Principal Financial Profit Hit by Unfavorable Insurance Claims

Principal Financial Group, one of the largest sellers of 401(k) retirement plans in the U.S., said earnings fell in the first quarter, hurt by unfavorable claims in its insurance business.

The provider of mutual finds and annuities said earnings were $257.1 million or 85 cents a share, down from $285.7 million, or $1.01 a share, in the year earlier quarter.

Principal Financial said operating earnings, which analysts use to measure performance because it excludes investments, were $236.8 million, or 87 cents a share. A consensus analysts' estimate from Thomson Financial put the company's earnings at 93 cents a share.

In the year ago quarter, the Des Moines, Iowa-based insurer earned $240.2 million, or 85 cents a share.

Principal said it expected 2007 earnings to be $3.80 to $3.92 a share.

Contact U.S. News


    Get the best of CNBC in your inbox

    To learn more about how we use your information,
    please read our Privacy Policy.
    › Learn More

Don't Miss

U.S. Video

  • This video is 90 seconds of cyber attacks happening around the globe, courtesy of Norse Norse is a technology company that bills itself as the "global leader in live attack intelligence." The company offers continuously "updated and unique Internet and darknet intel that helps organizations detect and block attacks that other systems miss."

  • Is this breakout story on your radar? Mad Money host Jim Cramer is about to put it there.

  • Paul Hickey, Bespoke Investment co-founder, discusses the huge divergence between the S&P 500 and the energy sector.