Sumitomo Life Insurance forecasts higher overseas earnings
SUMITOMO Life Insurance expects to hit a target of earning 100 billion yen (S$891 million) from overseas operations this fiscal year, helped by its acquisition of Singapore Life Holdings.
The closely-held Japanese insurer is open to further acquisitions overseas, president Yukinori Takada said, without specifying the exact countries where he saw opportunities.
Sumitomo Life agreed in December to buy TPG’s 35.5 per cent stake in the Singaporean firm for S$1.6 billion. Singapore is a key market within its growth strategy in South-east Asia.
“We will support Singlife’s growth,” said Takada. “We will consider other investments if opportunities arise.”
Sumitomo Life’s total investment in Singlife now stands at approximately 420 billion yen. The unit’s prowess at digital technology is something the parent company can learn from, Takada said.
The insurer’s basic investment policy has not been changed by the Bank of Japan’s decision last week to lift interest rates, he said.
GET BT IN YOUR INBOX DAILY
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
If rates continue to rise, Sumitomo Life will expand its holdings of Japanese government bonds with maturities of 10 years or longer, he said, though he thinks a large increase in rates would be difficult to implement. BLOOMBERG
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Banking & Finance
China’s first special bond sale likely to see solid demand
HSBC brings out tax tools for UK businesses ahead of new rules
Data leak reveals links between money laundering accused Su Jianfeng and sale of Dubai properties
Businessmen in Singapore placed on China’s wanted list weeks after money laundering raid in 2023
Hong Kong’s shaky crypto ETF debuts dent global hub aspirations
US Fed officials suggest interest rates should stay high for longer