Market Snapshot
  • U.S.
  • Europe
  • Asia
Ticker Volume Price Price Delta
DJIA 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 2.54 0.14%
NASDAQ 4,095.52 9.29 0.23%
Ticker Volume Price Price Delta
STOXX 50 3,155.81 16.55 0.53%
FTSE 100 6,625.25 41.08 0.62%
DAX 9,409.71 91.89 0.99%
Ticker Volume Price Price Delta
NIKKEI 14,516.27 98.74 0.68%
TOPIX 1,173.37 6.78 0.58%
HANG SENG 22,760.24 64.23 0.28%

StanCorp Financial Group, Inc. Reports Fourth Quarter and Full Year 2012 Earnings



  StanCorp Financial Group, Inc. Reports Fourth Quarter and Full Year 2012
  Earnings

Business Wire

PORTLAND, Ore. -- January 29, 2013

StanCorp Financial Group, Inc. (NYSE: SFG) today reported net income for the
fourth quarter of 2012 of $38.4 million, or $0.87 per diluted share, compared
to net income for the fourth quarter of 2011 of $38.6 million, or $0.87 per
diluted share. After-tax net capital losses were $1.1 million for the fourth
quarter of 2012, compared to after-tax net capital gains of $0.7 million for
the fourth quarter of 2011.

Net income excluding after-tax net capital gains and losses was $0.89 per
diluted share for the fourth quarter of 2012, compared to $0.85 per diluted
share for the fourth quarter of 2011 (see discussion of non-GAAP financial
measures below). The increase in net income excluding after-tax net capital
gains and losses for the fourth quarter of 2012 was primarily due to higher
earnings in the Company’s Asset Management segment and lower group insurance
commissions and bonuses due to lower group insurance sales for 2012. The
increase was partially offset by a comparatively higher group insurance
benefit ratio as a result of a 75 basis point lower discount rate used for
newly established long term disability claim reserves, and lower group
insurance premiums.

“I am pleased with our financial performance in the midst of the persisting
challenges in the overall economy,” said Greg Ness, chairman, president and
chief executive officer. “In 2013, we look to further improve profitability by
continuing to implement our disciplined pricing actions on both new and
renewal long term disability business and to effectively manage our expenses,
while continuing to provide superior products and services to our customers.”

2012 Results

Net income was $138.5 million, or $3.12 per diluted share for 2012, compared
to net income of $136.7 million, or $3.04 per diluted share for 2011.
After-tax net capital losses were $5.4 million for 2012, compared to after-tax
net capital losses of $4.5 million for 2011.

Net income excluding after-tax net capital losses was $3.24 per diluted share
for 2012, compared to $3.14 per diluted share for 2011. The increase for 2012
was primarily due to higher net investment income from bond call premiums and
commercial mortgage loan prepayment fee revenues, higher premiums for the
Insurance Services segment, a lower effective income tax rate and higher
earnings in the Company’s Asset Management segment. The increase was partially
offset by a comparatively higher group insurance benefit ratio as a result of
a 95 basis point lower average discount rate used for newly established long
term disability claim reserves.

For 2012, the Company reported return on average equity, excluding after-tax
net capital gains and losses from net income and accumulated other
comprehensive income (“AOCI”) from equity, of 8.0%, compared to 8.1% for 2011.

2013 Guidance

For 2013, the Company expects net income per diluted share excluding after-tax
net capital gains and losses to be in the range of $3.40 to $3.80, and to
achieve a return on average equity, excluding after-tax net capital gains and
losses from net income and AOCI from equity, in the range of 8% to 9%. This
guidance is affected by the following factors:

  * Premiums – In 2013, the Company will continue to implement pricing actions
    for both new and renewal long term disability business to address the
    impact of elevated claims incidence and the low interest rate environment.
    Given these pricing actions and the effect of the continued challenging
    economic environment on the employment and wage levels of its group
    insurance customers, the Company expects a low single digit decline in its
    group insurance premiums for 2013;
  * Benefit ratio – The Company expects that the 2013 annual benefit ratio for
    the group insurance business will be within the range of 81% to 84%. The
    Company expects a continued low interest rate environment to place
    downward pressure on the new money investment interest rate and the
    discount rate used for newly established long term disability claim
    reserves. The annual group insurance benefit ratio guidance range assumes
    that the low interest rate environment will persist in 2013 and as a
    result the discount rate may be lowered 50 to 75 basis points during 2013;
    and
  * Effective income tax rate – The Company expects that the 2013 effective
    income tax rate will be in the range of 22% to 23%. The lower effective
    income tax rate for 2013 is primarily the result of the Company’s previous
    purchases of tax-advantaged investments.

