Both Sun Life and Khazanah have each acquired 49% of the company from Aviva International Holdings Limited and CIMB Group Holdings Berhad (CIMB Group), respectively, with CIMB Group retaining a 2% share in the company.
According to Sun Life, the transaction will include 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.
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Sun Life said that Ooi Say Teng will lead the company and will be named CEO of CIMB Aviva Assurance Berhad. Teng has more than 30 years of experience in the Malaysian insurance industry, most recently served as head of CIMB Group Insurance for CIMB Bank. The company will be re-branded once regulatory approval for a new name is received.
Commenting on the acquisition, Sun Life Financial Asia president, Kevin Strain, said: "This new company will be driven by the desire to help our customers in Malaysia achieve long-term financial security. We have very strong partners in Khazanah and CIMB and we believe that the combination of Sun Life’s insurance expertise, Khazanah’s excellent track record of strategic management and CIMB’s broad distribution platform will position the Company for success."
Khazanah managing director, Tan Sri Dato’ Azman bin Hj Mokhtar, said: "We are delighted with the completion of this important transaction. The underlying insurance business is intended to be carried out in a manner that will reflect long-term partnerships with customers and in helping them achieve financial security in a responsible manner."
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