DES MOINES, Iowa, May 18, 2011 (BUSINESS WIRE) --
Principal Financial Group, Inc. (NYSE: PFG) announced that its Board of Directors has renewed the authorization initially granted in 2007 for the repurchase of up to $250 million worth of the company's outstanding common stock. The Board had previously suspended the 2007 authorization.
"I am very pleased about this action by our Board of Directors. It reflects our confidence and the strength of our current financial position," says Larry D. Zimpleman, chairman, president and chief executive officer of The Principal(R). "With our continued shift to a more fee-based business model, we are excited that the increased financial flexibility our businesses provide enables us to successfully execute our capital management strategy. As we outlined at our Investor Day, we plan to deploy approximately $700 million of capital in 2011. The share repurchase program, together with the acquisitions we announced last month, demonstrates our commitment to deploy capital in a variety of ways to increase shareholder value."
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 approximately 321 million shares of common stock outstanding.
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 quarterly report on Form 10-Q for the quarter ended March 31, 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 that 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 that may materially adversely affect the company's business and results of operations; the risk from acquiring new businesses; impairment of other financial institutions that could adversely affect the company; investment risks which may diminish the value of the company's invested assets and the investment returns credited to customers, which could reduce sales, revenues, assets under management and net income; requirements to post collateral or make payments related to declines in market value of specified assets may adversely affect company liquidity and expose the company to counterparty credit risk; changes in laws, regulations or accounting standards that may reduce company profitability; fluctuations in foreign currency exchange rates that could reduce company profitability; Principal Financial Group, Inc.'s primary reliance, as a holding company, on dividends from its subsidiaries to meet debt payment obligations and regulatory restrictions on the ability of subsidiaries to pay such dividends; competitive factors; volatility of financial markets; decrease in ratings; interest rate changes; inability to attract and retain sales representatives; international business risks; a pandemic, terrorist attack or other catastrophic event; and default of the company's re-insurers.
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 $327.4 billion in assets under management2 and serves some 16.4 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.
2As of March 31, 2011.
SOURCE: Principal Financial Group, Inc.
Principal Financial Group, Inc.
Susan Houser, 515-248-2268
John Egan, 515-235-9500