Sumitomo Life targets acquisitions in South-east Asia, US

Sumitomo Life Insurance is actively searching for acquisitions in Southeast Asia and the United States as it aims to expand and diversify its income, according to its president Yukinori Takada. Takada stated that Japan's shrinking population makes it challenging to reap growth there, and the company believes in diversifying and investing in growth engines.

Sumitomo Life and its Japanese counterparts are venturing overseas to counteract domestic demographic pressures. Meiji Yasuda Life Insurance recently acquired Legal & General America for $2.3 billion, while Nippon Life Insurance bought Resolution Life Group Holdings and integrated its Australian insurance operations in 2025. Takada revealed that Sumitomo Life has allocated up to one trillion yen ($6.3 billion) for investments under its mid-term plan, set to run until March 2029.

The company will utilize its Singapore Life Holdings (Singlife) and US-based Symetra Financial to seek acquisition targets in Southeast Asia and the United States. Takada emphasized that the Singapore market still holds growth potential, with Income Insurance among the potential targets. In the US, Sumitomo Life prefers acquiring companies that complement Symetra's business rather than competing with it.

Regarding India, where several Japanese firms are expanding, Takada said the Japanese insurer is still studying the market but is aware of the regulatory and cultural challenges. Takada also mentioned that Sumitomo Life is contemplating the Bank of Japan's planned interest rate hikes in December and April next year, but the firm has no intention of increasing its domestic bond holdings beyond what is essential for asset-liability management.

Instead, it is focusing on private credit as a diversification strategy to ensure portfolio stability and does not anticipate a bubble in AI investments. Sumitomo Life, founded in 1907 and headquartered in Osaka, held assets worth $322.6 billion as of March 31, based on its latest annual report.