Sun Life Financial, Canada's second largest insurance provider, has reached an agreement to purchase the Hong Kong insurance operations of the Commonwealth Bank of Australia, for $451 million.

The Canadian insurer will take over CMG Asia and CommServe Financial, which together form Commonwealth Bank’s Hong Kong insurance and pension interests.
Sun Life said the merged company, Sun Life Financial Hong Kong, would become the seventh largest life insurance company in the Chinese region.

The primary business development objective for Sun Life Financial worldwide has been to build sustainable scale and scope in the businesses in which we choose to compete, said Jim Prieur, president and COO at Sun Life Financial.

This singular strategic opportunity significantly strengthens the position of Sun Life Financial in Hong Kong and provides a platform for increased growth throughout Asia.

Sun Life said it expects the deal to be finalized late in the third quarter of this year, pending regulatory approval in Canada Hong Kong and Bermuda.