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Principal Financial Group Inc. Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: May 2, 2012 06:02PM
Principal Financial Group Inc. (PFG) filed Quarterly Report for the period ended 2012-03-31. Principal Finl has a market cap of $8.8 billion; its shares were traded at around $27.29 with a P/E ratio of 10.6 and P/S ratio of 1.1. The dividend yield of Principal Finl stocks is 2.5%. Principal Finl had an annual average earning growth of 0.3% over the past 10 years.
Highlight of Business Operations:At March 31, 2012 and December 31, 2011, the separate accounts include a separate account valued at $168.9 million and $146.5 million, respectively, which primarily includes shares of our stock that were allocated and issued to eligible participants of qualified employee benefit plans administered by us as part of the policy credits issued under our 2001 demutualization. These shares are included in both basic and diluted earnings per share calculations. In the consolidated statements of financial position, the separate account shares are recorded at fair value and are reported as separate account assets with a corresponding separate account liability to eligible participants of the qualified plan. Changes in fair value of the separate account shares are reflected in both the separate account assets and separate account liabilities and do not impact our results of operations.
Proceeds from sales of investments (excluding call and maturity proceeds) in fixed maturities, available-for-sale were $0.4 billion and $0.5 billion for the three months ended March 31, 2012 and 2011, respectively.
The effective income tax rate for the three months ended March 31, 2012, was lower than the U.S. corporate income tax rate of 35% (U.S. statutory rate) primarily due to income tax deductions allowed for corporate dividends received, the presentation of taxes on our share of earnings generated from equity method investments and lower tax rates of foreign jurisdictions.
(1) Reflects inter-segment revenues of $52.6 million and $51.7 million for the three months ended March 31, 2012 and 2011, respectively. These revenues are eliminated within the Corporate segment.
With the exception of corporate overhead, amounts related to our group medical insurance business previously included in segment operating earnings have been removed from operating earnings for all periods presented and are reported as other after-tax adjustments. The operating revenues associated with our exited group medical insurance business were $18.9 million and $254.9 million for the three months ended March 31, 2012 and 2011, respectively. The other after-tax adjustments associated with the after-tax earnings (loss) of our exited group medical insurance business were $(1.5) million and $17.1 million for the three months ended March 31, 2012 and 2011, respectively.
Stocks Discussed: PFG,