Principal acquires Mexico’s MetLife Afore
After full regulatory approval, Principal Financial Group recently culminated its acquisition of MetLife Afore, a pension fund management enterprise based in Mexico City, poising Principal as Mexico’s fifth-largest Afore entity.
Luis Valdes, who serves as president of Principal International, the global pension business of Principal Financial Group, said Mexico is a vital market.
“We are committed to making investments in countries with a robust middle class to bring more people the long-term retirement and investing solutions they need to achieve a more secure financial future,” Valdes said.
The deal places the new asset at over 7 percent of that nation’s market share, according to Principal. Existing MetLife Afore customers will transition over to Principal Afore over a 90-day period.
"We are excited to continue to build our business in Mexico and bring greater services and expertise to our clients and the assets they entrust to us,” José Antonio Llaneza, country head for Principal Mexico, said. “This purchase reflects our confidence in the pension system in Mexico and its ability to provide financial well-being for Mexicans when they enter retirement.”
Following the transaction, Principal’s Mexico branch will administer approximately 3.4 million customer retirement accounts, comprising $12.3 billion.
Principal Afore is overseen by Principal Financial Group, which manages over 22 million clients in worldwide operations. Principal bases its U.S. headquarters in Des Moines, Iowa.