Sun Life and Khazanah to pay $600 million for Malaysian insurer

The deal values CIMB Aviva at a generous premium, but the real prize is a long-term bancassurance deal with CIMB.

Sun Life Financial, Canada’s third-biggest insurer, has teamed up with Khazanah Nasional to buy 98% of CIMB and Aviva’s Malaysian life insurance joint venture in a deal valued at M$1.8 billion $600 million.

Under the terms of the proposed deal, Khazanah and Sun Life will each own 49% of the business, which includes CIMB Aviva Assurance and CIMB Aviva Takaful, an Islamic insurer. The price tag also includes a new 20-year exclusive bancassurance agreement with CIMB, Malaysia’s second-biggest bank.

This transaction is perfectly aligned with our strategy for expanding our footprint in Asia, said Kevin Strain, president of Sun Life Financial Asia. “We are investing...

¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team subscription (2-5 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team subscription (2-5 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222