Commonwealth Bank announces divestment of Hong Kong insurance business
6 July 2005
The Commonwealth Bank of Australia advises that it has entered into an agreement to sell its Hong Kong based life insurance, pensions administration and financial planning businesses to Sun Life Financial for a price of approximately A$600 million. These businesses constitute CMG Asia, CommServe and Financial Solutions. The transaction, targeted for completion within three months, is subject to regulatory approvals.
The Commonwealth Bank was approached by Sun Life Financial which was seeking to expand its market presence in Asia. Both parties are working together to deliver a smooth transition.
With the exception of around twenty employees who will be redeployed by the Commonwealth Bank to assist with the development of the Bank’s other businesses in the region, the staff and sales force will move with the business.
Sun Life Financial has operated in Hong Kong for more than a century and has ambitions to expand its life insurance operations in Asia.
The Commonwealth Bank will retain its banking and funds management businesses in Hong Kong together with its joint venture with the Cheung Kong Group. Following recent investments in Jinan City Commercial Bank and Hangzhou City Commercial Bank, the Bank remains committed to the development of its strategic initiatives in Asia.
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About the Commonwealth Bank
The Commonwealth Bank is one of Australia’s leading providers of integrated financial services covering retail, business and institutional banking, funds management, superannuation, insurance, investment and broking services. The Bank has the largest retail banking customer base in Australia with leading domestic market shares in home loans, personal loans, retail deposits and discount stockbroking, and is Australia’s largest issuer of credit cards. The Bank is the leading manager of retail superannuation, allocated pensions and annuities by fund under management in Australia. The Bank has a retail presence in key countries in the Asia-Pacific region, and a global markets presence in the world’s major cities. It is one of the largest listed companies on the Australian Stock Exchange and is included in the Morgan Stanley Capital Global Index.
About Sun Life Financial
Sun Life Financial (Hong Kong) Limited is a member of the Sun Life Financial group of companies. Sun Life Financial is a leading international financial services organisation providing a diverse range of wealth accumulation and protection products and services to individuals and corporate customers. Tracing its roots back to 1865, Sun Life Financial and its partners today have operations in key markets worldwide, including Canada, the United States, the United Kingdom, Hong Kong, the Philippines, Japan, Indonesia, India, China and Bermuda. As of March 31, 2005, the Sun Life Financial group of companies had total assets under management of CDN$366 billion.
Sun Life Financial Inc. trades on the Toronto (TSX), New York (NYSE) and Philippine (PSE) stock exchanges under ticker symbol SLF.