Canada's Sun Life clinches $192 mln bancassurance deal with Dah Sing Bank (updated)

Dah Sing Banking

20/01/2023 02:31

(Adds details of COVID-19 curbs easing in Hong Kong and details
of companies' partnership from third paragraph)
       SINGAPORE, Jan 20 (Reuters) - Sun Life Financial Inc
 SLF.TO  has struck a 15-year bancassurance partnership in Hong
Kong with Dah Sing Bank  2356.HK , a move that is likely to
boost the Canadian insurer's presence in the special
administrative region of Hong Kong.
    "Sun Life will pay an amount of HK$1.5 billion ($191.5
million) for this exclusive arrangement, with ongoing variable
payments to Dah Sing Bank based on the success of the
partnership, both companies said in a joint statement on Friday.
    The deal comes at a time when Hong Kong is returning to
normalcy as authorities downgrade COVID-19's status to an
endemic disease from a severe respiratory disease, following a
similar move by China in January.
        China has reopened its borders, including with Hong
Kong, after nearly three years of COVID-19 closures and
restrictions.
        Under the bancassurance deal, Sun Life will exclusively
provide life insurance services to Dah Sing Bank's 570,000
retail banking customers.
        Sun Life said it had a 130-year history in Hong Kong,
catering to individual and group clients for life, health and
wealth products and services.
        The distribution of Sun Life products is expected to
start in July 2023 after the completion of regulatory processes
and approval, the companies said.
($1 = 7.8333 Hong Kong dollars)
 (Reporting by Anshuman Daga; Editing by Christopher Cushing and
Uttaresh.V)
 ((anshuman.daga@tr.com;))