Strong U.S. asset-management results helped Principal Financial Group Inc. push up profits in the fourth quarter of 2004.[@@]
The Des Moines, Iowa, insurer is reporting $214 million in net income for the latest quarter on $2.2 billion in revenue, up from $204 million in net income on $2.2 billion in revenue for the fourth quarter of 2003.
Growth in pension account values and a $6.2 million income tax benefit led to an 18% increase in U.S. asset-management operating earnings, to $134 million, but life and health operating earnings fell to $53 million, from $66 million. Life and health profits fell partly because of a change in the way Principal values life and disability business, the company says.
- Jefferson-Pilot Corp., Greensboro, is reporting $146 million in net income for the fourth quarter of 2004 on $1.1 billion in revenue, up from $116 million in net income on $883 million in revenue for the fourth quarter of 2003.
A recently completed acquisition of Canada Life Assurance Company’s U.S. group life, group disability and group dental operations helped increase benefits net income to $20 million, from $16 million, but the narrow gap between the returns that Jefferson-Pilot can earn on its own investments and the returns it pays customers held down profits from the company’s individual life operations and its annuity and investment products operations.