(Reuters) – Principal Financial Group reported an increase in fourth-quarter profit on Thursday, helped by higher premiums and fees in its specialty benefits business.
The Des Moines, Iowa-based company’s premium and fees from its specialty benefits business, which provides employee benefit plans to small- and mid-sized businesses, rose 4% to $823.6 million in the quarter ended December 31.
High interest rates have helped insurers rake in more from fixed-income investments. Their stock portfolios have also seen a jump, thanks to a rally in equity markets due to economic resilience and an anticipated business-friendly environment under President Donald Trump.
The company’s adjusted operating earnings were $448.1 million, or $1.94 per share, up from $440.5 million, or $1.83 per share, a year ago.
Its assets under management rose 3% to $712.1 billion.
However, PFG’s fourth-quarter net investment income was marginally down at $1.12 billion, compared with $1.13 billion a year earlier.
(Reporting by Jaiveer Singh Shekhawat in Bengaluru; Editing by Shilpi Majumdar)
