Principal Financial Group (PFG) has completed acquisition of Chile’s AFP Cuprum, following Empresas Penta and Inversiones Banpenta Limitada sold their 63% ownership in Cuprum.

Initially, PFG acquired 90.4% ownership stake in Cuprum while remaining shares will be acquired after completion for a total purchase price of $1.5bn less assumed debt.

Principal International president and CEO Luis Valdes said, "The combination of Cuprum and The Principal provides customers in Chile with an unparalleled array of retirement savings, asset management and retirement income solutions."

The Principal chairman, president and CEO Larry said that the acquisition strengthens the company’s emerging retirement and long-term savings markets.

"Cuprum represents the sixth such transaction for The Principal in the past two years and adds meaningfully to our fee-based earnings, giving us continued financial flexibility."

The Chilean pension manager offers mandatory employee-funded pension plans, voluntary pension products (APV), and other long-term savings products.