Principal releases preliminary 3Q results
A third-quarter earnings forecast that was released today reveals that Principal Financial Group Inc. is trying to remain stable, despite a weakened economy.
“Our results for third quarter were very solid, particularly in light of the weakness in the economy and extreme market conditions,” said Larry Zimpleman, president and CEO, in a release, “including a 9 percent drop in the S&P 500 index in the third quarter and a 24 percent drop over the trailing four quarters.”
Principal estimated its gross unrealized losses component of accumulated other comprehensive income at approximately $4.4 billion for Sept. 30, compared with $2.7 billion as of June 30. The company said the change in unrealized losses is similar to results announced by other companies within the insurance sector.
Principal has also managed to maintain its “AA” status, improving its capital position to approximately $375 million in excess of levels needed to uphold that rating. It has also built additional liquidity by increasing Principal Life Insurance Co.’s cash and cash equivalents to about $2.2 billion as of Sept. 30, up from $1.4 billion as of June 30.
Final earning figures will be released at 3 p.m. Iowa time on Nov. 3, with a conference call scheduled for the following day at 9 a.m. A copy of the earnings statement will be posted on the company’s Web site, www.principal.com/investor.
As of 10:20 a.m. Iowa time, Principal stock was up slightly more than 3.8 percent on the New York Stock Exchange.