Sun Life Hong Kong Limited, a subsidiary of Sun Life Financial Inc., announced January 20 that it has entered into an exclusive 15-year bancassurance partnership in Hong Kong with Dah Sing Bank Limited.
Under the terms of the agreement, Sun Life will pay approximately $260-million to be the exclusive provider of life insurance solutions to the bank’s 570,000 retail banking customers. It will also make ongoing, variable payments to the bank based on the success of the partnership.
The company’s first exclusive bancassurance partnership in Hong Kong, the agreement is designed to give the bank’s customers choice while also giving Sun Life access to the bank’s wealth management franchise across 40 branches in the region.
Founded more than 75 years ago, Dah Sing Bank employes close to 2,400 staff in Hong Kong. The bank’s total assets were close to $41-billion at the end of the 2021. The bank is also a wholly-owned subsidiary of Dah Sing Banking Group Limited, which is listed on the Hong Kong Stock Exchange.
According to Sun Life, the company currently has more than 20 bancassurance partnerships in seven markets across Asia. “Hong Kong is a thriving insurance hub in Asia and bancassurance is a key distribution channel, accounting for more than 50 per cent of the life insurance mix,” Sun Life states in its announcement about the deal.
“Sun Life and Dah Sing Bank share a long history in Hong Kong and a deep knowledge of the needs of our clients,” says Clement Lam, Sun Life Hong Kong CEO. “This partnership is a natural next step for our business and enhances our distribution capabilities.”
