{"id":18259,"date":"2020-04-28T17:25:50","date_gmt":"2020-04-28T21:25:50","guid":{"rendered":"https:\/\/insurancenewsnet.com\/?post_type=innarticle&p=5424269"},"modified":"2020-04-28T17:25:50","modified_gmt":"2020-04-28T21:25:50","slug":"principal-financial-takes-slight-hit-from-covid-19","status":"publish","type":"post","link":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/2020\/04\/28\/principal-financial-takes-slight-hit-from-covid-19\/","title":{"rendered":"Principal Financial Takes Slight Hit From COVID-19"},"content":{"rendered":"
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Principal Financial Group\u2019s overall income dropped year-over-year with the COVID-19 crisis depressing some sectors and lifting others, particularly a spike in term life sales, according to the company\u2019s first-quarter report and earnings call.<\/p>\n

Like other diversified life and annuity companies, Principal went into the year with stronger performance in variable annuity assets and other business associated with the surging equities market, and struggling on the fixed annuity side because of historically low interest rates. Although fixed annuities ticked up for the industry as a whole in March, it was not enough to offset the drop in the quarter\u2019s overall revenue.<\/p>\n

Despite entering the pandemic from “one of the strongest financial positions” in company history, as stated by Deanna Strable, Principal\u2019s chief financial officer, some first-quarter numbers were down.<\/p>\n

Principal reported $285 million in net income on $4.6 billion in revenue — compared with $452 million in net income on $3.7 billion in revenue for the first quarter of 2019.<\/p>\n

Annuity highlights:<\/h3>\n


Principal’s retirement and income solutions sector reported $205 million in pretax operating profits on $2.6 billion in revenue. That compares with $241 million in pretax operating profits on $1.7 billion in revenue in the year-ago quarter.<\/p>\n

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