Canada’s Sun Life signs $192 million Bancassurance Deal with Dah Sing Bank

SINGAPORE, (Reuters) -Sun Life Financial Inc and Dah Sing Bank have entered into a 15 year bancassurance partnership in Hong Kong. This will help to grow the Canadian insurer’s presence in this special administrative region.

Sun Life will pay HK$1.5 billion ($191.5m) for this exclusive arrangement. Dah Sing Bank will continue to receive variable payments based on the success and future growth of the partnership, the companies stated in a joint statement.

This deal comes as Hong Kong returns to normalcy after authorities downgrade COVID-19 to an endemic illness from a severe lung disease.

After nearly three years of COVID-19 restrictions and closures, China has reopened its borders to Hong Kong.

Sun Life will be the exclusive provider of life insurance services to Dah Sing Bank’s 570,000 retail banking customers under the bancassurance agreement.

Sun Life claimed that it has a 130 year history in Hong Kong catering to individual and collective clients for life and wealth products.

After the approval of regulatory processes, distribution of Sun Life products will begin in July 2023, according to the companies.

($1 = 7.8333 Hong Kong dollars)

(Reporting by Anshuman Daaga; Editing done by Christopher Cushing, Uttaresh.V).