Sun Life Hong Kong Limited (Sun Life HK) is to acquire the pension business of FWD Life Insurance Company (Bermuda) Limited (FWD), consisting of Mandatory Provident Fund (MPF) and Occupational Retirement Schemes Ordinance (ORSO) businesses.
Sun Life HK and FWD are also entering 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.
"Expanding our pension business is a key priority for our Asia operations and deepens our wealth business in the region," says Dean Connor (pictured), President and CEO, Sun Life Financial. "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."
The transactions announced today, together with Sun Life HK's acquisition of the MPF business of Schroder Investment Management (Hong Kong) Limited, will strengthen Sun Life HK's position as a leading MPF provider. These acquisitions will add HKD4.6 billion (CAD769 million) in MPF assets under management ("AUM"), and bring Sun Life HK's combined AUM to HKD34.7 billion (CAD5.8 billion).
"This partnership provides an excellent opportunity for us to expand our distribution network. It will further accelerate our already strong growth in the Hong Kong retirement market and follows our new strategic relationship with Schroder Investment Management," says Kevin Strain, President, Sun Life Financial Asia.
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. Financial terms of the transactions have not been disclosed
