Item 1. Business
The Registrant is a separate account established under the Iowa insurance laws and regulations as Principal Life Insurance Company Separate Account C on April 12, 1971, pursuant to a resolution of the Executive Committee of the Board of Directors of Principal Life Insurance Company. Principal Life Insurance Company was incorporated under Iowa law as a mutual life insurance company named Bankers Life Association. It changed its name to Bankers Life Company in 1911 and then to Principal Mutual Life Insurance Company in 1986. The name change to Principal LIfe Insurance Company and reorganization into a mutual holding company structure took place in 1998. The account was formed to receive payments under Principal Life Insurance Company Contracts designed for use in connection with pension or profit sharing plans which qualify under the Self-Employed Individuals Tax Retirement Act of 1962, as amended ("HR-10"). Principal Life Insurance Company offers life, disability, health and annuity contracts written on an individual and group basis.
Pursuant to the Amendments enacted in 1970 to the Investment Company Act of 1940, the Account is not an investment company for purposes of the Act.
The objective of these Contracts is to provide for the accumulation of retirement funds and to provide for payments, usually commencing at retirement, which tend to reflect changes in the cost of living both during the years prior to and the years following the commencement of annuity payments. With Bankers Flexible Annuity Contracts (Registration No. 2-39957), Principal Life Insurance Company, as a depositor for the Account, seeks to accomplish this objective by investing the payments made under the Contracts in shares of Principal Variable Contracts Fund, Inc. - Capital Value Account (f/k/a Principal Capital Accumulation Fund, Inc.) which invests principally in common stocks. Similarly, with Pension Builder Contracts (Registration No. 33-58028), it seeks to accomplish this objective by investing payments made under the Contract in three Divisions. One is a "Common Stock Division" where payments are invested in shares of Principal Variable Contracts Fund, Inc. - Capital Value Account. Another is a "Money Market Division" where payments are invested in Principal Variable Contracts Fund, Inc., - Money Market Account (f/k/a Principal Money Market Fund, Inc.), which invests in short-term money market instruments. The third Division is a "Government Securities Division" where payments are invested in Principal Variable Contracts Fund, Inc. - Government Securities Account (f/k/a Principal Government Securities Fund, Inc.), which invests in obligations issued or guaranteed by the United States Government or its agencies. There may be a combination of investments in the three Divisions, as directed by Participants.
Except for those Contracts described above with payments credited to the Registrant (Principal Life Insurance Company Separate Account C) and Variable Annuity Contracts and Variable Life Insurance Contracts with payments credited to Principal Life Insurance Company Separate Account B and Variable Life Separate Account, respectively, the Company distributes its own products as permitted under the laws of the various jurisdictions in which the Company is authorized to do business, namely the fifty states of the United States, the District of Columbia, the Commonwealth of Puerto Rico and the Canadian provinces of Alberta, British Columbia, Manitoba, Ontario and Quebec. Such distribution is through a field agency system of approximately 1,147 full-time agents, a group insurance sales organization of approximately 262 individuals and through a large number of independent insurance brokers.
The Contracts described above with payments credited to the Registrant and other Variable Annuity Contracts and Variable Life Insurance Contracts are distributed through Princor Financial Services Corporation, an affiliated broker-dealer offering open-end management investment company shares, variable annuities, variable life insurance, interests in limited partnerships and general securities to the public. Such Contracts are sold primarily by registered representatives of the broker-dealer who are also insurance agents of or brokers for Principal Life Insurance Company and authorized by applicable law to sell life and other forms of personal insurance and who are similarly authorized to sell variable annuities. Such Contracts may also be sold through other selected broker-dealers.
The Registration Statement filed by the Registrant was made effective September 13, 1971, and the first sale of Bankers Flexible Annuity Contracts occurred on October 8, 1971. Effective January 4, 1989, sales of Bankers Flexible Annuity Contracts were discontinued.
In 1982 the Registrant filed a Registration Statement in File No. 2-78747, to register a new class of securities (called "Pension Builder") for the same HR-10 plan market utilizing the contingent deferred sales charge concept. The registration for Pension Builder contracts first became effective on May 5, 1983 and the first sale under the Pension Builder Contract was made on September 19, 1983.
In 1989 the Registrant filed a new Registration Statement in File No. 33-27256 for the contracts in view of the fact that aggregate sales under the prior registration statement approached the amount of contracts registered thereunder. The contracts offered by the new registration statement are identical to contracts previously registered under the 1933 Act in File No. 2-78747.
In 1993 the Registrant filed a new Registration Statement in File No. 33-58028 for the contracts in view of the fact that aggregate sales under the prior registration statement approached the amount of contracts registered thereunder. The contracts offered by the new registration statement are identical to contracts previously registered under the 1933 Act in File No. 33-27256. Effective September 30, 1995, sales of Pension Builder Contracts were discontinued.
