Principal Financial Group’s profit increase driven by higher premiums, market uncertainty

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Insurer Principal Financial Group reported a rise in first-quarter profit on April 24, helped by higher premiums and fee income.

The Trump administration’s back-and-forth on tariffs has driven up macroeconomic uncertainty and market volatility, boosting demand for insurance products as risk management becomes more essential.

Asset managers also benefit from market turbulence as investors scramble to actively adjust their portfolios.

More: Principal names Deanna Strable as CEO; Iowa native has deep local ties

Premium and fees from the company’s specialty benefits business, which provides employee benefit plans to small- and mid-sized businesses, rose 5.6% to $3.29 billion in the quarter ended March 31.

Principal’s first-quarter net investment income came in at $1.17 billion, compared with $1.07 billion a year earlier.

Adjusted operating earnings, excluding impacts of taxes and significant variances, was $439.2 million, or $1.92 per share, in the quarter ended March 31, compared with $419.4 million, or $1.75 per share, a year earlier.

The Des Moines, Iowa-based company’s assets under management rose 1.3% to $717.9 billion.

Fees and other revenue rose to $1.08 billion from $1.05 billion. Such asset-based fees are typically calculated as a percentage of the market value of assets under management.

Principal Financial’s earnings are more sensitive to equity market performance compared with its peers, according to analysts.

Principal Financial Group stock finishes week up

Principal Financial Group’s stock, PFG, ended the week up 3%, climbing to $73.46 as of April 25. The stock opened the week on April 21 at $71.32.

It reached its high for the week during mid-day trading on April 23, before its quarterly financial update, at $75.70.