(December 15 – 09:35 ET) – Sun Life Assurance Co. of Canada is moving into the Chinese market on the same day its policyholders are voting on the firm’s demutualization plan. Results of the 15:00-15:30 ET vote will be tabulated and announced at the meeting.
Sun Life and China Everbright Group Ltd. are announcing that the have signed a memorandum of understanding to establish a joint venture life insurance company in the People’s Republic of China. China Everbright Group has been around since 1983 and is one of China’slargest business groups focusedon banking and financial services.
The firms have also agreed on a preliminary basis to also launch a joint mutual fund business and other fee-based asset management businesses in China when they are allowed to by Chinese authorities.
Each firm will contribute 50% of the venture’s registered capital, and each will own 50% of the new company. The proposed venture is still subject to settlement of definitive agreements, a feasibility study, and regulatory approval. Currently the firms are considering where to headquarter the new operation, with Tianjin the front-runner.
Sun Life competitor and early demutualizer, Manulife Financial, has a head start in the Chinese market too.