Insurer Principal Financial's profit rises on higher premiums, investment income

Principal Financial

12/02/2024 23:01

Feb 12 (Reuters) - Principal Financial Group  PFG.O 
reported a rise in fourth-quarter profit on Monday, thanks to
higher premiums and income from investments.
    The insurer also said it expects 9% to 12% growth in 2024
adjusted operating earnings per diluted share from a year
earlier.
    The demand for insurance products typically remains strong
in an uncertain economic environment as they are one of the last
things businesses and individuals want to cut down on during a
slowdown.
    Premium and fees from its specialty benefits business, which
provides employee benefit plans to small and mid-sized
businesses, rose 9% to $791.4 million in the quarter ended Dec.
31.
    Higher interest rates have also allowed companies to earn
more from investments in assets such as U.S. Treasuries and
high-grade bonds. 
    Fourth-quarter net investment income came in at $1.13
billion, compared with $981.4 million a year earlier, while
adjusted operating earnings rose to $440.5 million, or $1.83 per
diluted share, from $394.3 million, or $1.58 per share, a year
earlier.
    The Des Moines, Iowa-based company's assets under management
rose 9.3% to $694.5 billion. 

 (Reporting by Arasu Kannagi Basil and Pritam Biswas in
Bengaluru; Editing by Shinjini Ganguli)
 ((ArasuKannagi.Basil@thomsonreuters.com;))