Despite remaining in the black during the economic downturn, Principal Financial Group, Inc. reported disappointing second quarter earnings on Monday, August 2. The company reported net income available to common stockholders of $134 million, or $0.42 per share for the three months ended June 30. This compares with $150.3 million, or $0.52 per share, for the three months ended June 30, 2009.

Operating earnings fell to $203.5 million, or $0.63 per share, compared to $200.5 million, or $0.69 for the same period in 2009 Operating revenues for second quarter 2010 were $2,321.0 million compared to $2,335.8 million for the same period last year.

Assets under management increased to $284.7 billion, an increase of 10 percent compared to $257.7 billion as of June 30, 2009.

Global Asset Management segment operating earnings for the second quarter were $12.3 million, compared to $8.2 million in the prior year quarter, primarily due to an 11 percent increase in average assets under management. Operating revenues for second quarter were $114.3 million, compared to $103.3 million for the same period in 2009, primarily due to higher management fees. Unaffiliated assets under management were $71.2 billion as of June 30, 2010, compared to $67.3 billion as of June 30, 2009.

International Asset Management and Accumulation segment operating earnings for the second quarter was $35 million compared to $29.3 million for the same period in 2009, primarily due to improved macroeconomic conditions and higher assets under management. Operating revenues were $188.2 million for second quarter, compared to $161.7 million for the same period last year, primarily due to higher net investment income from inflation-linked investments in Chile, the impact of foreign currency movements, and an increase in fees on higher assets under management. Segment assets under management were a record $38.1 billion as of June 30, 2010, compared to $28.7 billion as of June 30, 2009. This includes a record $3.4 billion of net cash flows over the trailing twelve months, or 12 percent of beginning of period assets under management.

Life and Health Insurance segment operating earnings were $54.6 million, compared to $57.7 million for the same period in 2009. Specialty Benefits earnings were up slightly at $24.0 million in second quarter 2010, compared to $23.7 million in the same period a year ago. Individual Life earnings were $26 million compared to $28.3 million in second quarter 2009. The Health division had operating earnings of $4.6 million in second quarter 2010 compared to earnings of $5.7 million for second quarter 2009, reflecting the decline from a year ago in group medical covered members.