Talks are under way for a massive overseas insurance deal involving one of the key players in the UK insurance market.
Sun Life of Canada is among the largest life insurers in the UK and now looks set to expand its footprint across Asia with banking sources reporting to Reuters that it is in talks with Malaysian sovereign wealth fund Khazanah Nasional to buy out Hong Leong Financial Group.
The deal is valued at three billion ringgit (approximately £570 million) and would allow the insurer to stamp its authority on the Asian markets while also offering Khazanah a foothold in the insurance sector.
According to the report, Khazanah and Sun Life are considering a joint offer for Hong Leong’s 70% stake in Hong Leong Assurance Berhad, as well as its 65% stake in Islamic insurer Hong Leong MSIG
Takaful Berhad. The remaining stakes in both companies are held by Mitsui Sumitomo Insurance Company
Sources suggested that the talks are at an early stage with both Khazanah and Sun Life declining to comment to Reuters.
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