Hong Kong Stock Exchange-listed company Dah Sing Bank and Sun Life have signed a 15-year bancassurance partnership in Hong Kong.
Under the partnership, Sun Life will be the exclusive provider of life insurance solutions to Dah Sing Bank’s 570,000 retail banking customers.
Following the completion of regulatory processes and approvals, distribution of Sun Life products is set to start in July 2023.
Sun Life will pay an amount of HK$1.5bn (£154m, $191m, €175m) for the arrangement, with ongoing variable payments to Dah Sing Bank based on the success of the partnership.
This is Sun Life’s first exclusive bancassurance partnership in Hong Kong.
‘Natural next step’
Ingrid Johnson, president of Sun Life Asia, said: “We now have more than 20 quality bancassurance partnerships in seven markets across Asia as we expand our reach with world-class solutions and partners who share our commitment to place clients at the centre of everything we do.
“We look forward to forging a formidable partnership with Dah Sing Bank as together we help even more clients achieve lifetime financial security and live healthier lives.”
Clement Lam, chief executive at Sun Life Hong Kong, said: “This partnership is a natural next step for our business and enhances our distribution capabilities. Sun Life and Dah Sing Bank share a long history in Hong Kong and a deep knowledge of the needs of our clients.
“Together, we are committed to designing the best products and digital solutions for clients and providing them with simple, fast, and enjoyable experiences at every touchpoint. We look forward to partnering with Dah Sing Bank to help clients of all ages and stages of life achieve their goals.”