Principal Sees Strong Life Sales and Variable Annuity Asset Growth

Principal Financial Group Inc. is using the terms “life insurance” and “ specialty benefits” a lot more often in connection with earnings this quarter than it’s using the word “annuities.”

(Related: Annuity Players Continue to Fight Low Rates)

The Des Moines, Iowa-based company, which is now a major global money manager but has deep roots in the life insurance industry, is reporting $315 million in net income for the second quarter on $3.2 billion in revenue, compared with $327 million in net income on $2.8 billion in revenue for the second quarter of 2016.

In the company’s financial supplement, it uses the words “annuity” or “annuities” in just two places: once in a footnote, and once in a line showing individual variable annuity account value. 

Individual variable annuity account value increased to $9.7 billion in the latest quarter, from $8.8 billion.

At the individual life unit, sales increased to $55 million, from $43 million.