Principal Financial Group was providing $446 billion in individual life insurance protection at the end of June, or 12% more protection against death than it was providing a year earlier.
The Des Moines, Iowa-based life insurer increased the amount of protection it was providing through individual universal life and variable universal life by 3.1%, to $95 billion.
The life insurer increased the amount of protection it was providing through term life and whole life by 15%, to $351 billion.
The company did that while sending about 92% of its workers to work at home, because of COVID-19, and while turning a profit.
- Links to Principal earnings documents are available here.
- An earlier article about Principal’s earnings is available here.
The company is reporting $416 million in net income for the second quarter on $3.1 billion in revenue, compared with $392 million in net income on $4 billion in revenue with the second quarter of 2019.
Here’s what happened to U.S. sales of certain types of products, when compared with the second quarter of 2019, in terms of annualized premium revenue:
- Group dental and vision: $24 million (up from $33 million)
- Group life: $8.6 million (down from $11 million)
- Group disability: $13 million (down from $15 million)
- Individual disability: $15 million ($14 million)
- Universal and variable life: $29 million (down from $42 million)
- Traditional life: $21.1 million (about flat)
Like other insurers, Principal lumps much of its sending on producer compensation in lines related to “deferred acquisition costs,” or DAC, that include other sales-related spending.
But the stand-alone item for U.S. specialty benefits commissions decreased to $67 million in the second quarter, from $69 million in the year-earlier quarter.)
U.S. individual life commission spending decreased to $28 million, from $30 million.