July 25 (Reuters) - Insurance and asset management

company Principal Financial Group ( PFG ) posted a 3% rise in

second-quarter adjusted profit on Thursday, helped by robust

premiums and higher fee income.

Premiums and other considerations jumped to $1.93 billion in

the quarter from $1.49 billion, a year earlier.

Wage growth and expectations of a soft landing for the U.S.

economy have encouraged businesses and individuals to revive

their spending on insurance.

Meanwhile, ebullient markets also helped Principal's asset

under management, which rose 4% to $699.2 billion in the

quarter.

Fees and other revenue rose to $1.06 billion from $1.02

billion.

Such asset-based fees are typically calculated as a

percentage of the market value of AUM.

The company's earnings are more sensitive to equity market

performance compared to its peers, according to analysts.

Adjusted operating earnings rose to $386.1 million, or $1.63

per share, in the three months ended June 30, from $375.8

million, or $1.53 per share, a year earlier.

The company's shares have gained 7.4% so far this year,

compared with a 13.8% jump in the benchmark S&P 500

index.

(Reporting by Arasu Kannagi Basil in Bengaluru; Editing by

Sriraj Kalluvila)