Sumitomo Life maintains stable outlook: Moody’s

Annualised net premiums of in-force policies rose 6.5% in fiscal 2024.

Sumitomo Life Insurance is expected to maintain stable conditions over the next year, supported by strong domestic market share and overseas premium growth, according to Moody’s Ratings.

Annualised net premiums of in-force policies rose 6.5% in fiscal 2024, mainly from subsidiaries Symetra Life in the US and Singapore Life. 

Moody’s said the insurer’s large base of long-duration policies and tight asset-liability management will continue to underpin earnings. 

Rising domestic interest rates are also expected to lift returns on new government bond investments.
Challenges include a relatively high proportion of high-risk assets, low returns on capital compared with peers, and ongoing costs of currency hedging on foreign bonds. 

Capitalisation remains modest, with an economic solvency ratio of 178% as of March 2025, which Moody’s expects to hold steady over the next 12 to 18 months.

The outlook on Sumitomo Life remains stable, balancing its market strength with its risk profile and capital position.