A.M. Best believes PFG is well positioned at its current rating level in the near to medium term. Factors that could lead to negative future rating actions include a material decrease in PFG’s operating earnings as a result of a decline in its net cash flow and low interest rates and/or a material deterioration in its risk-adjusted capitalization driven by investment losses or the deployment of capital to support further acquisitions or share repurchase activity.For a complete listing of Principal Financial Group, Inc. and its subsidiaries’ FSRs, ICRs and debt ratings, please visit www.ambest.com/press/120304principal.pdf. The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology. Founded in 1899, A.M. Best Company is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com. Copyright © 2012 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.