Sumitomo Life’s US$3.76 Billion Acquisition of Symetra to Close on Feb. 1
January 27, 2016 by Marie Suszynski, Best’s News Service correspondent: news@ambest.com
BELLEVUE, Wash. – Japanese mutual life insurer Sumitomo Life Insurance Co. has received all U.S. and Japanese regulatory approvals to acquire U.S. stop-loss insurer Symetra Financial Corp., with the deal expected to close Feb. 1.
At closing, each outstanding share of Symetra common stock will be converted into the right to receive $32 in cash, without interest and less any applicable withholding taxes, Symetra said in a statement.
Sumitomo announced in August 2015 it would acquire Symetra for US$3.76 billion. Under the agreement, Symetra will become a wholly owned subsidiary of Sumitomo and continue to operate from Bellevue, Washington (Best’s News Service, Aug. 11, 2015).
Earlier this month, Iowa Insurance Commissioner Nick Gerhart said in a statement the acquisition “is not likely to be hazardous or prejudicial to the insurance-buying public of the State of Iowa (Best’s News Service Jan. 7, 2016).
Symetra Life Insurance Co. was redomesticated from Washington to Iowa in 2014 and offers medical and group medical excess-loss insurance products, individual and group life insurance, deferred annuities and other retirement products in all states, including the District of Columbia, except New York, according to BestLink.
First Symetra National Life Insurance Company of New York offers fixed deferred annuity, medical stop-loss and universal life insurance lines of business within New York, BestLink said.
Based in Tokyo and Osaka, Japan and with $229 billion in assets, Sumitomo provides traditional mortality life insurance, nursing care, medical care and retirement plans.
Units of Symetra have a current Best’s Financial Strength Rating of A (Excellent).
