Principal Financial net profit rises

DES MOINES, Iowa - Principal Financial Group Inc. said Monday net profit rose for the third quarter to the best result in two years as it saw investment losses improve.

The company reported net income of $184.7 million, or 57 cents per share, compared with $90.1 million, or 35 cents per share a year ago. The results included net investment losses of $53.5 million. A year ago in the same quarter losses were $156.3 million.

Revenue for this year's third quarter was $2.27 billion.

Analysts surveyed by Thomson Reuters expected the company to earn 65 cents a share on revenue of $2.49 billion.

Shares fell 3 cents to $25.01 during trading. The company reported the results after the market closed. Shares rose 9 cents in aftermarket trading.

The company said its results reflect having lower average assets under management than a year ago, higher costs for employee pension and other post-retirement benefits, lower investment income and unfavorable foreign currency movements.

It offset some of those impacts by cutting costs.

The Des Moines-based insurance, retirement and financial services company said market conditions have helped it improve the assets under its management by 9 percent since the second quarter to $280.4 billion as of Sept. 30. Its operating profit improved 19 percent from the previous quarter and net income is up 23 percent.

CEO Larry Zimpleman said confidence in the market is improving, but economic recovery will be more protracted and business activity in the near term will remain muted.

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