Results for any specific year may vary due to changes in the interest rate
environment and other factors (see Forward-Looking Information).

Business Segments

Insurance Services

The Insurance Services segment reported income before income taxes of $48.0
million for the fourth quarter of 2012, compared to $53.3 million for the
fourth quarter of 2011. The decrease in income before income taxes for the
fourth quarter of 2012 was primarily due to a comparatively higher group
insurance benefit ratio as a result of a 75 basis point lower discount rate
used for newly established long term disability claim reserves, and lower
group insurance premiums, partially offset by lower group insurance
commissions and bonuses due to lower group insurance sales for 2012. In
addition, bond call premiums and commercial mortgage loan prepayment fee
revenues added $6.1 million of income before income taxes for the fourth
quarter of 2012, compared to $1.7 million for the fourth quarter of 2011,
offsetting the effects of lower yields on invested assets.

The Insurance Services segment reported income before income taxes of $179.8
million for 2012, compared to $201.2 million for 2011. The decrease in income
before income taxes for 2012 was primarily due to a comparatively higher group
insurance benefit ratio as a result of a 95 basis point lower average discount
rate used for newly established long term disability claim reserves, partially
offset by higher premiums for the Insurance Services segment and a lower
individual disability benefit ratio. In addition, bond call premiums and
commercial mortgage loan prepayment fee revenues added $13.1 million of income
before income taxes for 2012, compared to $4.9 million for 2011, offsetting
the effects of lower yields on invested assets.

Premiums for the Insurance Services segment decreased 1.6% to $532.1 million
for the fourth quarter of 2012, compared to $540.9 million for the fourth
quarter of 2011. Premiums for the Insurance Services segment increased 0.6% to
$2.16 billion for 2012, compared to $2.15 billion for 2011.

Group insurance premiums for the fourth quarter of 2012 were $485.9 million, a
2.4% decrease compared to the fourth quarter of 2011. The decrease in group
insurance premiums was primarily due to lower group insurance sales and
persistency for 2012. Group insurance premiums increased 0.4% to $1.98 billion
for 2012, compared to $1.97 billion for 2011.

Sales for the group insurance businesses, reported as annualized new premiums,
were $73.4 million and $74.7 million for the fourth quarters of 2012 and 2011,
respectively. Annual sales for the group insurance businesses were $245.0
million for 2012, compared to $336.4 million for 2011. The decrease in group
insurance sales was primarily due to pricing competition as the Company
implemented pricing actions on its long term disability business to address
the impact of the elevated claims incidence and the continued low interest
rate environment.

Experience rated refunds (“ERRs”) decreased group insurance premiums by $0.7
million for the fourth quarter of 2012 and increased group insurance premiums
by $1.7 million for the fourth quarter of 2011. ERRs increased group insurance
premiums by $4.0 million for 2012 and decreased group insurance premiums by
$12.5 million for 2011. Excluding ERRs, group insurance premiums decreased
1.9% for the fourth quarter of 2012 compared to the fourth quarter of 2011 and
decreased 0.4% for 2012 compared to 2011. ERRs represent a cost sharing
arrangement with certain group contract holders that provides refunds when
claims experience is more favorable than contractual benchmarks, and provides
for additional premiums to be paid when claims experience is less favorable
than contractual benchmarks. ERRs can fluctuate widely from quarter to quarter
depending on the underlying experience of the specific contracts.

Individual disability insurance premiums were $46.2 million for the fourth
quarter of 2012, compared to $43.3 million for the fourth quarter of 2011 and
$176.6 million for 2012, compared to $172.3 million for 2011.

The discount rate used for newly established long term disability claim
reserves was 4.00% for the fourth quarter of 2012, compared to 4.75% for the
fourth quarter of 2011. The 75 basis point decrease in the discount rate
resulted in a corresponding decrease in quarterly pre-tax income of $5.4
million. The lower discount rate for the fourth quarter of 2012 compared to
the fourth quarter of 2011 was primarily the result of the continued low
interest rate environment. A 25 basis point increase or decrease in the
discount rate currently results in a corresponding increase or decrease in
quarterly pre-tax income of $1.8 million.

