The Principal Financial Group has acquired AXA’s Mandatory Provident Fund (MPF) and Occupational Retirement Schemes Ordinance (ORSO) pension business in Hong Kong.
With this acquisition, The Principal becomes the fifth largest MPF provider in the market, increasing assets under management of its Hong Kong pension business to more than USD6 billion. The transaction is expected to be accretive to EPS and ROE in the first full year.
“This acquisition further strengthens our position in one of the most attractive emerging retirement and long-term savings markets in the world,” says Dan Houston (pictured), president and CEO of The Principal. “Between added scale and the exclusive distribution agreement, we are well positioned to accelerate growth of our mandatory and voluntary pension business in Hong Kong.”
According to Luis Valdes, president and CEO of Principal International: “Making strategic acquisitions and establishing key relationships with marquee partners has been a successful strategy for us. Being able to extend our global pension, long-term savings, and asset management expertise to more clients in Hong Kong is another step toward strengthening our position in North Asia.”