Symetra to Acquire Dearborn Group's Life & Disability Business, Expand Workforce Benefits

Symetra Life Insurance Company has entered a definitive agreement to acquire the group life and disability (L&D) business of Dearborn Group through a reinsurance transaction, expected to close in the second half of 2025 pending regulatory approvals. The acquisition will include group and individual life insurance, accidental death and dismemberment, short-term and long-term disability, paid family leave, medical leave, and absence management businesses. Post-transaction, Symetra will serve as the exclusive L&D distribution partner for Health Care Service Corporation (HCSC), expanding Symetra's reach to HCSC's health care customers under a multi-year distribution agreement.

Dearborn Group, a subsidiary of HCSC, will shift its strategic focus towards enhancing its dental, vision, and supplemental health product lines, enabling Symetra to scale its workforce benefits offerings significantly. This transaction aligns with Symetra's growth strategy by broadening its footprint among employer groups and accelerating its workforce benefits segment. HCSC, one of the largest customer-owned health insurers serving over 26 million people in the U.S., continues to integrate ancillary benefits with health coverage through its subsidiaries.

The partnership anticipates improved service value for life and disability customers by leveraging Symetra's product portfolio and distribution network. The transaction underscores a shift in market dynamics where insurers are optimizing product specialization and distribution to enhance competitive positioning in employee benefits. Barclays and Sidley Austin LLP are advising Dearborn Group, with Eversheds Sutherland LLP providing legal counsel to Symetra.

This deal reflects broader industry trends where life and disability insurers seek strategic collaborations to expand market access and streamline offerings amid evolving regulatory and competitive landscapes. The focus on ancillary benefits like dental and vision by Dearborn Group post-transaction suggests an industry-wide strategy to meet diversified customer needs through specialized product lines. Overall, this acquisition and distribution agreement represent a significant realignment in the group benefits market, with potential implications for employer-sponsored benefit packages and insurer distribution strategies in the U.S.