Sun Life,Khazanah to buy Aviva/CIMB Malaysia insurance biz for $563mln-sources

HONG KONG/SINGAPORE Sun Jan 13, 2013 3:52am EST

HONG KONG/SINGAPORE Jan 13 (Reuters) - A consortium of Canada's Sun Life Financial Inc and Malaysian state investor Khazanah Nasional Bhd has agreed to buy British insurer Aviva plc's Malaysian insurance joint venture with CIMB Group for about 1.7 billion ringgit ($563 million), sources said on Sunday, helping the Canadian company to expand its Asian foot print.

Sun Life Financial Inc and Khazanah edged out rival Manulife Financial Corp to win the eight-month old auction, sources familiar with the sale process said.

Britain's No.2 insurer Aviva is exiting from marginal markets across the world and the sale of Malaysian unit is part of that overhaul. Last month, Aviva sold its U.S. business for $1.8 billion, its biggest disposal, aimed at boosting its underperforming share price.

The deal is expected to be signed on Monday, the sources added.

A Sun Life spokeswoman did not offer an immediate comment. Aviva could not be reached for a comment immediately. CIMB and Khazanah officials were not available for an immediate comment.

FILED UNDER:
A couple walks along the rough surf during sunset at Oahu's North Shore, December 26, 2013. REUTERS/Kevin Lamarque

Find your dream retirement town

Florida? Hawaii? Reuters has teamed up with Zillow to give you the power to customize a list of your best places to retire.  Video | Full Article