NEW YORK--(BUSINESS WIRE)--Symetra Financial Corporation's (Symetra) acquisition by Sumitomo Life Insurance Company (Sumitomo) closed today, Feb. 1, 2016. Fitch Ratings is taking no rating action at this time.
In November of 2015, Fitch set Symetra's ratings to where they were expected to be upon close of the transaction; Symetra Life Insurance Company's (Symetra Life) Insurer Financial Strength (IFS) rating of 'A' was based upon its standalone profile and Symetra's Issuer Default Rating (IDR) of 'A-' reflected the narrow notching of the expected new ownership. Fitch currently rates both Sumitomo's IDR and IFS at 'A', with its IFS constrained due to Japan's sovereign rating. Since the transaction has closed as expected, no additional rating actions are necessary.
Sumitomo is one of the four major insurers in Japan, and the acquisition represents its first major overseas acquisition. The transaction expands Sumitomo's reach, with Symetra representing its US platform. Symetra's management team and headquarters will remain in Bellevue, Washington.
For further details regarding Fitch's rationale for its most recent rating action taken on Symetra, see the release published on Nov 11, 2015 (Fitch Downgrades Symetra Life's IFS to 'A' and Affirms Holdco's IDR at 'A-'; Outlook Stable). Going forward, Fitch expects Symetra's future rating movements will be highly influenced by the ratings of Sumitomo.
Additional information is available on www.fitchratings.com