.0$ 417.3$ 431.5$ 431.0$ 356.2$ Pre-tax return on net revenue 73.1% 73.9% 74.7% 74.9% 74.6% 68.0%

Principal Global Investors Management fee revenue 1,244.6$ 1,261.8$ 1,253.4$ 1,241.5$ 1,217.1$ 1,120.2$ Other revenue 491.7 494.6 237.7 225.5 227.3 266.9 Operating revenues 1,736.3$ 1,756.4$ 1,491.1$ 1,467.0$ 1,444.4$ 1,387.1$ Operating revenues less pass-through commissions * 1,571.1$ 1,589.5$ 1,325.8$ 1,303.8$ 1,284.8$ 1,224.1$ Year over year operating revenues less pass-through commissions growth 22.3% 23.4% 4.7% 3.4% 5.0% 5.4%Pre-tax operating earnings 562.1$ 586.5$ 502.4$ 491.7$ 481.3$ 454.2$ Pre-tax operating earnings, adjusted for noncontrolling interest 567.8$ 592.3$ 508.1$ 497.6$ 487.0$ 460.1$ Pre-tax return on operating revenues less pass-through commissions 36.1% 37.3% 38.3% 38.2% 37.9% 37.6%

Principal International Combined net revenue (at PFG share) * 939.7$ 965.3$ 960.8$ 934.2$ 922.0$ 791.7$ Year over year combined net revenue growth (at PFG share) 1.9% 9.5% 11.6% 11.9% 16.5% 3.1%Pre-tax operating earnings 272.6$ 297.8$ 337.2$ 332.8$ 346.2$ 300.2$ Pre-tax return on combined net revenue (at PFG share) 29.0% 30.9% 35.1% 35.6% 37.5% 37.9%

Specialty Benefits InsurancePremium and fees 2,169.5$ 2,131.2$ 2,096.9$ 2,059.4$ 2,021.1$ 1,862.3$ Year over year premium and fees growth 7.3% 7.7% 8.4% 8.4% 8.5% 7.5%Pre-tax operating earnings 286.7$ 274.9$ 275.9$ 275.2$ 254.1$ 244.8$ Pre-tax return on premium and fees 13.2% 12.9% 13.2% 13.4% 12.6% 13.1%

Individual Life InsurancePremium and fees 1,091.8$ 1,091.0$ 1,095.7$ 1,097.9$ 1,082.3$ 996.1$ Year over year premium and fees growth 0.9% 2.6% 6.4% 8.6% 8.7% 3.1%Pre-tax operating earnings 180.3$ 196.4$ 159.7$ 158.0$ 158.7$ 141.2$ Pre-tax return on premium and fees 16.5% 18.0% 14.6% 14.4% 14.7% 14.2%

* This is a non-GAAP financial measure. See non-GAAP financial measure reconciliations on pages 30-32.

Definitions: Net revenue: operating revenues less benefits, claims and settlement expenses less dividends to policyholders. See pages 8-9 for additional detail. Pre-tax operating earnings: operating earnings before income taxes 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 9 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. The company has determined this measure is more representative of underlying operating revenues growth for PGI as it removes commissions that are collected through fee revenue and passed through expenses with no impact to pre-tax operating earnings.Combined net revenue: net revenue for all Principal International companies at 100% less pass-through commissions. Prior to 1Q 2018, pass-through commissions were not excluded from this definition. 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 page 11 for additional detail. Pre-tax return on premium and fees: pre-tax operating earnings divided by premium and fees.

3

Principal Financial Group, Inc.Non-GAAP Operating Earnings Information Time Series - Fee, Spread and Risk Businesses

(in millions)

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

Line Item 31-Dec-18 30-Sep-18 30-Jun-18 31-Mar-18 31-Dec-17 31-Dec-18 31-Dec-17Net revenue * 900.9$ 1,183.6$ 981.5$ 972.3$ 974.2$ 4,038.3$ 3,754.2$ Non-GAAP pre-tax operating earnings * 249.4$ 399.0$ 346.2$ 332.8$ 335.9$ 1,327.4$ 1,335.0$ Pre-tax return on net revenue 27.7% 33.7% 35.3% 34.2% 34.5% 32.9% 35.6%

Non-GAAP operating earnings (losses) * 213.6$ 326.1$ 280.5$ 273.5$ 263.9$ 1,093.7$ 1,072.4$

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

Line Item 31-Dec-18 30-Sep-18 30-Jun-18 31-Mar-18 31-Dec-17 31-Dec-18 31-Dec-17Net revenue * 145.8$ 153.2$ 136.5$ 152.2$ 130.5$ 587.7$ 577.9$ Non-GAAP pre-tax operating earnings * 94.7$ 121.6$ 96.9$ 116.3$ 88.2$ 429.5$ 431.0$ Pre-tax return on net revenue 65.0% 79.4% 71.0% 76.4% 67.6% 73.1% 74.6%

Non-GAAP operating earnings (losses) * 75.2$ 107.5$ 77.9$ 94.6$ 62.2$ 355.2$ 297.1$

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

Line Item 31-Dec-18 30-Sep-18 30-Jun-18 31-Mar-18 31-Dec-17 31-Dec-18 31-Dec-17Premium and fees 827.9$ 817.1$ 804.6$ 811.5$ 788.8$ 3,261.1$ 3,103.2$ Non-GAAP pre-tax operating earnings * 113.0$ 125.7$ 113.3$ 115.0$ 117.3$ 467.0$ 412.8$ Pre-tax return on premium and fees 13.6% 15.4% 14.1% 14.2% 14.9% 14.3% 13.3%

Non-GAAP operating earnings (losses) * 91.6$ 105.8$ 90.6$ 93.3$ 79.8$ 381.3$ 278.8$

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

31-Dec-18 30-Sep-18 30-Jun-18 31-Mar-18 31-Dec-17 31-Dec-18 31-Dec-17Fee 56% 60% 62% 59% 65% 60% 65%Spread 20% 20% 17% 21% 15% 19% 18%Risk 24% 20% 20% 20% 20% 21% 17%

* This is a non-GAAP financial measure. See non-GAAP financial measure reconciliations on pages 30-32. ◊ 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 U.S. GAAP Income Statement and Reconciliation to Non-GAAP Pre-Tax Operating Earnings

(in millions)

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

Line Item 31-Dec-18 30-Sep-18 30-Jun-18 31-Mar-18 31-Dec-17 31-Dec-18 31-Dec-17Premiums and other considerations 1,976.2$ 2,172.4$ 1,265.8$ 995.2$ 1,390.6$ 6,409.6$ 6,217.4$ Fees and other revenues 988.1 1,261.8 1,012.6 1,011.3 1,009.5 4,273.8 3,892.3 Net investment income 918.5 919.4 889.1 902.2 877.5 3,629.2 3,459.3 Net realized capital gains (losses) (112.2) (5.5) 67.4 (25.1) (39.9) (75.4) 524.2 Total revenues 3,770.6 4,348.1 3,234.9 2,883.6 3,237.7 14,237.2 14,093.2

Benefits, claims and settlement expenses 2,440.1 2,642.1 1,699.2 1,411.1 1,801.9 8,192.5 7,822.6 Dividends to policyholders 31.0 31.9 30.2 30.5 31.9 123.6 124.6 Operating expenses 1,056.6 1,105.0 990.1 985.0 1,089.1 4,136.7 3,893.8 Total expenses 3,527.7 3,779.0 2,719.5 2,426.6 2,922.9 12,452.8 11,841.0

Income (loss) before income taxes 242.9 569.1 515.4 457.0 314.8 1,784.4 2,252.2 Income taxes 11.2 109.1 55.9 54.5 (528.1) 230.7 (72.3) Net income (loss) 231.7 460.0 459.5 402.5 842.9 1,553.7 2,324.5

Net income (loss) attributable to noncontrolling interest (4.8) 3.7 2.9 5.4 1.1 7.2 14.1 Net income (loss) attributable to Principal Financial Group, Inc. 236.5$ 456.3$ 456.6$ 397.1$ 841.8$ 1,546.5$ 2,310.4$

The consolidated income statement is presented on a U.S. GAAP basis. However, the measure of profitability for our operating segments is pre-tax operating earnings, as shown on the segment pre-tax operating earnings statements on pages 8-12. A reconciliation of consolidated GAAP income before income taxes to segment pre-tax operating earnings is provided on page 7.

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

31-Dec-18 30-Sep-18 30-Jun-18 31-Mar-18 31-Dec-17 31-Dec-18 31-Dec-17Non-GAAP Operating Earnings (Losses)Net income (loss) attributable to Principal Financial Group, Inc. 236.5$ 456.3$ 456.6$ 397.1$ 841.8$ 1,546.5$ 2,310.4$ Net realized capital (gains) losses 112.2 5.5 (67.4) 25.1 39.9 75.4 (524.2) Net realized capital (gains) losses after-tax adjustments ^ (32.6) 19.4 2.2 (13.4) (6.4) (24.4) 216.9 Other after-tax adjustments: Principal Financial Group Foundation, Inc. contribution: Pre-Tax - - - - 70.0 - 70.0 Tax - - - - (26.2) - (26.2) Tax Cuts and Jobs Act: Tax - - - - (568.3) - (568.3) Non-GAAP operating earnings (losses) * 316.1$ 481.2$ 391.4$ 408.8$ 350.8$ 1,597.5$ 1,478.6$

Income taxes * 62.8 112.2 94.3 87.7 102.7 357.0 395.1 Non-GAAP pre-tax operating earnings (losses) * 378.9$ 593.4$ 485.7$ 496.5$ 453.5$ 1,954.5$ 1,873.7$

* This is a non-GAAP financial measure. See non-GAAP financial measure reconciliations on pages 7 and 30-32.^ See detail of adjustments related to net realized capital gains (losses) on page 31.

6

Principal Financial Group, Inc.Consolidated Financial Metrics

(in millions)

Three Months Ended, Trailing Twelve Months,Line Item 31-Dec-18 30-Sep-18 30-Jun-18 31-Mar-18 31-Dec-17 31-Dec-18 31-Dec-17Non-GAAP Pre-Tax Operating Earnings (Losses)Income (loss) before income taxes 242.9$ 569.1$ 515.4$ 457.0$ 314.8$ 1,784.4$ 2,252.2$ Net realized capital (gains) losses 112.2 5.5 (67.4) 25.1 39.9 75.4 (524.2) Net realized capital (gains) losses pre-tax adjustments ^ 11.3 22.4 18.8 (1.5) 10.4 51.0 3.9 Non-GAAP pre-tax operating (earnings) losses attributable to noncontrolling interest * (1.1) (2.0) (3.0) (5.5) (1.5) (11.6) (10.5) Income taxes related to equity method investments 13.6 (1.6) 21.9 21.4 19.9 55.3 82.3 Pre-tax other adjustments: Principal Financial Group Foundation, Inc. contribution - - - - 70.0 - 70.0 Non-GAAP pre-tax operating earnings (losses) * 378.9$ 593.4$ 485.7$ 496.5$ 453.5$ 1,954.5$ 1,873.7$

Operating RevenuesTotal revenues 3,770.6$ 4,348.1$ 3,234.9$ 2,883.6$ 3,237.7$ 14,237.2$ 14,093.2$ Net realized capital (gains) losses 112.2 5.5 (67.4) 25.1 39.9 75.4 (524.2) Net realized capital (gains) losses revenue adjustments ^ 8.3 14.7 16.8 17.1 13.4 56.9 52.0 Income taxes related to equity method investments 13.6 (1.6) 21.9 21.4 19.9 55.3 82.3 Operating revenues * 3,904.7$ 4,366.7$ 3,206.2$ 2,947.2$ 3,310.9$ 14,424.8$ 13,703.3$

Operating Expenses Total operating expenses 1,056.6$ 1,105.0$ 990.1$ 985.0$ 1,089.1$ 4,136.7$ 3,893.8$ Net realized capital (gains) losses operating expense adjustments ^ (4.7) (10.3) (4.1) 9.2 (3.5) (9.9) 8.5 Principal Financial Group Foundation, Inc. contribution - - - - (70.0) - (70.0) Operating expenses * 1,051.9$ 1,094.7$ 986.0$ 994.2$ 1,015.6$ 4,126.8$ 3,832.3$

Three Months Ended, Trailing Twelve Months,31-Dec-18 30-Sep-18 30-Jun-18 31-Mar-18 31-Dec-17 31-Dec-18 31-Dec-17

Segment Pre-Tax Operating Earnings (Losses)Retirement and Income Solutions 183.9$ 266.8$ 227.6$ 243.9$ 214.3$ 922.2$ 938.5$ Principal Global Investors 102.4 216.8 129.2 113.7 126.8 562.1 481.3 Principal International 57.8 37.0 86.3 91.5 83.0 272.6 346.2 U.S. Insurance Solutions 113.0 125.7 113.3 115.0 117.3 467.0 412.8 Corporate (78.2) (52.9) (70.7) (67.6) (87.9) (269.4) (305.1) Pre-tax operating earnings (losses) * 378.9$ 593.4$ 485.7$ 496.5$ 453.5$ 1,954.5$ 1,873.7$


Categories of Segment Operating ExpensesCommission expense 231.8$ 235.1$ 241.8$ 222.7$ 224.0$ 931.4$ 868.1$ Capitalization of DAC and contract costs (112.3) (105.8) (118.0) (107.3) (114.6) (443.4) (421.8) Amortization of DAC and contract costs 91.5 23.8 64.9 71.5 72.6 251.7 282.0 Depreciation and amortization 39.8 36.3 37.3 37.6 35.9 151.0 139.8 Interest expense on corporate debt 36.8 36.8 36.7 36.9 37.1 147.2 148.3 Compensation and other 764.3 868.5 723.3 732.8 760.6 3,088.9 2,815.9 Operating expenses * 1,051.9$ 1,094.7$ 986.0$ 994.2$ 1,015.6$ 4,126.8$ 3,832.3$

* This is a non-GAAP financial measure and is reconciled to GAAP on this page.^ See detail of adjustments related to net realized capital gains (losses) on page 31.

