Symetra Life's A rating affirmed
Ratings agency AM Best has affirmed the financial strength rating of A of Symetra Life Insurance Company and its subsidiary, First Symetra National Life Insurance Company of New York, together referred to as Symetra Life Group. The outlook of these Credit Ratings is stable.
Symetra Life also has a Bermuda subsidiary - Symetra Bermuda Re - which reinsures new annuities business ceded by Symetra. The Symetra group is ultimately owned by Sumitomo Life Insurance Company, which supports the group’s strategic initiatives.
"Through past debt capital investments, the parent has enabled the group to execute on key new product development projects and enhanced distribution efforts and current conditions," the ratings agency said. "In 2023, Symetra Life Group paid $207 million in dividends to Symetra to provide capital for new annuities business that the life company ceded to Symetra Bermuda Re, a subsidiary of Symetra. Future dividends are expected to be dependent on operating results.
"An early trend of profitability has returned to the group, which is expected to help contribute organically to future business growth efforts. AM Best views the group’s ERM as being matched to the scope of its operation, while adjusting through changing and challenging market conditions.
"Continued organic capital growth through profitable operations has been factored into the current ratings, which is expected to continue."
The ratings reflect Symetra Life Group’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, favorable business profile and appropriate enterprise risk management (ERM).
AM Best views Symetra Life Group’s balance sheet as strong, as measured by quantitative Best’s Capital Adequacy Ratio (BCAR), and qualitative measures with financial support afforded by the ultimate parent, Sumitomo Life Insurance Company, which supports the group’s strategic initiatives.
