Principal to buy Hong Kong pension business

Principal Financial Group will buy a pension business in Hong Kong for $335 million, the insurance and investment company said today.

Des Moines-based Principal said it will acquire the business from The AXA Group, a Paris-based investment banking firm. The acquisition is expected to close sometime between July and September 2015.

In a statement, Principal CEO Larry Zimpleman said buying the pension business fits with the company's plan to become more competitive in key emerging markets around the world, such as China.

"This marks our ninth strategic transaction since the financial crisis and demonstrates how our diversified, fee-based business model generates financial strength and opportunities to grow our business," Zimpleman said.

Once approved, Principal said the acquisition will more than double the assets of its Hong Kong pension business to more than $6 million.

Principal also said it had entered into an exclusive 15-year contract with AXA to distribute pension products through AXA's agency network in Hong Kong.