Symetra, Now Part of Sumitomo Life, Reports Lower Fourth-Quarter Net Income
February 26, 2016 by Dennis Gorski, managing editor-online, BestWeek: Dennis.Gorski@ambest.com
BELLEVUE, Wash. – Insurance and annuities carrier Symetra Financial Corp. reported fourth-quarter net income of $57.2 million, a decrease from $67.6 million.
The company said net income was affected by after-tax realized losses of $3.3 million, compared with after-tax realized gains of $6.9 million in the fourth quarter of 2014.
Total revenue for quarter four decreased to $573.5 million from $580.8 million. Quarterly benefits sales dropped by over half, to $15.4 million against $33.9 million.
Sales of fixed income annuities, income annuities and individual life products, however, all rose compared with a year ago.
For the full year 2015, Symetra had net income of $146.8 million, compared with $254.4 million in 2014.
On Feb. 1, Symetra became a wholly owned subsidiary of Sumitomo Life Insurance Co., based in Osaka, Japan. The $3.76 billion transaction converted each share of Symetra stock into a cash payment of $32 (Best’s News Service, Jan. 26, 2016).
Sumitomo provides traditional mortality life insurance, nursing care, medical care and retirement plans and has $229 billion in assets, according to BestLink.
The operating insurance units of Symetra Financial Corp. have a current Best’s Financial Strength Rating of A (Excellent).