(RTTNews) - Monday, Principal Financial Group Inc. (PFG: News ), a retirement and investment products provider, said its third quarter profit rose from a year ago reflecting essentially a decline in expenses, notwithstanding the lower revenues registered during the quarter. Adjusted earnings dropped from last year, however, came in ahead of Street estimates.

The Des Moines, Iowa-based company's third-quarter net income available to common stockholders rose to $184.7 million or $0.57 per share from $90.1 million or $0.35 per share in the year ago quarter. Net income available to common stockholders improved 23%, reflecting higher operating earnings and a comparable level of net realized capital losses.

Net income available to common stockholders for the quarter reflects net realized capital losses of $53.5 million.

Operating earnings for the quarter slipped to $238.7 million or $0.74 per share from $251.2 million or $0.96 per share for third quarter 2008. Eighteen Analysts polled by Thomson Reuters expected the company to report earnings of $0.65 per share for the quarter. Analysts' estimates typically exclude special items.

The decline in operating earnings from a year ago reflects a number of items, including lower average assets under management, higher costs for employee pension and other post-retirement benefits, lower investment income and unfavorable foreign currency movements. These items were substantially offset by the company's expense management activities and lower deferred policy acquisition cost (DPAC) amortization expense. The decline in per share results also reflects the company's May 11, 2009 common stock offering, which increased weighted average shares outstanding from 261.0 million for the quarter ending September 30, 2008, to 321.5 million for the quarter ending September 30, 2009.
In the preceding first quarter, the company posted net income available to common stockholders of $150.3 million or $0.52 per share, compared to $168.3 million or $0.64 per share in the prior year quarter. Operating earnings were $200.5 million or $0.69 per share, compared to $254.1 million or $0.97 per share in the comparable period a year earlier.

Total revenues for the quarter under review declined to $2.27 billion from $2.498 billion in the year ago quarter. Seven analysts had consensus revenue estimate of $2.49 billion for the quarter.

Premiums and other considerations totaled $932.9 million, compared to $1.05 billion a year ago, while fees and other revenues decreased to $550.7 million from $599.0 million in the prior year quarter. Investment income declined significantly to $853.3 million from $1.08 billion last year.

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