DES MOINES, Iowa, Aug 17, 2011 (BUSINESS WIRE) --
Principal Financial Group, Inc. (NYSE: PFG) announced that its Board of
Directors has approved an authorization for the repurchase of up to $200
million worth of the company's outstanding common stock. The new program
is in addition to the $250 million program renewed by the Board of
Directors in May 2011. The company completed that program by the
beginning of July 2011 by repurchasing 8.4 million shares for a total of
$250 million.
"This action by our Board of Directors reflects our continued confidence
and strong financial position," says Larry D. Zimpleman, chairman,
president and chief executive officer of The Principal(R). "Our hybrid
business model of fee-based and risk-based businesses provides financial
flexibility that enables us to successfully execute our capital
management strategy. We continue to generate increasing amounts of free
cash flow as a result of our continued shift to a more fee-based
business model. This $200 million authorization is part of our announced
plan to deploy up to $400 million of capital for acquisitions or share
buybacks in the second half of 2011, bringing our full year 2011
estimated total to $1 billion. However, as always, we will continue to
monitor market conditions and be prudent with our capital deployment."
The repurchases will be made in the open market or through
privately-negotiated transactions, from time to time, depending on
market conditions. The stock repurchase program may be modified,
extended or terminated at any time by the Board of Directors. Principal
Financial Group, Inc. has 313.7 million shares of common stock
outstanding as of June 30, 2011.
Forward looking and cautionary statements
This press release
contains forward-looking statements, including, without limitation,
statements as to operating earnings, net income available to common
stockholders, net cash flows, realized and unrealized gains and losses,
capital and liquidity positions, sales and earnings trends, and
management's beliefs, expectations, goals and opinions. The company does
not undertake to update these statements, which are based on a number of
assumptions concerning future conditions that may ultimately prove to be
inaccurate. Future events and their effects on the company may not be
those anticipated, and actual results may differ materially from the
results anticipated in these forward-looking statements. The risks,
uncertainties and factors that could cause or contribute to such
material differences are discussed in the company's annual report on
Form 10-K for the year ended Dec. 31, 2010, and in the company's
quarterly report on Form 10-Q for the quarter ended June 30, 2011, filed
by the company with the Securities and Exchange Commission, as updated
or supplemented from time to time in subsequent filings. These risks and
uncertainties include, without limitation: adverse capital and credit
market conditions may significantly affect the company's ability to meet
liquidity needs, access to capital and cost of capital; continued
difficult conditions in the global capital markets and the economy
generally; continued volatility or further declines in the equity
markets; changes in interest rates or credit spreads; the company's
investment portfolio is subject to several risks that may diminish the
value of its invested assets and the investment returns credited to
customers; the company's valuation of securities may include
methodologies, estimations and assumptions that are subject to differing
interpretations; the determination of the amount of allowances and
impairments taken on the company's investments requires estimations and
assumptions that are subject to differing interpretations; gross
unrealized losses may be realized or result in future impairments;
competition from companies that may have greater financial resources,
broader arrays of products, higher ratings and stronger financial
performance; a downgrade in the company's financial strength or credit
ratings; inability to attract and retain sales representatives and
develop new distribution sources; international business risks; the
company's actual experience could differ significantly from its pricing
and reserving assumptions; the company's ability to pay stockholder
dividends and meet its obligations may be constrained by the limitations
on dividends or distributions Iowa insurance laws impose on Principal
Life; the pattern of amortizing the company's DPAC and other actuarial
balances on its universal life-type insurance contracts, participating
life insurance policies and certain investment contracts may change; the
company may need to fund deficiencies in its "Closed Block" assets that
support participating ordinary life insurance policies that had a
dividend scale in force at the time of Principal Life's 1998 conversion
into a stock life insurance company; the company's reinsurers could
default on their obligations or increase their rates; risks arising from
acquisitions of businesses; changes in laws, regulations or accounting
standards; a computer system failure or security breach could disrupt
the company's business, and damage its reputation; results of litigation
and regulatory investigations; from time to time the company may become
subject to tax audits, tax litigation or similar proceedings, and as a
result it may owe additional taxes, interest and penalties in amounts
that may be material; fluctuations in foreign currency exchange rates;
and applicable laws and the company's stockholder rights plan,
certificate of incorporation and by-laws may discourage takeovers and
business combinations that some stockholders might consider in their
best interests.
About the Principal Financial Group
The Principal Financial
Group(R) (The Principal (R))1 is a
retirement and global asset management leader. The Principal offers
businesses, individuals and institutional clients a wide range of
financial products and services, including retirement, investment
services and insurance through its diverse family of financial services
companies. A member of the FORTUNE 500(R), the Principal
Financial Group has $335.8 billion in assets under management2 and
serves some 16.5 million customers worldwide from offices in Asia,
Australia, Europe, Latin America and the United States. Principal
Financial Group, Inc. is traded on the New York Stock Exchange under the
ticker symbol PFG. For more information, visit www.principal.com.
1 "The Principal Financial Group" and "The Principal" are
registered service marks of Principal Financial Services, Inc., a member
of the Principal Financial Group.
2 As of June 30, 2011.
SOURCE: Principal Financial Group, Inc.
Principal Financial Group, Inc.
Media contact:
Susan Houser, 515-248-2268
houser.susan@principal.com
or
Investor contact:
John Egan, 515-235-9500
egan.john@principal.com
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