Principal Financial Group, Inc. announced results for fourth quarter and full year 2013 and an increase in the common stock dividend. In a release on February 3 , the company noted earnings details: Operating earnings increased 19 percent to $286.0 million for fourth quarter 2013, compared to $240.3 million for fourth quarter 2012. Operating earnings per diluted share (EPS) increased 19 percent to $0.96 for fourth quarter 2013, compared to $0.81 for fourth quarter 2012. For the twelve months ending Dec. 31, 2013 , operating earnings increased 31 percent to $1,059.9 million , compared to $808.8 million for the twelve months ending Dec. 31, 2012 . Full year 2013 operating earnings EPS increased 32 percent to $3.55 , compared to $2.69 for full year 2012. Net income available to common stockholders for fourth quarter 2013 increased 9 percent to $233.4 million , or $0.78 per diluted share, compared to $214.9 million , or $0.72 per diluted share for fourth quarter 2012. For full year 2013, net income available to common shareholders increased 14 percent to $879.7 million , or $2.95 per diluted share, compared to $773.6 million or $2.58 per diluted share for the twelve months ending Dec. 31, 2012 . Operating revenues for fourth quarter 2013 were $2,741.6 million , an increase of 20 percent, compared to $2,293.1 million for fourth quarter 2012. Operating revenues for the full-year 2013 increased 5 percent to $9,607.4 million compared to $9,175.4 million for the same period last year. Quarterly dividend declared for first quarter 2014 by its board of directors of $0.28 per share of common stock, an 8 percent increase over fourth quarter 2013. The dividend will be payable on March 28 , to shareholders of record as of March 10 . "We ended 2013 with very strong results, posting both record total company operating earnings for the year and record assets under management. These results were particularly strong in light of continued macroeconomic volatility, demonstrating the strength of our global investment management strategy and our ability to focus and execute," said Larry D. Zimpleman , chairman, president and chief executive officer. "Looking ahead, we'll continue to take advantage of opportunities created by changing global demographics by having the right strategy in the right markets at the right time to generate growth for years to come." Added Terry Lillis , SVP and CFO, "Excellent results in 2013 and strong business fundamentals provide continued momentum into 2014. The continued shift of our business mix has now resulted in 63 percent of total company operating earnings coming from our fee- based businesses. This provides financial flexibility for us to continue to invest in our businesses, both organically and through acquisitions, as well as manage capital in the best interest of long- term shareholders. The increase in our common stock dividend for first quarter 2014 demonstrates our confidence in our ability to grow earnings as well as our commitment to provide long-term value for shareholders." Other Highlights Fourth Quarter Retirement and Investor Services Accumulation sales were $7.9 billion in the fourth quarter. Highlights include $3.0 billion for Full Service Accumulation (FSA), $4.1 billion for Principal Funds and $769.2 million for Individual Annuities. Full Service Accumulation recurring deposits were up 7 percent over the year ago quarter and up 12 percent on a trailing twelve month basis. Principal Global Investors had record assets under management of $292.1 billion , including net cash flows of $1.0 billion . Principal International reported record net cash flows of $2.7 billion and AUM of $104.5 billion (excluding $15.0 billion of AUM in our asset management joint venture in China , which is not reported in AUM), a 51 percent increase over the year ago quarter. Specialty Benefits continues to see favorable claims experience with a loss ratio of 64.4 percent in fourth quarter 2013. Full Year Results Record AUM of $483.2 billion , up 20 percent compared to year-end 2012. Total company full-year net cash flows were $17.4 billion . Paid a fourth quarter common stock dividend of $0.26 cents per share on Dec. 27, 2013 , bringing the full-year 2013 to a record $0.98 cents per share, a 26 percent increase over full-year 2012. Total company return on equity (ROE) was 12.1 percent, a 240 basis point increase over fourth quarter 2012. Strong capital position with an estimated risk based capital ratio of 430-435 percent at year end. Book value per share, excluding AOCI2 was $30.35 , up 5 percent over fourth quarter 2012. Net Income Net income available to common stockholders of $233.4 million for fourth quarter 2013, up 9 percent compared to fourth quarter 2012 reflecting: A 19 percent increase in total company operating earnings compared to fourth quarter 2012; Net realized capital losses of $52.3 million , which includes: $25.3 million of credit related net losses, related to sales and permanent impairments of fixed maturity securities. This includes $22.1 million of losses on commercial mortgage backed securities; and Losses on derivatives and related activities used for hedging liabilities. Segment Results Operating Earnings increased $19.9 million primarily due to an increase in net revenue and continued expense discipline, which resulted in improved pretax margins. Individual Annuities benefited by $3.0 million after-tax from favorable variable investment income in both fourth quarter 2013 and fourth quarter 2012. In addition, Full Service Accumulation's fourth quarter 2012 results benefited $8.0 million after tax from extraordinary and accelerated dividends. Net Revenue increased $74.3 million , primarily due to an increase in account values driven by positive net cash flows and strong equity markets. Operating Earnings increased $7.0 million primarily due to net revenue growth, while maintaining expense and pricing discipline. Net Revenue increased $11.8 million due to improved spreads. Operating Earnings increased $4.0 million primarily due to strong revenue growth. Operating Revenue increased $68.4 million in fourth quarter 2013 as a result of management fees due to growth in AUM and higher performance fees. Operating Earnings increased $20.1 million . Results benefited from the Cuprum acquisition but were negatively impacted by the strengthening of the U.S. dollar. In addition, fourth quarter 2013 earnings benefited by $8.7 million , primarily in Chile , relative to expected returns on our required encaje6 investments which was largely offset by a one-time impact of a tax law change in Mexico . Combined Net Revenue increased $80.5 million due to the Cuprum acquisition and growth in AUM from positive net cash flows. Operating Earnings increased $4.8 million primarily due to improved mortality. Premium and Fees decreased $9.1 million due to intentional slowing of universal life with secondary guarantee sales. Operating Earnings decreased $4.5 million from a very strong year ago quarter, primarily due to one-time expenses. Premium and Fees increased $13.8 million reflecting growth in the business and stable employment and salary trends. Incurred Loss Ratio continued to perform well and was slightly better than our targeted range Operating Losses increased $5.6 million as results were negatively impacted by higher expenses and tax adjustments that are housed in the corporate segment. The Principal Financial Group is a global investment management provider offering retirement services, insurance solutions and asset management. The Principal offers businesses, individuals and institutional clients a range of financial products and services, including retirement, asset management and insurance through its diverse family of financial services companies. More Information: principal.com ((Comments on this story may be sent to firstname.lastname@example.org ))
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