S&P affirms Sumitomo Life’s ratings at A+

S&P Global Ratings has affirmed its ‘A+’ financial strength rating and ‘A+’ long-term issuer credit rating on Sumitomo Life Insurance Co. The outlook for the company remains stable.

S&P’s decision to maintain the ratings reflects its assessment of Sumitomo Life’s solid financial strength, despite acknowledging that it may not be as strong as its peers rated ‘A+’.

The rating agency believes that the insurer’s strong business foundation, comparable to the largest domestic life insurers, will enable it to withstand capital pressures and maintain sufficient capitalisation over the next two years.

While Sumitomo Life has faced capital pressures due to increased investment risks and the acquisition of Singapore Life Holdings, the anticipated rise in domestic interest rates is expected to support its capitalisation.

Attribution: S&P report

Subediting: M. S. Salama