Deals and People August 11, 2015

Symetra to be Acquired by Japanese Insurer

Symetra provides employee benefits, annuities and life insurance.
Reported by

Symetra Financial Corporation has entered into a definitive merger agreement with Sumitomo Life Insurance Company.

Sumitomo Life, founded in 1907 and headquartered in Tokyo and Osaka, Japan, is a life insurer in Japan with multi-channel, multi-product life insurance businesses. Sumitomo Life provides traditional mortality life insurance, nursing care, medical care and retirement plans through sales representatives, insurance outlets, the Internet and bancassurance. As of March 31, 2015, Sumitomo Life had $229 billion in assets, approximately 6.8 million customers and 42,000 employees.                     

For more stories like this, sign up for the PLANSPONSOR NEWSDash daily newsletter.

Symetra, founded in 1957 and based in Bellevue, Washington, provides employee benefits, annuities and life insurance through a national network of benefits consultants, financial institutions and independent agents and advisers. As of June 30, 2015, Symetra had $34 billion in assets, approximately 1.7 million customers, and 1,400 employees nationwide.

Symetra will become Sumitomo Life’s platform in the U.S., where Sumitomo Life does not currently have a material operational presence. Thomas M. Marra, Symetra’s president and chief executive officer, will continue to lead the business from Symetra’s headquarters in Bellevue, along with the current management team. Symetra will maintain its independent brand, employees, distribution channels and product mix.

Masahiro Hashimoto, president and CEO of Sumitomo Life Insurance Company, said, “We are enthusiastic about the opportunity to acquire Symetra’s dynamic business and believe that a transaction will be mutually beneficial and will create significant value for both Symetra and Sumitomo Life.”

Thomas Marra, president and CEO of Symetra, said, “Our vision and long-term plans for building Symetra into a national player are unchanged. We will be positioned better than ever to successfully execute on these plans.”

The transaction, which was unanimously approved by Symetra’s board of directors, is expected to close late in the first quarter or early in the second quarter of 2016 and is subject to the approval of Symetra’s shareholders and regulators, and to other customary closing conditions.

Data and Research August 11, 2015

Firms Want to Keep Older Workers, but Cite Challenges

Among the challenges cited by employers were increased health care benefits costs.
Reported by

A new study from LIMRA Secure Retirement Institute found 92% of employers are taking specific action to help older workers stay on the job.

Two-thirds of employers in the study offer flexible hours, while 42% offer flexibility for where employees work, such as working from home or other locations. Other adjustments include job training/re-skilling and job sharing.

For more stories like this, sign up for the PLANSPONSOR NEWSDash daily newsletter.

Why make these accommodations for older workers? Eight in 10 employers said their organizations lose experience, institutional knowledge and leadership when an older worker leaves. 

A 2012 analysis found the percentage of civilian noninstitutionalized Americans near or at retirement age (age 55 or older) has been rising steadily since 1993, when it stood at 29.4%. It reached 40.2% in 2010 and remained at that level in 2011.

These shifts in the labor force affect a company’s benefit plan design, LIMRA notes. Among the challenges cited by employers were increased health care benefits costs. Half said they plan to absorb the costs into the business, while four in 10 will pass on cost increases to employees. 

While employers need to have competitive benefits for all ages, nine in 10 are interested in plan design to manage retirement and retention of older workers. Seventy percent of employers also said they look to their plan provider for guidance about how to transition workers into retirement. Half said they would depend on a plan adviser or consultant for this advice.

«