To capture a larger share of China's growing financial services sector
Sun Life Financial has entered into an agreement with the China Everbright Group. Accordingly, both the companies have agreed to introduce strategic investors to Sun Life Everbright, which will more than double its registered capital to approximately CDN$500 million (RMB 3 billion). The banking and securities operations of China Everbright will become more important marketing and distribution channels for the products and services of Sun Life Everbright, thereby providing greater reach to customers across China. The company will continue under the Sun Life Everbright name.
Sun Life, which will have a 20% interest in the restructured and repositioned company, will continue to provide its international risk management and actuarial expertise and standards to Sun Life Everbright. Sun Life and China Everbright are also seeking opportunities to enhance their partnership by expanding into other financial services.
Donald Stewart, CEO of Sun Life Financial, said: This strategic restructuring is in the best long-term interest of our shareholders and secures our participation in the tremendous growth and promise of China’s life insurance and broader financial services market. We are maintaining a meaningful, strategic interest in one of China’s top financial services companies and affirming our long-term commitment to China.
Tang Shuangning, chairman of China Everbright Group, said: This important agreement strengthens the strategic partnership between Sun Life and China Everbright. It will advance mutual support and the common interests of both companies to grow, to serve Chinese consumers, and to achieve a larger share of the Chinese domestic protection market.
The restructuring, which is subject to regulatory approval, is anticipated to take effect by the end of this year.
Sun Life Financial is an international financial services organization providing a range of protection and wealth accumulation products and services to individuals and corporate customers.
China Everbright Group offers banking, securities, insurance, and investment management services.