Core Insights - Affiliated Managers Group Inc. (AMG) is expected to report improved third-quarter 2025 results on November 3, with earnings anticipated to rise by 21% year over year [1][9][11] AMG's Recent Developments - In August, AMG agreed to sell its interest in Comvest Partners' private credit business to Manulife Financial Corporation for approximately $285 million, expected to close in Q4 2025 [3] - In July, AMG announced a definitive agreement to acquire a minority stake in Montefiore Investment, enhancing its strategy to partner with leading independent asset managers [4] - Also in July, AMG completed the sale of its equity interest in Peppertree Capital Management for about $240 million, which included $102 million in cash and nearly 2.9 million TPG Class A common shares [5] Management Expectations for Q3 - Management projects adjusted EBITDA in the range of $230-$240 million, considering current AUM levels and lower net performance fees of up to $10 million [6] - Expected net income (controlling interest) is between $121 million and $129 million, with economic earnings per share projected between $5.62 and $5.87 [7][11] Earnings Projections - The Zacks Consensus Estimate for AMG's earnings is $5.83, reflecting a 21% increase from the previous year [11] - The consensus estimate for sales is $521.13 million, indicating nearly 1% growth [11] Earnings Surprise History - AMG has a strong earnings surprise history, surpassing consensus estimates in three of the last four quarters, with an average beat of 3.23% [2]

Core Insights - Principal Financial Group, Inc. (PFG) reported a second-quarter 2025 operating net income of $2.16 per share, exceeding the Zacks Consensus Estimate by 9% and reflecting a 33% year-over-year increase [1][9] - Operating revenues fell by 9.4% year over year to $3.6 billion, missing the Zacks Consensus Estimate by 7.8% due to decreased premiums [1][9] Revenue and Earnings Performance - Investment Management, Specialty Benefits, and Life Insurance segments experienced higher revenues, contributing to improved asset under management (AUM) [2] - Total expenses decreased by 18% year over year to $3.2 billion, lower than the estimate of $4.3 billion, driven by reduced benefits, claims, and operating expenses [3] - As of June 30, 2025, AUM reached $753 billion, a 7.6% increase year over year, while assets under administration (AUA) totaled $1.7 trillion [3] Segment Analysis - **Retirement and Income Solution**: Revenues decreased by 21.7% year over year to $1.7 billion, missing the estimate of $2.2 billion; however, pre-tax operating earnings rose by 9% to $292.1 million [4] - **Investment Management**: Revenues increased by 5.2% year over year to $467.2 million, surpassing the estimate of $454.4 million; pre-tax operating earnings grew by 18.2% to $157.9 million [5] - **International Pension**: Revenues fell by 1.7% year over year to $240.8 million, below the estimate of $243.3 million; pre-tax operating earnings surged by 41% to $78.5 million [6] - **Specialty Benefits**: Revenues rose by 4% year over year to $892.2 million, exceeding the estimate of $863.3 million; pre-tax operating earnings increased by 17% to $127.6 million [7] - **Life Insurance**: Revenues increased by 7.6% year over year to $354.2 million, beating the estimate of $205.8 million [8] Financial Position - As of June 30, 2025, cash and cash equivalents were $3.6 billion, down 13.1% from the end of 2024; long-term debt was $3.9 billion, a decrease of 0.8% [11] - Book value per share increased by 2.4% to $54.97 from the end of 2024 [11] Shareholder Returns - Principal Financial returned $320 million to shareholders, including $150 million in share repurchases and $170 million in dividends [12] - The board declared a third-quarter dividend of 78 cents per share, an 8% increase from the third quarter of 2024 [12]