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PRINCIPAL RECEIVES APPROVAL TO OPERATE IN MEXICO

 DES MOINES, Iowa, Oct. 12 /PRNewswire/ -- Principal International, Inc., a member company of The Principal Financial Group, today announced it has received a license from Mexican authorities to create a new life insurance and pension company in Mexico. The license is the first new foreign license issued by Mexican insurance authorities in more than 50 years.
 The license allows Principal International to complete an agreement with Servicios Especiales Profesionales (S.E.P.), a Mexican insurance broker and administrator, to begin a joint venture to market group and individual life insurance and pensions in Mexico.
 The agreement between Principal International, Inc., and Grupo S.E.P. will create a new company based in Mexico City -- Principal Internacional, S.A., Cia. de Seguros. The companies signed a letter of intent on May 19, 1993. The new partnership is expected to begin operations during the fourth quarter of this year.
 "This partnership will take advantage of the competencies The Principal has in insurance and pensions as well as the local market knowledge and distribution skills Grupo S.E.P. has in the Mexican market," said Jan Jobe, president of Principal International. "The unique similarities between the two organizations, especially the focus on excellent customer service, will make a successful long-term relationship."
 "This is an especially opportune time for a new venture in Mexico," said Camilo Salazar, vice president for Principal International. "The recent pension reform and growing economy in Mexico continue to make it more attractive for business.
 "The fact that this is the first license granted to a foreign insurance company to start a new operation in Mexico in more than 50 years shows Mexico's commitment to opening its financial markets," said Salazar.
 "Insurance companies in Mexico largely serve a small, more affluent market," Jobe said. "We believe there are opportunities where we can succeed as a company and provide significant social value, particularly in the sale of group life and pension products."
 The Mexican partnership is the second international subsidiary for The Principal. The company opened its first international subsidiary in 1991 in Spain. It is anticipating a new company in Indonesia by the first quarter of 1994 and is in the process of opening a representative office in Russia.
 "We are committed to making international business an integral part of The Principal," Jobe said. "We are doing this not only by expanding to one to two new countries each year but also by working to make our entire company more globally aware."
 The Principal Financial Group is a diversified family of insurance and financial services companies with more than $41 billion in assets under management. Its flagship and largest member, Principal Mutual Life Insurance Company, is the fourth largest U.S. life insurance company in premium and annuity income and 10th largest in assets.
 -0- 10/12/93
 /CONTACT: Bill Roach, 515-246-7536, or home, 515-274-4285/ CO: The Principal Financial Group ST: Iowa IN: INS FIN SU: LIC JVN


GK -- NY038 -- 1045 10/12/93 11:17 EDT
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Publication:PR Newswire
Date:Oct 12, 1993
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