In sync with its long term strategic plan to strengthen its
presence in Malaysia,
Sun Life Financial Inc.
), last week launched its unit Sun Life Malaysia in the
Sun Life Malaysia has been formed of Sun Life Malaysia
Assurance Berhad and Sun Life Malaysia Takaful Berhad, the
renamed entities of CIMB Aviva Assurance Berhad, the life insurer
in Malaysia and CIMB Aviva Takaful Berhad, a takaful company in
Sun Life Financial Inc. in alliance with Khazanah Nasional
Berhad (Khazanah) had jointly acquired 98% of CIMB Aviva
Assurance Berhad, and CIMB Aviva Takaful Berhad.
Sun Life Financial as well as Khazanah have each paid RM900
million for the deal. For the consideration, each of the
companies has acquired 49% from Aviva International Holdings
Limited and CIMB Group Holdings Berhad (CIMB Group),
respectively. The remaining 2% will be retained by CIMB
With the agreement, Sun Life Financial will obtain instant
access to millions of customers of CIMB Bank. Presently the bank
has a network of 312 branches and serves approximately 8 million
customers. The agreement will give an exclusive right of
distributing insurance as well as access to takaful products
across Malaysia to Sun Life. Takaful is a Shariah-compliant
alternative to an insurance scheme.
The transaction is a strategic step in the company's objective
to grow in the Asian region. The company has a significant
presence in Hong Kong, the Philippines, Indonesia, India, China,
Singapore and Vietnam. Sun Life is specifically focusing on the
emerging economies of Asia, which is expected to provide higher
return and growth compared to the North American markets.
Historically, the company's Asian operation represented an
average of only 2-3% of the company's consolidated earnings and
premiums. However, management plans to drive 12.5% of
consolidated operating earnings from Sun Life Asia by 2015.
Other life insurers
Manulife Financial Corp.
American International Group, Inc.
) also have an active presence in
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MANULIFE FINL (MFC): Free Stock Analysis
SUN LIFE FINL (SLF): Free Stock Analysis
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