Principal Financial’s quarterly profit rises on higher premiums

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Oct 27 (Reuters) – Insurance and asset management company Principal Financial (PFG.O), opens new tab reported a rise in third-quarter profit on Monday, driven by increased premiums and stronger fee income.

Demand for insurance products has sustained despite higher borrowing costs, as both businesses and households remain focused on safeguarding against potential risks.

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Besides, still-high interest rates have boosted insurers’ income from fixed-income investments.

Premium and fees from PFG’s specialty benefits business, which provides employee benefit plans to small and mid-sized businesses, rose 3% to $845.2 million.

Principal’s assets under management rose 6% to $784.3 billion in the third quarter. Asset-based fees are typically calculated as a percentage of the market value of AUM.

Retirement and income solutions net revenue increased 11% to $751.7 million.

The company’s adjusted operating earnings were $473.7 million, or $2.10 per share, for the quarter ended September 30, compared with $412 million, or $1.76 per share, a year earlier.

Reporting by Pritam Biswas and Prakhar Srivastava in Bengaluru; Editing by Shilpi Majumdar

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