Standard and Poor’s, though affirmed the ‘BBB+' counterparty credit ratings of Principal Financial and Principal Financial Services Inc. ( MCO), Standard and Poor’s and Fitch ratings – have taken rating action on Principal Financial. In turn, it will help it generate more business, thereby aiding the company to deliver solid numbers.įollowing the announcement to buy Cuprum, rating agencies – A.M. Principal believes that they would be offering the prospective customers a unique array of pension savings and retirement income solutions. It is noteworthy that increasing middle income group population, steady economic growth and a sturdy improvement in voluntary pension products have driven the Chilean pension market to consistently grow at double-digit rates. Cuprum has a dominant position in the Chilean pension market with the highest increase in market share among high value customers. Principal Financial already has operations in the emerging markets of Brazil, Chile and Mexico and this acquisition will give it an added edge. Cuprum acquisition marks the sixth such transaction in the past two years. Moreover, Principal has been intensifying its focus on fee based business that enables the company to return more earnings to shareholders. The Zacks Consensus Estimate for 2013 is currently pegged at $3.34, representing a year-over-year increase of nearly 23%. The transaction is expected to consummate in the first quarter of 2013, subject to closing conditions.Īlso, the acquisition will be immediately accretive to earnings per share and return on equity. The total purchase consideration equates to $1.51 billion based on the present exchange rate. Cuprum is a leading pension manager in Chile with about $32.1 billion of assets under management. and Inversiones Banpenta Limitada to vend off their 63% stake in Cuprum. The deal also entails Empresas Penta S.A. ( PFG) inked a deal to buy Chile based AFP Cuprum S.A. To widen its presence in the emerging marketplace, Principal Financial Group, Inc.
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