The benefit ratio for group insurance products, measured as benefits to
policyholders and interest credited as a percentage of premiums, was 83.7% for
the fourth quarter of 2012, compared to 82.8% for the fourth quarter of 2011.
The increase in the group insurance benefit ratio for the fourth quarter of
2012 was primarily due to the 75 basis point decrease in the discount rate.
The annual benefit ratio was 83.9% and 83.1% for 2012 and 2011, respectively.
The Company expects the benefit ratio to remain elevated due to the economy
and the effects of the continued low interest rate environment putting
pressure on the discount rate used for newly established long term disability
claim reserves. Claims experience can fluctuate widely from quarter to quarter
and tends to be more stable when measured over a longer period of time.

The benefit ratio for individual disability insurance was 73.8% for the fourth
quarter of 2012, compared to 70.9% for the fourth quarter of 2011. The annual
benefit ratio for individual disability insurance was 65.8% for 2012, compared
to 67.3% for 2011. Due to the relatively small size of the individual
disability insurance block of business, the benefit ratio for this business
will generally fluctuate more than the benefit ratio for the group insurance
business.

Asset Management

The Asset Management segment reported income before income taxes of $16.3
million for the fourth quarter of 2012, compared to $14.0 million for the
fourth quarter of 2011. The increase in income before income taxes included
$1.0 million in higher administrative fee revenues due to the increase in
assets under administration. Income before income taxes also increased $0.6
million for the fourth quarter of 2012 and decreased $0.4 million for the
fourth quarter of 2011 as a result of the change in fair values of the hedging
assets and liabilities related to the Company’s equity-indexed annuity
product. In addition, bond call premiums and commercial mortgage loan
prepayment fee revenues added $2.5 million of income before income taxes for
the fourth quarter of 2012, compared to $2.0 million for the fourth quarter of
2011.

The Asset Management segment reported income before income taxes of $64.0
million for 2012, compared to $61.3 million for 2011.

Assets under administration for the Asset Management segment, which includes
retirement plans, individual fixed annuities, private client wealth management
and commercial mortgage loans managed for third-party investors, increased
6.2% to $21.69 billion at December 31, 2012, compared to $20.43 billion at
December 31, 2011, primarily reflecting higher equity values for retirement
plan assets under administration.

StanCorp Mortgage Investors originated $327.2 million and $237.0 million of
commercial mortgage loans for the fourth quarters of 2012 and 2011,
respectively. StanCorp Mortgage Investors originated $1.18 billion of
commercial mortgage loans for 2012, a 17.5% increase compared to $1.01 billion
of commercial mortgage originated for 2011. The increase in originations was
the result of increased activity in the commercial real estate market.

Other

The Other category includes the return on capital not allocated to the product
segments, holding company expenses, operations of certain unallocated
subsidiaries, interest on debt, unallocated expenses, net capital gains and
losses related to the impairment or the disposition of the Company’s invested
assets and adjustments made in consolidation. The Other category reported a
loss before income taxes of $12.5 million for the fourth quarter of 2012,
compared to $15.8 million for the fourth quarter of 2011.

Net capital losses for the fourth quarter of 2012 were $1.9 million, compared
to net capital gains of $1.0 million for the fourth quarter of 2011. Pre-tax
losses excluding net capital gains and losses for the fourth quarter of 2012
were $10.6 million, compared to $16.8 million for the fourth quarter of 2011.
The lower pre-tax losses were primarily due to higher net investment income
and lower operating expenses.

Net investment income for the fourth quarter of 2012 was $3.5 million,
compared to $1.0 million for the fourth quarter of 2011 primarily due to
higher invested assets allocated to the Other category. Operating expenses in
the Other category included project costs for information technology service
changes of $2.7 million for the fourth quarter of 2011 that did not recur in
2012.

The Other category reported a loss before income taxes of $60.4 million for
2012, compared to $71.0 million for 2011. Net capital losses for 2012 were
$8.7 million, compared to $6.9 million for 2011. Pre-tax losses excluding net
capital losses for 2012 were $51.7 million, compared to $64.1 million for
2011. The lower pre-tax losses were primarily due to lower operating expenses.

