Principal Financial Group Inc. reported operating earnings of $271.4 million for the second quarter, a 29 percent increase from the second quarter of 2012. Net income increased by $54.7 million to $222.3 million, or 75 cents per share, up from $167.6 million, or 56 cents per share, for second quarter 2012.
"Second quarter financial results rounded out a very strong first half of 2013," said Larry D. Zimpleman, Principal's chairman, president and CEO, in a press release. "Our diversified model, both in terms of our mix of businesses and broad global footprint, combined with our ability to execute on our investment management strategy, continues to position us for long-term growth."
Net income reflected net realized capital losses of $47.6 million, which included $24.3 million of credit-related net losses, down 11 percent from a year-ago quarter, related to sales and permanent impairments of fixed-maturity securities. This includes $14.7 million of losses on commercial mortgage-backed securities. Other realized capital losses were from losses on derivatives and related activities used for hedging risk.
Retirement and Investor Services Accumulation sales were up 31 percent in the second quarter compared with the year-ago quarter.
Principal Global Investors had unaffiliated assets under management of $101.4 billion as of June 30, a 10 percent increase over a year earlier.
Principal International reported net cash flows of $2.2 billion and assets under management of $102.9 billion as of the end of the quarter (excluding $10.9 billion in an asset management joint venture in China), a 71 percent increase over the year-ago quarter.
Individual Life sales were up 12 percent and Specialty Benefits sales were up 11 percent over the second quarter of 2012.
Principal also declared a third-quarter dividend of 26 cents per share, a 13 percent increase over the second-quarter dividend.