7

Principal Financial Group, Inc.Segment Pre-Tax Operating Earnings Statements

(in millions)

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

Line Item 31-Dec-18 30-Sep-18 30-Jun-18 31-Mar-18 31-Dec-17 31-Dec-18 31-Dec-17Premiums and other considerations 1,293.3$ 1,496.8$ 556.0$ 289.8$ 735.6$ 3,635.9$ 3,671.1$ Fees and other revenues 341.3 358.2 355.3 353.5 362.4 1,408.3 1,394.4 Net investment income 578.9 579.7 538.6 535.6 529.1 2,232.8 2,089.2 Total operating revenues 2,213.5 2,434.7 1,449.9 1,178.9 1,627.1 7,277.0 7,154.7

Benefits, claims and settlement expenses 1,690.9 1,880.8 918.0 625.6 1,091.5 5,115.3 5,026.9 Dividends to policyholders 0.1 0.1 - - 0.1 0.2 0.2 Commission expense 68.5 76.3 84.5 63.0 68.1 292.3 292.2 Capitalization of DAC and contract costs (31.7) (30.2) (42.1) (27.5) (27.5) (131.5) (109.2) Amortization of DAC and contract costs 48.1 1.5 26.5 30.9 27.8 107.0 80.6 Depreciation and amortization 8.4 8.0 8.0 8.1 8.0 32.5 30.6 Interest expense on corporate debt - 0.1 - - 0.1 0.1 0.1 Compensation and other 245.3 231.3 227.4 234.9 244.7 938.9 894.8 Total expenses 2,029.6 2,167.9 1,222.3 935.0 1,412.8 6,354.8 6,216.2

Pre-tax operating earnings (losses) attributable to noncontrolling interest - - - - - - - Pre-tax operating earnings (losses) 183.9$ 266.8$ 227.6$ 243.9$ 214.3$ 922.2$ 938.5$

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

Line Item 31-Dec-18 30-Sep-18 30-Jun-18 31-Mar-18 31-Dec-17 31-Dec-18 31-Dec-17Premiums and other considerations 0.5$ 1.1$ 0.9$ 1.5$ 1.2$ 4.0$ 3.8$ Fees and other revenues 335.5 352.0 349.7 348.1 356.6 1,385.3 1,369.2 Net investment income 99.4 100.9 95.9 98.2 98.4 394.4 403.4 Total operating revenues 435.4 454.0 446.5 447.8 456.2 1,783.7 1,776.4

Benefits, claims and settlement expenses 58.6 53.3 51.1 46.7 51.1 209.7 226.5 Dividends to policyholders 0.1 0.1 - - 0.1 0.2 0.2 Commission expense 45.8 51.1 52.6 52.9 53.9 202.4 224.4 Capitalization of DAC and contract costs (21.3) (17.3) (18.3) (22.2) (20.7) (79.1) (78.5) Amortization of DAC and contract costs 37.1 8.4 18.2 22.3 18.3 86.0 61.6 Depreciation and amortization 7.2 6.8 6.8 6.9 6.8 27.7 25.9 Interest expense on corporate debt - - - - - - - Compensation and other 218.7 206.4 205.4 213.6 220.6 844.1 808.8 Total expenses 346.2 308.8 315.8 320.2 330.1 1,291.0 1,268.9


8


(in millions)

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

Line Item 31-Dec-18 30-Sep-18 30-Jun-18 31-Mar-18 31-Dec-17 31-Dec-18 31-Dec-17Premiums and other considerations 1,292.8$ 1,495.7$ 555.1$ 288.3$ 734.4$ 3,631.9$ 3,667.3$ Fees and other revenues 5.8 6.2 5.6 5.4 5.8 23.0 25.2 Net investment income 479.5 478.8 442.7 437.4 430.7 1,838.4 1,685.8 Total operating revenues 1,778.1 1,980.7 1,003.4 731.1 1,170.9 5,493.3 5,378.3

Benefits, claims and settlement expenses 1,632.3 1,827.5 866.9 578.9 1,040.4 4,905.6 4,800.4 Dividends to policyholders - - - - - - - Commission expense 22.7 25.2 31.9 10.1 14.2 89.9 67.8 Capitalization of DAC and contract costs (10.4) (12.9) (23.8) (5.3) (6.8) (52.4) (30.7) Amortization of DAC and contract costs 11.0 (6.9) 8.3 8.6 9.5 21.0 19.0 Depreciation and amortization 1.2 1.2 1.2 1.2 1.2 4.8 4.7 Interest expense on corporate debt - 0.1 - - 0.1 0.1 0.1 Compensation and other 26.6 24.9 22.0 21.3 24.1 94.8 86.0 Total expenses 1,683.4 1,859.1 906.5 614.8 1,082.7 5,063.8 4,947.3


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

Line Item 31-Dec-18 30-Sep-18 30-Jun-18 31-Mar-18 31-Dec-17 31-Dec-18 31-Dec-17Premiums and other considerations -$ -$ -$ -$ -$ -$ -$ Fees and other revenues 353.7 631.8 378.4 367.0 368.6 1,730.9 1,434.2 Net investment income 1.7 1.0 1.2 1.5 6.9 5.4 10.2 Total operating revenues 355.4 632.8 379.6 368.5 375.5 1,736.3 1,444.4

Benefits, claims and settlement expenses - - - - - - - Dividends to policyholders - - - - - - - Commission expense 38.5 41.6 41.9 43.2 40.2 165.2 159.6 Capitalization of DAC and contract costs - - - - - - - Amortization of DAC and contract costs - - - - - - - Depreciation and amortization 7.5 4.9 4.9 4.6 4.6 21.9 19.8 Interest expense on corporate debt - - - - - - - Compensation and other 206.1 367.8 202.2 205.3 202.9 981.4 778.0 Total expenses 252.1 414.3 249.0 253.1 247.7 1,168.5 957.4

Pre-tax operating earnings (losses) attributable to noncontrolling interest 0.9 1.7 1.4 1.7 1.0 5.7 5.7 Pre-tax operating earnings (losses) 102.4$ 216.8$ 129.2$ 113.7$ 126.8$ 562.1$ 481.3$

9


(in millions)

Principal International Segment Three Months Ended, Trailing Twelve Months,

Line Item 31-Dec-18 30-Sep-18 30-Jun-18 31-Mar-18 31-Dec-17 31-Dec-18 31-Dec-17Premiums and other considerations 62.1$ 55.6$ 101.6$ 97.9$ 67.3$ 317.2$ 218.0$ Fees and other revenues 116.7 119.7 124.9 123.1 112.9 484.4 433.5 Net investment income 134.0 112.1 163.1 162.1 155.9 571.3 600.0 Total operating revenues 312.8 287.4 389.6 383.1 336.1 1,372.9 1,251.5

Benefits, claims and settlement expenses 144.0 137.2 183.1 180.4 142.4 644.7 491.4 Dividends to policyholders - - - - - - - Commission expense 18.9 19.7 20.8 21.1 17.2 80.5 60.9 Capitalization of DAC and contract costs (5.4) (6.4) (6.1) (6.3) (8.2) (24.2) (24.0) Amortization of DAC and contract costs 4.4 4.1 4.2 4.0 5.7 16.7 21.9 Depreciation and amortization 14.6 14.7 15.1 15.2 13.9 59.6 53.1 Interest expense on corporate debt 0.4 0.4 0.4 0.4 0.5 1.6 2.2 Compensation and other 77.6 80.0 84.4 76.1 81.0 318.1 295.9 Total expenses 254.5 249.7 301.9 290.9 252.5 1,097.0 901.4

Pre-tax operating earnings (losses) attributable to noncontrolling interest 0.5 0.7 1.4 0.7 0.6 3.3 3.9 Pre-tax operating earnings (losses) 57.8$ 37.0$ 86.3$ 91.5$ 83.0$ 272.6$ 346.2$

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

Line Item 31-Dec-18 30-Sep-18 30-Jun-18 31-Mar-18 31-Dec-17 31-Dec-18 31-Dec-17Premiums and other considerations 620.8$ 620.0$ 608.2$ 607.5$ 587.7$ 2,456.5$ 2,328.3$ Fees and other revenues 207.1 197.1 196.4 204.0 201.1 804.6 774.9 Net investment income 207.9 216.1 199.5 205.2 202.6 828.7 810.3 Total operating revenues 1,035.8 1,033.2 1,004.1 1,016.7 991.4 4,089.8 3,913.5

Benefits, claims and settlement expenses 608.9 628.2 602.1 606.8 576.6 2,446.0 2,346.3 Dividends to policyholders 30.9 31.8 30.2 30.5 31.8 123.4 124.4 Commission expense 92.2 86.7 83.8 84.5 80.9 347.2 310.7 Capitalization of DAC and contract costs (75.2) (69.2) (69.8) (73.5) (78.9) (287.7) (288.6) Amortization of DAC and contract costs 39.0 18.2 34.2 36.6 39.1 128.0 179.5 Depreciation and amortization 6.5 6.0 6.8 6.9 7.1 26.2 28.1 Interest expense on corporate debt - - - - - - - Compensation and other 220.5 205.8 203.5 209.9 217.5 839.7 800.3 Total expenses 922.8 907.5 890.8 901.7 874.1 3,622.8 3,500.7


10


(in millions)

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

Line Item 31-Dec-18 30-Sep-18 30-Jun-18 31-Mar-18 31-Dec-17 31-Dec-18 31-Dec-17Premiums and other considerations 550.2$ 539.2$ 527.7$ 517.0$ 511.7$ 2,134.1$ 1,985.9$ Fees and other revenues 8.7 8.8 9.0 8.9 8.9 35.4 35.2 Net investment income 38.6 43.3 35.5 39.5 34.9 156.9 147.3 Total operating revenues 597.5 591.3 572.2 565.4 555.5 2,326.4 2,168.4

Benefits, claims and settlement expenses 334.3 333.1 335.1 325.4 320.3 1,327.9 1,268.4 Dividends to policyholders - - - - - - - Commission expense 63.7 61.9 58.0 56.8 53.6 240.4 209.7 Capitalization of DAC and contract costs (21.8) (20.9) (19.0) (18.5) (19.7) (80.2) (79.2) Amortization of DAC and contract costs 12.9 11.0 12.7 11.6 12.5 48.2 46.4 Depreciation and amortization 3.8 3.6 4.1 4.1 4.1 15.6 16.4 Interest expense on corporate debt - - - - - - - Compensation and other 129.8 120.1 117.9 120.0 121.7 487.8 452.6 Total expenses 522.7 508.8 508.8 499.4 492.5 2,039.7 1,914.3


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

Line Item 31-Dec-18 30-Sep-18 30-Jun-18 31-Mar-18 31-Dec-17 31-Dec-18 31-Dec-17Premiums and other considerations 70.6$ 80.8$ 80.5$ 90.5$ 76.0$ 322.4$ 342.4$ Fees and other revenues 198.5 188.3 187.5 195.1 192.3 769.4 739.9 Net investment income 169.3 172.8 164.0 165.7 167.7 671.8 663.0 Total operating revenues 438.4 441.9 432.0 451.3 436.0 1,763.6 1,745.3

Benefits, claims and settlement expenses 274.6 295.1 267.0 281.4 256.3 1,118.1 1,077.9 Dividends to policyholders 30.9 31.8 30.2 30.5 31.8 123.4 124.4 Commission expense 28.5 24.8 25.8 27.7 27.3 106.8 101.0 Capitalization of DAC and contract costs (53.4) (48.3) (50.8) (55.0) (59.2) (207.5) (209.4) Amortization of DAC and contract costs 26.1 7.2 21.5 25.0 26.6 79.8 133.1 Depreciation and amortization 2.7 2.4 2.7 2.8 3.0 10.6 11.7 Interest expense on corporate debt - - - - - - - Compensation and other 90.8 85.7 85.7 89.9 95.9 352.1 347.9 Total expenses 400.2 398.7 382.1 402.3 381.7 1,583.3 1,586.6


11


(in millions)