Item 2.
Item 2. Properties
The Registrant owns no physical properties. The principal properties of the Depositor, Principal Life Insurance Company, are its home office complex at The Principal Financial Group in Des Moines, Iowa.
Item 3.
Item 3. Legal Proceedings
None.
Item 4.
Item 4. Submission of Matters to a Vote of Security Holders
Inapplicable.
PART II
Item 5.
Item 5. Market for the Registrant's Common Equity and Related Stockholder Matters
a. The Registrant does not issue common stock. The Contracts described in Item 1. are distributed through Princor Financial Services Corporation, an affiliated broker-dealer offering open-end management investment company shares, variable annuities, variable life insurance, interests in limited partnerships and general securities to the public. Such Contracts are sold primarily by registered representatives of the broker-dealer who are also insurance agents of or brokers for Principal Life Insurance Company and authorized by applicable law to sell life and other forms of personal insurance and who are similarly authorized to sell variable annuities. Such Contracts may also be sold through other selected broker-dealers.
For Bankers Flexible Annuity Contracts (Registration No. 2-39957) the high and low unit values for each quarterly period during 1998 and 1999 are:
Lowest Unit Value Highest Unit Value
First Quarter 1998 25.7039901 29.7421641 Second " 1998 28.9133343 30.0327198 Third " 1998 25.5325451 30.3428328 Fourth " 1998 25.8281110 30.2336310 First " 1999 29.0662723 30.9482632 Second " 1999 30.1740744 33.1373049 Third " 1999 27.9917253 32.5341224 Fourth " 1999 27.4644119 30.3602459
For Pension Builder Contracts (Registration No. 33-58028) units were first valued at $1.00 on September 19, 1983 for the Capital Value Division f/k/a Common Stock Division, September 22, 1983 for the Money Market Division and March 30, 1987 for the Government Securities Division. Listed below are the low and high unit values for each quarterly period during 1998 and 1999.
Capital Value Money Market GovernmentSecurities Division Division Division ------------------- ------------------- ------------------- Quarter Lowest Highest Lowest Highest Lowest Highest ------- --------- --------- --------- --------- --------- ---------
First Quarter 1998 5.0801506 5.8665362 1.8917032 1.9085747 2.0459757 2.0739041 Second " 1998 5.6972242 5.9204981 1.9087654 1.9258325 2.0601982 2.1037409 Third " 1998 5.0137197 5.9666438 1.9260245 1.9426780 2.1044991 2.1807744 Fourth " 1998 5.0674580 5.9183008 1.9428674 1.9607951 2.1436487 2.1900032 First " 1999 5.6831195 6.0565082 1.9609123 1.9751301 2.1436620 2.1837539 Second " 1999 5.8911639 6.4621709 1.9760268 1.9897774 2.1102814 2.1819446 Third " 1999 5.4368687 6.3339812 1.9899396 2.0059501 2.0846646 2.1531831 Fourth " 1999 5.3320720 5.8890498 2.0066813 2.0252333 2.1230148 2.1664268
b. The approximate number of holders of record of each group contract and the number of the participants therein as of December 31, 1999, are as follows:
(1) (2) Number of Group Number of Contract Holders Participants ---------------- ------------ Bankers Flexible Annuity 16 16 Pension Builder 32 38
c. No dividends have been declared on units held by participants. Any changes in net investment income, net realized gains and net realized appreciation are included in the daily valuation of the units of the Registrant.
Item 6.
Item 6. Selected Financial Data
The information contained in the "Statements of Net Assets, Statements of Operations and Statements of Changes in Net Assets for Principal Life Insurance Company Separate Account C", filed as Item 8. should be read in conjunction with this item.
Item 7.
Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operation
All payments made to the Registrant on behalf of a Participant under a contract (less any authorized deductions) are used to purchase shares of Principal Variable Contracts Fund, Inc. - Capital Value Account, Money Market Account, Inc., or Government Securities Account, as appropriate, at net asset value. In addition, any distributions made by the Fund with respect to shares held by the Registrant are reinvested by the Fund at net asset value. Values under the contract increase or decrease to reflect the investment performance of the underlying investments.
Principal Variable Contracts Fund, Inc. is an open-end diversified management investment company, sponsored by Principal Life Insurance Company. The principal objective of the Capital Value Account is long-term capital appreciation and growth of future investment income. It is intended that the assets of the Fund will consist primarily of a portfolio of common stocks. The value of the investments held by the Fund fluctuates daily. It is subject to the risks of changing economic conditions as well as the risks inherent in the ability of the management of the Account to anticipate changes in such investments necessary to meet changes in economic conditions.