Operating expenses in the Other category included project costs for
information technology service changes of $11.0 million for 2011 that did not
recur in 2012.

Fixed Maturity Securities and Commercial Mortgage Loans

At December 31, 2012, the Company’s investment portfolio consisted of 56.5%
fixed maturity securities, 41.4% commercial mortgage loans, and 2.1% real
estate and other invested assets. The overall weighted-average credit rating
of the fixed maturity securities portfolio was A- (Standard & Poor’s) at
December 31, 2012.

At December 31, 2012, commercial mortgage loans in the Company’s investment
portfolio totaled $5.27 billion on more than 6,320 commercial mortgage loans.
The average loan balance retained by the Company in the portfolio was
approximately $0.8 million. Commercial mortgage loans more than 60 days
delinquent were 0.40% and 0.34% of the portfolio balance at December 31, 2012
and 2011, respectively.

Capital and Book Value

The Company’s available capital increased $30 million to approximately $360
million at December 31, 2012 compared to September 30, 2012. The increase in
available capital was primarily due to income from its insurance subsidiaries
for the fourth quarter of 2012. Available capital includes capital at its
insurance subsidiaries in excess of the Company’s target risk-based capital
ratio (“RBC”) of 300% and cash and capital at the holding company and
non-insurance subsidiaries. The Company reported available capital after
subtracting an allocation for expected annual interest and shareholder
dividends. The RBC ratio was estimated to be 365% at December 31, 2012.

The Company’s book value per share grew 8.6% from $44.96 at December 31, 2011,
to $48.83 at December 31, 2012. The Company’s book value per share excluding
AOCI grew 5.6% from $39.65 at December 31, 2011, to $41.87 at December 31,
2012. During the fourth quarter of 2012, the Company paid an annual dividend
of $0.93 per share.

Shares Outstanding

The Company did not repurchase any shares during the fourth quarter of 2012.
For 2012, the Company repurchased 279,700 shares at a total cost of $10.0
million, which resulted in a volume weighted-average price of $35.68. On
November 13, 2012, the Board of Directors of StanCorp Financial Group, Inc.
approved a new share repurchase authorization of up to 3.0 million shares of
the Company’s common stock. The new share authorization replaced the existing
share repurchase authorization and will expire on December 31, 2014. At
December 31, 2012, the Company had 3.0 million shares remaining under its
repurchase authorization. The Company will evaluate share repurchases
opportunistically based on the consistency of capital generation and its view
of equity market valuation. Diluted weighted-average shares outstanding for
the fourth quarters of 2012 and 2011 were 44,387,650 and 44,278,707,
respectively.

Non-GAAP Financial Measures

Financial measures that exclude after-tax net capital gains and losses and
AOCI are non-GAAP (Generally Accepted Accounting Principles in the United
States) measures. To provide investors with a broader understanding of
earnings, the Company provides net income per diluted share excluding
after-tax net capital gains and losses, along with the GAAP measure of net
income per diluted share, because capital gains and losses are not likely to
occur in a stable pattern.

Return on average equity excluding after-tax net capital gains and losses from
net income and AOCI from equity is furnished along with the GAAP measure of
net income return on average equity because management believes providing both
measures gives investors a broader understanding of return on average equity.
Measuring return on average equity without AOCI excludes the effect of market
value fluctuations of the Company’s fixed maturity securities associated with
changes in interest rates and other market data. Management believes that
measuring return on average equity without AOCI is important to investors
because the turnover of the Company’s portfolio of fixed maturity securities
may not be such that unrealized gains and losses reflected in AOCI are
ultimately realized. Furthermore, management believes exclusion of AOCI
provides investors with a better measure of return.

About StanCorp Financial Group, Inc.

StanCorp Financial Group, Inc., through its subsidiaries marketed as The
Standard — Standard Insurance Company, The Standard Life Insurance Company of
New York, Standard Retirement Services, StanCorp Mortgage Investors, StanCorp
Investment Advisers, StanCorp Real Estate and StanCorp Equities — is a leading
provider of financial products and services. StanCorp’s subsidiaries offer
group and individual disability insurance, group life and accidental death and
dismemberment insurance, group dental and group vision insurance, absence
management services, retirement plans products and services, individual
annuities, origination and servicing of fixed-rate commercial mortgage loans,
and investment advice. For more information about StanCorp Financial Group,
Inc., visit its investor website at www.stancorpfinancial.com.