Corporate SegmentThree Months Ended, Trailing Twelve Months,

Line Item 31-Dec-18 30-Sep-18 30-Jun-18 31-Mar-18 31-Dec-17 31-Dec-18 31-Dec-17Premiums and other considerations -$ -$ -$ -$ -$ -$ -$ Fees and other revenues (34.4) (44.1) (41.7) (34.7) (35.4) (154.9) (144.4) Net investment income 21.6 22.7 24.7 34.7 16.2 103.7 83.6 Total operating revenues (12.8) (21.4) (17.0) - (19.2) (51.2) (60.8)

Benefits, claims and settlement expenses (2.0) (1.5) (1.9) 7.7 (2.1) 2.3 (2.4) Dividends to policyholders - - - - - - - Commission expense 13.7 10.8 10.8 10.9 17.6 46.2 44.7 Capitalization of DAC and contract costs - - - - - - - Amortization of DAC and contract costs - - - - - - - Depreciation and amortization 2.8 2.7 2.5 2.8 2.3 10.8 8.2 Interest expense on corporate debt 36.4 36.3 36.3 36.5 36.5 145.5 146.0 Compensation and other 14.8 (16.4) 5.8 6.6 14.5 10.8 46.9 Total expenses 65.7 31.9 53.5 64.5 68.8 215.6 243.4

Pre-tax operating earnings (losses) attributable to noncontrolling interest (0.3) (0.4) 0.2 3.1 (0.1) 2.6 0.9 Pre-tax operating earnings (losses) (78.2)$ (52.9)$ (70.7)$ (67.6)$ (87.9)$ (269.4)$ (305.1)$

12

Principal Financial Group, Inc.Consolidated Balance Sheet

(in millions)

Period Ended, Line Item 31-Dec-18 30-Sep-18 30-Jun-18 31-Mar-18 31-Dec-17 30-Sep-17 30-Jun-17 31-Mar-17 31-Dec-16 30-Sep-16Assets Fixed maturities, available-for-sale 60,108.5$ 60,447.2$ 59,311.7$ 58,682.7$ 59,388.4$ 59,137.8$ 57,799.8$ 56,989.1$ 54,846.1$ 56,162.3$ Fixed maturities, trading 636.1 642.1 688.1 658.1 566.0 232.5 241.3 278.0 398.4 567.9 Equity securities 1,843.7 1,885.8 1,869.3 1,927.5 1,866.6 1,789.2 1,690.1 1,620.3 1,512.3 1,525.4 Mortgage loans 15,336.9 14,919.7 14,367.9 14,486.3 14,150.5 14,020.4 13,770.9 13,388.1 13,230.2 13,086.6 Real estate 1,729.7 1,699.7 1,728.9 1,701.1 1,736.7 1,650.2 1,441.8 1,433.3 1,368.8 1,489.2 Policy loans 801.4 804.4 804.0 804.9 808.3 812.0 808.7 819.6 823.8 823.2 Other investments 4,310.3 3,608.3 3,634.9 3,692.2 3,586.2 3,561.3 3,297.9 3,283.6 3,655.9 4,103.9 Total investments 84,766.6 84,007.2 82,404.8 81,952.8 82,102.7 81,203.4 79,050.5 77,812.0 75,835.5 77,758.5 Cash and cash equivalents 2,977.5 2,926.7 2,342.0 2,335.7 2,470.8 2,795.0 2,006.4 1,534.7 2,719.6 2,218.2 Accrued investment income 636.2 660.7 627.8 636.0 610.6 634.6 605.4 625.2 580.6 613.4 Deferred acquisition costs 3,693.5 3,671.9 3,574.4 3,467.9 3,540.7 3,481.4 3,452.2 3,430.8 3,380.2 3,175.6 Property and equipment 767.3 770.6 762.9 775.2 759.5 754.6 750.3 718.8 699.0 674.5 Goodwill 1,100.0 1,128.7 1,103.2 1,096.7 1,068.8 1,055.2 1,033.3 1,032.9 1,020.8 1,034.7 Other intangibles 1,315.1 1,353.9 1,355.4 1,392.4 1,314.7 1,314.7 1,311.3 1,322.6 1,325.3 1,346.4 Premiums due and other receivables 1,413.1 1,514.4 1,455.6 1,638.4 1,469.8 1,516.6 1,381.4 1,447.0 1,361.9 1,382.8 Separate account assets 144,987.9 161,302.9 156,989.0 158,819.2 159,272.7 154,085.9 149,347.9 146,374.7 139,832.6 141,120.3 Other assets 1,378.9 1,421.3 1,488.9 1,522.2 1,330.9 1,092.2 1,215.2 1,197.3 1,258.8 1,043.2 Total assets 243,036.1$ 258,758.3$ 252,104.0$ 253,636.5$ 253,941.2$ 247,933.6$ 240,153.9$ 235,496.0$ 228,014.3$ 230,367.6$

Liabilities Contractholder funds 39,699.7$ 39,813.2$ 39,128.7$ 38,319.7$ 38,082.5$ 38,208.6$ 38,199.8$ 38,074.1$ 37,953.6$ 37,688.0$ Future policy benefits and claims 35,664.8 34,818.3 33,390.7 33,266.5 33,019.3 32,129.1 30,500.4 29,690.5 29,000.7 28,562.3 Other policyholder funds 888.4 849.4 849.7 855.4 922.3 926.2 944.7 922.7 890.4 943.7 Short-term debt 42.9 36.1 64.5 78.1 39.5 58.8 42.0 59.5 51.4 39.9 Long-term debt 3,259.6 3,245.5 3,219.9 3,196.6 3,178.4 3,175.4 3,126.8 3,126.2 3,125.7 3,278.2 Income taxes currently payable 25.3 29.3 19.8 17.6 16.7 53.7 16.5 15.0 12.9 11.6 Deferred income taxes 958.4 911.4 887.9 909.0 1,092.5 1,515.2 1,281.8 1,048.1 972.4 1,229.9 Separate account liabilities 144,987.9 161,302.9 156,989.0 158,819.2 159,272.7 154,085.9 149,347.9 146,374.7 139,832.6 141,120.3 Other liabilities 5,661.9 5,835.0 5,708.4 5,790.8 5,294.1 5,584.3 5,360.9 5,405.2 5,783.3 6,440.0 Total liabilities 231,188.9 246,841.1 240,258.6 241,252.9 240,918.0 235,737.2 228,820.8 224,716.0 217,623.0 219,313.9

Redeemable noncontrolling interest 391.2 148.5 138.9 127.8 101.3 129.1 95.1 95.1 97.5 189.9

Stockholders' Equity Common stock, at par 4.8 4.8 4.8 4.7 4.7 4.7 4.7 4.7 4.7 4.7 Paid-in capital 10,060.7 10,026.2 9,993.6 9,981.8 9,925.2 9,886.8 9,845.1 9,780.5 9,686.0 9,646.5 Retained earnings 10,290.2 10,207.9 9,904.3 9,598.3 9,482.9 8,784.6 8,112.2 7,937.4 7,720.4 7,528.1 Treasury stock (7,400.6) (7,190.5) (7,125.5) (6,928.6) (6,729.0) (6,726.7) (6,677.8) (6,651.4) (6,508.6) (6,476.5) Accumulated other comprehensive income: Net unrealized gains (losses) on AFS securities 207.3 244.3 438.8 883.8 1,455.1 1,387.8 1,315.5 979.4 827.0 1,553.1 Net foreign currency translation adjustment (1,259.5) (1,166.1) (1,142.2) (909.8) (918.5) (945.2) (1,031.8) (1,030.4) (1,093.8) (1,035.1) Net unrecognized postretirement benefit obligations (512.9) (425.8) (434.5) (443.3) (371.1) (395.6) (399.8) (404.1) (408.4) (426.2) Total stockholders' equity attributable to PFG 11,390.0 11,700.8 11,639.3 12,186.9 12,849.3 11,996.4 11,168.1 10,616.1 10,227.3 10,794.6 Noncontrolling interest 66.0 67.9 67.2 68.9 72.6 70.9 69.9 68.8 66.5 69.2 Total stockholders' equity 11,456.0 11,768.7 11,706.5 12,255.8 12,921.9 12,067.3 11,238.0 10,684.9 10,293.8 10,863.8

Total liabilities and stockholders' equity 243,036.1$ 258,758.3$ 252,104.0$ 253,636.5$ 253,941.2$ 247,933.6$ 240,153.9$ 235,496.0$ 228,014.3$ 230,367.6$

13

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

(in billions)


Principal Global Investors AUM, beginning of period 426.5$ 429.8$ 423.8$ 430.9$ 423.3$ 430.9$ 390.5$ Deposits 18.2 16.9 19.8 20.9 19.1 75.8 75.9 Withdrawals (24.9) (18.6) (20.4) (27.1) (21.3) (91.0) (78.6) Net cash flow (6.7) (1.7) (0.6) (6.2) (2.2) (15.2) (2.7) Investment performance (24.2) 8.0 3.7 (1.2) 9.7 (13.7) 43.1 Other (0.2) (0.3) (0.2) 0.2 0.1 (0.5) (0.6) Operations acquired - - 3.5 - - 3.5 - Operations disposed ^ (1.8) (9.2) - - - (11.0) - Effect of exchange rates (0.1) (0.1) (0.4) 0.1 - (0.5) 0.6 AUM, end of period 393.5$ 426.5$ 429.8$ 423.8$ 430.9$ 393.5$ 430.9$

Other Entities of PFG AUM, beginning of period 157.5$ 157.4$ 173.8$ 163.6$ 162.1$ 163.6$ 142.1$ Deposits 6.9 7.0 7.9 8.5 9.2 30.3 34.7 Withdrawals (6.0) (6.6) (7.4) (6.3) (7.0) (26.3) (29.6) Net cash flow 0.9 0.4 0.5 2.2 2.2 4.0 5.1 Investment performance (1.1) 2.8 (1.1) 2.1 1.5 2.7 13.4 Other (0.2) (0.4) 0.1 (0.2) (0.5) (0.7) (1.2) Operations acquired - - - 3.8 - 3.8 - Operations disposed (0.2) - - - - (0.2) - Effect of exchange rates (1.0) (2.7) (15.9) 2.3 (1.7) (17.3) 4.2 AUM, end of period 155.9$ 157.5$ 157.4$ 173.8$ 163.6$ 155.9$ 163.6$

Third Party Asset Managers AUM, beginning of period 83.8$ 79.4$ 76.2$ 74.1$ 70.1$ 74.1$ 59.0$ Deposits 4.2 3.3 3.8 4.5 2.9 15.8 11.6 Withdrawals (1.7) (1.8) (1.4) (2.0) (1.5) (6.9) (6.8) Net cash flow 2.5 1.5 2.4 2.5 1.4 8.9 4.8 Investment performance (8.9) 2.8 0.8 (0.3) 2.6 (5.6) 10.3 Other - - - (0.1) - (0.1) - Operations acquired - 0.1 - - - 0.1 - Operations disposed - - - - - - - Effect of exchange rates - - - - - - - AUM, end of period 77.4$ 83.8$ 79.4$ 76.2$ 74.1$ 77.4$ 74.1$

Total AUM, beginning of period 667.8$ 666.6$ 673.8$ 668.6$ 655.5$ 668.6$ 591.6$ Deposits 29.3 27.2 31.5 33.9 31.2 121.9 122.2 Withdrawals (32.6) (27.0) (29.2) (35.4) (29.8) (124.2) (115.0) Net cash flow (3.3) 0.2 2.3 (1.5) 1.4 (2.3) 7.2 Investment performance (34.2) 13.6 3.4 0.6 13.8 (16.6) 66.8 Other (0.4) (0.7) (0.1) (0.1) (0.4) (1.3) (1.8) Operations acquired - 0.1 3.5 3.8 - 7.4 - Operations disposed ^ (2.0) (9.2) - - - (11.2) - Effect of exchange rates (1.1) (2.8) (16.3) 2.4 (1.7) (17.8) 4.8 AUM, end of period 626.8$ 667.8$ 666.6$ 673.8$ 668.6$ 626.8$ 668.6$

^ During the third quarter 2018, we agreed to a realignment of a real estate investment management team within our Principal Global Investors (“PGI”) segment. With the realignment, PGI no longer manages $9.2 billion of assets for a large real estate client. In addition, during the fourth quarter 2018, we announced our exit from the actively managed currency market and closed the Macro Currency Group (MCG) boutique. With the closure, PGI will no longer manage $1.8 billion of assets related to MCG.

