Principal Posts Higher Profit, Revenue
February 3, 2015 by George C. Ford, The Gazette, Cedar Rapids, Iowa
Jan. 30–Principal Financial Group, with operations in downtown Cedar Rapids, on Friday posted higher fourth-quarter and annual earnings and revenue.
The Des Moines-based insurance and investment management company recorded fourth-quarter net income of $270.4 million, or 91 cents per share, up 16 percent from $233.4 million, or 78 cents per share, for the same quarter of 2013.
Operating revenues for the fourth quarter of 2014 were $2.96 billion, an increase of 8 percent from $2.7 billion in the final quarter of 2013.
Principal Financial said its annual operating earnings rose to more than $1.3 billion, or $4.41 per share, up 24.3 percent from $1.06 billion, or $3.55 per share, in 2013. Annual revenue rose 10 percent, to about $10.6 billion, up from $9.6 billion for 2013.
Larry Zimpleman, Principal Financial chairman and CEO, attributed the fourth-quarter and annual results to the company’s diversification in insurance, retirement products, and international operations
“Despite the headwinds of a strengthening U.S. dollar and lower interest rates, we grew operating earnings and earnings per share by 24 percent over 2013 and delivered $18 billion of net cash flows, driving assets under management to a record $519 billion,” Zimpleman said.
“With our recent announcement to acquire AXA’s Hong Kong pension business, we are well positioned for continued growth in 2015 and beyond.”
Operating earnings for Principal International were reduced by strengthening of the U.S. dollar, lower than expected returns on the required investment in the underlying funds of the company’s mandatory pension operations in Chile, and additional marketing-related expenses.
The company had assets of $519.3 billion on Dec. 31, up from $483.2 billion at the end of 2013.
(c)2015 The Gazette (Cedar Rapids, Iowa)
