In a regulatory filing on Tuesday, Principal Financial Group Inc (NASDAQ:PFG). disclosed its assets under management (AUM) as of September 30, 2024, totaling $740.6 billion. This figure includes $541.0 billion managed by Principal Global Investors and $185.2 billion reported by Principal International.
The company, a major player in the accident and health insurance industry, highlighted the significance of its exposure to small and mid-cap products within U.S. equity AUM and its high yield and preferred securities exposure in its fixed income AUM.
For the quarter ended September 30, 2024, Principal Financial Group experienced a market performance of 5.4% relative to the beginning period AUM. The report also mentioned that Principal International's AUM is calculated using the end-of-period spot foreign exchange rates.
Principal Financial Group uses a specific AUM measure for marketing purposes, referred to as Principal Asset Management AUM. This measure, which stood at $585.6 billion as of September 30, excludes assets from entities where the company holds a minority interest and those not permissible due to regulatory restrictions. The company noted that this figure is not intended for modeling purposes by investors.
The company's financial supplement for the quarter ended September 30, 2024, will include these AUM figures in the same format when it becomes available on the company's investor relations website around October 25, 2024.
In other recent news, Principal Financial Group reported a 7% increase in earnings per share for the second quarter of 2024, reaching $1.63 per share, driven by a 6% rise in net revenue due to business expansion and favorable market conditions.
Despite falling short of expectations as noted by RBC Capital, the company reaffirmed its financial targets for 2024, projecting earnings per share growth of 9% to 12%. Additionally, the company announced the appointment of Deanna Strable as its new president and chief operating officer, marking a new phase for the company.
Barclays has initiated coverage on Principal Financial Group, assigning an Underweight rating and a price target of $74.00, reflecting concerns over the company's growth prospects amid a challenging market. The analyst from Barclays highlighted limited growth expectations in Principal Financial Group's primary business due to the competitive nature of the 401(k) market.
RBC Capital adjusted its price target for Principal Financial Group, increasing it to $87.00 while maintaining a Sector Perform rating. Despite challenges faced in the second quarter, RBC Capital anticipates improved performance in the second half of 2024, recognizing robust sales in the pension risk transfer market and the company's active capital return strategy.
InvestingPro Insights
Principal Financial Group's strong market position is reflected in its recent financial performance and market valuation. According to InvestingPro data, the company's market capitalization stands at $20.85 billion, with a price-to-earnings ratio of 16.96, indicating a reasonable valuation relative to its earnings.
The company's financial health is further underscored by two key InvestingPro Tips. Firstly, Principal Financial Group has maintained dividend payments for 23 consecutive years, demonstrating a commitment to shareholder returns that aligns with its robust assets under management. Secondly, the company's liquid assets exceed short-term obligations, suggesting a strong balance sheet that supports its operational stability in managing the reported $740.6 billion in AUM.
These insights complement the company's reported AUM figures and market performance, providing a broader perspective on Principal Financial Group's financial standing. For investors seeking a deeper analysis, InvestingPro offers 6 additional tips that could provide further context to the company's financial outlook and market position.
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