14

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

(in billions)


Equity Investments AUM, beginning of period ~ 177.6$ 172.9$ 170.3$ 173.8$ 166.6$ 173.8$ 143.0$ Deposits 7.3 6.5 7.6 8.5 8.8 29.9 33.1 Withdrawals (12.1) (8.1) (8.8) (10.2) (9.3) (39.2) (35.1) Net cash flow (4.8) (1.6) (1.2) (1.7) (0.5) (9.3) (2.0) Investment performance (24.4) 6.2 4.2 (1.8) 7.7 (15.8) 30.3 Other (0.8) 0.2 (0.2) (0.1) - (0.9) 2.2 Operations acquired - - - - - - - Operations disposed - - - - - - - Effect of exchange rates - (0.1) (0.2) 0.1 - (0.2) 0.3 AUM, end of period ~ 147.6 177.6 172.9 170.3 173.8 147.6 173.8 General account and balance sheet assets 0.1 0.1 0.1 0.1 0.1 0.1 0.1 Total Equity Investments 147.7$ 177.7$ 173.0$ 170.4$ 173.9$ 147.7$ 173.9$

Fixed Income Investments AUM, beginning of period ~ 130.5$ 131.3$ 133.6$ 136.4$ 135.3$ 136.4$ 132.7$ Deposits 6.4 5.1 6.8 8.8 6.5 27.1 26.3 Withdrawals (9.5) (7.1) (8.2) (13.3) (7.0) (38.1) (28.4) Net cash flow (3.1) (2.0) (1.4) (4.5) (0.5) (11.0) (2.1) Investment performance (0.6) 1.1 (1.1) 1.0 0.4 0.4 7.4 Other 1.2 0.2 0.2 0.7 1.2 2.3 (1.6) Operations acquired - - - - - - - Operations disposed - - - - - - - Effect of exchange rates 0.1 (0.1) - - - - - AUM, end of period ~ 128.1 130.5 131.3 133.6 136.4 128.1 136.4 General account and balance sheet assets 56.7 56.7 55.1 54.2 55.4 56.7 55.4 Total Fixed Income Investments 184.8$ 187.2$ 186.4$ 187.8$ 191.8$ 184.8$ 191.8$

Alternative Investments AUM, beginning of period ~ 39.9$ 49.2$ 44.5$ 44.1$ 45.3$ 44.1$ 41.8$ Deposits 1.0 1.4 1.9 1.2 1.1 5.5 4.2 Withdrawals (0.6) (1.6) (1.3) (1.6) (2.7) (5.1) (6.2) Net cash flow 0.4 (0.2) 0.6 (0.4) (1.6) 0.4 (2.0) Investment performance - 0.3 0.6 0.5 0.6 1.4 2.7 Other (0.3) (0.3) 0.2 0.3 (0.2) (0.1) 1.5 Operations acquired - - 3.5 - - 3.5 - Operations disposed ^ (1.8) (9.2) - - - (11.0) - Effect of exchange rates (0.2) 0.1 (0.2) - - (0.3) 0.1 AUM, end of period ~ 38.0 39.9 49.2 44.5 44.1 38.0 44.1 General account and balance sheet assets 18.0 17.3 17.0 17.0 16.9 18.0 16.9 Total Alternative Investments 56.0$ 57.2$ 66.2$ 61.5$ 61.0$ 56.0$ 61.0$

Other AUM, beginning of period ~ -$ -$ -$ 0.2$ 0.2$ 0.2$ 0.2$ Deposits - - - - - - - Withdrawals - - - - - - - Net cash flow - - - - - - - Investment performance - - - - - - - Other - - - (0.2) - (0.2) - Operations acquired - - - - - - - Operations disposed - - - - - - - Effect of exchange rates - - - - - - - AUM, end of period ~ - - - - 0.2 - 0.2 General account and balance sheet assets 5.0 4.4 4.2 4.1 4.0 5.0 4.0 Total Other 5.0$ 4.4$ 4.2$ 4.1$ 4.2$ 5.0$ 4.2$

Total AUM, beginning of period ~ 348.0$ 353.4$ 348.4$ 354.5$ 347.4$ 354.5$ 317.7$ Deposits 14.7 13.0 16.3 18.5 16.4 62.5 63.6 Withdrawals (22.2) (16.8) (18.3) (25.1) (19.0) (82.4) (69.7) Net cash flow (7.5) (3.8) (2.0) (6.6) (2.6) (19.9) (6.1) Investment performance (25.0) 7.6 3.7 (0.3) 8.7 (14.0) 40.4 Other 0.1 0.1 0.2 0.7 1.0 1.1 2.1 Operations acquired - - 3.5 - - 3.5 - Operations disposed ^ (1.8) (9.2) - - - (11.0) - Effect of exchange rates (0.1) (0.1) (0.4) 0.1 - (0.5) 0.4 AUM, end of period ~ 313.7 348.0 353.4 348.4 354.5 313.7 354.5 General account and balance sheet assets 79.8 78.5 76.4 75.4 76.4 79.8 76.4 Total Principal Global Investors AUM 393.5$ 426.5$ 429.8$ 423.8$ 430.9$ 393.5$ 430.9$

~ Excludes general account and balance sheet assets.^ During the third quarter 2018, we agreed to a realignment of a real estate investment management team within our Principal Global Investors (“PGI”) segment. With the realignment, PGI no longer manages $9.2 billion of assets for a large real estate client. In addition, during the fourth quarter 2018, we announced our exit from the actively managed currency market and closed the Macro Currency Group (MCG) boutique. With the closure, PGI will no longer manage $1.8 billion of assets related to MCG.

15

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-18 30-Sep-18 30-Jun-18 31-Mar-18 31-Dec-17 31-Dec-18 31-Dec-17 Aligned Investors 21.9$ 26.6$ 25.5$ 24.7$ 24.5$ 21.9$ 24.5$ Columbus Circle Investors 3.7 5.2 5.0 5.1 5.6 3.7 5.6 Edge Asset Management (1) 15.4 17.5 16.9 16.8 28.9 15.4 28.9 Finisterre Capital 1.9 2.0 2.2 2.2 2.7 1.9 2.7 Macro Currency Group ^ - 1.8 1.9 1.9 2.3 - 2.3 Morley Financial Services (2) - 17.6 17.3 17.3 17.2 - 17.2 Origin Asset Management 2.9 3.7 3.8 4.5 4.9 2.9 4.9 Post Advisory Group 15.8 17.3 17.2 17.0 16.8 15.8 16.8 Principal Global Equities 79.0 96.6 93.3 93.0 93.7 79.0 93.7 Principal Global Fixed Income (1) (2) 122.3 103.4 102.1 102.2 96.4 122.3 96.4 Principal Real Estate - CMBS 8.4 8.4 8.2 8.2 8.2 8.4 8.2 Principal Real Estate - Private Real Estate ^ 51.7 50.0 58.8 53.9 52.9 51.7 52.9 Principal Real Estate - REITs 14.5 16.5 17.1 15.2 15.1 14.5 15.1 Spectrum Asset Management 19.2 21.6 22.2 23.3 24.2 19.2 24.2 Other Sub-Advised 34.1 35.7 35.4 35.7 34.6 34.1 34.6 Other 2.7 2.6 2.9 2.8 2.9 2.7 2.9 Total Principal Global Investors AUM 393.5$ 426.5$ 429.8$ 423.8$ 430.9$ 393.5$ 430.9$

Period Ended, Period Ended,Principal Global Investors AUM by Asset Class 31-Dec-18 30-Sep-18 30-Jun-18 31-Mar-18 31-Dec-17 31-Dec-18 31-Dec-17Equity Investments: Global Equity 36.9$ 43.6$ 45.1$ 47.4$ 48.2$ 36.9$ 48.2$ U.S. Equity 96.3 117.6 110.8 107.8 110.6 96.3 110.6 REITs 14.5 16.5 17.1 15.2 15.1 14.5 15.1 Total Equity Investments 147.7 177.7 173.0 170.4 173.9 147.7 173.9 Fixed Income Investments: CMBS 8.4 8.4 8.2 8.2 8.2 8.4 8.2 Other Fixed Income 176.4 178.8 178.2 179.6 183.6 176.4 183.6 Total Fixed Income Investments 184.8 187.2 186.4 187.8 191.8 184.8 191.8 Alternative Investments: Private Real Estate ^ 51.7 50.0 58.8 53.9 52.9 51.7 52.9 Other Alternatives ^ 4.3 7.2 7.4 7.6 8.1 4.3 8.1 Total Alternative Investments 56.0 57.2 66.2 61.5 61.0 56.0 61.0 Other 5.0 4.4 4.2 4.1 4.2 5.0 4.2 Total Principal Global Investors AUM 393.5$ 426.5$ 429.8$ 423.8$ 430.9$ 393.5$ 430.9$

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

31-Dec-18 30-Sep-18 30-Jun-18 31-Mar-18 31-Dec-17 31-Dec-18 31-Dec-17AUM, beginning of period 208.1$ 217.6$ 213.7$ 219.2$ 215.9$ 219.2$ 200.3$ Deposits 8.9 6.8 10.0 9.8 9.6 35.5 38.6 Withdrawals (13.8) (10.5) (11.4) (15.0) (11.2) (50.7) (43.2) Net cash flow (4.9) (3.7) (1.4) (5.2) (1.6) (15.2) (4.6) Investment performance (12.2) 3.4 1.9 (0.5) 4.3 (7.4) 22.1 Other - 0.1 0.2 0.1 0.5 0.4 1.0 Operations acquired - - 3.5 - - 3.5 - Operations disposed ^ (1.8) (9.2) - - - (11.0) - Effect of exchange rates - (0.1) (0.3) 0.1 0.1 (0.3) 0.4 AUM, end of period 189.2$ 208.1$ 217.6$ 213.7$ 219.2$ 189.2$ 219.2$

Principal Global Investors - U.S. Mutual Funds and ETFsPeriod Ended, Period Ended,

31-Dec-18 30-Sep-18 30-Jun-18 31-Mar-18 31-Dec-17 31-Dec-18 31-Dec-17PGI sourced 69.5$ 80.7$ 79.8$ 79.2$ 80.3$ 69.5$ 80.3$ Other PFG entities sourced 56.6 64.9 63.5 63.1 66.1 56.6 66.1 Total 126.1$ 145.6$ 143.3$ 142.3$ 146.4$ 126.1$ 146.4$

~ AUM sourced and managed by Principal Global Investors. ^ During the third quarter 2018, we agreed to a realignment of a real estate investment management team within our Principal Global Investors (PGI) segment. With the realignment, PGI no longer manages $9.2 billion of assets for a large real estate client. In addition, during the fourth quarter 2018, we announced our exit from the actively managed currency market and closed the Macro Currency Group (MCG) boutique. With the closure, PGI will no longer manage $1.8 billion of assets related to MCG.(1) Effective 1/1/2018, the Edge Asset Management fixed income team joined the Principal Global Fixed Income team to align capabilities and resources. As a result, approximately $11 billion of AUM moved from the Edge Asset Management boutique to the Principal Global Fixed Income boutique on 1/1/2018. Prior periods have not been restated.(2) Effective 10/1/2018, Morley Financial Services joined the Principal Global Fixed Income team to align capabilities and resources. As a result, approximately $17 billion of AUM moved from the Morley Financial Services boutique to the Principal Global Fixed Income boutique on 10/1/2018. Prior periods have not been restated.

16


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

(in USD billions)


Brazil AUM, beginning of period 64.4$ 65.5$ 75.6$ 73.7$ 74.4$ 73.7$ 63.1$ Deposits 3.1 2.3 2.4 2.8 4.1 10.6 14.4 Withdrawals (2.1) (2.1) (2.1) (2.2) (2.1) (8.5) (8.5) Net cash flow 1.0 0.2 0.3 0.6 2.0 2.1 5.9 Investment performance 1.7 1.1 - 1.6 0.8 4.4 6.5 Other - 0.1 (0.1) (0.1) - (0.1) (0.1) Operations acquired - - - - - - - Operations disposed - - - - - - - Effect of exchange rates 1.9 (2.5) (10.3) (0.2) (3.5) (11.1) (1.7) AUM, end of period 69.0$ 64.4$ 65.5$ 75.6$ 73.7$ 69.0$ 73.7$

Chile AUM, beginning of period 46.8$ 46.3$ 49.5$ 48.5$ 46.3$ 48.5$ 41.7$ Deposits 1.2 1.4 1.6 1.5 1.5 5.7 5.7 Withdrawals (1.4) (1.4) (1.4) (1.5) (1.4) (5.7) (6.3) Net cash flow (0.2) - 0.2 - 0.1 - (0.6) Investment performance (0.4) 1.0 0.3 0.1 0.3 1.0 3.6 Other - - - - (0.1) - (0.1) Operations acquired - - - - - - - Operations disposed - - - - - - - Effect of exchange rates (2.3) (0.5) (3.7) 0.9 1.9 (5.6) 3.9 AUM, end of period 43.9$ 46.8$ 46.3$ 49.5$ 48.5$ 43.9$ 48.5$

Chile Cuprum AFP customer funds balance (included in Chile AUM) 36.4$ 38.8$ 38.6$ 41.5$ 40.7$ 36.4$ 40.7$

