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October 13, 2008 at 11:59 AM
More insurers have been stepping forward to say they expect to weather the recent economic turmoil reasonably well.
Principal Financial Group Inc., Des Moines, Iowa, says it will be cutting the annual dividend on its common stock to 45 cents per share, from 90 cents, to conserve capital, but it says it expects to report more than 30 cents per share in net income, even after recording more than $140 million in investment losses.
Principal also has $375 million more capital than it needs to maintain its current AA rating, and it is “exploring other sources of internally generated capital,” the company says.
“Management has no current plans to raise equity capital for non-strategic reasons,” Principal says.
Manulife Financial Corp., Toronto, says it suffered about $200 million in credit losses during the third quarter but has little exposure to securities lending defaults.
