The sale is the latest expansion by Saham Finances in Africa after its buyout of a 40% stake in Nigeria’s Unitrust Insurance, Rwanda's Corar and Angola’s AG Seguros over the past three years.
Saham Finances is owned by Groupe Saham, founded in 1995 by Morocco’s trade and industry minister Moulay Hafid Elalamy, which controls one of the country’s largest insurer CNIA Saada.
Saham has subsidiaries in 26 African countries through its two units Colina and Mercantile.
The company's statement said acquiring Sun Insurance will allow Saham Finances to consolidate its development in East Africa, including Kenya, Rwanda and Madagascar.
Saham Finances said Mauritius has 25 insurance companies with $700m (£535m, €624m) of written premiums and promising growth potential.