Principal Sees Strong Life Sales and Variable Annuity Asset Growth
August 1, 2017 by Allison Bell
Principal Financial Group Inc. is using the terms “life insurance” and “specialty benefits” a lot more often in connection with earnings this quarter than it’s using the word “annuities.”
The Des Moines, Iowa-based company, which is now a major global money manager but has deep roots in the life insurance industry, is reporting $315 million in net income for the second quarter on $3.2 billion in revenue, compared with $327 million in net income on $2.8 billion in revenue for the second quarter of 2016.
In the company’s financial supplement, it uses the words “annuity” or “annuities” in just two places: once in a footnote, and once in a line showing individual variable annuity account value.
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Individual variable annuity account value increased to $9.7 billion in the latest quarter, from $8.8 billion.
At the individual life unit, sales increased to $55 million, from $43 million.
The company increased sales of traditional life insurance, universal life and variable universal life.
Overall life premiums and fees increased to $270 million, from $251 million.
At the group benefits unit, sales held steady at about $66 million.
Sales of group dental and vision products fell to $26 million, from $28 million; sales of individual disability insurance increased to $16 million, from $14 million.
Total premium and fee revenue for the specialty benefits unit increased to $499 million, from $464 million.
