Canada-based Sun Life Financial has entered into an agreement with India’s Aditya Birla Nuvo (ABNL) to acquire another 23% stake in Birla Sun Life Insurance (BSLI), for Rs16.64bn (C$340m or $254m).
The deal will allow the Canadian insurer to increase its interest in BSLI from the current 26% to 49%.
Established in 2001, BSLI provides a wide range of products, including protection solutions, children’s future solutions, wealth with protection solutions, health and wellness solutions, retirement solutions and savings with protection solutions.
Through its 489 branches, BSLI provides services to about 1.6 million customers in around 418 cities across the country.
In March this year, the Indian Government introduced a new law to allow foreign insurers to acquire up to 49% stake in local insurance ventures.
Sun Life Financial president and CEO Dean Connor said: "Increasing our ownership position in BSLI, one of India’s leading private life insurers, in partnership with a well-respected partner in Aditya Birla Group, in the world’s second most populous country with strong growth prospects, is exactly on strategy and supports our aspirations for Sun Life Asia as one of our four pillars of growth."
Aditya Birla Nuvo and BSLI chairman Kumar Mangalam Birla said: "Both Sun Life and ABNL have closely partnered in building this business to its current scale, investing heavily in both capital and resources."
Subject to regulatory approvals and customary closing conditions, the deal is expected to complete in the first quarter of 2016.
Sun Life Financial offers a wide range of protection and wealth products and services to individuals and corporate customers in multiple markets, including Canada, the US, the UK, reland, Hong Kong, the Philippines, Japan, Indonesia, India, China, Australia, Singapore, Vietnam, Malaysia and Bermuda.
Image: Sun Life Financial Canadian headquarters in Waterloo, Ontario. Photo: courtesy of Giligone.