US-based Principal Financial Group has completed the acquisition of Axa’s Mandatory Provident Fund (MPF) and Occupational Retirement Schemes Ordinance (ORSO) pension business in Hong Kong, for around $335m.
The deal was first announced by both firms in November 2014.
Both firms also signed an exclusive 15-year distribution agreement, under which Principal will offer pension products through Axa’s extensive agency network in Hong Kong.
The acquired business is said to increase the Principal’s assets under management of Hong Kong pension business to around $6bn.
The Principal president and CEO Dan Houston said: "This acquisition further strengthens our position in one of the most attractive emerging retirement and long-term savings markets in the world."
Principal International president and CEO Luis Valdes said: "Making strategic acquisitions and establishing key relationships with marquee partners has been a successful strategy for us."
The Principal Financial Group offers products and services, including retirement, asset management and insurance to businesses, individuals and institutional clients.
The firm provides services to around 20.1 million customers across the globe, through its offices in Asia, Australia, Europe, Latin America and the US.
With around 103 million clients in 59 countries, the Axa Group provides insurance and asset management services.
Image: Principal Financial Group in Hong Kong. Photo: courtesy of DaviSements.