The principal objective of the Money Market Account is to seek as high a level of income available from short-term securities as is considered consistent with preservation of principal and maintenance of liquidity by investing all of its assets in a portfolio of money market instruments.
The principal objective of the Government Securities Account is to seek a high level of current income, liquidity and safety of principal through the purchase of obligations issued or guaranteed by the United States Government or its agencies, with emphasis on Government National Mortgage Association Certificates ("GNMA Certificates").
Item 8.
Item 8. Financial Statements and Supplementary Data
Financial Statements
Principal Life Insurance Company Separate Account C
Year ended December 31, 1999 with Report of Independent Auditors
Principal Life Insurance Company Separate Account C
Financial Statements
Year ended December 31, 1999
Contents
Report of Independent Auditors................................................1
Audited Financial Statements
Statements of Net Assets......................................................2 Statements of Operations......................................................3 Statements of Changes in Net Assets...........................................4 Notes to Financial Statements.................................................5
Report of Independent Auditors
Board of Directors and Participants Principal Life Insurance Company
We have audited the accompanying individual and combined statements of net assets of Principal Life Insurance Company Separate Account C (comprised of the Capital Value, Government Securities, and Money Market Divisions) as of December 31, 1999, and the related statements of operations for the year then ended, and changes in net assets for each of the two years in the period then ended. These financial statements are the responsibility of the management of Principal Life Insurance Company. Our responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted in the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 1999, by correspondence with the transfer agent. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the individual and combined financial position of the respective divisions of Principal Life Insurance Company Separate Account C at December 31, 1999, and the individual and combined results of their operations for the year then ended, and the changes in their net assets for each of the two years in the period then ended, in conformity with accounting principles generally accepted in the United States.
/s/ Ernst & Young LLP
Des Moines, Iowa January 31, 2000
Principal Life Insurance Company Separate Account C
Statements of Net Assets
December 31, 1999
Assets Investments: Capital Value Division: Capital Value Account - 46,485 shares at net asset value of $30.74 per share (cost - $1,234,452) $1,428,942 Government Securities Division: Government Securities Account - 24,235 shares at net asset value of $10.26 per share (cost - $252,241) 248,655 Money Market Division: Money Market Account - 273,299 shares at net asset of $1.00 per share (cost - $273,299) 273,299 ------------------ Net assets $1,950,896 ==================
Unit Units Value --------------------
Net assets are represented by: Capital Value Division: Currently payable annuity contracts: Bankers Flexible Annuity 1,566 $28.61 $ 44,803 Pension Builder Plus 3,027 5.54 16,770 Contracts in accumulation period: Bankers Flexible Annuity 22,486 28.61 643,311 Pension Builder Plus 130,654 5.54 724,058 ------------------ 1,428,942 Government Securities Division: Contracts in accumulation period - Pension Builder Plus 116,410 2.14 248,655
Money Market Division: Contracts in accumulation period - Pension Builder Plus 135,182 2.02 273,299 ------------------ Net assets $1,950,896 ==================
See accompanying notes.
See accompanying notes.
See accompanying notes.
Principal Life Insurance Company Separate Account C
Notes to Financial Statements
December 31, 1999
1. Investment and Accounting Policies
Principal Life Insurance Company Separate Account C (Separate Account C) was organized by Principal Life Insurance Company (Principal Life) in accordance with the provisions of the Iowa Insurance Laws and is a part of the total operations of Principal Life. The assets and liabilities of Separate Account C are clearly identified and distinguished from the other assets and liabilities of Principal Life, with the remaining aggregate value of units registered with the Securities and Exchange Commission under the current registration statement (but not the authorized number of units) limited to $10.6 million. As directed by eligible contractholders, Separate Account C invests solely in shares representing interests in a corresponding investment option. As of December 31, 1999, the contractholder investment options consisted of the accounts of the following diversified open-end management investment company, organized by Principal Life: Principal Variable Contracts Fund, Inc. - Capital Value Account, Government Securities Account and Money Market Account.
Investments are stated at the closing net asset values per share on December 31, 1999. The average cost method is used to determine realized gains and losses on investments. Dividends are taken into income on an accrual basis as of the ex-dividend date.
Separate Account C supports the following variable annuity contracts of Principal Life: Bankers Flexible Annuity Contracts and Pension Builder Plus Contracts. Contributions to Separate Account C are no longer accepted.
Use of Estimates in the Preparation of Financial Statements
The preparation of Separate Account C's financial statements and accompanying notes requires management to make estimates and assumptions that affect the amounts reported and disclosed. These estimates and assumptions could change in the future as more information becomes known, which could impact the amounts reported and disclosed in the financial statements and accompanying notes.
