Canada-based Sun Life Financial and Khazanah Nasional in Kuala Lumpur have completed the acquisition of CIMB Aviva Assurance and CIMB Aviva Takaful after receiving regulatory approvals in Malaysia and Canada.
CIMB Aviva Assurance is a Malaysian life insurance firm, whereas CIMB Aviva Takaful is a Malaysian takaful company.
Both Canadian and Malaysian companies have acquired 49% stake of the both companies from Aviva International and CIMB Group, respectively, with CIMB Group holding a 2% share in the companies.
Valued at a total consideration of MYR1.80bn ($602m), the deal will offer greater choice for customers by creating a Malaysian insurance powerhouse backed by an international life insurance leader.
An agreement was also signed pertaining to an exclusive right to distribute insurance products, such as takaful products, through CIMB Bank's network of 312 branches across Malaysia, which has a customer base of eight million people.
Ooi Say Teng will head the acquired entities and will be appointed as the new CEO of CIMB Aviva Assurance, who most recently has been serving as head of CIMB Group Insurance for CIMB Bank.
Following approval from the concerned regulators, the acquired enterprise will be rebranded, the acquirer said.
Chartered in 1865 and having C$533bn in total assets as of 31 December 2012, Sun Life Financial operates in Canada, the US, the UK, Ireland, Hong Kong, the Philippines, Japan, Indonesia, India, China, Australia, Vietnam and Bermuda.
Khazanah Nasional operates as a strategic investment fund of the government of Malaysia entrusted to hold and manage the commercial assets of the government and to undertake strategic investments.
