Canada's Sun Life and Malaysia's Khazanah to buy Aviva's Malaysian insurance JV for $594 mn

Toronto-based Sun Life Financial Inc and Malaysia's sovereign wealth fund Khazanah Nasional Bhd today agreed to buy the Malaysian insurance joint venture between UK's second-largest insurer Aviva Plc and lender CIMB Group.

Sun Life and Khazanah will buy 49-per cent each in CIMB Aviva Assurance Berhad and Islamic insurer CIMB Aviva Takaful Berhad for a combined payment C$586 million ($594 million), shared equally. CIMB will retain a 2-per cent stake.

Sun Life and Khazanah already own a 29.9-per cent stake in CIMB.

CIMB-Aviva operate one of Malaysia's leading bancassurance platforms offering conventional Life, Takaful Life and Takaful General insurance products through its exclusive distribution agreement with CIMB Bank.

Aviva has held a 49-per cent stake in CIMB-Aviva since forming the joint-venture with CIMB in 2007.

The deal includes a new 20-year exclusive bancassurance agreement with CIMB Bank.