Principal Financial Group managed to turn a profit in the third quarter in spite of the COVID-19 pandemic, low interest rates and $113 in charges related the company’s annual actuarial assumption review.
(Related: Principal Puts More Term Life Insurance in Force)
The Des Moines, Iowa-based life insurer and asset manager has reported $236 million in net income for the quarter on $3.3 billion in revenue, compared with $285 million in net income on $4.5 billion in revenue for the third quarter of 2019.
Here’s what happened to U.S. sales of certain types of products, when compared with the third quarter of 2019, in terms of annualized premium revenue:
- Group Dental and Vision: $25 million (down from $35 million)
- Group Life: $8.5 million (down from $13 million)
- Group Disability: $12 million (down from $17 million)
- Individual Disability: $18 million (about flat)
- Universal and Variable Life: $26 million (down from $41 million)
- Traditional Life: $24 million (up from $23 million)
Principal as a whole has recorded a net impact of $4 million before taxes for the COVID-19 pandemic. The company estimates that it will ultimately face $13 million in impact on company results for every 100,000 in additional U.S. COVID-19-related deaths.
In other earnings news, TriNet Group, Dublin, California — a company that provides human resources services for small and medium-size businesses — is reporting $33 million in net income for the third quarter on $975 million in revenue, compared with $55 million in net income on $969 million in revenue for the third quarter of 2019.
TriNet acts as a professional employer organization, and it helps client companies provide health coverage, group life insurance and other employee benefits for their workers.
The company’s total insurance service revenue increased to $849 million, from $839 million.
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