Toronto-based Sun Life Financial Inc. is expanding its presence in Asia by increasing its ownership stake in Mumbai-based Birla Sun Life Insurance Co. Ltd. (BSLI), a part of Aditya Birla Group (ABG).
Sun Life will own 49% of BSLI, an increase from 26%, through the acquisition of additional BSLI shares from Aditya Birla Nuvo Ltd. for approximately $340 million, according Sun Life’s announcement on Wednesday.
“Increasing our ownership position in BSLI, one of India’s leading private life insurers, in partnership with a well-respected partner in Aditya Birla Group, in the world’s second most populous country with strong growth prospects, is exactly on strategy and supports our aspirations for Sun Life Asia as one of our four pillars of growth,” says Dean Connor, Sun Life’s president and CEO, in a statement.
Adds Kevin Strain, president of Sun Life Asia, in a statement: “Today’s announcement builds upon our recently announced investment in Vietnam, which will see us become a majority shareholder of our business there. Across Asia, we are building strong distribution and product strength to help clients achieve lifetime financial security.”
BSLI is one of two joint ventures between Sun Life and ABG in India. BSLI was established in 2001 and has a network of more than 55,000 advisors in 489 branches and a customer base of 1.6 million individual policyholders.
The acquisition is expected to add 1¢ a share to Sun Life’s earnings in 2016 and is expected to close by the end of the first quarter of 2016. The transaction is subject to regulatory approvals and customary closing conditions.
Sun Life also owns 49% of Birla Sun Life Asset Management Co. Ltd., which is the fourth-largest mutual fund company in India with assets under management of approximately $28 billion. The ownership of this asset manager is Sun Life’s second joint venture with ABG.