Sun Life Financial has announced its Hong Kong division will acquire the pension business of FWD Life Insurance Company and will also enter into an exclusive 15-year distribution agreement that will allow Sun Life HK to distribute its pension products through FWD's agency force in Hong Kong.
Dean O’Connor, president and ceo of Sun Life Financial, says expanding their pension business is a key priority for the insurer’s Asia operations.
“With the growth expected in the MPF market to meet the needs of Hong Kong's ageing population, this is an attractive opportunity that fits with our global expertise in the pension market,” he says.
Strengthens Asian position
Sun Life says the transactions and its acquisition of the MPF business of Schroder Investment Management (Hong Kong) will strengthen its position as a leading MPF provider. The acquisitions add C$769 million in MPF assets under management and bring Sun Life HK’s combined assets under managed to C$5.8 billion.
Kevin Strain, president of Sun Life Financial Asia says the partnership provides an excellent opportunity for Sun Life to expand its distribution network and will accelerate its strong growth in the Hong Kong retirement market.
The transactions are expected to be completed in stages over the course of 2017 and 2018, subject to the receipt of regulatory approvals and satisfaction of customary closing conditions.