Segment assets under management were $206.4 billion as of Sept. 30, 2012, compared to $168.6 billion as of Sept. 30, 2011, reflecting asset appreciation and strong net cash flows from Full Service Accumulation and Principal Funds.
Principal Global Investors
Segment operating earnings for third quarter 2012 were $20.6 million, compared to $19.1 million in the prior year quarter, primarily due to an increase in assets under management offset by additional investments to support growth.
Operating revenues for third quarter were $144.0 million, compared to $132.9 million for the same period in 2011.
Unaffiliated assets under management were a record $97.8 billion as of Sept. 30, 2012, compared to $77.7 billion as of Sept. 30, 2011, as a result of improved net cash flows and investment performance.
Segment operating earnings were $29.5 million in third quarter 2012, compared to $35.3 million in the prior year quarter. Third quarter 2012 results were dampened by $11.5 million due to the actuarial assumption review of lapse rate assumptions in Mexico. Combined net revenue growth was flat compared to the year ago quarter, though foreign currency headwinds continue to mask an underlying 18 percent growth.
Operating revenues were $203.8 million for third quarter 2012, compared to $220.1 million for the same period last year, down due to lower inflation in Chile and the strengthening of the U.S. dollar.
Segment assets under management were a record $66.2 billion as of Sept. 30, 2012, compared to $54.5 billion as of Sept. 30, 2011, despite currency headwinds.
U.S. Insurance Solutions
Segment operating losses for third quarter 2012 were $21.6 million, compared to operating earnings of $49.1 million for the same period in 2011. Individual Life losses were $37.9 million in the third quarter compared to earnings of $28.2 million in third quarter 2011 primarily reflecting a $62.9 million charge from the review of long-term interest rate assumptions and other model enhancements.
Specialty Benefits earnings were $16.3 million in third quarter 2012, down from $20.9 million in the same period a year ago primarily due to higher disability claims in the quarter due to normal volatility and a $1.9 million charge resulting from a 75 basis point reduction in the disability claims discount rate from the year ago quarter.