(Bloomberg) — Sumitomo Life Insurance Co. expects to hit a target of earning 100 billion yen ($660 million) from overseas operations this fiscal year, helped by its acquisition of Singapore Life Holdings Pte.
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The closely held Japanese insurer is open to further acquisitions overseas, President Yukinori Takada said in an interview, without specifying in which countries he saw opportunities.
Sumitomo Life agreed in December to buy TPG Inc.’s 35.5% stake in the Singaporean firm for S$1.6 billion ($1.2 billion). Singapore is a key market within its growth strategy in Southeast 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. 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.
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