KUALA LUMPUR (Nov 4): Hong Leong Financial Group Bhd (HLFG), which was in talks with certain "approved negotiating parties" for the sale of its insurance business, announced today that negotiations have broken off.

"Further to our announcement dated June 30, 2016, we wish to inform that Hong Leong Financial Group Bhd and HLA Holdings Sdn Bhd could not reach an acceptable commercial agreement with the BNM-approved negotiating parties and have mutually agreed to cease negotiations," it told Bursa Malaysia today.

News reports, citing sources, had previously named Canada's Sun Life Financial Inc and Malaysian sovereign wealth fund Khazanah Nasional as interested parties.

The deal was reportedly valued at about RM3 billion and would allow the Canadian firm to expand further into growing Asian markets, while enabling Khazanah to get a strong foothold in the insurance business.

In HLFG's June 30 announcement, it said it would be commencing negotiations with "certain parties" for the possible disposal of HLA Holdings' equity interest in Hong Leong Assurance Bhd and Hong Leong MSIG Takaful Bhd, subject to the negotiations being concluded within six months from June 23.

It had made the announcement after securing BNM's go ahead for commencement of negotiations.

HLA Holdings own 70% in HLA and 65% in HLMT. The remaining interests in both companies are held by Japan's Mitsui Sumitomo Insurance Co.

HLFG's shares slipped 4 sen or 0.26% at Bursa Malaysia today, to settle at RM15.44, valuing the group at RM17.66 billion.