Conference Call

StanCorp management will hold an investor and analyst conference call on
January 30, 2013, at noon Eastern time (9:00 a.m. Pacific time) to review
StanCorp’s fourth quarter results.

To listen to the live webcast of this conference call, visit
www.stancorpfinancial.com; Windows Media Player^TM will be required to listen
to the webcast. A webcast replay will be available starting approximately two
hours after the original broadcast. The replay will be available through March
22, 2013.

A telephone replay of the conference call will also be available approximately
two hours after the conference call by dialing (877) 660-6853 or (201)
612-7415 and entering the conference identification number 405831. The replay
will be available through February 8, 2013.

Forward-Looking Information

Some of the statements contained in this earnings release, including those
relating to the Company’s strategy, growth prospects and other statements that
are predictive in nature, that depend on or refer to future events or
conditions or that include words such as “expects,” “anticipates,” “intends,”
“plans,” “believes,” “estimates,” “seeks” and similar expressions, are
forward-looking statements within the meaning of Section 21E of the Securities
Exchange Act of 1934, as amended. These statements are not historical facts
but instead represent only management’s expectations, estimates and
projections regarding future events. Similarly, these statements are not
guarantees of future performance and involve uncertainties that are difficult
to predict, which may include, but are not limited to, the factors discussed
below. As a provider of financial products and services, the Company’s results
of operations may vary significantly in response to economic trends, interest
rate changes, investment performance and claims experience. Caution should be
used when extrapolating historical results or conditions to future periods.

The Company’s actual results and financial condition may differ, perhaps
materially, from the anticipated results and financial condition in any such
forward-looking statements. Because such statements are subject to risks and
uncertainties, actual results in future periods may differ materially from
those expressed or implied by such forward-looking statements. Given these
uncertainties or circumstances, readers are cautioned not to place undue
reliance on such statements. The Company assumes no obligation to publicly
update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise. See StanCorp's 2011 Form 10-K, as
modified by the Current Report on Form 8-K dated July 18, 2012, and the third
quarter 2012 report on Form 10-Q filed with the Securities and Exchange
Commission for a description of the types of risks and uncertainties that may
affect actual results.

The following factors could cause results to differ materially from management
expectations as suggested by such forward-looking statements:

  * Growth of sales, premiums, annuity deposits, cash flows, assets under
    administration including performance of equity investments in the separate
    account, gross profits and profitability.
  * Availability of capital required to support business growth and the
    effective utilization of capital, including the ability to achieve
    financing through debt or equity.
  * Changes in liquidity needs and the liquidity of assets in its investment
    portfolios.
  * Performance of business acquired through reinsurance or acquisition.
  * Changes in financial strength and credit ratings.
  * Changes in the regulatory environment at the state or federal level
    including changes in income tax rates and regulations or changes in U.S.
    GAAP accounting principles, practices or policies.
  * Findings in litigation or other legal proceedings.
  * Intent and ability to hold investments consistent with its investment
    strategy.
  * Receipt of dividends from, or contributions to, its subsidiaries.
  * Adequacy of the diversification of risk by product offerings and customer
    industry, geography and size, including concentration of risk, especially
    inherent in group life products.
  * Adequacy of asset-liability management.
  * Events of terrorism, natural disasters or other catastrophic events,
    including losses from a disease pandemic.
  * Benefit ratios, including changes in claims incidence, severity and
    recovery.
  * Levels of persistency.
  * Adequacy of reserves established for future policy benefits.
  * The effect of changes in interest rates on reserves, policyholder funds,
    and investment income.
  * Levels of employment and wage growth and the impact of rising benefit
    costs on employer budgets for employee benefits.
  * Competition from other insurers and financial services companies,
    including the ability to competitively price its products.
  * Ability of reinsurers to meet their obligations.
  * Availability, adequacy and pricing of reinsurance and catastrophe
    reinsurance coverage and potential charges incurred.
  * Achievement of anticipated levels of operating expenses.
  * Adequacy of diversification of risk within its fixed maturity securities
    portfolio by industries, issuers and maturities.
  * Adequacy of diversification of risk within its commercial mortgage loan
    portfolio by borrower, property type and geographic region.
  * Credit quality of the holdings in its investment portfolios.
  * The condition of the economy and expectations for interest rate changes.
  * The effect of changing levels of bond call premiums, commercial mortgage
    loan prepayment fees and commercial mortgage loan participation levels on
    cash flows.
  * Experience in delinquency rates or loss experience in its commercial
    mortgage loan portfolio.
  * Adequacy of commercial mortgage loan loss allowance.
  * Concentration of commercial mortgage loan assets collateralized in certain
    states such as California.
  * Environmental liability exposure resulting from commercial mortgage loan
    and real estate investments.

