Fitch Ratings expects Sumitomo Life to sustain stable growth

The rating agency said it anticipates continued capital strengthening.

Fitch Ratings expects Sumitomo Life Insurance Company to maintain steady growth and stable financial strength over the next year, supported by strong capital levels, improving profitability, and expanding international operations.

The rating agency said it anticipates continued capital strengthening through retained earnings and hybrid debt issuance whilst keeping financial leverage low. 

Sumitomo Life’s economic value-based solvency ratio rose to 178% in the financial year ended March 2025 (FY 2025), up from 173% a year earlier, showing resilience despite market volatility.

Profitability also improved, with the company’s margin increasing to 16% in FY 2025 from 12% the previous year. 

Fitch expects further widening of core profit margins, driven by a solid investment spread and stable investment performance.

Sumitomo Life’s international business is expected to remain a key growth driver. Annualised premiums from overseas units increased by 22% in FY 2025, whilst domestic premiums were flat. 

International operations now account for more than 35% of total premiums, following the integration of Singapore Life Holdings. 

Fitch sees continued growth from the insurer’s US business through its subsidiary, Symetra Financial Corporation.

Fitch described Sumitomo Life’s overall profile as favourable, underpinned by a strong domestic market position, diversified portfolio, and growing overseas earnings. 

The outlook for the insurer remains stable, reflecting expectations of sustained financial strength and continued international expansion.