(Bloomberg) — Sumitomo Life Insurance Co. agreed to buy Symetra Financial Corp. for about $3.8 billion as the Japanese company seeks to expand in the U.S.
Symetra investors will receive $32 per share in cash plus a special dividend of 50 cents a share, Bellevue, Washington-based Symetra said Tuesday in a statement. Symetra closed at $24.47 in New York on Aug. 6, the day before Reuters reported that it was exploring a potential sale. The higher price benefits Symetra investors including Warren Buffett's Berkshire Hathaway Inc.
Insurers in Asia have been looking to the U.S. as growth slows at home. Tokio Marine Holdings Inc. agreed in June to buy Houston-based HCC Insurance Holdings Inc. for around $7.5 billion, and Dai-ichi Life Insurance Co. struck a deal last year to acquire Protective Life Corp. for more than $5 billion.
"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.
The deal is expected to be completed by early in the second quarter of 2016 and Symetra's management team will continue to lead the business in the U.S.
