Japan’s Sumitomo Life will acquire Symetra Financial Corporation for $3.8 billion, a 32% premium over Symetra's average stock price of $24.64 for the 30 days ending August 5, 2015.
“We are enthusiastic about the opportunity to acquire Symetra’s dynamic business and believe that a transaction will be mutually beneficial and will create significant value for both Symetra and Sumitomo Life,” said Masahiro Hashimoto, president and CEO of Sumitomo Life Insurance Company. “We are confident that this transaction will further enhance our financial and earnings foundation by expanding the size of overseas revenues, diversifying the revenue base and thereby enabling us to build a well-balanced overseas business portfolio across Asia and the United States.”
The move by Sumitomo signals that Asian insurance companies are looking beyond their own mature markets for growth.
Sumitomo Life, founded in 1907 and headquartered in Tokyo and Osaka, Japan, is a leading life insurer in Japan with multi-channel, multi-product life insurance businesses. Sumitomo Life has $229 billion in assets, approximately 6.8 million customers and 42,000 employees.
Symetra is based in Seattle and provides employee benefits, annuities and life insurance through a national network of benefits consultants, financial institutions and independent agents and advisors. It has $34 billion in assets, approximately 1.7 million customers, and 1,400 employees nationwide.
Symetra’s largest shareholders, White Mountains and Berkshire Hathaway, representing approximately 18% and 17% ownership of common shares, respectively, have agreed to vote in favor of the transaction.
“Tom and his management team have done a good job running the company and have executed a great deal for shareholders,” said Warren Buffett, Berkshire Hathaway chairman and CEO. “I wish them the best for future success under their new owners.”
