Mortgage Loans Weigh on Principal Financial

DES MOINES, IOWA (TheStreet) -- Principal Financial(PFG Quote) posted an 11% decline in second-quarter earnings, hurt by commercial mortgage loans and investments, although the company still managed to beat analysts' expectations.

Shares of the insurance company ended the day up 7% to $25.44, but were pulled into the red in after-market trading.

During the quarter, the company earned $150.3 million, or 52 cents a share, compared with $168.3 million, or 64 cents, in the year-ago period.

Excluding investment gains and losses, profit was $200.5 million, or 69 cents a share, beating analysts' estimates of 63 cents.

Rival AXA(AXA Quote) is expected to report earnings on Aug. 7.

Revenue sank 20% to $2.16 billion from $2.66 billion last year.

-- Reported by Jeanine Poggi in New York.