(Source: Associated Press/AP Online)
DES MOINES, Iowa - Principal Financial Group Inc. said Tuesday it has signed a deal with Banco do Brasil to continue their pension and long-term asset accumulation joint venture in Brazil called BrasilPrev Seguros e Previdencia S.A.
Under the terms of the agreement BrasilPrev will have the exclusive right to distribute pension and other long-term asset accumulation products within the Banco do Brasil network for 23 years.
Other key elements of the agreement include co-management of the joint venture, with Principal owning 50.01 percent of BrasilPrev common stock and Banco do Brasil owning 49.99 percent.
Principal, based in Des Moines, Iowa, will get about one quarter of the profits while Banco do Brasil will receive nearly 75 percent.
The agreement also says BrasilPrev will negotiate completion of the acquisition of the pension portfolio of bank Mapfre Nossa Caixa.
The joint venture over the past 10 years has led BrasilPrev to become one of Brazil's top retirement services companies, with 3 million accounts and nearly $15 billion in assets under management, the companies said.
"We see even greater opportunity going forward as Banco do Brasil continues to expand its distribution reach and strengthens its commitment to increasing market share," said Principal CEO Larry Zimpleman, in a statement.
Principal shares fell 45 cents, or 1.7 percent, to $26.61. They've traded between $5.41 and $30.87 in the past year.
A service of YellowBrix, Inc.
