Principal Financial Group, Inc. (NYSE:PFG) today announced certain business unit revenue metrics and an update on capital deployment plans for 2013. These metrics will provide greater clarity of earnings growth for each of the business units 1. There is a 45-minute conference call at 4:30 p.m. EST today, Nov. 27, 2012. Company senior leaders will provide additional detail on our 2013 outlook and answer questions. Slides are now available at www.principal.com/investor. Outlook for 2013 incorporates certain assumptions including:
- Interest rates as of Sept. 30, 2012 remain unchanged throughout 2013;
- S&P 500 Index estimated at 1,400 in mid-November then grows at 2 percent total return per quarter;
- Future foreign exchange rates follow broker consensus;
- Tax rate of 24 percent;
- $400 to $600 million of total capital deployed for common stock dividend, strategic acquisitions and opportunistic share repurchase; and
- Diluted weighted average number of common shares outstanding ranging from 295 – 297 million.
|Principal Financial Group 2013 Outlook Metrics|
|Retirement & Investor Services – Accumulation|
|Net revenue growth||2-4%|
|Pre-tax return on net revenue||27-29%|
|Retirement & Investor Services – Guaranteed|
|Net revenue growth||6-8%|
|Pre-tax return on net revenue||77-80%|
|Principal Global Investors|
|Combined net revenue growth||16-19%|
|Combined pre-tax return on net revenue||57-59%|
|Principal’s share of combined pre-tax earnings||28%|
|Premium and fee growth||3-5%|
|Pre-tax operating margin||15-17%|
|Premium and fee growth||6-8%|
|Pre-tax operating margin||8-10%|
|After-tax operating losses||$145-$165 million|
- Via live Internet webcast. Please go to www.principal.com/investor at least 10-15 minutes prior to the start of the call to register, and to download and install any necessary audio software.
- Via telephone by dialing 800-374-1609 (U.S. and Canadian callers) or 706-643-7701 (International callers) approximately 10 minutes prior to the start of the call. The access code is 27371066.
- Replay of the outlook call via telephone is available by dialing 855-859-2056 (U.S. and Canadian callers) or 404-537-3406 (International callers). The access code is 27371066. This replay will be available approximately two hours after the completion of the live outlook call through the end of day Dec. 4, 2012.
- Replay of the outlook call via webcast will be available at: www.principal.com/investor.