Extended bancassurance arrangement will deepen partnership with CIMB
Transaction reinforces Sun Life's strategic focus on Indonesia and region
TORONTO, March 23, 2016 /PRNewswire/ - 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 Indonesia.
"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 Jakarta.
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.