The firm will buy the remaining 51% stake in CSL from its long term bancassurance partner CIMB Group.
SLF, which currently owns another life insurer PT Sun Life Financial Indonesia (SLF Indonesia), plans to merge CSL's business with SLF Indonesia under the Sun Life Brand – which would comply with Indonesia’s 'single presence' policy.
Subject to regulatory approval, the transaction is expected to close by the end of September.
Kevin Strain, president of SLF Asia, said: “This is an exciting opportunity to deepen and enhance our business in Indonesia, a priority market for our long-term growth in Asia.
“We had anticipated and positioned ourselves well to meet the ‘single presence’ policy, and uniting the businesses in SLF Indonesia will give us even greater ability to serve our customers.”