Sun Life Financial (TSX:SLF) won’t confirm reports that it plans to partner with the Malaysian government’s investment agency to buy the CIMB Aviva insurance business for $550 million.
Media reports say Sun Life plans to expand its Asian footprint by acquiring Aviva’s 49% stake in the Malaysian operation while state investor Khazanah Nasional Berhad would buy CIMB’s majority stake.
An eight-month auction process reportedly attracted interest from Manulife Financial Corp. (TS:MFC) — a Canadian rival of Sun Life — as well as U.S. insurance company Prudential and AIA Group.
Sun Life also has joint ventures with CIMB elsewhere in Asia. Southeast Asia is attracting insurance companies around the world because of the high economic growth, elevated savings rate and young populations.
Aviva is exiting marginal markets around the world and sold its U.S. business last month for US$1.8 billion.