UPDATE 1-Principal Financial Q3 falls, but beats view

*Q3 operating share beats Wall St view

*Shares flat in after-hours trade

NEW YORK, Nov 3 (Reuters) - Principal Financial Group Inc (PFG.N) said on Monday that profit tumbled 60 percent in the third quarter hurt by losses tied to impairments on fixed income securities and equities, but operating results beat expectations.

Principal, a provider of retirement plans, life and health insurance, said net income available to common shareholders fell to $90.1 million, or 35 cents a share, in the middle of an earlier preliminary range.

A year ago it earned a net profit of $232.3 million, or 87 cents a share.

Operating earnings, excluding investments and other items, dropped to $251.2 million, or 96 cents a share, but beat analysts' average expectations of 91 cents, according to Reuters Estimates.

Principal said it recorded $114.1 million of losses related to sales and permanent impairment of fixed-income securities, $13.1 million from equities, and other losses from hedging activities.

Total revenue fell 12 percent to $2.5 billion.

The stock rose 18 percent to close at $22.39 on the New York Stock Exchange on Monday, as life insurance stocks rose broadly after investor concerns over capital adequacy eased. The shares were flat in after-market trading.

(Reporting by Lilla Zuill; Editing by Bernard Orr)