U.S.-based Principal Financial Group Inc said on Friday it had agreed to purchase French insurer AXA SA's Hong Kong retirement savings business for $335 million in what would be the city's first pension M&A deal in more than a decade. In a joint statement, the both companies said the purchase would make Principal Hong Kong's fifth-biggest retirement savings provider, with $6 billion under management.Industry experts said the deal was likely to encourage more consolidation in the retirement savings business, which is emerging as a new frontier for life insurers in Hong Kong as the Asian financial hub is now home to a rapidly ageing population, with a higher life expectancy.HSBC Plc and Manulife Financial Corp control nearly half of all retirement savings assets in Hong Kong, according to J.P. Morgan estimates, making it difficult for smaller units like the one AXA was selling to compete."When you are sub-scale, it's hard to compete. We expect more of such deals to happen as marginal players exit the market," said a person with knowledge of the deal who declined to be named as he was not authorised to speak to the media.
Manulife Financial Corporation (MFC) is a Canada-based financial services group with principal operations in Asia, Canada and the United States. Shares of MFC fell by 1.8% or $-0.34/share to $18.53. In the past year, the shares have traded as low as $16.68 and as high as $20.77. On average, 1645350 shares of MFC exchange hands on a given day and today's volume is recorded at 1990726.
Manulife Financial Corporation (MFC) is a Canada-based financial services group with principal operations in Asia, Canada and the United States. Shares of MFC fell by 1.44% or $-0.31/share to $21.17. In the past year, the shares have traded as low as $18.91 and as high as $22.73. On average, 3195710 shares of MFC.TO exchange hands on a given day and today's volume is recorded at 2740899.
Principal Financial Group, Inc. (PFG) is a provider of retirement savings, investment and insurance products and services. Shares of PFG fell by 0.81% or $-0.43/share to $52.40. In the past year, the shares have traded as low as $41.20 and as high as $55.07. On average, 1221370 shares of PFG exchange hands on a given day and today's volume is recorded at 1444206.
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