Extended bancassurance arrangement will deepen partnership with CIMB
Transaction reinforces Sun Life's strategic focus on Indonesia and
TORONTO, March 23, 2016 /CNW/ - Sun Life Financial Inc. (TSX: SLF)
(NYSE: SLF) today announced an agreement that will result in its 100%
ownership of PT CIMB Sun Life ("CSL") through the purchase of an
additional 51% of CSL from its long-term partner, CIMB Group. Sun Life
Financial currently owns 49% of CSL as well as 100% of PT Sun Life
Financial Indonesia ("SLF Indonesia"). Both are life insurance
companies in Indonesia.
Sun Life Financial intends to integrate CSL's business under the Sun
Life brand with SLF Indonesia, which is a key step to comply with
Indonesia's "single presence" policy.
In addition, Sun Life Financial Indonesia is deepening its partnership
with CIMB Group through an extended bancassurance arrangement with PT
Bank CIMB Niaga Tbk ("CIMB Niaga"), the fifth largest bank by asset
size in Indonesia as at December 31, 2015. This arrangement will
strengthen distribution capabilities across CIMB Niaga's 618 branches
and customer base throughout Indonesia. CSL customers will continue to
have access to the same comprehensive range of wealth management and
life insurance solutions that they enjoy today from Sun Life Financial
"This is an exciting opportunity to deepen and enhance our business in
Indonesia, a priority market for our long-term growth in Asia," said
Kevin Strain, President, Sun Life Financial 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. We're also delighted to be
strengthening our partnership with CIMB Group, who is also our
long-term bancassurance partner in Malaysia."
These changes will build further on Sun Life Financial's momentum in
Indonesia, increasing its presence across the country. This is in
addition to SLF Indonesia's previously announced commitment already
underway to invest US$40 million to enhance its agency force, increase
online penetration and strengthen its brand presence in the market.
Earlier this year, SLF Indonesia opened three new offices in East Java
and in 2015 moved into its expanded headquarters, Menara Sun Life, in
The transaction is expected to close by the end of the third quarter of
2016, subject to receipt of regulatory approvals and satisfaction of
customary closing conditions. Terms were not disclosed.
In this news release, "we", "our" and "us" refer to Sun Life Financial
Inc. and its subsidiaries and joint ventures. Certain statements in
this news release are forward-looking, including those relating to our
growth strategies and strategic objectives and the expected timing of
the closing of the transaction, and other statements that are not
historical or are predictive in nature or that depend upon or refer to
future events or conditions. Forward-looking statements may also
include words such as "aim", "anticipate", "assumption", "believe",
"could", "estimate", "expect", "goal", "intend", "may", "objective",
"outlook", "plan", "project", "seek", "should", "initiatives",
"strategy", "strive", "target", "will" and similar expressions. All
such forward-looking statements are made pursuant to the "safe harbor"
provisions of applicable Canadian securities laws and of the United
States Private Securities Litigation Reform Act of 1995.
The forward-looking statements in this news release represent our
current expectations, estimates and projections regarding future events
and are not historical facts. These forward-looking statements are not
a guarantee of future performance and involve risks and uncertainties
and are based on key factors and assumptions that are difficult to
predict, including the assumption that the transaction, including the
terms of the bancassurance arrangement will be approved and completed
on terms acceptable to the parties, or at all, and the assumption that
CSL and PT Sun Life Financial Indonesia will be successfully
integrated. Except as may be required by Canadian securities laws, we
do not undertake any obligation to update or revise any forward-looking
statements contained in this news release.
Forward-looking statements are presented to assist investors and others
in understanding our expected financial position and results of
operations as of the date of this news release, as well as our
objectives for the transaction, strategic priorities and business
outlook following the transaction, and in obtaining a better
understanding of our anticipated operating environment following the
transaction. Readers are cautioned that such forward-looking statements
may not be appropriate for other purposes and undue reliance should not
be placed on these forward-looking statements.
Other important risk factors that could cause our actual results to
differ materially from those expressed in or implied by the
forward-looking statements in this news release are listed in the
annual information form of Sun Life Financial Inc. for the year ended
December 31, 2015 under the heading "Risk Factors" and other regulatory
filings of ours filed or furnished to Canadian and U.S. securities
regulators available at www.sedar.com and www.sec.gov.
About PT Sun Life Financial Indonesia
PT Sun Life Financial Indonesia is a wholly owned subsidiary of Sun Life
Financial Inc. It offers a wide range of protection and wealth
management products, including life insurance, education insurance,
health insurance, and retirement plans. It also partners with leading
national and multinational financial institutions as part of its
multi-distribution channel strategy to provide Indonesians wider access
to its insurance solutions.
SLF Indonesia has been recognized by the CARRE Center for Customer
Satisfaction and Loyalty for excellence in its customer service and
call center activities.
About Sun Life Financial
Sun Life Financial is a leading international financial services
organization providing a diverse range of protection and wealth
products and services to individuals and corporate customers. Sun Life
Financial has operations in a number of markets worldwide, including
Canada, the United States, the United Kingdom, Ireland, Hong Kong, the
Philippines, Japan, Indonesia, India, China, Australia, Singapore,
Vietnam, Malaysia and Bermuda. As of December 31, 2015, the Sun Life
Financial group of companies had total assets under management of C$891
billion. For more information please visit www.sunlife.com.
Sun Life Financial Inc. trades on the Toronto (TSX), New York (NYSE) and
Philippine (PSE) stock exchanges under the ticker symbol SLF.
SOURCE Sun Life Financial Inc.
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