Sun Life Financial Inc. (TSX: SLF) and Khazanah Nasional Berha, the strategic investment fund of the government of Malaysia, Friday announced the completion of the acquisition of CIMB Aviva Assurance Berhad, a Malaysian life insurance company, and CIMB Aviva Takaful Berhad, a Malaysian takaful company.
(A takaful company provides insurance in compliance with Sharia law.)
Sun Life and Khazanah have each acquired 49% of the two CIMB Aviva companies from Aviva International Holdings Ltd. and CIMB Group Holdings Berhad.
The transaction includes an exclusive right to distribute insurance products, including takaful products, through CIMB Bank’s network across Malaysia. This network includes 312 branches across the country and eight million customers.
The transaction is valued at 1.80 billion Malaysian Ringgit ($602 million). The deal was first announced in January.
Sun Life Financial to expand presence in Malaysia
Ooi Say Teng will lead the companies and will be named CEO of CIMB Aviva Assurance Berhad. Ooi has more than 30 years of experience in the Malaysian insurance industry, most recently as head of CIMB Group Insurance for CIMB Bank. The companies will be re-branded once regulatory approval for a new name is received.
“We have very strong partners in Khazanah and CIMB and we believe that the combination of Sun Life’s insurance expertise, Khazanah’s excellent track record of strategic management and CIMB’s broad distribution platform will position the companies for success.” said Kevin Strain, president, Sun Life Financial Asia.