Principal Financial profit rises on higher premiums, fee income
July 25 (Reuters) -Insurance and asset management company Principal Financial Group PFG.O posted a 3% rise in second-quarter adjusted profit on Thursday, helped by robust premiums and higher fee income.
Premiums and other considerations jumped to $1.93 billion in the quarter from $1.49 billion, a year earlier.
Wage growth and expectations of a soft landing for the U.S. economy have encouraged businesses and individuals to revive their spending on insurance.
Meanwhile, ebullient markets also helped Principal's asset under management, which rose 4% to $699.2 billion in the quarter.
Fees and other revenue rose to $1.06 billion from $1.02 billion.
Such asset-based fees are typically calculated as a percentage of the market value of AUM.
The company's earnings are more sensitive to equity market performance compared to its peers, according to analysts.
Adjusted operating earnings rose to $386.1 million, or $1.63 per share, in the three months ended June 30, from $375.8 million, or $1.53 per share, a year earlier.
The company's shares have gained 7.4% so far this year, compared with a 13.8% jump in the benchmark S&P 500 .SPX index.
Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Sriraj Kalluvila
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