Principal Financial Group Inc. last week released a disclosure statement detailing the performance of its $63.2 billion investment portfolio, which had a net after-tax loss of $69.5 million in the second quarter that ended June 30. Here are some highlights:

Key messages:

• A strong diversified portfolio leverages the company’s strengths in commercial real estate and credit analysis.

• The majority of the net unrealized losses are concentrated in the commercial mortgage-backed securities (CMBS) portfolio.

• Gross unrealized losses improved $200 million from the first quarter. Net unrealized losses improved $700 million. Approximately $1.3 billion of improvement from lower interest rates was partially offset by $600 million in widening of credit spreads.

Overall summary:

• Below-investment-grade securities remain a small portion of total U.S. invested assets – 5.4 percent as of June 30, which improved from the prior quarter.

• Subprime exposure is minimal, mostly seasoned, and high quality – less than 1 percent of total invested assets.

• Losses on the commercial mortgage whole loan portfolio are expected to be

around 2 percent pre-tax over the course of the cycle.

• Delinquencies in commercial mortgages underlying the company’s CMBS exposure have increased to 8.61 percent at June 30, which remains in line with Principal’s expectations.