Mexico AUM, beginning of period 14.3$ 13.5$ 14.2$ 9.6$ 10.6$ 9.6$ 8.7$ Deposits 0.7 1.5 1.2 0.9 1.2 4.3 6.3 Withdrawals (0.7) (1.7) (1.1) (0.8) (1.4) (4.3) (6.4) Net cash flow - (0.2) 0.1 0.1 (0.2) - (0.1) Investment performance (0.5) 0.2 0.4 - 0.1 0.1 0.7 Other (0.1) 0.1 (0.1) (0.1) (0.1) (0.2) (0.1) Operations acquired - - - 3.8 - 3.8 - Operations disposed (0.2) - - - - (0.2) - Effect of exchange rates (0.6) 0.7 (1.1) 0.8 (0.8) (0.2) 0.4 AUM, end of period 12.9$ 14.3$ 13.5$ 14.2$ 9.6$ 12.9$ 9.6$

Mexico AFORE customer funds balance (included in Mexico AUM) 11.3$ 12.3$ 11.6$ 12.3$ 8.0$ 11.3$ 8.0$

Total Latin America AUM, beginning of period 125.5$ 125.3$ 139.3$ 131.8$ 131.3$ 131.8$ 113.5$ Deposits 5.0 5.2 5.2 5.2 6.8 20.6 26.4 Withdrawals (4.2) (5.2) (4.6) (4.5) (4.9) (18.5) (21.2) Net cash flow 0.8 - 0.6 0.7 1.9 2.1 5.2 Investment performance 0.8 2.3 0.7 1.7 1.2 5.5 10.8 Other (0.1) 0.2 (0.2) (0.2) (0.2) (0.3) (0.3) Operations acquired - - - 3.8 - 3.8 - Operations disposed (0.2) - - - - (0.2) - Effect of exchange rates (1.0) (2.3) (15.1) 1.5 (2.4) (16.9) 2.6 AUM, end of period 125.8$ 125.5$ 125.3$ 139.3$ 131.8$ 125.8$ 131.8$

Hong Kong AUM, beginning of period 10.0$ 9.8$ 9.8$ 9.3$ 9.1$ 9.3$ 7.6$ Deposits 0.4 0.8 0.8 0.6 0.6 2.6 1.8 Withdrawals (0.4) (0.4) (0.5) (0.4) (0.5) (1.7) (1.4) Net cash flow - 0.4 0.3 0.2 0.1 0.9 0.4 Investment performance (0.5) (0.3) (0.2) 0.3 0.2 (0.7) 1.4 Other - - - - - - - Operations acquired - - - - - - - Operations disposed - - - - - - - Effect of exchange rates - 0.1 (0.1) - (0.1) - (0.1) AUM, end of period 9.5$ 10.0$ 9.8$ 9.8$ 9.3$ 9.5$ 9.3$

18

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

(in USD billions)


India AUM, beginning of period 1.0$ 1.1$ 1.0$ 1.0$ 0.9$ 1.0$ 0.7$ Deposits 0.1 1.0 1.1 1.7 2.0 3.9 5.4 Withdrawals - (1.0) (1.1) (1.7) (2.0) (3.8) (5.3) Net cash flow 0.1 - - - - 0.1 0.1 Investment performance - (0.1) 0.1 - - - 0.1 Other - - - - - - - Operations acquired - - - - - - - Operations disposed - - - - - - - Effect of exchange rates (0.1) - - - 0.1 (0.1) 0.1 AUM, end of period 1.0$ 1.0$ 1.1$ 1.0$ 1.0$ 1.0$ 1.0$

Southeast Asia AUM, beginning of period 20.1$ 19.9$ 21.0$ 18.6$ 17.3$ 18.6$ 15.3$ Deposits 1.3 1.6 2.0 2.9 1.9 7.8 6.7 Withdrawals (1.5) (1.3) (1.5) (1.5) (1.4) (5.8) (6.1) Net cash flow (0.2) 0.3 0.5 1.4 0.5 2.0 0.6 Investment performance (0.6) 0.2 (0.6) 0.2 0.1 (0.8) 1.0 Other (0.3) 0.1 (0.1) - - (0.3) - Operations acquired - - - - - - - Operations disposed - - - - - - - Effect of exchange rates 0.1 (0.4) (0.9) 0.8 0.7 (0.4) 1.7 AUM, end of period 19.1$ 20.1$ 19.9$ 21.0$ 18.6$ 19.1$ 18.6$

Total Asia AUM, beginning of period 31.1$ 30.8$ 31.8$ 28.9$ 27.3$ 28.9$ 23.6$ Deposits 1.8 3.4 3.9 5.2 4.5 14.3 13.9 Withdrawals (1.9) (2.7) (3.1) (3.6) (3.9) (11.3) (12.8) Net cash flow (0.1) 0.7 0.8 1.6 0.6 3.0 1.1 Investment performance (1.1) (0.2) (0.7) 0.5 0.3 (1.5) 2.5 Other (0.3) 0.1 (0.1) - - (0.3) - Operations acquired - - - - - - - Operations disposed - - - - - - - Effect of exchange rates - (0.3) (1.0) 0.8 0.7 (0.5) 1.7 AUM, end of period 29.6$ 31.1$ 30.8$ 31.8$ 28.9$ 29.6$ 28.9$

Principal International AUM, beginning of period 156.6$ 156.3$ 171.1$ 160.7$ 158.6$ 160.7$ 137.1$ Deposits 6.8 8.6 9.1 10.4 11.3 34.9 40.3 Withdrawals (6.1) (7.9) (7.7) (8.1) (8.8) (29.8) (34.0) Net cash flow 0.7 0.7 1.4 2.3 2.5 5.1 6.3 Investment performance (0.3) 2.1 - 2.2 1.5 4.0 13.3 Other (0.3) 0.1 (0.1) (0.2) (0.2) (0.5) (0.3) Operations acquired - - - 3.8 - 3.8 - Operations disposed (0.2) - - - - (0.2) - Effect of exchange rates (1.0) (2.6) (16.1) 2.3 (1.7) (17.4) 4.3 AUM, end of period 155.5 156.6 156.3 171.1 160.7 155.5 160.7 Add: China ^ 149.3 149.1 155.3 144.4 124.4 149.3 124.4 Combined AUM ~ 304.8$ 305.7$ 311.6$ 315.5$ 285.1$ 304.8$ 285.1$


China ^AUM, beginning of period 149.1$ 155.3$ 144.4$ 124.4$ 117.1$ 124.4$ 101.3$ Deposits 52.0 76.1 91.6 81.4 62.8 301.1 195.2 Withdrawals (49.8) (72.0) (79.4) (67.0) (55.8) (268.2) (176.9) Net cash flow 2.2 4.1 12.2 14.4 7.0 32.9 18.3 Investment performance 0.3 (0.7) 0.3 0.2 0.5 0.1 0.2 Other 0.1 - 0.1 - - 0.2 0.2 Operations acquired - - - - - - - Operations disposed - - - - - - - Effect of exchange rates (2.4) (9.6) (1.7) 5.4 (0.2) (8.3) 4.4 AUM, end of period 149.3$ 149.1$ 155.3$ 144.4$ 124.4$ 149.3$ 124.4$

◊ Represents assets under management by source.

^ Includes CCB Principal Asset Management Co., Ltd. AUM which is 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 60% 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 Co., Ltd. in China.

19

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

(in billions)

Account Value Rollforwards Three Months Ended, Trailing Twelve Months,

31-Dec-18 30-Sep-18 30-Jun-18 31-Mar-18 31-Dec-17 31-Dec-18 31-Dec-17FeeAccount Values, beginning of period 238.2$ 229.3$ 224.2$ 224.0$ 217.4$ 224.0$ 193.8$ Transfer deposits 3.9 3.2 3.7 4.4 3.1 15.2 12.5 Recurring deposits 5.2 5.2 5.8 5.8 4.6 22.0 20.1 Deposits 9.1 8.4 9.5 10.2 7.7 37.2 32.6 Withdrawals (9.3) (7.5) (8.3) (9.2) (9.0) (34.3) (32.0) Net cash flow (0.2) 0.9 1.2 1.0 (1.3) 2.9 0.6 Credited investment performance (22.7) 8.1 4.0 (0.6) 8.1 (11.2) 30.3 Other 0.1 (0.1) (0.1) (0.2) (0.2) (0.3) (0.7) Operations acquired - - - - - - - Operations disposed - - - - - - - Effect of exchange rates - - - - - - - Account Values, end of period 215.4$ 238.2$ 229.3$ 224.2$ 224.0$ 215.4$ 224.0$

SpreadAccount Values, beginning of period 44.7$ 42.7$ 41.4$ 41.0$ 40.5$ 41.0$ 37.6$ Deposits 2.5 2.8 2.1 1.2 1.5 8.6 10.4 Withdrawals (1.8) (1.0) (1.1) (1.2) (1.3) (5.1) (8.3) Net cash flow 0.7 1.8 1.0 - 0.2 3.5 2.1 Credited investment performance 0.4 0.2 0.4 0.3 0.3 1.3 1.2 Other - - (0.1) 0.1 - - - Operations acquired - - - - - - - Operations disposed - - - - - - - Effect of exchange rates - - - - - - 0.1 Account Values, end of period 45.8$ 44.7$ 42.7$ 41.4$ 41.0$ 45.8$ 41.0$

Total Retirement and Income Solutions Account Values, beginning of period 282.9$ 272.0$ 265.6$ 265.0$ 257.9$ 265.0$ 231.4$ Deposits 11.6 11.2 11.6 11.4 9.2 45.8 43.0 Withdrawals (11.1) (8.5) (9.4) (10.4) (10.3) (39.4) (40.3) Net cash flow 0.5 2.7 2.2 1.0 (1.1) 6.4 2.7 Credited investment performance (22.3) 8.3 4.4 (0.3) 8.4 (9.9) 31.5 Other 0.1 (0.1) (0.2) (0.1) (0.2) (0.3) (0.7) Operations acquired - - - - - - - Operations disposed - - - - - - - Effect of exchange rates - - - - - - 0.1 Account Values, end of period 261.2$ 282.9$ 272.0$ 265.6$ 265.0$ 261.2$ 265.0$

Account Value DetailPeriod Ended, Period Ended,

31-Dec-18 30-Sep-18 30-Jun-18 31-Mar-18 31-Dec-17 31-Dec-18 31-Dec-17Fee General Account ◊ 10.3$ 10.1$ 10.0$ 10.1$ 10.0$ 10.3$ 10.0$ Separate Account ^ 60.7 69.5 66.9 66.0 65.1 60.7 65.1 Proprietary Funds ~ 51.9 59.0 57.5 57.5 60.1 51.9 60.1 Non-Proprietary Funds 67.9 73.4 69.4 66.2 64.1 67.9 64.1 Employer Securities 15.6 16.1 15.6 14.5 14.6 15.6 14.6 Individual Variable Annuities 9.0 10.1 9.9 9.9 10.1 9.0 10.1 Total Fee 215.4 238.2 229.3 224.2 224.0 215.4 224.0

Spread 45.8 44.7 42.7 41.4 41.0 45.8 41.0

Total Account Value 261.2$ 282.9$ 272.0$ 265.6$ 265.0$ 261.2$ 265.0$

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

20

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-18 30-Sep-18 30-Jun-18 31-Mar-18 31-Dec-17 31-Dec-18 31-Dec-17Defined Contribution < 100 employees 31,516 31,342 31,093 31,041 30,637 31,516 30,637 100-499 employees 4,909 4,854 4,796 4,757 4,652 4,909 4,652 500-999 employees 828 813 798 791 764 828 764 1000+ employees 760 738 723 698 695 760 695 Total 38,013 37,747 37,410 37,287 36,748 38,013 36,748 Defined Benefit 2,062 2,085 2,081 2,087 2,110 2,062 2,110 Total 40,075 39,832 39,491 39,374 38,858 40,075 38,858

Average Number of Employees per Plan 143 141 139 135 134 143 134

Account Values ^Period Ended, Period Ended,

Account Values 31-Dec-18 30-Sep-18 30-Jun-18 31-Mar-18 31-Dec-17 31-Dec-18 31-Dec-17Defined Contribution < 100 employees 40.9$ 45.3$ 43.8$ 43.0$ 43.2$ 40.9$ 43.2$ 100-499 employees 42.7 47.4 45.7 45.4 45.3 42.7 45.3 500-999 employees 19.9 21.7 20.7 20.2 20.1 19.9 20.1 1000+ employees 83.9 93.2 89.5 86.0 85.3 83.9 85.3 Total 187.4 207.6 199.7 194.6 193.9 187.4 193.9 Defined Benefit 19.0 20.5 19.7 19.7 20.0 19.0 20.0 Total 206.4$ 228.1$ 219.4$ 214.3$ 213.9$ 206.4$ 213.9$

^ Excludes individual variable annuities.

