Nippon Life Insurance Company to Acquire Minority Stake in Post Advisory Group
Deal broadens Post Advisory Group's distribution in Japan
DES MOINES, Iowa--(BUSINESS WIRE)-- The Principal Financial Group (NYS: PFG) today announced its subsidiary, Principal Global Investors, LLC, a leading global asset manager, has agreed to sell a minority stake in Post Advisory Group, LLC (Post) to Nippon Life Insurance Company (Nippon Life).
Post is a leading manager of high-yield fixed income based in Santa Monica, Calif., with approximately $11.8 billion in assets under management1 and additional offices in New York and London. Nippon Life is a leading global financial services firm headquartered in Osaka with total assets of more than $600 billion. The transaction will bring significant new distribution opportunities for Post's products and enhance Nippon Life's fixed income investment products.
"We are very pleased Nippon Life has chosen us to be its high yield partner," said Larry Post, founder and chief investment officer of Post. "This is a tremendous vote of confidence in our firm and it extends the geographic reach of our broad menu of high yield products."
"We are delighted with our new partnership with Post and intend to keep accelerating our efforts in growing our asset management business field," said Yoshinobu Tsutsui, president of Nippon Life. "This transaction marks a new milestone in our history with the Principal Financial Group and we hope to further strengthen our relationship going forward."
"Nippon Life has long been a valued partner of the Principal Financial Group, and this transaction will serve to deepen and strengthen that relationship," said Larry Zimpleman, chairman, president and CEO of the Principal Financial Group®. "Post Advisory Group has already been successful in bringing high yield solutions to a market that is in need of yield-oriented products. Japanese investors will now be positioned to take even greater advantage of this key offering through Nippon Life's networks and relationships."
The transaction is expected to close in the second quarter of 2013.
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Forward looking and cautionary statements
This press release contains forward-looking statements, including, without limitation, statements as to operating earnings, net income available to common stockholders, net cash flows, realized and unrealized gains and losses, capital and liquidity positions, sales and earnings trends, and management's beliefs, expectations, goals and opinions. The company does not undertake to update these statements, which are based on a number of assumptions concerning future conditions that may ultimately prove to be inaccurate. Future events and their effects on the company may not be those anticipated, and actual results may differ materially from the results anticipated in these forward-looking statements. The risks, uncertainties and factors that could cause or contribute to such material differences are discussed in the company's annual report on Form 10-K for the year ended Dec. 31, 2012, filed by the company with the Securities and Exchange Commission, as updated or supplemented from time to time in subsequent filings. These risks and uncertainties include, without limitation: adverse capital and credit market conditions may significantly affect the company's ability to meet liquidity needs, access to capital and cost of capital; continued difficult conditions in the global capital markets and the economy generally; continued volatility or further declines in the equity markets; changes in interest rates or credit spreads; the company's investment portfolio is subject to several risks that may diminish the value of its invested assets and the investment returns credited to customers; the company's valuation of securities may include methodologies, estimations and assumptions that are subject to differing interpretations; the determination of the amount of allowances and impairments taken on the company's investments requires estimations and assumptions that are subject to differing interpretations; gross unrealized losses may be realized or result in future impairments; competition from companies that may have greater financial resources, broader arrays of products, higher ratings and stronger financial performance; a downgrade in the company's financial strength or credit ratings; inability to attract and retain sales representatives and develop new distribution sources; international business risks; the company's actual experience could differ significantly from its pricing and reserving assumptions; the company's ability to pay stockholder dividends and meet its obligations may be constrained by the limitations on dividends or distributions Iowa insurance laws impose on Principal Life; the pattern of amortizing the company's DPAC and other actuarial balances on its universal life-type insurance contracts, participating life insurance policies and certain investment contracts may change; the company may need to fund deficiencies in its "Closed Block" assets that support participating ordinary life insurance policies that had a dividend scale in force at the time of Principal Life's 1998 conversion into a stock life insurance company; the company's reinsurers could default on their obligations or increase their rates; risks arising from acquisitions of businesses; changes in laws, regulations or accounting standards; a computer system failure or security breach could disrupt the company's business, and damage its reputation; results of litigation and regulatory investigations; from time to time the company may become subject to tax audits, tax litigation or similar proceedings, and as a result it may owe additional taxes, interest and penalties in amounts that may be material; fluctuations in foreign currency exchange rates; and applicable laws and the company's certificate of incorporation and by-laws may discourage takeovers and business combinations that some stockholders might consider in their best interests.
About Principal Global Investors
Principal Global Investors is a diversified asset management organization and a member of the Principal Financial Group®, with expertise in equities, fixed income and real estate investments, as well as specialized overlay and advisory services. Principal Global Investors manages $281.5 billion in assets2 primarily for retirement plans and other institutional clients3.
About Post Advisory Group
Post Advisory Group, LLC is a global investment manager specializing in high-yield securities with a multi-strategy, value-oriented investment approach. With approximately $11.8 billion in assets under management, Post, founded in 1992 by Larry Post, is a leading manager of high-yield fixed income.
About Nippon Life
Nippon Life Insurance Company, founded in 1889, is Japan's largest private life insurer with revenues of over 7 trillion JPY ($80 billion) and total assets of over 50 trillion JPY ($600 billion)4. The company, which has over 14 million policies in Japan, offers a wide range of products, including individual and group life insurance and annuity policies, through various distribution channels. The company primarily operates in Japan, North America, Europe and Asia and is headquartered in Osaka, Japan.
About the Principal Financial Group
The Principal Financial Group® (The Principal ®)5 is a global investment management leader offering retirement services, insurance solutions and asset management. The Principal offers businesses, individuals and institutional clients a wide range of financial products and services, including retirement, asset management and insurance through its diverse family of financial services companies. Founded in 1879 and a member of the FORTUNE 500®, the Principal Financial Group has $403.0 billion in assets under management6 and serves some 18.3 million customers worldwide from offices in Asia, Australia, Europe, Latin America and the United States. Principal Financial Group, Inc. is traded on the New York Stock Exchange under the ticker symbol PFG. For more information, visit www.principal.com.
1 As of March 27, 2013
2 As of Dec. 31, 2012
3 Principal Global Investors is the asset management arm of the Principal Financial Group ® (The Principal ®) and includes the asset management operations of the following subsidiaries of The Principal: Principal Global Investors, LLC; Principal Real Estate Investors, LLC; Principal Enterprise Capital, LLC; Spectrum Asset Management, Inc.; Post Advisory Group, LLC; Columbus Circle Investors; Edge Asset Management, Inc.; Morley Financial Services Inc.; Finisterre Capital, LLP; Origin Asset Management, LLP; Principal Global Investors (Europe) Limited; Principal Global Investors (Singapore) Ltd.; Principal Global Investors (Australia) Ltd.; Principal Global Investors (Japan) Ltd.; Principal Global Investors (Hong Kong) Ltd.; CIMB-Principal Islamic Asset Management Sdn. Bhd.; and the majority owned affiliates of Principal International, Inc. Assets under management includes assets managed by investment professionals of Principal Global Investors under dual employee arrangements with other subsidiaries of The Principal and assets managed in accordance with investment advice provided by Principal Global Investors through the delivery of a model.
4 As of March 31, 2012
5 "The Principal Financial Group" and "The Principal" are registered service marks of Principal Financial Services, Inc., a member of the Principal Financial Group.
6 As of Dec.31, 2012
Principal Financial Group
Adam Lackey, 515-362-0482
Post Advisory Group
Larry Post, 310-996-9600
Principal Financial Group
John Egan, 515-235-9500
KEYWORDS: United States Asia Pacific North America California Iowa Japan
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