Japan’s Sumitomo Life in talks to buy US insurer Symetra – Nikkei

Japan’s life insurance market, the world’s second-largest, has been relatively profitable and stable but its weak growth prospects amid a rapidly ageing population have prompted major domestically focused players to look overseas.

Shares of Symetra were up 6.7 percent in premarket trading.

Japan’s Sumitomo Life Insurance Co is in talks to buy U.S. life insurer Symetra Financial Corp, the Nikkei business daily reported on Sunday.

Sumitomo Life, Japan’s fourth-largest life insurer by assets, was founded in 1907 and is headquartered in Tokyo and Osaka.

Symetra’s management is expected to remain after the acquisition.

Based in Bellevue of Washington, Symetra provides retirement, employee benefits, and life insurance products. 73 billion, the newest giant acquisition within the U.S.by a Japanese life insurer. The corporate had complete belongings of $34 billion as of June 30, and it posted internet revenue of $254 million in 2014.

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. Berkshire, which holds a 17 percent stake, and White Mountains, with 18 percent, agreed to vote in favor of the deal, according to Tuesday’s statement.

“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”, Sumitomo Chief Executive Officer Masahiro Hashimoto said in the statement.