2. Expenses
Principal Life is compensated for the following expenses:
Bankers Flexible Annuity Contracts - Mortality and expense risks assumed by Principal Life are compensated for by a charge equivalent to an annual rate of 0.48% of the asset value of each contract. An annual administration charge of $7 for each participant's account is deducted as compensation for administrative expenses. The mortality and expense risk and annual administration charges amounted to $5,614 and $63, respectively, during the year 1999.
Principal Life Insurance Company Separate Account C
Notes to Financial Statements (continued)
2. Expenses (continued)
Pension Builder Plus Contracts - Mortality and expense risks assumed by Principal Life are compensated for by a charge equivalent to an annual rate of 1.4965% of the asset value of each contract. A contingent sales charge of up to 7% may be deducted from withdrawals made during the first 10 years of a contract, except for death or permanent disability. An annual administration charge will be deducted ranging from a minimum of $25 to a maximum of $275 depending upon a participant's investment account values and the number of participants under the retirement plan and their participant investment account value. The charges for mortality and expense risks, and annual administration amounted to $21,378 and $2,475, respectively, during the year 1999. There were no contingent sales charges during 1999.
3. Federal Income Taxes
Operations of Separate Account C are a part of the operations of Principal Life. Under current practice, no federal income taxes are allocated by Principal Life to the operations of Separate Account C.
4. Purchases and Sales of Investment Securities
The aggregate units and cost of purchases and proceeds from sales of investments were as follows:
Principal Life Insurance Company Separate Account C
Notes to Financial Statements (continued)
4. Purchases and Sales of Investment Securities (continued)
Purchases include reinvested dividends and capital gains. Mortality adjustments are included in purchases or redemptions, as applicable.
Money Market purchases include transactions where investment allocations are not known at the time of the deposit. Redemptions reflect subsequent allocations to directed investment divisions.
5. Year 2000 Issues (Unaudited)
As of January 31, 2000, virtually all of the major technology systems, processes and infrastructure, including those which rely on third party vendors used by Principal Life and other service providers of Separate Account C appear to be operating smoothly following the rollover to the Year 2000. Principal Life has experienced no significant interruptions to normal business operations, including the processing of customer account data and transactions. Principal Life will continue its Year 2000 vigilance into early 2001.
Based on the performance of its major technology systems to date, ongoing plans to deal with external relationships, and contingency plans, Principal Life believes that in the worst case scenario it will experience, at most, isolated and insignificant disruptions of business processes as a result of Year 2000 issues. Such disruptions are not expected to have a material effect on Separate Account C's future results of operations, liquidity, or financial condition.Item
9.
Item 10. Directors and Executive Officers of the Registrant
Inapplicable, the Registrant does not have any directors or executive officers.
Item 11.
Item 11. Executive Compensation
Inapplicable, the Registrant does not have any directors or executive officers.
Item 12.
Item 12. Security Ownership of Certain Beneficial Owners and Management
No person owns beneficially or of record the assets held by the Depositor, Principal Life Insurance Company, in the Separate Account. As contractholders of the variable contracts each contractholder has one vote in the election of the Board of Directors at annual meetings and upon other Principal Life Insurance Company matters, if any, where a policyholder's vote is taken. The contractholders have the same voting privilege as do all other policyholders of Principal Life Insurance Company. An individual participant (certificateholder) does not have a vote. There are no policyholders that are entitled to cast more than 5% of the votes to be cast.
Item 13.
Item 13. Certain Relationships and Related Transactions
Inapplicable.
PART IV
Item 14.
Item 14. Exhibits, Financial Statement Schedules, and Reports on Form 8-K
(a) Documents filed as part of this report:
1. The following financial statements are submitted herewith:
Statements of Net Assets -- December 31, 1999
Statements of Operations -- Year ended December 31, 1999
Statements of Changes in Net Assets -- Years ended December 31, 1999 and 1998.
Notes to Financial Statements -- December 31, 1999
2. Schedules - All other schedules for which provision is made in the applicable accounting regulation of the Securities and Exchange Commission are not required under the related instructions or are inapplicable, and therefore have been omitted.
3. Exhibits:
(20) Subsidiaries of the Registrant
Subsidiaries of the Registrant
The Registrant is a separate account of Principal Life Insurance Company. It has no subsidiary. Principal Life Insurance Company, as the Depositor of the Account, owns or controls, as of December 31, 1999, subsidiaries as follows:
I. Principal Holding Company
A. Organized in Iowa.
B. Depositor owns 100% of outstanding stock.
C. Subsidiaries of Principal Holding Company as of December 31, 1999, are as follows:
1. Patrician Associates, Inc. - a real estate development company.
a. Organized in California.
b. Principal Holding Company owns 100% of outstanding stock.
2. Petula Associates, Ltd. - a real estate development company.
a. Organized in Iowa.
b. Principal Holding Company owns 100% of outstanding stock.
