Principal Financial Group operating earnings tops estimates

Principal Financial Group, with operations in Cedar Rapids, reported higher first-quarter operating earnings that topped  analysts' projections but came up short on revenue expectations.

The Des Moines-based financial services and insurance provider posted first-quarter net operating earnings of $233.3 million, or 79 cents per share, up 8 percent from $215.3 million, or 71 cents per share, in the same quarter of 2012.

Analysts surveyed by Reuters expected first-quarter 2013 net operating earnings of 74 cents per share.

Principal Financial recorded operating revenue of $2.2 billion for the quarter, an increase of 6 percent from $2.1 billion for the first quarter of 2012. The company missed analysts' average first-quarter operating revenue estimate of $2.3 billion.

Larry Zimpleman, Principal Financial chairman, president and CEO, said the company's first-quarter results continued the momentum of several previous quarters.

"Our ability to attract and retain institutional, retirement and retail investors around the world resulted in more than $28 billion of net cash flows over the trailing 12 months," Zimpleman said. "Our acquisition of Cuprum successfully completed in the first quarter, contributing meaningfully to our current results."

Terry Lillis, Principal Financial senior vice president and chief financial officer, said total company fees and other revenues are growing by double digits, reflecting Principal Financial's shift toward a fee-based business model.

"As our business model generates increasing amounts of deployable capital, we're able to put that capital to work opportunistically for the long-term benefit to our shareholders," Lillis said. "Since the beginning of 2012, we've allocated $2.4 billion on strategic acquisitions, common stock dividends and share repurchases.

"For the remainder of the year, we'll focus on onboarding Cuprum and look at opportunities to deploy additional capital in the second half of the year."