Sun Life Financial Inc. is close to sealing an insurance partnership with Hong Kong banking group Dah Sing Financial Holdings Ltd., according to people familiar with the matter.
(Bloomberg) — Sun Life Financial Inc. is close to sealing an insurance partnership with Hong Kong banking group Dah Sing Financial Holdings Ltd., according to people familiar with the matter.
The Canadian insurer has emerged as the likeliest partner for Dah Sing after beating out rival bidders, the people said, asking not to be identified because the matter is private. The so-called bancassurance agreement could be valued at about $200 million, the people said.
Sun Life and Dah Sing are hammering out the details of a transaction that could be announced as early as this week, the people said. Representatives for Dah Sing and Sun Life declined to comment.
Dah Sing has been working with an adviser to pursue a bancassurance partnership after it terminated an agreement with Tahoe Life Insurance Co., Bloomberg News reported in August. Sun Life, Manulife Financial Corp. and closely-held FTLife Insurance Co. were among firms considering bids, people familiar with the matter have said.
A deal would give a boost to Sun Life’s presence in Hong Kong, where the government has lifted most of the Covid restrictions and reopened its borders with China. In November, Sun Life Chief Executive Officer Kevin Strain said insurance sales in Hong Kong may take longer to rebound than in other parts of Asia due to a slow return of visitors.
Dah Sing provides banking, insurance and other financial services in Hong Kong, Macau and mainland China, according to its website. In July, Japan’s Norinchukin Bank bought a stake of about 10% in Dah Sing from Mitsubishi UFJ Financial Group as part of a business tie-up. Shares of Dah Sing Financial have risen about 14% this year, valuing the firm at about $839 million.
“A bancassurance partnership with Dah Sing is compelling because of its growth potential in Macau,” Bloomberg Intelligence analyst Steven Lam wrote in a September report.
Read More: Dah Sing’s HK, Macau Networks Likely to Draw Life Insurers’ Bids
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.