Principal Financial's profit rises on remeasurement gains; shares jump

Principal Financial

28/07/2025 22:18

July 28 (Reuters) - Insurance and asset management company Principal Financial Group PFG.O posted a rise in second-quarter profit on Monday, helped by a gain related to remeasurement of certain future policy benefits.

Shares of the company jumped 4.6% in after-hours trading.

Insurance companies set aside capital to cover payments they expect to make to policyholders in the future, based on existing insurance contracts.

A remeasurement gain happens when the company realizes it has set aside too much money and can reduce the liability.

The company swung to a $4.3 million remeasurement gain for the three months ended June 30, compared to a $444.8 million loss a year earlier.

This helped cushion a 27.5% fall in premiums and other considerations, which came in at $1.4 billion.

Fees and other revenue rose to $1.08 billion from $1.06 billion a year earlier.

The company's fees are typically calculated as a percentage of its assets under management.

A late-quarter market rally also helped boost Principal's AUM by 8% to $752.7 billion in the reported period.

Profit attributable to Principal Financial was $406.2 million, or $1.79 per share, in the quarter ended June 30, compared with $353.1 million, or $1.49 per share, a year earlier.

 (Reporting by Ateev Bhandari in Bengaluru; Editing by Alan Barona)

 ((Ateev.Bhandari@thomsonreuters.com))