Fitch Affirms Symetra's Ratings; Outlook Stable

NEW YORK--(BUSINESS WIRE)-- Fitch Ratings has affirmed the 'A' Insurer Financial Strength (IFS) rating on Symetra Life Insurance Company (Symetra Life) as well as all ratings for Symetra Financial Corp. (Symetra), including the Issuer Default Rating (IDR) at 'A-' and all outstanding debt issues. The Rating Outlook is Stable. A complete list of rating actions follows at the end of this release.

KEY RATING DRIVERS

Fitch's rating action follows the agency's revision of Sumitomo Life Insurance Company's (Sumitomo, 'A' IFS) Outlook to Negative (see 'Fitch Revises Outlooks on 11 Japanese Insurers to Negative' dated June 16, 2016 at www.fitchratings.com). This action follows a revision of the Outlook of Japan's sovereign rating to Negative.

Fitch would allow Symetra's IFS rating to be rated one notch above its parent, due to its standalone credit profile and lack of direct exposure to Japan and the issues constraining its sovereign rating, including not having any direct investments in Japanese government bonds. Therefore, if Japan is downgraded by one notch, Fitch expects Symetra's ratings to be unaffected.

Fitch views Symetra's standalone credit profile as in line with an 'A' IFS rating, which reflects the company's strong balance sheet, diversified earnings and moderate financial leverage. Additional strengths include the company's strong competitive position in the group medical stop-loss market and fixed annuities sold through banks. The standalone credit profile also considers Symetra's above-average interest rate risk, due to its large legacy structured settlement and bank owned life insurance (BOLI) book.

RATING SENSITIVITIES

Fitch would likely affirm Symetra's ratings if Japan is downgraded by one notch.

Symetra's holding company ratings are somewhat constrained by Sumitomo's ratings, which are capped by Japan's Long-Term Local-Currency IDR of 'A'. Given that Sumitomo's ratings have a Negative Outlook, an upgrade of Symetra is unlikely in the near term.

Fitch has affirmed the following ratings with a Stable Outlook:

Symetra Financial Corp.

--IDR at 'A-';

--4.25% senior unsecured notes due July 15, 2024 at 'BBB+';

--8.3% junior subordinated CENts due Oct. 15, 2067 at 'BBB-'.

Symetra Life Insurance Company

--IFS at 'A'.

First Symetra National Life Insurance Company of New York

--IFS at 'A'.

Additional information is available on www.fitchratings.com.

Applicable Criteria

Insurance Rating Methodology (pub. 17 May 2016)https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=881564

Additional Disclosures

Dodd-Frank Rating Information Disclosure Formhttps://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=1006157

Solicitation Statushttps://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=1006157

Endorsement Policyhttps://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

View source version on businesswire.com: http://www.businesswire.com/news/home/20160616006005/en/

Fitch Ratings
Primary Analyst:
Jamie R. Tucker, CPA, +1-212-612-7856
Associate Director
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Secondary Analyst:
Julie A. Burke, CPA, CFA, +1-312-368-3158
Managing Director
or
Committee Chairperson
Donald F. Thorpe, CFA, CPA, +1-312-606-2353
Senior Director
or
Media Relations:
Hannah James, +1-646-582-4947
New York
[email protected]

Source: Fitch Ratings

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