Sun Life Financial has agreed to purchase remaining 51% stake in Indonesia’s PT CIMB Sun Life (CSL) from its partner CIMB Group.
Terms of the deal have not been disclosed.
Currently, Sun Life Financial owns 49% stake in CSL and 100% interest in PT Sun Life Financial Indonesia, which offer life insurance services in the country.
CSL offers life, accident and health insurance products for its customers in Indonesia.
The company plans to incorporate CSL’s business under the Sun Life brand with SLF Indonesia, in a bid to comply with Indonesia’s single presence policy.
Sun Life Financial Asia president Kevin Strain said: "This is an exciting opportunity to deepen and enhance our business in Indonesia, a priority market for our long-term growth in Asia."
"We had anticipated and positioned ourselves well to meet the single presence policy, and uniting the businesses in SLF Indonesia will give us even greater ability to serve our customers. This includes more efficient investment in technology, products and brand."
Subject to receipt of regulatory approvals and satisfaction of customary closing conditions, the deal is expected to complete by the end of the third quarter in this year.
Sun Life is also strengthening its partnership with CIMB Group through an extended bancassurance arrangement with PT Bank CIMB Niaga Tbk, the fifth largest bank by asset size in Indonesia.
Image: Sun Life Financial to acquire remaining 51% stake in PT CIMB Sun Life. Photo: courtesy of adamr / FreeDigitalPhotos.net.