Principal Financial' s Q3 profit rises on robust investment income

Principal Financial

24/10/2024 23:26

Oct 24 (Reuters) - Insurer Principal Financial Group
 PFG.O  reported a rise in third-quarter adjusted profit on
Thursday, bolstered by robust returns on its investments and
higher premiums.
    A strong labor market and increased confidence in soft
landing post Federal Reserve's rate cut last month have boosted
consumer willingness to spend more on their insurance policies. 
    The market rally, driven by growing optimism about averting
recession fears and expectations of more rate cuts before
year-end, has also helped insurers fetch higher returns on their
investments.
    The Des Moines, Iowa-based company's net investment income
for the quarter reached $1.17 billion, compared with $989.2
million a year earlier.
    Premium and fees from PFG's specialty benefits business,
which provides employee benefit plans to small- and mid-sized
businesses, rose 6% to $818.8 million. 
    Adjusted operating earnings, excluding impacts of
significant variances, came at $479.8 million or $2.05 per share
in the quarter ended Sept. 30, versus 446.4 million or $1.83 per
share a year earlier.
    
    

 (Reporting by Vedant Vinayak Vichare and Jaiveer Shekhawat;
Editing by Tasim Zahid)
 ((Vedant.VinayakVichare@thomsonreuters.com;))