OKYO-Sumitomo Life Insurance coverage Co. stated Tuesday it has agreed to purchase U.S. life insurance coverage firm Symetra Monetary Corp. for $three.
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Under the terms of the deal, Symetra shareholders will receive $32 per share in cash at closing, plus a previously announced special dividend of $0.50 per share in cash.
Sumitomo Life, Japan’s fourth-largest life insurer by assets, was founded in 1907 and is headquartered in Tokyo and Osaka.
Sumitomo Life hopes to gain a foothold in the United States, the world’s biggest insurance market, to secure a stable source of revenue, as the graying Japanese market shrinks, the sources said Sunday.
With around $30bn worth assets, the company provides services to 1.7 million customers through a network of independent advisors, brokers and agents.
Dealmaking in the insurance sector has intensified as years of record-low interest rates have taken their toll on the margins of U.S. insurance companies and hurt their profits, making the industry more open to consolidation.
Insurers in Asia have been looking to the U.S.as growth slows at home.
Symetra’s President and Chief Executive Officer, Thomas Marra, and the current management team will continue to lead the business from the company’s headquarters in Bellevue.
Sumitomo Life has hitherto had only minimal overseas operations, consisting of minority stakes in insurance companies in China, Vietnam and Indonesia. White Mountains and Berkshire Hathaway, representing approximately 18 and 17 percent ownership of Symetra have agreed to vote in favor of the transaction.
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The Japanese company is negotiating to acquire Symetra as it looks for drivers for its overseas growth.
