Sumitomo Life considering acquisitions in southeast Asia and U.S.
The insurer is seeking to expand and diversify its income while countering demographic pressures at home.
Sumitomo Life Insurance, a Japanese insurer, is exploring potential acquisitions in Southeast Asia and the United States in order to expand and diversify its income sources. President Yukinori Takada, speaking via translator, stated that the shrinking population in Japan makes it difficult for the company to rely on domestic growth. He emphasized the importance of diversifying and investing in growth engines.
Sumitomo Life and its Japanese counterparts are pursuing overseas expansion to counteract demographic challenges at home. The company has set aside up to ¥1 trillion ($6.3 billion) for investments under its midterm plan, which extends until March 2029. Takada indicated that the company will utilize its Singapore Life Holdings and U.S.-based Symetra Financial subsidiaries to search for acquisition targets in Southeast Asia and the U.S.
In Southeast Asia, Sumitomo Life already holds minority stakes in Indonesia and Vietnam, and is interested in further expanding its presence in Singapore as well as countries such as Thailand, Malaysia, and the Philippines. The Singapore market still holds growth potential, according to Takada, with Income Insurance being one of the potential targets. In the United States, the Japanese insurer would prefer companies that complement Symetra's business rather than duplicating its offerings.
Regarding India, Takada mentioned that Sumitomo Life is currently evaluating the market, but is aware of the regulatory and cultural obstacles present there. The company, founded in 1907 and headquartered in Osaka, had assets of $322.6 billion as of March 31, 2023.
Written by urgent.news from Japan Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