3. Principal Development Associates, Inc. - a real estate development company.
a. Organized in California.
b. Principal Holding Company owns 100% of outstanding stock.
4. Principal Spectrum Associates, Inc. - a real estate development company.
a. Organized in California.
b. Principal Holding Company owns 100% of outstanding stock.
5. Principal FC, Ltd. - a limited purpose investment corporation.
a. Organized in Iowa.
b. Principal Holding Company owns 100% of outstanding stock.
6. Equity FC, Ltd. - a general business corporation that engages in investment transactions including limited partnership and limited liability companies.
a. Organized in Iowa.
b. Principal Holding Company owns 100% of outstanding stock.
7. Invista Capital Management, LLC - an investment advisor.
a. Organized in Delaware.
b. Principal Holding Company owns 100% of outstanding stock.
c. Subsidiary of Invista Capital Management, LLC is as of December 31, 1999, is as follows:
(1) Principal Capital - Invista Trust (a business trust and private investment company).
(a) Organized in Delaware.
(b) Invista Capital Management, LLC owns 100% of outstanding shares.
8. HealthRisk Resource Group, Inc. - a general business corporation engaged in providing managed care expertise and administrative services to provider organizations.
a. Organized in Iowa.
b. Principal Holding Company owns 100% of outstanding stock.
9. Principal Residential Mortgage, Inc. - a full service mortgage banking company.
a. Organized in Iowa.
b. Principal Holding Company owns 100% of outstanding stock.
c. Susidiaries of Principal Residential Mortgage, Inc. as of December 31, 1999, are as follows:
(1) Principal Wholesale Mortgage, Inc. - a brokerage and servicer of residential mortgages.
(a) Organized in Iowa.
(b) Principal Residential Mortgage, Inc. owns 100% of outstanding stock.
(2) Principal Reinsurance Company - a mortgage reinsurance company.
(a) Organized in Vermont.
(b) Principal Residential Mortgage, Inc. owns 100% of outstanding stock.
10. Principal Asset Markets, Inc. - a residential mortgage loan broker - currently inactive.
a. Organized in Iowa.
b. Principal Holding Company owns 100% of outstanding stock.
11. Principal Portfolio Services, Inc. - a corporation which provides mortgage diligence services.
a. Organized in Iowa.
b. Principal Holding Company owns 100% of outstanding stock.
(12) The Admar Group, Inc. - a national managed care service organization that developes and manages preferred provider organizations (PPO's).
a. Organized in Florida.
b. Principal Holding Company owns 100% of outstanding stock.
c. Subsidiary of The Admar Group, Inc. as of December 31, 1999, is as follows:
(1) Admar Corporation - a managed care services organization.
(a) Organized in California.
(b) The Admar Group, Inc. owns 100% of outstanding stock.
13. The Principal Financial Group, Inc. - general business corporation established in connection with corporate identity - currently inactive.
a. Organized in Delaware.
b. Principal Holding Company owns 100% of outstanding stock.
14. Principal Bank - a federally chartered direct delivery savings bank.
a. Federally organized.
b. Principal Holding Company owns 100% of outstanding stock.
15. Principal Health Care, Inc. - a developer and administrator of health maintenance organizations HMO's.
a. Organized in Iowa.
b. Principal Holding Company owns 100% of outstanding stock.
16. Dental-Net, Inc. - a managed dental care services organization.
a. Organizaed in Arizona.
b. Principal Holding Company owns 100% of outstanding stock.
c. Subsidiary of Dental-Net, Inc. as of December 31, 1999, is as follows:
(1) Employers Dental Services, Inc. - an prepaid dental plan organization.
(a) Orgnized in Arizona.
(b) Dental-Net, Inc. owns 100% outstanding stock.
17. Principal Financial Advisors, Inc. - a registered investment advisor.
a. Organized in Iowa.
b. Principal Holding Company owns 100% of outstanding stock.
18. Delaware Charter Guarantee & Trust Company - a corporation that administers individual and group retirement plans.
a. Organized in Delaware.
b. Principal Holding Company currently owns 100% of outstanding stock.
19. Principal Investors Corporation - general business corporation - not currently active.
a. Organized in New Jersey.
b. Principal Holding Company currently owns 100% of outstanding stock.
20. Principal Product Networks, Inc. - an insurance broker which markets select products.
a. Organized in Delaware.
b. Principal Holding Company owns 100% of outstanding stock.
21. Professional Pensions, Inc. - a corporation engaged in sales, marketing and administration of group insurance plans and third party administration for defined contribution plans.
a. Organized in Conneticut.
b. Principal Holding Company owns 100% of outstanding stock.
c. Subsidiaries of Professional Pensions, Inc. as of December 31, 1999, are as follows:
(1) Benefit Fiduciary Corporation - a corporation which services as a corporate trustee for retirement funds.
