CIMB Group, the Malaysian financial services group, has sold its local life insurance and takaful businesses to Khazanah Nasional Berhad.

The transaction, valued at around MYR1.1 billion ($365 million), involves the sale of CIMB Aviva Assurance Berhad and CIMB Aviva Takaful Berhad to be paid by a cash component of MYR1.07 billion, as well as shares worth MYR43.5 million in a new insurance firm wholly-owned by Khazanah named Renggis Ventures. CIMB will then maintain an effective 2 per cent in two companies.

As part of the deal, Khazanah signed a strategic partnership with Canada's Sun Life Financial, which allows the two former CIMB units the exclusive right to distribute Sun Life's insurance products. CIMB's Malaysian network covers 312 branches and some 8 million customers. As of 31 December 2012, the Group records at least 1,100 branches in the ASEAN region.

The sale is part of CIMB's goal to focus on its bancassurance and wealth management propositions and raise capital for future growth plans, the firm said in a statement.

The deal is still subject to regulatory approvals.