TORONTO — Sun Life Financial Inc. says it has struck a 15-year deal to be to the exclusive provider of insurance products for Hong Kong-based Dah Sing Bank Ltd.
The insurance giant says it will pay about $260 million for the arrangement, with ongoing variable payments to Dah Sing Bank based on the success of the partnership.
Toronto-based Sun Life says the deal between its subsidiary Sun Life Hong Kong Ltd. and Dah Sing will give its more than 2,500 insurance advisors the option to provide services to the bank's 570,000 retail customers.
Dah Sing Bank, a subsidiary of Dah Sing Banking Group, has over 40 branches in Hong Kong and assets of close to $41 billion at the end of 2021.
Sun Life says the deal with Dah Sing, expected to take effect in July, means it now has insurance partnerships with more than 20 banks in seven Asian markets.
The insurer reported declines in insurance and wealth sales in Hong Kong in its latest results amid ongoing COVID-19 restrictions that the government has since largely lifted.
This report by The Canadian Press was first published Jan. 20, 2023.
Companies in this story: (TSX:SLF)
The Canadian Press