(a) Organized in Rhode Island.
(b) The Professional Pensions, Inc. owns 100% of outstanding stock.
(2) PPI Employee Benefit Corporation - a registered broker dealer, limited to the sale of open-end mutual funds and variable insurance products.
(a) Organized in Connecticut.
(b) The Professional Pensions, Inc. owns 100% of outstanding stock.
(3) Boston Insurance Trust, Inc. - a corporation which serves as trustee and administrator of insurance trusts and arrangements.
(a) Organized in Massacusetts.
(b) The Professional Pensions, Inc. owns 100% of outstanding stock.
22. Principal International, Inc. - a corporation engaged in international business development.
a. Organized in Iowa.
b. Principal Holding Company owns 100% of outstanding stock.
c. Subsidiaries of Principal International, Inc. as of December 31, 1999, are as follows:
(1) Principal International Espana, S.A. de Seguros de Vida - a life insurance company (individual group), annuities and pension.
(a) Organized in Spain.
(b) Principal International, Inc. owns 99% of outstanding stock and Principal Holding Company owns 1% of outstanding stock.
(c) Subsidiary of Principal Internationl Espana, S.A. de Seguros de Vida as of December 31, 1999, are as follows:
(1) Princor International Espana Sociedad Anonima de Agencia de Seguros - a Spain corporation) an insurance agency - inactive.
(a) Organized in Spain.
(b) Principal International Espana, S.A. de Seguros de Vida owns 99% of outstanding stock and Principal International, Inc. owns 1% of outstanding stock.
(2) Principal Prevision, EPSV - a pension entity.
(a) Organized in Spain.
(b) Principal International Espana, S.A. de Seguros de Vida controlled mutual entity, no shares issued.
(2) Zao Principal International - inactive.
(a) Organized in Russia.
(b) Principal International, Inc. owns 99% of outstanding stock and Principal Holding Company owns 1% of outstanding stock.
(3) Principal International Argentina, S.A. - an Argentina services corporation.
(a) Organized in Argentina.
(b) Principal International, Inc. owns 97.03% of outstanding stock and Enrique S. Braun owns 2.97% of outstanding stock
(c) Subsidiaries of International Argentina, S.A. as of December 31, 1999, are as follows:
(1) Principal Retiro Compania de Seguros de Retiro, S.A. - an Argentina annuity/employee benefit company.
(a) Organized in Argentina.
(b) Principal Life Compania de Seguros S.A. owns approximately 99% of outstanding stock and Principal International Argentina S.A. owns approximately 1% of outstanding stock.
(2) Principal Life Compania de Seguros, S.A. - an Argentina life insurance company.
(a) Organized in Argentina.
(b) Principal International Argentina, S.A. owns 99.9963% of outstanding stock and Principal International, Inc. owns .0037% of outstanding stock.
(4) Principal International Asia Limited - operating as a regional headquarters for Asia.
(a) Organized in Hong Kong.
(b) Principal International, Inc. owns 50% of outstanding stock and Principal Holding Company owns 50% of outstanding stock.
(c) Subsidiary of Principal International Asia Limited as of December 31, 1999, is as follows:
(1) BT Funds Management (Asia) Ltd. a funds management company.
(a) Organized in Hong Kong.
(b) Principal International (Asia) Limited owns 99% of outstanding stock and Principal Asset Management Company (Asia) Limited owns approximately 1% of outstanding stock.
(5) Principal Asset Management Company (Asia) Ltd. - an asset management company.
(a) Organized in Hong Kong.
(b) Principal International, Inc. owns 99% of outstanding stock and Principal International (Asia) Limited owns approximately 1% of outstanding stock.
(6) Principal Insurance Company (Hong Kong) Limited - for group life and group pension products.
(a) Organized in Hong Kong.
(b) Principal International, Inc. owns 87.169% of outstanding stock and Principal International (Asia) Limited owns 11.84% of outstanding stock.
(7) Principal Trust Company (Asia) Limited - an Asia trust company.
(a) Organized in Hong Kong.
(b) Principal Holding Company owns 20% of outstanding stock, Principal Residential Mortgage, Inc. owns 20% of outstanding stock, Principal International (Asia) Limited owns 20% of outstanding stock, Principal Insurance Company (Hong Kong) Limited owns 20% outstanding stock and Principal International, Inc. owns approximately 20% of outstanding stock.
(8) Principal International de Chile, S.A. - a Chilean holding company.
(a) Organized in Chile.
(b) Principal International, Inc. owns 99% outstanding stock and Principal Holding Company owns 1% of outstanding stock.
