SINGAPORE (Reuters) -Sun Life Financial Inc has struck a 15-year bancassurance partnership in Hong Kong with Dah Sing Bank, a move that is likely to boost the Canadian insurer's presence in the special administrative region of Hong Kong.
"Sun Life will pay an amount of HK$1.5 billion ($191.5 million) for this exclusive arrangement, with ongoing variable payments to Dah Sing Bank based on the success of the partnership, both companies said in a joint statement on Friday.
The deal comes at a time when Hong Kong is returning to normalcy as authorities downgrade COVID-19's status to an endemic disease from a severe respiratory disease, following a similar move by China in January.
China has reopened its borders, including with Hong Kong, after nearly three years of COVID-19 closures and restrictions.
Under the bancassurance deal, Sun Life will exclusively provide life insurance services to Dah Sing Bank's 570,000 retail banking customers.
Sun Life said it had a 130-year history in Hong Kong, catering to individual and group clients for life, health and wealth products and services.
The distribution of Sun Life products is expected to start in July 2023 after the completion of regulatory processes and approval, the companies said.
($1 = 7.8333 Hong Kong dollars)