Principal® announces pension joint venture in China
DES MOINES, Iowa--(BUSINESS WIRE)--Jan 6, 2023--
Principal Financial Group ®, a leading global financial services provider, today announced an exciting new chapter in their ongoing expansion of their global pension footprint as Principal ® acquires a minority ownership stake (17.647%) in China Construction Bank (CCB) Pension Management Co., Ltd. (CCBP), CCB’s pension business with the Social Security Fund of China (SSF). CCB will remain as the majority shareholder of CCBP with a 70% interest and an additional minority stake (12.353%) held by the SSF.
Principal is the first international company to invest in a bank-sponsored Chinese pension company, with CCB Pension Company being a special pilot allowing end-to-end pension services throughout China. Becoming a shareholder with CCB and SSF in the pension company has long been an important priority for Principal, as it enables the firm to better serve their customers in China and help more people around the world achieve long-term financial security.
“People are living longer than ever. In China—as in other markets—the percentage of the population that is at retirement age will more than double by 2050,” said Thomas Cheong, president, Principal Asia. “As an organization focused on financial security, we understand the importance of having access to retirement products and solutions – our relationship with CCB and SSF allows us to help provide that to customers in China. The enhanced partnership with CCB combines the global pension and investment expertise of Principal with CCB’s extensive distribution network. It further strengthens the relationship between the two financial companies who have been partners since launching CCB Principal Asset Management in 2005 and enhances the long-standing cooperation between Principal and the Social Security Fund of China.”
This acquisition provides Principal with a significant foothold in the growing employer-sponsored pension segment of China’s pension market and the emerging individual retirement market, as the world’s most populous nation encourages its aging population to save more for retirement. The transaction with CCBP is immediately accretive to earnings. Principal plans to work with CCB and SSF, through enhanced cooperation among the shareholders, to contribute to the multi-pillar pension system and the financial well-being of the vast population of China.
About Principal Financial Group ®
Principal Financial Group ® (Nasdaq: PFG) is a global financial company with 19,000 employees 1 passionate about improving the wealth and well-being of people and businesses. In business for more than 140 years, we’re helping more than 55 million customers 1 plan, protect, invest, and retire, while working to support the communities where we do business, and build a diverse, inclusive workforce. Principal ® is proud to be recognized as one of America’s 100 Most Sustainable Companies 2, a member of the Bloomberg Gender Equality Index, and one of the “Best Places to Work in Money Management 3.” Learn more about Principal and our commitment to building a better future at principal.com.
1 As of September 30, 2022
2 Barron’s, 2022
3 Pensions & Investments, 2022
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KEYWORD: CHINA UNITED STATES NORTH AMERICA ASIA PACIFIC IOWA
INDUSTRY KEYWORD: PROFESSIONAL SERVICES INSURANCE FINANCE ASSET MANAGEMENT BANKING PERSONAL FINANCE
SOURCE: Principal Financial Group
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PUB: 01/06/2023 05:00 AM/DISC: 01/06/2023 05:01 AM