(c) Subsidiaries of Principal International de Chile, S.A. as of December 31, 1999, is as follows:
(1) Principal Compania de Seguros de Vida, S.A. - a corporation for group life and supplemental health, individual annuities.
(a) Organized in Chile.
(b) Principal International de Chile, S.A. owns 99% of outstanding stock Antonia Ortuzar Vicuna owns approximately 1% of outstanding stock.
(c) Subsidiary of Principal Compania de Seguros de Vida Chile, S.A. as of December 31, 1999, is as follows:
(1) Andueza & Principal Creditos Hipotecarios S.A. - a residential mortgage operation.
(a) Organized in Chile.
(b) Principal Compania de Seguros de Vida Chile S.A. owns 60% of outstanding stock.
(9) Principal Mexico Compania de Seguros, S.A. de C.V. - a life insurance company (individual group), personal accidents.
(a) Organized in Mexico.
(b) Principal International, Inc. owns 99% of outstanding stock and Principal Holding Company owns 1% of outstanding stock.
(10) Principal Afore S.A. de C.V. - a pension corporation.
(a) Organized in Mexico.
(b) Principal International, Inc. owns 99% of outstanding stock and Principal Holding Company owns 1% of outstanding stock.
(c) Subsidiary of Afore S.A.de C.V. as of December 31, 1999, is as follows:
(1) Siefore Principal S.A. de C.V. - a mutual fund (separate account) company.
(a) Organized in Mexico.
(b) Principal Afore S.A. de C.V. owns 99% of outstanding stock and Principal International, Inc. owns 1% outstanding stock.
(11) Principal Consulting (India) Private Limited - a consulting company - inactive.
(a) Organized in India.
(b) No shares issued.
(12) Principal Pensiones, S.A. de C.V. - single premium annuity company.
(a) Organized in Mexico.
(b) Principal International, Inc. owns approximatly 99% of outstanding stock and Principal Holding Company owns approximately 1% of outstanding stock.
II. Principal Development Investors, LLC - a limited liability company.
A. Organized in Delaware.
B. Depositor owns 100% of the outstanding stock.
III. Principal Capital Management, LLC - a limited liability company that provides investment management services.
A. Organized in Delaware.
B. Depositor owns 100% of the outstanding stock.
C. Subsidiaries of Principal Capital Management, LLC as of December 31, 1999, are as follows:
1. Principal Enterprise Capital, LLC - a limited liability company.
(a) Organized in Delaware.
(b) Principal Capital Management, LLC owns 100% outstanding stock.
2. Principal Commercial Acceptance, LLC - a Delaware LLC.
(a) Organized in Delaware.
(b) Principal Capital Management, LLC owns 100% outstanding stock.
3. Principal Real Estate Investors, LLC - a regsitered investment advisor.
(a) Organized in Delaware.
(b) Principal Capital Management, LLC owns 100% outstanding stock.
4. Principal Commercial Funding, LLC - a correspondent lender and service provider for loans.
(a) Organized in Delaware.
(b) Principal Capital Management, LLC owns 100% outstanding stock.
5. Principal Real Estate Services, LLC - a limited liablity company.
(a) Organized in Delaware.
(b) Principal Capital Management, LLC owns 100% outstanding stock.
6. Principal Structured Investments, LLC - a limited liability company that provides product development administration, marketing and asset management services.
(a) Organized in Delaware.
(b) Principal Capital Management, LLC owns 100% outstanding stock.
IV. Principal Net Lease Investors, LLC - a limited liability company which operates as a buyer and seller of net leased investments.
A. Organized in Delaware.
B. Depositor owns 100% of the outstanding stock.
V. PT Asuransi Jiwa Principal Indonesia - a life insurance company which offers group and individual products.
(a) Organized in Indonsesia.
(b) Principal Life Insurance Company owns approximately 90% of outstanding stock and PT megah Cipta Persada Mandiri owns approximately 10% of outstanding stock.
(c) Subsidiaries of PT Asuransi Jiwa Principal Indonesia as of December 31, 1999, are as follows:
(1) PT Jasa Principal Indonesia - a defined benefit pension company.
(a) Organized in Indonesia.
(b) PT Asuransi Jiwa Principal Indonesia owns approximately 90% of outstanding stock and PT Megah Cipta Persada Indonesia owns approximately 10% of outstanding stock.
(2) PT Principal Capital Management Indonesia - an asset management company.
(a) Organized in Indonesia.
(b) PT Asuransi Jiwa Principal Indonesia owns approximately 90% of outstanding stock and PT Megah Cipta Persada Indonesia owns approximately 10% of outstanding stock.
(3) Dana Pensiun Lembaga Keuangan Principal Indonesia - a pension company.
(a) Organized in Indonesia.
(b) PT Asuransi Jiwa Principal Indonesia controlled entity, no shares issued.
