Lehman Bros. 5.67 D Series Preferred ( fka LEHDQ)

[coach tequila]

http://www.marketwatch.com/story/principal-financial-quarterly-profit-doubles-2009-11-02-173800

SAN FRANCISCO (MarketWatch) -- Principal Financial said late Monday that quarterly profit more than doubled as the 401(k) specialist benefited from the market rebound and increased sales.

Third-quarter net income available to common shareholders was $184.7 million, or 57 cents a share, versus $90.1 million, or 35 cents a share, a year earlier.

Operating earnings, which exclude net realized investment gains and losses, were $238.7 million, or 74 cents a share. Principal /quotes/comstock/13*!pfg/quotes/nls/pfg (PFG 25.11, +0.10, +0.40%) was expected to make 64 cents a share, according to analysts polled by FactSet Research.

Principal Financial was hit hard by the financial crisis last year. As stock markets fell, the company's assets under management declined, lowering the fees it collects for running retirement accounts and investment funds. The company's own investments also dropped in value as credit markets toppled, sparking concern about its capital levels.

However, Principal raised more than $1 billion selling new shares this year, easing those capital concerns. The rebound in markets also helped boost assets under management and sales, while reversing some unrealized losses in the company's investment portfolio.

Principal said assets under management rose 9% to $280.4 billion by the end of the third quarter.

The company's three main retirement and investment products -- full-service accumulation, Principal funds and individual annuities -- generated $2.7 billion of sales during the third quarter.

"We're seeing some early signs of progress," Principal Chief Executive Larry Zimpleman said in a statement. "We are cautiously optimistic about sales and flows as we move into 2010."

Book value, or the value of Principal's assets minus its liabilities, jumped 35% to $21.85, or $5.66 a share, in the third quarter, the company noted.

Principal's book value per share has nearly tripled this year, as narrower credit spreads have driven down net unrealized investment losses by more than $6 billion, before taxes, Chief Financial Officer Terry Lillis said.

Principal shares have climbed almost 11% so far this year.

Clearly a trend is in play...keep your eye on the horizon. IMO.

Coach T