Sun Life, CIMB merge life-insurance businesses in Indonesia
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Life insurer Sun Life Financial Indonesia has officially integrated with Malaysia’s financial group CIMB subsidiary CIMB Sun Life following the Rp 550 billion (US$41.8 million) acquisition of 51 percent shares in CIMB Sun Life.
Sun Life Financial Indonesia president director Elin Waty said the acquisition, conducted between April and June, was in line with the government’s single presence policy. In the corporate action, Sun Life is now the surviving entity.
“We warmly welcome CIMB Sun Life’s employees and look forward to working together as a unified business with an even greater ability to serve our clients […] It is also in line with Sun Life Indonesia’s vision to assist people to increase their welfare,” she said in Jakarta on Thursday.
Sun Life Financial Asia president Kevin Strain added that the acquisition also represented the company’s effort to strengthen its platform across the Asian market.
“The life insurance sector in Indonesia has enormous potential and is a priority market for our long-term growth in Asia,” he said.
Strain further said the merger would strengthen Sun Life Financial’s commitment to invest US$40 million to increase its online penetration and strengthen its brand presence in Indonesia.
Questions & Answers
Q.What was the financial value of Sun Life's acquisition of CIMB Sun Life?
What was the financial value of Sun Life's acquisition of CIMB Sun Life?
Sun Life acquired 51 percent of shares in CIMB Sun Life for Rp 550 billion, which is equivalent to US$41.8 million. This acquisition enabled the integration of their life-insurance businesses in Indonesia.
Q.Why did Sun Life Financial Indonesia undertake this acquisition?
Why did Sun Life Financial Indonesia undertake this acquisition?
President director Elin Waty stated the acquisition aligns with the government’s single presence policy. It also supports Sun Life Indonesia’s vision to help people increase their welfare and unify the business for clients.
Q.What is Sun Life Financial's broader strategic goal in Asia with this merger?
What is Sun Life Financial's broader strategic goal in Asia with this merger?
Sun Life Financial Asia president Kevin Strain said the acquisition strengthens their platform across the Asian market. He views Indonesia's life insurance sector as having enormous potential and being a priority for long-term growth in the region.
Q.What future investments will Sun Life Financial make in Indonesia after this merger?
What future investments will Sun Life Financial make in Indonesia after this merger?
Kevin Strain indicated that the merger reinforces Sun Life Financial’s commitment to invest US$40 million. This investment aims to increase their online penetration and strengthen their brand presence within Indonesia's market.
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