VI. PFG Do Brasil LTDA - a holding company (pension).
(a) Organized in Brazil.
(b) Principal Financial Services, Inc. owns 100% of outstanding stock.
(c) Subsidiaries of PFG Do Brasil LTDA as of December 31, 1999, is as follows:
(1) BrasilPrev Previdencia Privada S.A. - an individual pension plan company.
(a) Organized in Brazil.
(b) PFG Do Brasil LTDA owns approximately 42% of outstanding Stock.
The Depositor's investment in its subsidiaries, which in turn includes the subsidiary's investment in its subsidiaries, is included in the financial statements of the Depositor.
SIGNATURES
Pursuant to the requirements of Section 15(d) of the Securities Exchange Act of 1934, Principal Life Insurance Company has duly caused this report to be signed on behalf of Principal Life Insurance Company Separate Account C by the undersigned thereto duly authorized in the city of Des Moines and State of Iowa, on the 15th day of March, 2000.
PRINCIPAL LIFE INSURANCE COMPANY SEPARATE ACCOUNT C
By PRINCIPAL LIFE INSURANCE COMPANY
/s/ J. B. Griswell By ------------------------------------------------------ J. B. Griswell, President and Chief Executive Officer
Attest:
/s/ Joyce N. Hoffman - --------------------------------------- Joyce N. Hoffman Vice President and Corporate Secretary
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant in the capacities with Principal Life Insurance Company and on the dates indicated.
Signature Title Date
/s/ J. B. Griswell President and March 15, 2000 - --------------------- Chief Executive Officer J. B. Griswell
/s/ D. C. Cunningham Vice President and March 15, 2000 - ---------------------- Controller (Principal D. C. Cunningham Accounting Officer)
/s/ M. H. Gersie Executive Vice March 15, 2000 - ---------------------- President (Chief M. H. Gersie Financial Officer)
(B. J. Bernard)* Director March 15, 2000 - ---------------------- B. J. Bernard
(J. Carter-Miller)* Director March 15, 2000 - ---------------------- J. Carter-Miller
(D. J. Drury)* Director March 15, 2000 - ---------------------- D. J. Drury
(C. D. Gelatt)* Director March 15, 2000 - ---------------------- C. D. Gelatt
(G. D. Hurd)* Director March 15, 2000 - ---------------------- G. D. Hurd
(C. S. Johnson)* Director March 15, 2000 - ---------------------- C. S. Johnson
(W. T. Kerr)* Director March 15, 2000 - ---------------------- W. T. Kerr
(L. Liu)* Director March 15, 2000 - ---------------------- L. Liu
(V. H. Loewenstein)* Director March 15, 2000 - ---------------------- V. H. Loewenstein
(R. D. Pearson)* Director March 15, 2000 - ---------------------- R. D. Pearson
(F. F. Pena)* Director March 15, 2000 - ---------------------- F. F. Pena
(J. R. Price, Jr.)* Director March 15, 2000 - ---------------------- J. R. Price, Jr.
(D. M. Stewart)* Director March 15, 2000 - ---------------------- D. M. Stewart
(E. E. Tallett)* Director March 15, 2000 - ---------------------- E. E. Tallett
(F. W. Weitz)* Director March 15, 2000 - ---------------------- F. W. Weitz
/s/ J. B. Griswell *By ------------------------------------- J. B. Griswell President and Chief Executive Officer
Pursuant to Powers of Attorney Previously Filed or Included Herein
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that the undersigned director of Principal Life Insurance Company, an Iowa corporation (the "Company"), hereby constitutes and appoints D. J. Drury, J. B. Griswell, G. R. Narber and J. N. Hoffman, and each of them (with full power to each of them to act alone), the undersigned's true and lawful attorney-in-fact and agent, with full power of substitution to each, for and on behalf and in the name, place and stead of the undersigned, to execute and file any of the documents referred to below relating to registration under the Securities Act of 1933 with respect to variable annuity contracts, with premiums received in connection with such contracts held in the Principal Life Insurance Company Separate Account C on Form N-4 or other forms under the Securities Act of 1933, and any and all amendments thereto and reports thereunder with all exhibits and all instruments necessary or appropriate in connection therewith, each of said attorneys-in-fact and agents and his or their substitutes being empowered to act with or without the others or other, and to have full power and authority to do or cause to be done in the name and on behalf of the undersigned each and every act and thing requisite and necessary or appropriate with respect thereto to be done in and about the premises in order to effectuate the same, as fully to all intents and purposes as the undersigned might or could do in person; hereby ratifying and confirming all that said attorneys-in-fact and agents, or any of them, may do or cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned director has hereunto set his hand this 15th day of March, 2000.
/s/ F. F. Pena ------------------------------- F. F. Pena