Principal Financial Group, Inc. PFG reported first-quarter 2016 operating net income of 97 cents per share that missed the Zacks Consensus Estimate by 2%. Earnings also declined 11% year over year. Nonetheless, the company’s investment performance remained strong and it also displayed a balanced approach to capital management.Including net realized capital gains of 28 cents, net income available to common stockholders was $1.25 per share, down 10.1% year over year.Behind the HeadlinesOperating revenues in the quarter increased 14.8% year over year to $2.9 billion. Revenues beat the Zacks Consensus Estimate of $2.7 billion by 7.7%.Total expenses were $2.6 billion, up 20.8% as benefits, claims and settlement expenses, depreciation and amortization and interest expenses on corporate debt increased.Principal Financial’s Asset Under Management (AUM) as of Mar 31, 2016 was a record $547.7 billion, up 3.8% from Dec 31, 2015.Book value per share as of Mar 31, 2016 was $34.58, up 8.2% year over year.Segment UpdateRetirement and Investor Services: Revenues soared 30.2% year over year to $1.5 billion.Operating earnings decreased 10.6% year over year to $181.4 million.Principal Global Investors: Revenues of $269.7 million dipped 4.9% from the prior-year quarter due to lower performance and transaction fees.Operating earnings decreased 13.9% year over year to $79.7 million owing to decline in adjusted revenues.Principal International: Revenues were $184.7 million in the quarter, down 3.3% year over year.Operating earnings decreased 15.8% year over year to $68.0 million due to unfavorable foreign exchange rates.US Insurance Solution: Revenues were $890.9 million, up 3.4% year over year.Operating income was $80.5 million, down 1.7% year over year.Corporate: Revenues were ($13.1) million compared with ($9.0) million in the year-ago quarter.Operating loss of $53.3 million was wider than a loss of $37.3 million in the year-ago quarter.Dividend and Share Repurchase UpdatePrincipal Financial paid a quarterly dividend of 38 cents per share on Mar 25, 2016. In addition, the board of directors of Principal Financial declared a second-quarter dividend of 39 cents. This reflects an 8% increase from the prior-year period.Also, the company bought back 2.3 million shares during the reported quarter and completed the remainder of its 2015 authorization. In February, an additional $400 million buyback program was authorized and the company now has $389 million remaining under the authorization.Principal Financial displayed a strong capital position with full-year capital deployment target ranging between $800 million and $1.0 billion.Zacks Rank and Performance of Other StocksPrincipal Financial presently carries a Zacks Rank #2 (Buy). Among the other players from the finance sector that have reported their first-quarter earnings so far, the bottom line at RLI Corp. RLI and First American Financial Corp. FAF beat their respective Zacks Consensus Estimate, Progressive Corp. PGR missed the same in the first quarter.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report PRINCIPAL FINL (PFG): Free Stock Analysis Report RLI CORP (RLI): Free Stock Analysis Report PROGRESSIVE COR (PGR): Free Stock Analysis Report FIRST AMER FINL (FAF): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research