OREANDA-NEWS. Fitch Ratings has placed the rating for Symetra Life Insurance Company (Insurer Financial Strength [IFS] 'A+') on Rating Watch Negative. At the same time, Fitch has affirmed the ratings for Symetra Financial Corp. (Symetra, Issuer Default Rating [IDR] 'A-') and maintained the Negative Outlook. A full list of rating actions follows at the end of this release.

KEY RATING DRIVERS

The rating actions follow the announcement that Symetra has agreed to be acquired by Japan-based Sumitomo Life Insurance Company (Sumitomo Life) in a transaction valued at $3.8 billion. The transaction is expected to close in early 2016 subject to customary shareholder and regulatory approvals. Fitch rates Sumitomo Life's IFS 'A' with a Stable Outlook.

The transaction reflects a broader strategic initiative by Sumitomo Life to expand its life insurance business outside of Japan. The proposed acquisition of Symetra represents Sumitomo Life's first major overseas acquisition. Fitch expects Symetra's existing management team and operating strategies will largely remain in place following the close of the transaction.

RATING SENSITIVITIES
Fitch will evaluate the transaction upon its ultimate consummation and Symetra's ratings could change based on the following:

--Ultimate application of Fitch's group rating methodology, including the agency's view of Symetra's strategic importance to Sumitomo Life, and if Symetra's ratings should be aligned with those of Sumitomo Life upon close of the acquisition.
--Related to the above, resolution of whether it would be appropriate to apply the Japan sovereign-constraint currently impacting Sumitomo Life's IFS ratings by one notch to Symetra's IFS ratings, in context of the group rating methodology.
--Given Symetra's pre-existing Negative Outlook, Fitch will continue to monitor the stand-alone profile of Symetra, and should there be any further deterioration in Fitch's view of Symetra's standalone profile, that could result in a downgrade of Symetra's ratings. Any such rating action, however, would consider the likelihood and timing of the close of the acquisition by Sumitomo Life, and if that provided any mitigating factors in light of any expected application of group rating methodology. For further details on the standalone rating sensitivities see the Symetra release published on May 22, 2015.

Fitch has placed the following ratings on Rating Watch Negative

Symetra Life Insurance Company
--IFS at 'A+'.

First Symetra National Life Insurance Company of New York
--IFS at 'A+'.

Fitch has affirmed the following ratings with a Negative Outlook:

Symetra Financial Corp.
--IDR at 'A-';
--6.125% senior unsecured notes due April 1, 2016 at 'BBB+';
--4.25% senior unsecured notes due July 15, 2024 at 'BBB+';
--8.3% junior subordinated CENts due Oct. 15, 2067 at 'BBB-'.