21

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-18 30-Sep-18 30-Jun-18 31-Mar-18 31-Dec-17 31-Dec-18 31-Dec-17Brazil 21.0$ (21.5)$ 35.3$ 39.0$ 38.4$ 73.8$ 151.5$ Chile 22.5 36.1 31.5 35.7 31.3 125.8 145.3 Mexico 6.2 12.2 7.6 6.0 8.2 32.0 28.5 Latin America 49.7 26.8 74.4 80.7 77.9 231.6 325.3

China 16.0 15.7 16.1 12.5 13.3 60.3 48.6 Hong Kong 6.6 6.0 7.0 11.2 4.7 30.8 25.6 India (1.3) (1.0) (0.7) (0.1) (0.4) (3.1) (2.0) Southeast Asia 4.6 6.0 7.3 4.6 4.2 22.5 13.6 Asia 25.9 26.7 29.7 28.2 21.8 110.5 85.8

Principal International Corporate (17.8) (16.5) (17.8) (17.4) (16.7) (69.5) (64.9)

Total pre-tax operating earnings (losses) 57.8$ 37.0$ 86.3$ 91.5$ 83.0$ 272.6$ 346.2$

Three Months Ended, Trailing Twelve Months,Combined Net Revenue (at PFG share) * 31-Dec-18 30-Sep-18 30-Jun-18 31-Mar-18 31-Dec-17 31-Dec-18 31-Dec-17Brazil 39.5$ 42.8$ 54.2$ 57.2$ 57.8$ 193.7$ 236.4$ Chile 65.3 78.4 75.7 77.3 74.8 296.7 301.5 Mexico 32.3 41.0 38.8 34.3 29.4 146.4 115.0 Latin America eliminations (0.2) - - - (0.1) (0.2) (0.1) Latin America 136.9 162.2 168.7 168.8 161.9 636.6 652.8

China 29.8 30.6 31.8 26.8 26.4 119.0 93.1 Hong Kong 24.7 26.4 27.2 29.1 28.4 107.4 107.5 India 1.4 1.1 1.1 1.9 1.7 5.5 5.0 Southeast Asia 19.5 20.3 18.1 13.5 20.1 71.4 64.6 Asia 75.4 78.4 78.2 71.3 76.6 303.3 270.2

Principal International Corporate 0.2 (0.1) (0.1) (0.2) (0.4) (0.2) (1.0)

Total combined net revenue (at PFG share) 212.5$ 240.5$ 246.8$ 239.9$ 238.1$ 939.7$ 922.0$

Pre-Tax Return on Combined Net Revenue Three Months Ended, Trailing Twelve Months, (at PFG share) 31-Dec-18 30-Sep-18 30-Jun-18 31-Mar-18 31-Dec-17 31-Dec-18 31-Dec-17Brazil 53.2% -50.2% 65.1% 68.2% 66.4% 38.1% 64.1%Chile 34.5% 46.0% 41.6% 46.2% 41.8% 42.4% 48.2%Mexico 19.2% 29.8% 19.6% 17.5% 27.9% 21.9% 24.8%Latin America 36.3% 16.5% 44.1% 47.8% 48.1% 36.4% 49.8%

China 53.7% 51.3% 50.6% 46.6% 50.4% 50.7% 52.2%Hong Kong 26.7% 22.7% 25.7% 38.5% 16.5% 28.7% 23.8%India -92.9% -90.9% -63.6% -5.3% -23.5% -56.4% -40.0%Southeast Asia 23.6% 29.6% 40.3% 34.1% 20.9% 31.5% 21.1%Asia 34.4% 34.1% 38.0% 39.6% 28.5% 36.4% 31.8%

Principal International Corporate NM NM NM NM NM NM NM

Principal International 27.2% 15.4% 35.0% 38.1% 34.9% 29.0% 37.5%

* This is a non-GAAP financial measure. See non-GAAP financial measure reconciliations on pages 30-32.

22

Principal Financial Group, Inc.Principal International - Exchange Rates

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

31-Dec-18 30-Sep-18 30-Jun-18 31-Mar-18 31-Dec-17 31-Dec-18 31-Dec-17Brazil (Brazilian Real) 3.81 3.95 3.61 3.25 3.25 3.65 3.19 Chile (Chilean Peso) 680.04 663.38 621.86 601.97 633.12 641.81 648.59 Mexico (Mexican Peso) 19.83 18.96 19.41 18.73 18.98 19.23 18.92 China (Chinese Yuan) ^ 6.91 6.68 6.33 6.45 6.60 6.59 6.79 Hong Kong (Hong Kong Dollar) 7.83 7.84 7.85 7.83 7.81 7.84 7.79 India (Indian Rupee) 72.05 70.19 67.00 64.37 64.73 68.41 65.12 Southeast Asia (Malaysian Ringgit) 4.17 4.09 3.95 3.92 4.16 4.03 4.30

Spot Currency Exchange Rates ~ Period Ended, Period Ended,

31-Dec-18 30-Sep-18 30-Jun-18 31-Mar-18 31-Dec-17 31-Dec-18 31-Dec-17Brazil (Brazilian Real) 3.88 3.99 3.85 3.32 3.32 3.88 3.32 Chile (Chilean Peso) 694.00 659.60 651.05 603.57 614.98 694.00 614.98 Mexico (Mexican Peso) 19.69 18.70 19.66 18.25 19.57 19.69 19.57 China (Chinese Yuan) ^ 6.94 6.83 6.40 6.33 6.61 6.94 6.61 Hong Kong (Hong Kong Dollar) 7.83 7.82 7.85 7.85 7.82 7.83 7.82 India (Indian Rupee) 69.81 72.49 68.52 65.22 63.83 69.81 63.83 Southeast Asia (Malaysian Ringgit) 4.13 4.14 4.04 3.87 4.05 4.13 4.05

~ 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.

23

Principal Financial Group, Inc.Principal International - Pre-Tax Operating Earnings Statement Detail in Local Currency Assuming 100% Ownership

Brazil Three Months Ended, Trailing Twelve Months,(Brazilian Real in millions) 31-Dec-18 30-Sep-18 30-Jun-18 31-Mar-18 31-Dec-17 31-Dec-18 31-Dec-17Premiums and other considerations 125.2 116.4 119.6 87.3 111.9 448.5 422.1 Fees and other revenues 661.9 707.9 703.4 665.7 653.6 2,738.9 2,545.0 Net investment income 4,043.6 4,617.7 4,551.2 4,135.5 4,233.2 17,348.0 18,027.0 Total operating revenues 4,830.7 5,442.0 5,374.2 4,888.5 4,998.7 20,535.4 20,994.1

Benefits, claims and settlement expenses 4,261.4 4,789.9 4,620.3 4,166.5 4,272.0 17,838.1 18,042.0 Operating expenses 246.8 1,021.5 239.8 206.4 223.6 1,714.5 955.6 Total expenses 4,508.2 5,811.4 4,860.1 4,372.9 4,495.6 19,552.6 18,997.6

Pre-tax operating earnings (losses) 322.5 (369.4) 514.1 515.6 503.1 982.8 1,996.5

Chile Three Months Ended, Trailing Twelve Months,(Chilean Peso in billions) 31-Dec-18 30-Sep-18 30-Jun-18 31-Mar-18 31-Dec-17 31-Dec-18 31-Dec-17Premiums and other considerations 42.2 36.9 62.9 58.9 42.6 200.9 141.3 Fees and other revenues 38.7 37.8 38.6 38.2 37.3 153.3 147.4 Net investment income 56.1 62.3 56.1 53.5 51.9 228.0 202.9 Total operating revenues 137.0 137.0 157.6 150.6 131.8 582.2 491.6

Benefits, claims and settlement expenses 91.1 83.7 109.3 102.7 83.2 386.8 290.9 Operating expenses 30.2 29.0 28.4 26.0 28.4 113.6 104.4 Total expenses 121.3 112.7 137.7 128.7 111.6 500.4 395.3

Pre-tax operating earnings (losses) 15.7 24.3 19.9 21.9 20.2 81.8 96.3

Mexico Three Months Ended, Trailing Twelve Months,(Mexican Peso in millions) 31-Dec-18 30-Sep-18 30-Jun-18 31-Mar-18 31-Dec-17 31-Dec-18 31-Dec-17Premiums and other considerations - 0.3 0.6 - 1.2 0.9 2.7 Fees and other revenues 678.5 690.5 679.1 572.6 466.0 2,620.7 1,817.5 Net investment income 73.2 208.9 126.8 174.6 218.9 583.5 815.9 Total operating revenues 751.7 899.7 806.5 747.2 686.1 3,205.1 2,636.1

Benefits, claims and settlement expenses 110.8 122.1 56.0 104.4 126.3 393.3 464.0 Operating expenses 516.2 546.9 600.3 530.5 403.9 2,193.9 1,634.2 Total expenses 627.0 669.0 656.3 634.9 530.2 2,587.2 2,098.2

Pre-tax operating earnings (losses) 124.7 230.7 150.2 112.3 155.9 617.9 537.9

24


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


Premium and FeesThree Months Ended, Trailing Twelve Months,

31-Dec-18 30-Sep-18 30-Jun-18 31-Mar-18 31-Dec-17 31-Dec-18 31-Dec-17Group dental and vision 222.2$ 215.6$ 211.3$ 206.4$ 201.6$ 855.5$ 785.9$ Group life 111.1 111.5 108.2 108.2 106.6 439.0 416.7 Group disability 129.7 124.8 125.2 121.6 122.9 501.3 469.2 Individual disability 95.9 96.1 92.0 89.7 89.5 373.7 349.3 Total 558.9$ 548.0$ 536.7$ 525.9$ 520.6$ 2,169.5$ 2,021.1$

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

31-Dec-18 30-Sep-18 30-Jun-18 31-Mar-18 31-Dec-17 31-Dec-18 31-Dec-17Group dental and vision 50.2$ 36.9$ 32.8$ 60.6$ 36.8$ 180.5$ 142.9$ Group life 17.5 12.0 11.6 23.1 13.0 64.2 59.2 Group disability 21.2 15.6 15.1 35.4 18.6 87.3 83.6 Individual disability 14.9 15.7 12.6 11.5 13.4 54.7 58.1 Total 103.8$ 80.2$ 72.1$ 130.6$ 81.8$ 386.7$ 343.8$

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

31-Dec-18 30-Sep-18 30-Jun-18 31-Mar-18 31-Dec-17 31-Dec-18 31-Dec-17Group dental and vision 3.6% 3.0% 2.6% 7.1% 3.6% 16.3% 15.6%Group life 3.3% 1.9% 2.4% 5.7% 2.1% 13.2% 14.8%Group disability 3.2% 2.1% 2.6% 7.4% 2.4% 15.4% 14.5%Individual disability 1.1% 1.2% 1.4% 1.2% 1.3% 4.8% 4.9%

Incurred Loss RatiosThree Months Ended, Trailing Twelve Months,

31-Dec-18 30-Sep-18 30-Jun-18 31-Mar-18 31-Dec-17 31-Dec-18 31-Dec-17Group dental and vision 60.2% 61.7% 66.7% 64.2% 59.7% 63.2% 62.9%Group life 61.7% 59.3% 64.5% 69.2% 64.2% 63.6% 66.6%Group disability 62.8% 63.5% 63.0% 63.8% 66.4% 63.3% 64.0%Individual disability 54.3% 58.9% 51.5% 46.9% 57.7% 53.0% 58.3%Total 60.1% 61.1% 62.8% 62.2% 61.9% 61.5% 63.1%

26

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


Premium and FeesThree Months Ended, Trailing Twelve Months,

31-Dec-18 30-Sep-18 30-Jun-18 31-Mar-18 31-Dec-17 31-Dec-18 31-Dec-17Universal and Variable Universal LifeFees 191.7$ 182.7$ 183.3$ 191.3$ 188.8$ 749.0$ 724.7$ Reinsurance premiums (78.9) (63.1) (66.5) (52.7) (70.5) (261.2) (230.4) Total 112.8 119.6 116.8 138.6 118.3 487.8 494.3

Traditional Life Insurance ~Premiums 176.8 166.3 171.2 162.8 171.3 677.1 657.6 Fees 6.8 5.6 4.2 3.8 3.5 20.4 15.2 Reinsurance premiums (27.3) (22.4) (24.2) (19.6) (24.8) (93.5) (84.8) Total 156.3 149.5 151.2 147.0 150.0 604.0 588.0 Total Individual Life Insurance 269.1$ 269.1$ 268.0$ 285.6$ 268.3$ 1,091.8$ 1,082.3$

SalesThree Months Ended, Trailing Twelve Months,

31-Dec-18 30-Sep-18 30-Jun-18 31-Mar-18 31-Dec-17 31-Dec-18 31-Dec-17Universal and Variable Universal Life 44.0$ 31.5$ 39.9$ 45.1$ 45.0$ 160.5$ 136.5$ Traditional Life Insurance 19.1 17.7 17.0 16.4 19.0 70.2 79.7 Total 63.1$ 49.2$ 56.9$ 61.5$ 64.0$ 230.7$ 216.2$

