Principal Financial Group Inc. on Thursday reported second-quarter net income of $389 million, or $1.53 per share.

The earnings per share compare with $1.65 a year ago and did not meet Wall Street expectations. The average estimate of seven analysts surveyed by Zacks Investment Research was for earnings of $1.66 per share.

The financial services company posted revenue of $3.56 billion in the period. Its adjusted revenue was $3.5 billion, exceeding forecasts. Six analysts surveyed by Zacks expected $3.49 billion.

Principal also announced it returned $255 million of capital to shareholders in the second quarter.

“Our integrated business model and leading position in the small to mid-sized business segment contributed to healthy growth across our benefits and protection and U.S. retirement businesses as well as strong second-quarter results with non-GAAP operating earnings of $376 million,” Dan Houston, chairman, president and CEO of Principal, said in a news release. “We returned over $250 million to our shareholders during the quarter and remain confident in our full-year guidance.”

Houston noted that despite pressured net cash flow in the quarter, he believes there is momentum going into the remainder of 2023, particularly within global asset management.

“With markets recovering, we expect greater opportunities to capture assets in our actively managed solutions in the second half of the year,” Houston said. “Investment performance rebounded significantly across many of our solutions in the second quarter, and we’re confident we have the right capabilities to meet client needs and deliver long-term net cash flows.”