Sun Life Financial and Khazanah Nasional Berhad agree to purchase CIMB Aviva
TORONTO, Jan. 17, 2013
Partnership creates a Malaysian insurance powerhouse backed by an
international life insurance leader
TORONTO, Jan. 17, 2013 /PRNewswire/ - Sun Life Financial Inc. (TSX: SLF)
(NYSE: SLF) (Sun Life) and Khazanah Nasional Berhad (Khazanah) are
establishing a strategic partnership to acquire 98 per cent of CIMB Aviva
Assurance Berhad, a Malaysian life insurance company, and CIMB Aviva Takaful
Berhad, a Malaysian takaful company (together, the Company), in a transaction
valued at 1.80 billion Malaysian Ringgit (RM) (C$586 million). Sun Life and
Khazanah are each paying RM900 million (C$293 million) in respect of the
transaction, which includes entering into a new 20-year exclusive
bancassurance agreement with CIMB Bank.
Sun Life and Khazanah are each acquiring 49 per cent of the Company from Aviva
International Holdings Limited and CIMB Group Holdings Berhad (CIMB Group),
respectively. CIMB Group will retain a two per cent share in the Company.
The transaction includes an exclusive right to distribute insurance products,
including takaful products, through CIMB Bank's network across Malaysia. This
network includes 312 branches across the country and eight million customers.
"This transaction is perfectly aligned with our strategy for expanding our
footprint in Asia," said Kevin Strain, President, Sun Life Financial Asia.
"With Khazanah and CIMB, we have very strong partners with a broad
distribution platform, and we are investing in a country with one of the most
developed economies in the ASEAN region and a growing middle class. The
combination of Sun Life's global insurance experience, Khazanah's strategic
and financial expertise as an investor in the region, and CIMB's strong
banking presence, reputation and brand in Malaysia and throughout the region,
will deliver excellent value to customers and make the Company a leader in the
Khazanah's Managing Director, Tan Sri Dato' Azman bin Hj Mokhtar, said: "This
is an important investment for Khazanah. It marks not just an opportunity to
invest into an asset in a growth sector, but also brings together a unique
commercial partnership among three strong parties in their respective areas.
We are delighted to be partnering with Sun Life and CIMB."
"We look forward to working with the new bancassurance partners we have chosen
after an extensive selection process. Bancassurance remains a core component
of our wealth management proposition and we believe that the enhanced
bancassurance agreement and potential regional synergies will enable our new
partners to manufacture and support a more competitive product range for us to
take to our customers," said Dato' Sri Nazir Razak, Group Chief Executive,
The proposed acquisition by Sun Life and Khazanah is subject to regulatory
approvals in Canada and Malaysia. The transaction is expected to close by the
first half of 2013.
In this section, "we", "us", "our" and the "Company" refers to Sun Life
Financial Inc. and its subsidiaries, joint ventures and associates.
Certain statements in this news release, including (i) statements concerning
the anticipated timing and impact of the transactions described above, (ii)
statements relating to our strategies, (iii) statements that are predictive in
nature, (iv) statements that depend upon or refer to future events or
conditions and (v) statements that 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
are forward-looking statements. These statements represent our current
expectations, estimates and projections regarding future events and are not
historical facts. Forward-looking statements are not a guarantee of future
performance and involve risks and uncertainties that are difficult to predict.
Future results and shareholder value may differ materially from those
expressed in these forward-looking statements due to, among other factors, the
matters set out in in Sun Life Financial Inc.'s annual MD&A under the headings
Critical Accounting Policies and Estimates and Risk Management and in Sun Life
Financial Inc.'s AIF under the headings Risk Factors and the factors detailed
in Sun Life Financial Inc.'s other filings with Canadian and U.S. securities
regulators, including its annual and interim MD&A, and annual and interim
Consolidated Financial Statements.
Factors that could cause actual results to differ materially from expectations
include, but are not limited to, the failure of the parties to obtain the
required regulatory approvals or to otherwise satisfy the conditions to the
completion of the transaction in a timely manner, economic uncertainty, market
conditions that affect the Company's capital position or its ability to raise
capital; changes or volatility in interest rates or credit/swap spreads; the
performance of equity markets; credit risks related to issuers of securities
held in our investment portfolio, debtors, structured securities, reinsurers,
derivative counterparties, other financial institutions and other entities;
risks in implementing business strategies; risk management; changes in
legislation and regulations including capital requirements and tax laws; legal
and regulatory proceedings, including inquiries and investigations; risks
relating to product design and pricing; downgrades in financial strength or
credit ratings; the ability to attract and retain employees; the performance
of the Company's investments and investment portfolios managed for clients
such as segregated and mutual funds; the impact of higher-than-expected future
expenses; risks relating to mortality and morbidity, including the occurrence
of natural or man-made disasters, pandemic diseases and acts of terrorism;
risks relating to the rate of mortality improvement; risks relating to
policyholder behaviour; risks related to liquidity; dependence on third-party
relationships including outsourcing arrangements; the inability to maintain
strong distribution channels and risks relating to market conduct by
intermediaries and agents; breaches or failure of information system security
and privacy, including cyber terrorism; business continuity risks; risks
relating to financial modelling errors; risks relating to real estate
investments; risks relating to estimates and judgements used in calculating
taxes; the impact of mergers and acquisitions; risks relating to operations in
Asia including the Company's joint ventures; the impact of competition;
fluctuations in foreign currency exchange rate; risks relating to the closed
block of business; risks relating to the environment, environmental laws and
regulations and third-party policies; and the availability, cost and
effectiveness of reinsurance.
About Sun Life Financial
Sun Life Financial is a leading international financial services organization
providing a diverse range of protection and wealth accumulation products and
services to individuals and corporate customers. Chartered in 1865, Sun Life
Financial and its partners today have operations in key markets worldwide,
including Canada, the United States, the United Kingdom, Ireland, Hong Kong,
the Philippines, Japan, Indonesia, India, China, Vietnam and Bermuda. As of
September30, 2012, the Sun Life Financial group of companies had total AUM of
C$515 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.
About Khazanah Nasional Berhad
Khazanah Nasional Berhad is the strategic investment fund of the Government of
Malaysia entrusted to hold and manage the commercial assets of the Government
and to undertake strategic investments. Khazanah is involved in various
sectors such as power, telecommunications, banking, healthcare, airport
management, infrastructure, leisure & tourism, property development,
broadcasting, investment holding, and technology. Some of the key listed
companies in Khazanah's investment portfolio include Telekom Malaysia Bhd.,
Tenaga Nasional Bhd., CIMB Group, Axiata Group Bhd., IHH Healthcare Bhd.,
Malaysia Airports Holdings Bhd., and UEM Land Holdings Bhd. For further
information on Khazanah, please visit www.khazanah.com.my.
SOURCE Sun Life Financial Inc.
Sun Life Financial
Head of Customer Marketing & Communications
Khazanah Nasional Berhad
Mohd Asuki Bin Abas
Senior Vice-President, Managing Director's Office
North American and U.K. Contacts:
Sun Life Financial
Media Relations Contact:
Vice-President, Corporate Communications
Investor Relations Contact:
Vice-President, Investor Relations
Press spacebar to pause and continue. Press esc to stop.