Account Value RollforwardThree Months Ended, Trailing Twelve Months,

31-Dec-18 30-Sep-18 30-Jun-18 31-Mar-18 31-Dec-17 31-Dec-18 31-Dec-17Account Values, beginning of period 10,453.7$ 10,293.2$ 10,197.0$ 10,120.1$ 9,928.7$ 10,120.1$ 9,375.6$ Deposits 290.0 246.3 267.3 311.6 302.6 1,115.2 1,070.8 Withdrawals and benefits (83.2) (104.2) (117.1) (89.3) (127.7) (393.8) (373.2) Net customer flows 206.8 142.1 150.2 222.3 174.9 721.4 697.6 Interest credited and market value change (370.6) 208.9 133.4 46.2 202.8 17.9 763.9 Policy charges (196.5) (190.5) (187.4) (191.6) (186.3) (766.0) (717.0) Account Values, end of period 10,093.4$ 10,453.7$ 10,293.2$ 10,197.0$ 10,120.1$ 10,093.4$ 10,120.1$

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

31-Dec-18 30-Sep-18 30-Jun-18 31-Mar-18 31-Dec-17 31-Dec-18 31-Dec-17Universal and Variable Universal Life 90,582.7$ 90,255.4$ 89,913.3$ 89,388.4$ 88,935.1$ 90,582.7$ 88,935.1$ Traditional Life Insurance 286,558.3 277,374.6 268,312.7 259,610.2 251,611.9 286,558.3 251,611.9 Total 377,141.0$ 367,630.0$ 358,226.0$ 348,998.6$ 340,547.0$ 377,141.0$ 340,547.0$

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

# Classification: Company Confidential 27

Principal Financial Group, Inc.Consolidated Invested Assets


Consolidated Investment Portfolio Composition

Period Ended, 31-Dec-18 31-Dec-17 31-Dec-16

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

Fixed maturity securities, available-for-sale 60,108.5$ 68.5% 59,388.4$ 70.2% 54,846.1$ 69.8%Fixed maturity securities, trading 636.1 0.7% 566.0 0.7% 398.4 0.5%Equity securities 1,843.7 2.1% 1,866.6 2.2% 1,512.3 1.9%Mortgage loans Commercial 13,972.0 15.9% 12,871.5 15.2% 12,027.8 15.3% Residential 1,364.9 1.6% 1,279.0 1.5% 1,202.4 1.5% Sub-Total 15,336.9 17.5% 14,150.5 16.7% 13,230.2 16.8%Real estate Held for sale 209.6 0.2% 212.9 0.3% 130.7 0.2%Held for investment 1,520.1 1.7% 1,523.8 1.8% 1,238.1 1.6% Sub-Total 1,729.7 2.0% 1,736.7 2.1% 1,368.8 1.7%Policy loans 801.4 0.9% 808.3 1.0% 823.8 1.0%Other investments 4,310.3 4.9% 3,586.2 4.2% 3,655.9 4.7%Total invested assets 84,766.6 96.6% 82,102.7 97.1% 75,835.5 96.5%Cash and cash equivalents 2,977.5 3.4% 2,470.8 2.9% 2,719.6 3.5%Total invested assets and cash 87,744.1$ 100.0% 84,573.5$ 100.0% 78,555.1$ 100.0%

Consolidated Fixed Maturity Securities by Type of Issuer



U.S. government and agencies 1,441.0$ 2.4% 1,351.7$ 2.3% 1,433.0$ 2.6%States and political subdivisions 6,228.2 10.3% 6,801.6 11.3% 5,628.9 10.2%Non-U.S. governments 976.6 1.6% 986.3 1.6% 979.9 1.8%Corporate-public 22,177.5 36.5% 24,108.5 40.2% 22,249.2 40.3%Corporate-private 13,551.4 22.3% 13,038.6 21.7% 12,149.1 22.0%Mortgage-backed securities Residential pass-through securities 2,783.2 4.6% 2,889.8 4.8% 2,854.6 5.2%Commercial MBS 3,959.4 6.5% 3,709.0 6.2% 4,098.4 7.4%Collateralized mortgage obligations 3,369.4 5.5% 2,484.5 4.1% 1,828.8 3.3% Sub-Total 10,112.0 16.6% 9,083.3 15.2% 8,781.8 15.9%Asset-backed securities Credit cards 148.6 0.2% 194.1 0.3% 264.8 0.5%Automobile receivables 1,711.2 2.8% 1,419.8 2.4% 1,418.4 2.6%Collateralized debt obligations (1) 2,432.6 4.0% 1,359.3 2.3% 769.2 1.4%Lease receivables 378.1 0.6% 385.6 0.6% 417.7 0.8%Home equity 273.6 0.5% 214.0 0.4% 252.8 0.5%Other 1,313.8 2.2% 1,011.6 1.7% 899.7 1.6% Sub-Total 6,257.9 10.3% 4,584.4 7.6% 4,022.6 7.3%Total 60,744.6$ 100.0% 59,954.4$ 100.0% 55,244.5$ 100.0%

U.S. Invested Assets



Fixed maturity securities NAIC designation 1 39,638.6$ 49.5% 37,769.0$ 49.4% 34,031.5$ 47.8% 2 15,293.1 19.1% 15,714.7 20.6% 14,155.0 19.9% 3 1,873.3 2.3% 1,987.7 2.6% 2,611.8 3.7% 4 266.7 0.3% 335.4 0.4% 604.3 0.8% 5 32.6 0.0% 126.0 0.2% 120.4 0.2% 6 22.5 0.0% 36.8 0.0% 67.0 0.1%Total fixed maturity securities 57,126.8 71.4% 55,969.6 73.2% 51,590.0 72.5%Equity securities 418.6 0.5% 411.8 0.5% 342.6 0.5%Mortgage loans Commercial 13,721.2 17.2% 12,700.8 16.6% 11,940.5 16.8%Residential 905.8 1.1% 722.7 0.9% 680.5 1.0% Sub-Total 14,627.0 18.3% 13,423.5 17.6% 12,621.0 17.7%Real estate Held for sale 207.7 0.3% 210.7 0.3% 128.7 0.2%Held for investment 1,518.6 1.9% 1,522.0 2.0% 1,236.5 1.7% Sub-Total 1,726.3 2.2% 1,732.7 2.3% 1,365.2 1.9%Policy loans 779.8 1.0% 783.4 1.0% 800.7 1.1%Other investments 2,596.0 3.2% 1,815.4 2.4% 2,088.7 2.9%Total invested assets 77,274.5 96.6% 74,136.4 97.0% 68,808.2 96.7%Cash and cash equivalents 2,728.1 3.4% 2,284.4 3.0% 2,335.5 3.3%Total invested assets and cash 80,002.6$ 100.0% 76,420.8$ 100.0% 71,143.7$ 100.0%

(1) Primarily consists of collateralized loan obligations backed by secured corporate loans.


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-18 30-Sep-18 30-Jun-18 31-Mar-18 31-Dec-17 31-Dec-18 31-Dec-17Fixed maturities, available-for-sale - credit impairments ~ (5.2)$ (2.8)$ (7.0)$ (7.8)$ (14.2)$ (22.8)$ (52.4)$ Commercial mortgages 0.8 0.4 0.6 (0.5) 1.5 1.3 1.3 Other - credit impairments 0.8 0.7 1.3 0.9 3.7 3.7 4.5 Total credit impairments (3.6) (1.7) (5.1) (7.4) (9.0) (17.8) (46.6)

Fixed maturities - non-credit (9.8) 18.5 (15.5) (25.9) (9.6) (32.7) (14.0)

Derivatives and related hedge activities (28.1) 21.0 (42.0) (8.5) (12.8) (57.6) (116.5)

Other (1) (9.8) (66.6) 127.4 27.0 (10.9) 78.0 448.7

DAC Amortization (28.3) 3.9 0.4 3.1 8.8 (20.9) 35.7 Net realized capital gains (losses) * (79.6)$ (24.9)$ 65.2$ (11.7)$ (33.5)$ (51.0)$ 307.3$

Consolidated Invested Assets Net Investment Income

Three Months Ended, Trailing Twelve Months,Investment Type 31-Dec-18 30-Sep-18 30-Jun-18 31-Mar-18 31-Dec-17 31-Dec-18 31-Dec-17Fixed maturity securities, available-for-sale 642.9$ 629.6$ 612.7$ 600.9$ 608.0$ 2,486.1$ 2,353.7$ Fixed maturity securities, trading 6.5 6.8 7.1 6.0 3.3 26.4 12.6 Equity securities (2.8) 13.6 10.3 17.7 9.3 38.8 67.8 Mortgage loans Commercial 151.3 144.9 138.4 133.4 139.3 568.0 544.6 Residential 19.4 17.9 18.5 17.6 16.3 73.4 61.3 Real estate 26.0 55.2 26.3 51.3 19.0 158.8 129.4 Policy loans 11.5 11.1 11.2 11.2 11.4 45.0 45.6 Other investments 83.2 47.3 102.7 99.6 105.6 332.8 394.2 Derivatives 15.4 14.5 13.1 15.8 11.7 58.8 44.8 Cash and cash equivalents 18.1 16.6 12.0 9.5 9.2 56.2 28.6 Gross investment income 971.5 957.5 952.3 963.0 933.1 3,844.3 3,682.6

Gross investment expense 27.4 25.9 25.2 23.9 22.4 102.4 89.3 Net investment income * 944.1$ 931.6$ 927.1$ 939.1$ 910.7$ 3,741.9$ 3,593.3$ Annualized Investment Yield, Before Tax ◊ 4.3% 4.4% 4.4% 4.6% 4.5% 4.4% 4.5%

U.S. Invested Assets Net Investment Income

Three Months Ended, Trailing Twelve Months,Investment Type 31-Dec-18 30-Sep-18 30-Jun-18 31-Mar-18 31-Dec-17 31-Dec-18 31-Dec-17Fixed maturity securities, available-for-sale 589.3$ 572.9$ 560.3$ 544.0$ 554.7$ 2,266.5$ 2,159.5$ Fixed maturity securities, trading 4.5 4.4 4.6 3.7 1.3 17.2 5.0 Equity securities 1.9 2.2 1.8 14.1 1.9 20.0 14.3 Mortgage loans Commercial 151.3 144.9 138.4 133.4 139.3 568.0 544.6 Residential 7.0 6.2 6.1 5.3 5.5 24.6 22.8 Real estate 25.9 55.1 26.3 51.2 18.9 158.5 129.1 Policy loans 10.1 10.0 9.9 9.9 10.1 39.9 40.5 Other investments 19.6 23.1 20.9 18.1 27.5 81.7 101.9 Derivatives 10.9 10.2 8.8 12.0 8.9 41.9 35.8 Cash and cash equivalents 16.3 15.3 11.1 8.6 8.5 51.3 26.0 Gross investment income 836.8 844.3 788.2 800.3 776.6 3,269.6 3,079.5

Gross investment expense 26.7 24.8 24.2 23.3 21.8 99.0 86.2 Net investment income * 810.1$ 819.5$ 764.0$ 777.0$ 754.8$ 3,170.6$ 2,993.3$ Annualized Investment Yield, Before Tax ◊ 4.1% 4.2% 4.1% 4.2% 4.1% 4.1% 4.2%

* This is a non-GAAP financial measure. See non-GAAP financial measure reconciliations on pages 30-32. ^ 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. (1) The increase in net realized capital gains in the second quarter of 2018 was primarily due to the sale of an equity method investment. The increase in net realized capital gains in 2017 was primarily due to real estate transactions in third quarter of 2017.


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


Three Months Ended, Twelve Months Ended,31-Dec-18 30-Sep-18 30-Jun-18 31-Mar-18 31-Dec-17 31-Dec-18 31-Dec-17

Basic Earnings Per Common ShareNet income 0.84$ 1.60$ 1.59$ 1.37$ 2.91$ 5.41$ 8.00$ Net realized capital (gains) losses 0.28 0.09 (0.22) 0.04 0.11 0.18 (1.06) Other after-tax adjustments - - - - (1.81) - (1.82) Adjustment for redeemable noncontrolling interest - - - - - - - Non-GAAP operating earnings * 1.12$ 1.69$ 1.37$ 1.41$ 1.21$ 5.59$ 5.12$

Diluted Earnings Per Common ShareNet income 0.83$ 1.59$ 1.58$ 1.36$ 2.87$ 5.36$ 7.88$ Net realized capital (gains) losses 0.28 0.08 (0.23) 0.04 0.11 0.17 (1.05) Other after-tax adjustments - - - - (1.79) - (1.79) Adjustment for redeemable noncontrolling interest - - - - - - - Non-GAAP operating earnings * 1.11$ 1.67$ 1.35$ 1.40$ 1.19$ 5.53$ 5.04$

Period Ended, Period Ended,31-Dec-18 30-Sep-18 30-Jun-18 31-Mar-18 31-Dec-17 31-Dec-18 31-Dec-17

Stockholders' Equity x-AOCI Available to Common Stockholders Stockholders' equity 11,456.0$ 11,768.7$ 11,706.5$ 12,255.8$ 12,921.9$ 11,456.0$ 12,921.9$ Net unrealized capital (gains) losses (207.3) (244.3) (438.8) (883.8) (1,455.1) (207.3) (1,455.1) Net unrecognized postretirement benefit obligation 512.9 425.8 434.5 443.3 371.1 512.9 371.1 Noncontrolling interest (66.0) (67.9) (67.2) (68.9) (72.6) (66.0) (72.6) Stockholders' equity, x-AOCI other than foreign currency translation adjustment, available to common stockholders 11,695.6 11,882.3 11,635.0 11,746.4 11,765.3 11,695.6 11,765.3 Foreign currency translation adjustment 1,259.5 1,166.1 1,142.2 909.8 918.5 1,259.5 918.5 Stockholders' equity x-AOCI available to common stockholders * 12,955.1$ 13,048.4$ 12,777.2$ 12,656.2$ 12,683.8$ 12,955.1$ 12,683.8$

