A.M. Best Comments on Ratings of Symetra Financial Corporation and Its Subsidiaries Following Acquisition Announcement
August 13, 2015 by Best's News Service
Oldwick – A.M. Best has commented that the issuer credit rating (ICR) of “bbb+” of Symetra Financial Corporation(Symetra) (headquartered in Bellevue, WA) [NYSE: SYA], as well as the financial strength rating of A (Excellent) and the ICRs of “a+” of the two domestic life/health insurance subsidiaries of Symetra: Symetra Life Insurance Company (headquartered in Bellevue, WA) and its subsidiary, First Symetra National Life Insurance Company of New York (New York, NY), are unchanged following the announcement that Sumitomo Life Insurance Company(Sumitomo Life) has entered into a definitive merger agreement with Symetra pursuant to which it will acquire all of Symetra’s outstanding shares.
The total combined transaction consideration of $32.50 per share, which includes a special dividend of $0.50 per share payable Aug. 28, 2015, is approximately $3.8 billion in aggregate and represents a 32% premium over Symetra’s average stock price of $24.64 for the 30 days ending Aug. 5, 2015. As a result of the acquisition, Symetra will become Sumitomo Life’s platform in the United States where it will continue to be led by the current management team from its existing headquarters location in Bellevue, WA. The transaction is subject to customary closing conditions, including regulatory approval, and is expected to close late in the first quarter of 2016 or early in the second quarter. The current ratings of Symetra and its subsidiaries will be re-evaluated if Symetra’s risk-adjusted capitalization or financial leverage ratios change materially, the transaction fails to close as anticipated or if the ratings (from other rating agencies) of Sumitomo Life change as a result of this transaction.
Symetra is a leading provider of employee benefits, annuities and life insurance through a national network of financial institutions, benefit consultants and independent advisors and agents. 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 provides traditional mortality life insurance, nursing care, medical care and retirement plans through sales representatives, insurance outlets, the Internet and bancassurance.
This press release relates to rating(s) that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please visit A.M. Best’s Ratings & Criteria Center.
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