Sun Life Financial (SLF) and China Everbright Group will become Sun Life Everbright Life Insurance Company Ltd. in an effort to grab more of the growing life insurance and financial services market in China.
Sun Life Financial Inc. [[SLF]] announced today that it has entered into an agreement with the China Everbright Group to reposition Sun Life Everbright Life Insurance Company Limited to capture a larger share of China’s growing financial services sector. The restructuring, which is subject to regulatory approval, is anticipated to take effect by the end of this year.
Sun Life and China Everbright have agreed to introduce strategic investors to Sun Life Everbright, which will more than double its registered capital to approximately CDN$500 million (RMB 3 billion). The banking and securities operations of China Everbright will become more important marketing and distribution channels for the products and services of Sun Life Everbright, thereby providing greater reach to customers across China. The company will continue under the Sun Life Everbright name.
Sun Life, which will have a 20% interest in the restructured and repositioned company, will continue to provide its international risk management and actuarial expertise and standards to Sun Life Everbright. Sun Life and China Everbright are also seeking opportunities to enhance their partnership by expanding into other financial services.
“This strategic restructuring is in the best long-term interest of our shareholders and secures our participation in the tremendous growth and promise of China’s life insurance and broader financial services market,” said Donald A. Stewart, Chief Executive Officer, Sun Life Financial. “We are maintaining a meaningful, strategic interest in one of China’s top financial services companies and affirming our long-term commitment to China.”
“This important agreement strengthens the strategic partnership between Sun Life and China Everbright,” said China Everbright Group Chairman Tang Shuangning. “It will advance mutual support and the common interests of both companies to grow, to serve Chinese consumers, and to achieve a larger share of the Chinese domestic protection market.”
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