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Principal Financial Group, Inc. Announces Third Quarter 2012 Results

Stocks in this article: PFG

Principal Financial Group, Inc. (NYSE: PFG) today announced results for third quarter 2012. The company reported operating earnings of $134.8 million for third quarter 2012, compared to $193.2 million for third quarter 2011. Third quarter operating earnings were negatively impacted by $90.7 million, or $0.30 per diluted share, as a result of the company’s previously announced third quarter actuarial assumption review. Operating earnings per diluted share (EPS) were $0.45 for third quarter 2012, compared to $0.61 for third quarter 2011. The company reported net income available to common stockholders of $179.7 million, or $0.60 per diluted share for third quarter 2012, compared to $71.9 million, or $0.23 per diluted share for third quarter 2011. Operating revenues for third quarter 2012 were $2,638.6 million compared to $2,031.7 million for the same period last year.

“Business momentum continued to accelerate in the third quarter. With strong sales, net cash flows and record assets under management, we feel well positioned going into 2013. However, we continue to see macroeconomic headwinds, including foreign exchange and low interest rates, that will pressure financial performance in the near term,” said Larry D. Zimpleman, chairman, president and chief executive officer of Principal Financial Group, Inc. “We are pleased with the continuing growth in earnings from our fee-based businesses, which gives us greater financial flexibility in this challenging time. Our recent announcement of the intent to acquire AFP Cuprum in Chile adds meaningfully to our fee-based model, which will add to our growth and increase long-term value for shareholders.”

Added Terry Lillis, senior vice president and chief financial officer, “Our periodic actuarial assumption review negatively impacted third quarter operating earnings. However, the impact is a non-cash charge and therefore has no impact on our capital deployment strategy. Backing out this impact and foreign currency headwinds, third quarter total company operating earnings were up 8 percent over normalized third quarter 2011, reflecting strong execution and growth of the businesses.”

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