The Principal had its third straight quarter of record total company operating earnings. Third quarter earnings combined with a strong first half resulted in year-to-date 2014 operating earnings of $994 million. This is a 28 percent improvement over year-to-date 2013 results on a reported basis, and a 23 percent improvement when adjusting for the impact of our annual actuarial assumption review. This is an outstanding result despite continued macroeconomic volatility and reflects the strength of our diversified business model and the ongoing momentum in our businesses.
I’d like to point out the following key total company highlights from the third quarter:
- Record total company operating earnings were $354 million, a 31 percent increase over third quarter 2013 on a reported basis.
- Total company assets under management were $514 billion, up 10 percent over the year ago quarter, despite an $11 billion impact from exchange rates.
- Total company return on equity (ROE) excluding AOCI was 14.1 percent, a 220 basis point increase over third quarter 2013.
- We continue to have a balanced approach to capital management. In the third quarter we:
- paid a third quarter common stock dividend of $0.34 per share;
- announced a fourth quarter 2014 common stock dividend of $0.34 per share, which brings our full-year 2014 total to $1.28, a 31 percent increase over full-year 2013;
- increased our ownership in Columbus Circle Investors from 70 percent to 95 percent; and
- repurchased $72 million of Principal Financial Group common stock.
Our press release offers additional highlights from the quarter, including business unit-specific results.
Mark your calendars for these upcoming investor events. We’ll provide additional details on these as the dates get closer.
- Update on our Principal Global Investors business on Nov. 21, 2014 in New York City
- Outlook call on Dec. 8, 2014
- Update on Principal International’s Latin American businesses on March 11, 2015 in Santiago, Chile
Thank you for your continued interest in the Principal Financial Group®. Be sure to contact me or my colleagues in Investor Relations if you have any questions.
See you soon.
John Egan – Vice President, Investor Relations