Acquisition significantly strengthens Sun Life Financial’s Hong Kong operations
Toronto, ON (October 18, 2005) – Sun Life Financial (NYSE/TSX: “SLF”) today announced that it has completed the acquisition of CMG Asia and CommServe Financial, the Hong Kong insurance and pension operations of the Commonwealth Bank of Australia. The transaction, previously announced on July 5, 2005, has been approved by regulatory authorities in Hong Kong and the Office of the Superintendent of Financial Institutions in Canada.
The acquisition has significantly strengthened Sun Life Financial’s presence in Hong Kong by boosting its sales force to approximately 1,700 agents, tripling its customer base to 350,000, and expanding its operations to include new group insurance and pension businesses. Sun Life Financial Hong Kong has now been firmly established as one of the top 10 insurance providers in this vital market.
“This strategic acquisition significantly strengthens the position of Sun Life Financial in Hong Kong and provides a platform for increased growth throughout Asia,” said Donald A. Stewart, Chief Executive Officer, Sun Life Financial. “Asia represents a long-term engine of growth for Sun Life Financial, and this acquisition reflects our continued focus on building a sustainable presence in our key markets internationally.”
The CDN$560 million transaction was financed with existing cash resources and will be accretive to earnings per share and return on equity.
About Sun Life Financial
Sun Life Financial is a leading international financial services organization providing a diverse range of wealth accumulation and protection products and services to individuals and corporate customers. Chartered in 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 June 30, 2005, the Sun Life Financial group of companies had total assets under management of CDN$377 billion. Sun Life Financial Inc. trades on the Toronto (TSX), New York (NYSE) and Philippine (PSE) stock exchanges under ticker symbol SLF. (www.sunlife.com)