Toronto—(PHStocks)—Sun Life Financial Inc. (PSE: SLF) (TSX: SLF) (NYSE: SLF) today announced an agreement that will result in its 100% ownership of PT CIMB Sun Life (CSL) through the purchase of an additional 51% of CSL from its long-term partner, CIMB Group. Sun Life Financial currently owns 49% of CSL as well as 100% of PT Sun Life Financial Indonesia (SLF Indonesia). Both are life insurance companies in Indonesia.
Sun Life Financial intends to integrate CSL’s business under the Sun Life brand with SLF Indonesia, which is a key step to comply with Indonesia’s “single presence” policy. In addition, Sun Life Financial Indonesia is deepening its partnership with CIMB Group through an extended bancassurance arrangement with PT Bank CIMB Niaga Tbk (CIMB Niaga), the fifth largest bank by asset size in Indonesia as at 31 December 2015. This arrangement will strengthen distribution capabilities across CIMB Niaga’s 618 branches and customer base throughout Indonesia. CSL customers will continue to have access to the same comprehensive range of wealth management and life insurance solutions that they enjoy today from Sun Life Financial Indonesia.
“This is an exciting opportunity to deepen and enhance our business in Indonesia, a priority market for our long-term growth in Asia,” said Kevin Strain, President, Sun Life Financial Asia. “We had anticipated and positioned ourselves well to meet the “single presence” policy, and uniting the businesses in SLF Indonesia will give us even greater ability to serve our customers. This includes more efficient investment in technology, products and brand. We’re also delighted to be strengthening our partnership with CIMB Group, who is also our long-term bancassurance partner in Malaysia.”
These changes will build further on Sun Life Financial’s momentum in Indonesia, increasing its presence across the country. This is in addition to SLF Indonesia’s previously announced commitment already underway to invest $40 million to enhance its agency force, increase online penetration and strengthen its brand presence in the market. Earlier this year, SLF Indonesia opened three new offices in East Java and in 2015 moved into its expanded headquarters, Menara Sun Life, in Jakarta.
The transaction is expected to close by the end of the third quarter of 2016, subject to receipt of regulatory approvals and satisfaction of customary closing conditions. Terms were not disclosed.