For long-term extension of joint venture in Brazil
The Principal and Banco do Brasil have signed a MOU related to BrasilPrev Seguros e Previdencia S.A. (BrasilPrev), their pension and long-term asset accumulation joint venture in Brazil.
As per the terms of the memorandum, and following the completion of all necessary approvals and transactions, BrasilPrev will have, for 23 years, the exclusive right to manufacture and distribute pension and other long-term asset accumulation products within the Banco do Brasil network.
The other key elements of the memorandum are co-management of the joint venture, with The Principal owning 50.01% of BrasilPrev common stock and Banco do Brasil owning 49.99%. The economic interests (sharing of profits) of 25.005% to The Principal and 74.995% to Banco do Brasil and the intent to negotiate BrasilPrev’s acquisition of the pension portfolio of Mapfre Nossa Caixa.
Aldemir Bendine, president of Banco do Brasil, said: “Continuing our partnership with The Principal was a strategic decision for Banco do Brasil, given their deep pension expertise and broad industry leadership. We look forward to building on the strong relationships we’ve developed over the past 10 years, based on a shared commitment to quality, focus on innovation and passion for helping customers achieve financial success.”