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AKARTA: Malaysian financial group CIMB has announced a decision to divest its 51 percent share in Indonesian life insurance firm CIMB Sun Life to readjust its business focus.

Through its subsidiary, CIMB Group Holdings Berhad signed Wednesday a conditional sale and purchase agreement on a divestment of the 51 percent share, worth Rp 550 billion (US$41.8 million) it owned in CIMB Sun Life.

CIMB Group controlled 51 percent of shares in CIMB Sun Life through CIG Berhad (47.24 percent) and its Indonesian lender subsidiary CIMB Niaga (3.76 percent), while the rest were owned by Canadian insurance giant Sun Life Assurance Company.

Under the agreement, Sun Life Assurance Company will conduct either a direct or non-direct purchase of the shares from CIMB Group.

CIMB Group CEO Tengku Dato'€™ Sri Zafrul Aziz said the divestment was part of the group'€™s recalibration efforts in consolidating its business and optimizing its resources.

Aziz said the strategy to trim its insurance portfolio as non-core business was essential to help the group as it aimed to become the leading universal bank in ASEAN.

Meanwhile, CIMB Niaga president director Tigor M. Siahaan said the alliance in bancassurance with Sun Life was synergic as the lender would still be able to continue offering Sun Life'€™s products through its 618 branches nationwide.