Principal Financial 1Q profit slides on investment loss

DES MOINES, Iowa—Principal Financial Group Inc.'s first-quarter earnings dropped sharply as volatile equity markets led to an investment loss and premium income fell, the insurer said Monday.

After paying dividends on preferred shares, profit dropped 32 percent to $174.2 million, or 67 cents per share, from $257.1 million, or 95 cents per share.

The latest period included a realized investment loss of $126 million. Earnings adjusted to exclude net realized losses or gains and other tax items rose to 92 cents per share from 87 cents per share last year.

Revenue fell to $2.5 billion from $2.66 billion last year, as premiums dropped 5 percent. Many insurers have reported lower premium income as competition has forced prices down.

Analysts expected a profit of 98 cents per share, with revenue of $2.87 billion according to Thomson Financial.

Shares of the company fell $5.38, or 9.4 percent in aftermarket trading, after closing the regular session down 74 cents at $57.18.