Nippon Life Insurance Company to Acquire Minority Stake in Post Advisory Group

Mon Apr 1, 2013 9:00pm EDT

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Deal broadens Post Advisory Group`s distribution in Japan
DES MOINES, Iowa--(Business Wire)--
The Principal Financial Group (NYSE:PFG) today announced its subsidiary,
Principal Global Investors, LLC, a leading global asset manager, has agreed to
sell a minority stake in Post Advisory Group, LLC (Post) to Nippon Life
Insurance Company (Nippon Life). 

Post is a leading manager of high-yield fixed income based in Santa Monica,
Calif., with approximately $11.8 billion in assets under management1 and
additional offices in New York and London. Nippon Life is a leading global
financial services firm headquartered in Osaka with total assets of more than
$600 billion. The transaction will bring significant new distribution
opportunities for Post`s products and enhance Nippon Life`s fixed income
investment products. 

"We are very pleased Nippon Life has chosen us to be its high yield partner,"
said Larry Post, founder and chief investment officer of Post. "This is a
tremendous vote of confidence in our firm and it extends the geographic reach of
our broad menu of high yield products." 

"We are delighted with our new partnership with Post and intend to keep
accelerating our efforts in growing our asset management business field," said
Yoshinobu Tsutsui, president of Nippon Life. "This transaction marks a new
milestone in our history with the Principal Financial Group and we hope to
further strengthen our relationship going forward." 

"Nippon Life has long been a valued partner of the Principal Financial Group,
and this transaction will serve to deepen and strengthen that relationship,"
said Larry Zimpleman, chairman, president and CEO of the Principal Financial
Group®. "Post Advisory Group has already been successful in bringing high yield
solutions to a market that is in need of yield-oriented products. Japanese
investors will now be positioned to take even greater advantage of this key
offering through Nippon Life`s networks and relationships." 

The transaction is expected to close in the second quarter of 2013. 

For more news and insights from the Principal Financial Group, connect with us
on Twitter at: http://twitter.com/ThePrincipal. 

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, 2012, 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 certificate of incorporation and by-laws may discourage takeovers and
business combinations that some stockholders might consider in their best
interests. 

About Principal Global Investors

Principal Global Investors is a diversified asset management organization and a
member of the Principal Financial Group®, with expertise in equities, fixed
income and real estate investments, as well as specialized overlay and advisory
services. Principal Global Investors manages $281.5 billion in assets2 primarily
for retirement plans and other institutional clients3. 

About Post Advisory Group

Post Advisory Group, LLC is a global investment manager specializing in
high-yield securities with a multi-strategy, value-oriented investment approach.
With approximately $11.8 billion in assets under management, Post, founded in
1992 by Larry Post, is a leading manager of high-yield fixed income. 

About Nippon Life

Nippon Life Insurance Company, founded in 1889, is Japan`s largest private life
insurer with revenues of over 7 trillion JPY ($80 billion) and total assets of
over 50 trillion JPY ($600 billion)4. The company, which has over 14 million
policies in Japan, offers a wide range of products, including individual and
group life insurance and annuity policies, through various distribution
channels. The company primarily operates in Japan, North America, Europe and
Asia and is headquartered in Osaka, Japan. 

About the Principal Financial Group

The Principal Financial Group® (The Principal ®)5 is a global investment
management leader offering retirement services, insurance solutions and asset
management. The Principal offers businesses, individuals and institutional
clients a wide range of financial products and services, including retirement,
asset management and insurance through its diverse family of financial services
companies. Founded in 1879 and a member of the FORTUNE 500®, the Principal
Financial Group has $403.0 billion in assets under management6 and serves some
18.3 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 As of March 27, 2013 

2 As of Dec. 31, 2012 

3 Principal Global Investors is the asset management arm of the Principal
Financial Group  (The Principal ) and includes the asset management operations
of the following subsidiaries of The Principal: Principal Global Investors, LLC;
Principal Real Estate Investors, LLC; Principal Enterprise Capital, LLC;
Spectrum Asset Management, Inc.; Post Advisory Group, LLC; Columbus Circle
Investors; Edge Asset Management, Inc.; Morley Financial Services Inc.;
Finisterre Capital, LLP; Origin Asset Management, LLP; Principal Global
Investors (Europe) Limited; Principal Global Investors (Singapore) Ltd.;
Principal Global Investors (Australia) Ltd.; Principal Global Investors (Japan)
Ltd.; Principal Global Investors (Hong Kong) Ltd.; CIMB-Principal Islamic Asset
Management Sdn. Bhd.; and the majority owned affiliates of Principal
International, Inc. Assets under management includes assets managed by
investment professionals of Principal Global Investors under dual employee
arrangements with other subsidiaries of The Principal and assets managed in
accordance with investment advice provided by Principal Global Investors through
the delivery of a model. 

4 As of March 31, 2012 

5 "The Principal Financial Group" and "The Principal" are registered service
marks of Principal Financial Services, Inc., a member of the Principal Financial
Group. 

6 As of Dec.31, 2012

Principal Financial Group
Adam Lackey, 515-362-0482
lackey.adam@principal.com
or
Nippon Life
Takayuki Honda,
honda26950@nissay.co.jp
or
Post Advisory Group
Larry Post, 310-996-9600
lpost@postadvisory.com
or
Investor Relations:
Principal Financial Group
John Egan, 515-235-9500
egan.john@principal.com



Copyright Business Wire 2013

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