A unit of Canadian insurer Sun Life Financial Inc SLF-T has partnered with Hong Kong-based Dah Sing Bank in a deal valued at nearly C$260-million ($193-million), the companies said on Friday.
Under terms of the partnership, Sun Life would pay to become the exclusive life insurance provider for Dah Sing Bank’s 570,000 retail customers, beginning July, the companies said.
The deal will bring in new customers for Sun Life and help the insurer expand its customer base in Hong Kong.
The Hong Kong government had lifted COVID-19 restrictions and reopened its borders with China early this month, opening the lucrative market for insurance sales.
Executives at the Canadian insurer told analysts in a post-earnings conference call last November that it experienced outflows in Asian markets in the third quarter, including Hong Kong, due to market volatility.
Sun Life-Asia President Ingrid Johnson added at the time that the market in Hong Kong “was very encouraging with the emergence of sales.”