New Threads Only:  Add to Google Reader or Homepage
New Threads & Replies:  Add to Google Reader or Homepage
Forums are for serious investors only. GuruFocus Forum Rules.

Forum List » Business News and Headlines
SEC Filings, Earing Reports, Press Releases
New Topic Search
Goto Thread: PreviousNext
Goto: Forum ListMessage ListNew TopicSearchLog In
Principal Financial Group Inc. Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: October 31, 2012 11:02AM

Principal Financial Group Inc. (PFG) filed Quarterly Report for the period ended 2012-09-30. Principal Financial Group has a market cap of $8.17 billion; its shares were traded at around $27.59 with a P/E ratio of 10.7 and P/S ratio of 1. The dividend yield of Principal Financial Group stocks is 3%. Principal Financial Group had an annual average earning growth of 0.3% over the past 10 years.



Highlight of Business Operations:

Proceeds from sales of investments (excluding call and maturity proceeds) in fixed maturities, available-for-sale were $0.3 billion and $0.1 billion for the three months ended September 30, 2012 and 2011, and $1.0 billion and $0.8 billion for the nine months ended September 30, 2012 and 2011, respectively.

We invest in real estate ventures for the purpose of earning investment returns and for capital appreciation. We elected the fair value option for a venture entered into during the third quarter of 2012 that is subject to the equity method of accounting because the nature of the investment is to add value to the property and generate income from the operations of the property. Other equity method real estate investments are not fair valued because the investments mainly generate income from the operations of the underlying properties. This investment is reported with other investments in the consolidated statements of financial position. The change in fair value is reported in net investment income on the consolidated statements of operations. The fair value of the equity method investment for which the fair value option has been elected was $32.8 million as of September 30, 2012. The change in fair value of the investment resulted in a $0.5 million pre-tax loss for both the three and nine months ended September 30, 2012.

(1) Reflects inter-segment revenues of $54.1 million and $54.0 million for the three months ended September 30, 2012 and 2011, respectively, and $160.0 million and $161.5 million for the nine months ended September 30, 2012 and 2011, respectively.

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 $1.2 million and $117.7 million for the three months ended September 30, 2012 and 2011, respectively, and $24.1 million and $553.4 million for the nine months ended September 30, 2012 and 2011, respectively. The other after-tax adjustments associated with the after-tax earnings (loss) of our exited group medical insurance business were $(4.1) million and $14.9 million for the three months ended September 30, 2012 and 2011, respectively, and $(9.6) million and $50.8 million for the nine months ended September 30, 2012 and 2011, respectively.

Foreign currency exchange rate fluctuations create variances in our financial statement line items but have not had a material impact on our consolidated financial results. Principal International segment operating earnings were negatively impacted by $5.9 million and $14.3 million for the three and nine months ended September 30, 2012, as a result of fluctuations in foreign currency to U.S. dollar exchange rates. For a discussion of our approaches to managing foreign currency exchange rate risk, see Item 3. “

Read the The complete Report



Stocks Discussed: PFG,
Rate this post:




Sorry, only registered users may post in this forum.

Please Login if you have an account or Create a Free Account if you don't




Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial