Canada's Sun Life Financial and Malaysian state investor Khazanah have agreed to buy Aviva's Malaysian insurance joint venture with lender CIMB for about 1.7bn ringgit ($563m), sources said on Sunday.
The deal will help the Canadian company expand its Asian footprint, Reuters reported.
The consortium of Sun Life Financial Inc and Khazanah Nasional Bhd edged out rival Manulife Financial Corp to win the eight-month old auction, sources familiar with the sale process said.
Britain's No.2 insurer, Aviva, is exiting marginal markets across the world with the aim of boosting its underperforming share price, and the sale of its Malaysian unit is part of that overhaul. Last month, Aviva sold its U.S. business for $1.8 billion, its biggest-ever disposal.
The Malaysian deal is expected to be signed on Monday, the sources said.
Global insurers are showing increasing interest in Southeast Asia because of its rapid economic growth, high savings rates, and relatively young populations.
Malaysia is the third-biggest economy in the 10-member Association of Southeast Asian Nations and CIMB has 320 branches across the country through which it can sell insurance products.
Sun Life already has joint ventures with CIMB Group Holdings Bhd elsewhere in Asia.
A Sun Life spokeswoman did not offer an immediate comment. Aviva could not be reached for comment immediately. CIMB and Khazanah officials were not available for an immediate comment.
Aviva's sale of its Malaysian operations drew interest from Prudential Plc and AIA Group Ltd. AIA dropped out of the bidding last fall after making a successful bid for ING Groep NV's Malaysian operations.
