Sun Life Financial to acquire stake in Grepalife Financial, Inc.MANILA, Philippines (February 17, 2011) -- Sun Life Financial is pleased to announce that it has entered into an agreement with GPL Holdings, Inc., a member of the Yuchengco Group of Companies to acquire 49% of Grepalife Financial, Inc., which will result in the creation of a restructured entity called Sun Life Grepa Financial, Inc. The new joint venture entity will allow Sun Life Financial Philippines to form a bancassurance relationship with the Yuchengco-owned Rizal Commercial Banking Corporation (RCBC) and provide quality protection products to the bank’s clients nationwide.3
Under the deal, Sun Life Grepa Financial will enter into an exclusive distribution agreement with RCBC, which will give rise to a line of insurance products that will be made available to RCBC’s two million strong customer base through its over 350 branches. The Yuchengco Group of Companies, through GPL Holdings Inc., will maintain 51% ownership of Sun Life Grepa Financial while Sun Life will have management control of the company.
“We’re extremely excited about this deal. Sun Life Philippines has a long history in the country and is already one of the leading players in the insurance industry. This alliance allows us to take advantage of the growing opportunity in the bancassurance sector and positions Sun Life Philippines for even greater growth,” says SLFP President & CEO Rizalina Mantaring. “The joint venture deal will not only benefit both parties but will also bring greater choice of insurance products to Filipinos.”
(L-R) Riza Mantaring, Sun Life Philippines President & CEO; Gov. Gabriel C. Singson, Chairman, Grepalife Financial, Inc.; Amb. Alfonso T. Yuchengco, Chairman, Yuchengco Group of Companies; Dikran Ohannessian, President, SLF Asia; Helen Y. Dee, Chairperson, RCBC; Steve Lorenz, Chairman, SLFP Holding Company; Lorenzo V. Tan, President, RCBC.
Sun Life Grepa Financial aims to become the exclusive provider of top-quality protection and wealth management products to RCBC’s customers across the Philippines.
“We are pleased to seal this partnership as this will position the Yuchengco Group’s financial services business for further growth as we will now be able to offer customers an even wider range of world class insurance products that will better serve their needs for protection and financial security,” said Grepalife President Victor Quisumbing. “With Sun Life Grepa Financial, we will surely introduce a more diverse product line that will cater to different market segments targeting specific ages, genders, paying capacities, risk appetites,” Quisumbing added.
Sun Life Grepa Financial deepens Sun Life’s presence in the Philippines, reaffirming its commitment to the country. The company will operate separately from Sun Life Financial Philippines. Sun Life Financial Philippines will continue to focus on helping customers achieve lifetime financial security, via its 3,000 advisors.
Both Sun Life Financial and RCBC have a track record of exceptional financial stability, and their combined strengths promises a bright future for Sun Life Grepa Financial. The Yuchengco Group of Companies is one of Southeast Asia’s largest conglomerates with over 60 corporations employing more than 22,000 people. Sun Life was established in the Philippines in 1895 and is the first, oldest and one of the most trusted insurers in the country.
The deal is subject to regulatory approval and is expected to close during the third quarter for 2011 and financial details of the transaction are not being disclosed.