Book Value Per Common Share x-AOCI Book value per common share including AOCI 40.75$ 41.26$ 40.90$ 42.36$ 44.46$ 40.75$ 44.46$ Net unrealized capital (gains) losses (0.74) (0.86) (1.55) (3.07) (5.03) (0.74) (5.03) Net unrecognized postretirement benefit obligation 1.83 1.50 1.53 1.54 1.28 1.83 1.28 Book value x-AOCI other than foreign currency translation adjustment 41.84 41.90 40.88 40.83 40.71 41.84 40.71 Foreign currency translation 4.51 4.11 4.02 3.16 3.18 4.51 3.18 Book value per common share x-AOCI * 46.35$ 46.01$ 44.90$ 43.99$ 43.89$ 46.35$ 43.89$

Non-GAAP Operating Earnings ROE (x-AOCI) Available to Common Stockholders (trailing twelve months) Net income ROE available to common stockholders (including AOCI) 12.8% 18.2% 22.0% 20.7% 20.0% 12.8% 20.0%Net unrealized capital (gains) losses 0.9% 1.3% 1.8% 1.8% 2.1% 0.9% 2.1%Net unrecognized postretirement benefit obligation -0.5% -0.7% -0.9% -0.8% -0.7% -0.5% -0.7%Net income ROE available to common stockholders (x-AOCI, other than foreign currency translation adjustment) 13.2% 18.8% 22.9% 21.7% 21.4% 13.2% 21.4%Net realized capital (gains) losses 0.4% 0.1% -4.2% -3.0% -2.8% 0.4% -2.8%Other after-tax adjustments 0.0% -4.6% -4.8% -4.8% -4.9% 0.0% -4.9%Non-GAAP operating earnings ROE (x-AOCI, other than foreign currency translation adjustment) 13.6% 14.3% 13.9% 13.9% 13.7% 13.6% 13.7%Foreign currency translation -1.1% -1.2% -1.2% -1.1% -1.2% -1.1% -1.2%Non-GAAP operating earnings ROE (x-AOCI) available to common stockholders * 12.5% 13.1% 12.7% 12.8% 12.5% 12.5% 12.5%


Net Revenue Fee * 900.9$ 1,183.6$ 981.5$ 972.3$ 974.2$ 4,038.3$ 3,754.2$ Spread * 145.8 153.2 136.5 152.2 130.5 587.7 577.9 Risk 396.0 373.2 371.8 379.4 383.0 1,520.4 1,442.8 Corporate (10.8) (19.9) (15.1) (7.7) (17.1) (53.5) (58.4) Net revenue * 1,431.9$ 1,690.1$ 1,474.7$ 1,496.2$ 1,470.6$ 6,092.9$ 5,716.5$ Operating expenses (1,051.9) (1,094.7) (986.0) (994.2) (1,015.6) (4,126.8) (3,832.3)

Non-GAAP pre-tax operating earnings (losses) attributable to noncontrolling interest (1.1) (2.0) (3.0) (5.5) (1.5) (11.6) (10.5) Pre-tax net realized capital gains (losses) (123.5) (27.9) 48.6 (23.6) (50.3) (126.4) 520.3 Pre-tax other adjustments - - - - (70.0) - (70.0) Certain adjustments related to equity method investments and noncontrolling interest (12.5) 3.6 (18.9) (15.9) (18.4) (43.7) (71.8) Income (loss) before income taxes 242.9$ 569.1$ 515.4$ 457.0$ 314.8$ 1,784.4$ 2,252.2$

Non-GAAP Pre-Tax Operating Earnings (Losses) Fee * 249.4$ 399.0$ 346.2$ 332.8$ 335.9$ 1,327.4$ 1,335.0$ Spread * 94.7 121.6 96.9 116.3 88.2 429.5 431.0 Risk 113.0 125.7 113.3 115.0 117.3 467.0 412.8 Corporate (78.2) (52.9) (70.7) (67.6) (87.9) (269.4) (305.1) Non-GAAP pre-tax operating earnings (losses) * 378.9$ 593.4$ 485.7$ 496.5$ 453.5$ 1,954.5$ 1,873.7$ Pre-tax net realized capital gains (losses) (123.5) (27.9) 48.6 (23.6) (50.3) (126.4) 520.3 Pre-tax other adjustments - - - - (70.0) - (70.0) Certain adjustments related to equity method investments and noncontrolling interest (12.5) 3.6 (18.9) (15.9) (18.4) (43.7) (71.8) Income (loss) before income taxes 242.9$ 569.1$ 515.4$ 457.0$ 314.8$ 1,784.4$ 2,252.2$

* This is a non-GAAP financial measure.



(in millions)


Non-GAAP Operating Earnings (Losses) Fee * 213.6$ 326.1$ 280.5$ 273.5$ 263.9$ 1,093.7$ 1,072.4$ Spread * 75.2 107.5 77.9 94.6 62.2 355.2 297.1 Risk 91.6 105.8 90.6 93.3 79.8 381.3 278.8 Corporate (64.3) (58.2) (57.6) (52.6) (55.1) (232.7) (169.7) Non-GAAP operating earnings (losses) * 316.1$ 481.2$ 391.4$ 408.8$ 350.8$ 1,597.5$ 1,478.6$ Net realized capital gains (losses) * (79.6) (24.9) 65.2 (11.7) (33.5) (51.0) 307.3 Other after-tax adjustments * - - - - 524.5 - 524.5 Net income (loss) attributable to Principal Financial Group, Inc. 236.5$ 456.3$ 456.6$ 397.1$ 841.8$ 1,546.5$ 2,310.4$

Net Investment Income Net investment income - U.S. * 810.1$ 819.5$ 764.0$ 777.0$ 754.8$ 3,170.6$ 2,993.3$ Net investment income - Principal International 134.0 112.1 163.1 162.1 155.9 571.3 600.0 Total net investment income * 944.1 931.6 927.1 939.1 910.7 3,741.9 3,593.3 Income taxes related to equity method investments (13.6) 1.6 (21.9) (21.4) (19.9) (55.3) (82.3) Net realized capital gains (losses) related to equity method investments (0.5) (0.9) (4.2) 0.2 (1.0) (5.4) 1.4 Derivative and hedging-related adjustments (16.4) (15.8) (14.9) (17.8) (14.1) (64.9) (59.4) Sponsored investment funds adjustments 4.9 2.9 3.0 2.1 1.8 12.9 6.3 Net investment income 918.5$ 919.4$ 889.1$ 902.2$ 877.5$ 3,629.2$ 3,459.3$

Income Taxes Income taxes 11.2$ 109.1$ 55.9$ 54.5$ (528.1)$ 230.7$ (72.3)$ Net realized capital gains (losses) tax adjustments 38.0 4.7 16.6 12.1 16.2 71.4 (209.1) Income taxes attributable to noncontrolling interest - - (0.1) (0.3) 0.2 (0.4) (0.3) Income taxes related to equity method investments 13.6 (1.6) 21.9 21.4 19.9 55.3 82.3 Other tax adjustments: Principal Financial Group Foundation, Inc. contribution - - - - 26.2 - 26.2 Tax Cuts and Jobs Act - - - - 568.3 - 568.3 Income taxes * 62.8$ 112.2$ 94.3$ 87.7$ 102.7$ 357.0$ 395.1$

Non-GAAP Pre-Tax Operating Earnings (Losses) Attributable to Noncontrolling Interest Net income attributable to noncontrolling interest (4.8)$ 3.7$ 2.9$ 5.4$ 1.1$ 7.2$ 14.1$ Income taxes attributable to noncontrolling interest - - 0.1 0.3 (0.2) 0.4 0.3 Net realized capital gains (losses) attributable to noncontrolling interest, after-tax 5.9 (1.7) - (0.2) 0.6 4.0 (3.9) Non-GAAP pre-tax operating earnings (losses) attributable to noncontrolling interest * 1.1$ 2.0$ 3.0$ 5.5$ 1.5$ 11.6$ 10.5$

Net Realized Capital Gains (Losses) Net realized capital gains (losses) (112.2)$ (5.5)$ 67.4$ (25.1)$ (39.9)$ (75.4)$ 524.2$

Recognition of front-end fee revenues 3.7 (0.9) (0.8) (1.6) (0.1) 0.4 (0.2) Market value adjustments to fee revenues - - 0.1 - - 0.1 (0.1) Net realized capital gains (losses) related to equity method investments (0.5) (0.9) (4.2) 0.2 (1.0) (5.4) 1.4 Derivative and hedging-related adjustments (16.4) (15.8) (14.9) (17.8) (14.1) (64.9) (59.4) Sponsored investment fund adjustments 4.9 2.9 3.0 2.1 1.8 12.9 6.3 Total net realized capital gains (losses) revenue adjustments (8.3) (14.7) (16.8) (17.1) (13.4) (56.9) (52.0)

Amortization of deferred acquisition costs (25.7) 1.7 (0.1) (1.5) 11.8 (25.6) 47.4 Capital gains distributed - operating expenses 21.0 (12.0) (4.0) 10.7 (15.3) 15.7 (38.9) Total net realized capital gains (losses) operating expenses adjustments (4.7) (10.3) (4.1) 9.2 (3.5) (9.9) 8.5 Amortization of other actuarial balances (14.0) 4.2 1.3 7.1 1.7 (1.4) 7.6 Market value adjustments of embedded derivatives 6.9 4.1 5.1 2.4 4.9 18.5 48.1 Capital gains distributed - cost of interest credited 8.8 (5.7) (4.3) (0.1) (0.1) (1.3) (16.1) Total net realized capital gains (losses) expense adjustments (3.0) (7.7) (2.0) 18.6 3.0 5.9 48.1

Total net realized capital gains (losses) pre-tax adjustments (11.3) (22.4) (18.8) 1.5 (10.4) (51.0) (3.9)

Net realized capital gains (losses) tax adjustments 38.0 4.7 16.6 12.1 16.2 71.4 (209.1) Net realized capital gains (losses) attributable to noncontrolling interest, after-tax 5.9 (1.7) - (0.2) 0.6 4.0 (3.9) Total net realized capital gains (losses) after-tax adjustments 32.6 (19.4) (2.2) 13.4 6.4 24.4 (216.9)

Total net realized capital gains (losses) * (79.6)$ (24.9)$ 65.2$ (11.7)$ (33.5)$ (51.0)$ 307.3$


Principal International Combined Net Revenue (at PFG Share)Principal International pre-tax operating earnings 57.8$ 37.0$ 86.3$ 91.5$ 83.0$ 272.6$ 346.2$ Principal International combined operating expenses other than pass-through commissions (at PFG share) * 154.7 203.5 160.5 148.4 155.1 667.1 575.8 Principal International combined net revenue (at PFG share) * 212.5$ 240.5$ 246.8$ 239.9$ 238.1$ 939.7$ 922.0$




(in millions)

Trailing Twelve Months,31-Dec-18 30-Sep-18 30-Jun-18 31-Mar-18 31-Dec-17 31-Dec-16

Principal Global Investors Operating Revenues Less Pass- Through CommissionsPrincipal Global Investors operating revenues 1,736.3$ 1,756.4$ 1,491.1$ 1,467.0$ 1,444.4$ 1,387.1$ Principal Global Investors commission expense (165.2) (166.9) (165.3) (163.2) (159.6) (163.0) Principal Global Investors operating revenues less pass- through commissions * 1,571.1$ 1,589.5$ 1,325.8$ 1,303.8$ 1,284.8$ 1,224.1$

Principal International Combined Net Revenue (at PFG Share)Principal International pre-tax operating earnings 272.6$ 297.8$ 337.2$ 332.8$ 346.2$ 300.2$ Principal International combined operating expenses other than pass-through commissions (at PFG share) 667.1 667.5 623.6 601.4 575.8 491.5 Principal International combined net revenue (at PFG share) * 939.7$ 965.3$ 960.8$ 934.2$ 922.0$ 791.7$



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 Financial Group, Inc.711 High StreetDes Moines, IA 50392-00011+ 800.986.3343

Corporate Headquarters

Institutional and individual owners, as well as equity analysts contact:

John Egan, Vice President 711 High StreetDes Moines, IA 50392-0420Office: 515.235.9500 | Fax: [email protected]

Financial Inquiries

Principal | principal.com

Investor Relations | principal.com/investorFind us Online

Principal Financial Groupc/o Computershare PO Box 505000Louisville, KY 402331+ 866.781.1368computershare.com/investor

Transfer Agent

* 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 offered 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®.

EE8783Q418 | 3/2019

Documents

Through the Fourth Quarter Ended December 31, 2018