Principal Financial profit rises on higher premiums, fee income

Principal Financial

25/07/2024 22:18

July 25 (Reuters) - Insurance and asset management
company Principal Financial Group  PFG.O  posted a 3% rise in
second-quarter adjusted profit on Thursday, helped by robust
premiums and higher fee income.
    Premiums and other considerations jumped to $1.93 billion in
the quarter from $1.49 billion, a year earlier.
    Wage growth and expectations of a soft landing for the U.S.
economy have encouraged businesses and individuals to revive
their spending on insurance.
    Meanwhile, ebullient markets also helped Principal's asset
under management, which rose 4% to $699.2 billion in the
quarter.
    Fees and other revenue rose to $1.06 billion from $1.02
billion.
    Such asset-based fees are typically calculated as a
percentage of the market value of AUM.
    The company's earnings are more sensitive to equity market
performance compared to its peers, according to analysts.
    Adjusted operating earnings rose to $386.1 million, or $1.63
per share, in the three months ended June 30, from $375.8
million, or $1.53 per share, a year earlier.
    The company's shares have gained 7.4% so far this year,
compared with a 13.8% jump in the benchmark S&P 500  .SPX 
index.

 (Reporting by Arasu Kannagi Basil in Bengaluru; Editing by
Sriraj Kalluvila)
 ((ArasuKannagi.Basil@thomsonreuters.com;))