Toronto-based Sun Life Financial Inc. continues to expand its footprint in Asia with the move to take full control of Jakarta-based PT CIMB Sun Life (CSL) as well as an extended bancassurance arrangement with one of Indonesia’s largest banks.
Sun Life will be buying 51% of CSL from its partner, Kuala Lumpur-based CIMB Group Holdings Berhad. Sun Life already owns 49% of CSL as well as 100% of Jakarta Selatan-based PT Sun Life Financial (SLF) Indonesia, which are both insurance companies.
Sun Life intends to integrate CSL’s business under the Sun Life brand with SLF Indonesia.
SLF Indonesia is also deepening an existing partnership with PT Bank CIMB Niaga Tbk, the fifth-largest bank by asset size in Indonesia as of Dec. 31, 2015. The two financial institutions will extend their bancassurance agreement, which will strengthen SLF Indonesia’s distribution capabilities across CIMB Niaga’s 618 branches throughout Indonesia.
“This is an exciting opportunity to deepen and enhance our business in Indonesia, a priority market for our long-term growth in Asia,” says Kevin Strain, president, Sun Life Financial Asia, in a statement.
Uniting CSL and SLF Indonesia will give the combined business a greater ability to serve its customers and will produce more efficient investment in technology, products and branding, adds Strain.
The transaction is expected to close by the end of the third quarter of 2016 and is subject to regulatory approvals and satisfaction of customary closing conditions. Terms were not disclosed.
These changes are in addition to SLF Indonesia’s previously announced commitment already underway to invest US$40 million to enhance its agency force, increase online penetration and strengthen its brand presence in the market. SLF Indonesia has opened three new offices in East Java, an Indonesian province, in 2016.