Japanese insurer Sumitomo Life has agreed to acquire US life insurer Symetra Financial for $3.7 billion.
The purchase price represents a 32.4 percent premium to Symetra’s daily average share price for the one-month period prior to August 6, 2015.
The acquisition is part of Sumitomo Life’s plans to build its overseas operations and expand into the US.
Upon completion of the deal, which is expected to be finalised late in the first quarter or early in the second quarter of 2016, Symetra will become a wholly-owned subsidiary of the Sumitomo.
“The company is confident that the acquisition will further enhance its financial and earnings foundation as it will expand the size of overseas revenues, leading to diversifying the revenue base, and enabling the company to build a well-balanced overseas business portfolio across Asia and the US,” said Sumitomo.