Principal Financial Takes Slight Hit From COVID-19
May 2, 2020 by John Hilton
Principal Financial Group’s overall income dropped year-over-year with the COVID-19 crisis depressing some sectors and lifting others, particularly a spike in term life sales, according to the company’s first-quarter report and earnings call.
Like other diversified life and annuity companies, Principal went into the year with stronger performance in variable annuity assets and other business associated with the surging equities market, and struggling on the fixed annuity side because of historically low interest rates. Although fixed annuities ticked up for the industry as a whole in March, it was not enough to offset the drop in the quarter’s overall revenue.