Sumitomo Life Insurance Company, a Japanese insurance company, is in talks to acquire U.S.'s Symetra Financial Corporation for about $3.1 billion, a person familiar with the matter told Reuters.
The Japanese company is negotiating to acquire Symetra as it looks for drivers for its overseas growth.
Nikkei Asian Review added that Sumitomo Life is looking to establish a foothold in the U.S., the world's largest insurance market.
Japan's insurance market, the second largest in the world, is facing gloomy growth prospects.
Reuters adds that the country's rapidly ageing population is the primary reason for the dim growth prospects of insurers in Japan.
This prompted major players, who are focused domestically, to look for growth overseas.
Sumitomo Life's overseas market consist less than 5 percent of its insurance premiums and other incomes, according to Nikkei Asian Review.
The company believes that bringing in more overseas revenue will be beneficial to its policyholders in Japan.
Reuters adds that the source, who was not authorized to publicly discuss the matter, said that talks could go on for some time and will probably not reach an agreement in the near future.
Nikkei Asian Review added that talks could still fall apart if the two companies could not agree on the price.
However, the Nikkei Asian Review also adds that Sumitomo Life will look to quickly close the deal once it gets a green light from the U.S. insurer's board. Symetra's management is expected to remain after the acquisition.
Sumitomo Life is not the only insurance company in Japan to look to the U.S. for growth prospects.
Reuters adds that Dai-ichi Life Insurance Co. completed a $5.6 billion acquisition of U.S.'s mid-size life insurer, Protective Life. It was the biggest ever acquisition of a Japanese life insurance company.
The most recent acquisition came in July.
Meiji Yasuda Life Insurance Co. agreed to a $5 billion purchase of U.S.-based StanCorp Financial Group Inc., according to Reuters.
Aside from Sumitomo, another Japanese life insurance company is looking for acquisitions overseas.
Nippon Life Insurance Co. is looking to spend up to ¥1.5 trillion or about $12 billion on acquisitions and investments at home and abroad over the next 10 years, according to Reuters.