                                                               
STANCORP FINANCIAL GROUP, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
(Dollars in millions-except share data)
                                                                 
                                      Three Months Ended        Year ended
                                      December 31,              December 31,
                                      2012         2011         2012         2011
Revenues:
  Premiums:
    Insurance Services                $  532.1     $  540.9     $  2,157.2   $  2,145.3
    Asset Management                     1.7          1.8          6.7          8.0
      Total premiums                     533.8        542.7        2,163.9      2,153.3
  Administrative fees:
    Insurance Services                   3.5          3.7          13.9         12.3
    Asset Management                     29.7         28.7         118.8        119.9
    Other                                (4.7)        (4.3)        (18.0)       (16.7)
      Total administrative fees          28.5         28.1         114.7        115.5
  Net investment income:
    Insurance Services                   85.5         85.7         339.7        341.3
    Asset Management                     68.6         69.2         278.6        262.7
    Other                                3.5          1.0          10.2         8.8
      Total net investment income        157.6        155.9        628.5        612.8
  Net capital (losses) gains:
    Total other-than-temporary
    impairment losses on fixed
      maturity                           ---          (0.1)        (3.2)        (1.8)
      securities—available-for-sale
    All other net capital (losses)       (1.9)        1.1          (5.5)        (5.1)
    gains
      Total net capital (losses)         (1.9)        1.0          (8.7)        (6.9)
      gains
                                                                                 
             Total revenues              718.0        727.7        2,898.4      2,874.7
                                                                                 
Benefits and expenses:
  Benefits to policyholders              444.7        446.5        1,793.0      1,771.2
  Interest credited                      41.0         43.9         171.3        161.0
  Operating expenses                     114.6        114.1        470.5        471.2
  Commissions and bonuses                47.4         52.6         203.7        218.7
  Premium taxes                          8.9          9.3          37.5         36.7
  Interest expense                       8.6          9.7          39.9         38.9
  Net decrease (increase) in
  deferred acquisition costs,
    value of business acquired and       1.0          0.1          (0.9)        (14.5)
    other intangible assets
                                                                                 
             Total benefits and          666.2        676.2        2,715.0      2,683.2
             expenses
                                                                                 
  Income (loss) before income
  taxes:
    Insurance Services                   48.0         53.3         179.8        201.2
    Asset Management                     16.3         14.0         64.0         61.3
    Other                                (12.5)       (15.8)       (60.4)       (71.0)
             Total income before         51.8         51.5         183.4        191.5
             income taxes
Income taxes                             13.4         12.9         44.9         54.8
                                                                                 
Net income                            $  38.4      $  38.6      $  138.5     $  136.7
                                                                                 
Net income per common share:
  Basic                               $  0.87      $  0.87      $  3.13      $  3.05
  Diluted                                0.87         0.87         3.12         3.04
Weighted-average common shares
outstanding:
  Basic                               44,344,307   44,205,832   44,283,771   44,876,650
  Diluted                             44,387,650   44,278,707   44,359,891   45,016,070

                                                                 
STANCORP FINANCIAL GROUP, INC.
UNAUDITED CONSOLIDATED BALANCE SHEETS
(Dollars in millions)
                                                                   
                                                   December 31,   December 31,
                                                   2012           2011
                                                                      
ASSETS
Investments:
  Fixed maturity securities—available-for-sale     $  7,190.7     $  6,769.5
  (amortized cost of $6,517.7 and $6,209.9)
  Commercial mortgage loans, net                      5,267.4        4,902.3
  Real estate, net                                    95.5           92.7
  Other invested assets                               175.5          130.9
      Total investments                               12,729.1       11,895.4
Cash and cash equivalents                             160.7          138.4
Premiums and other receivables                        123.0          118.8
Accrued investment income                             109.3          111.7
Amounts recoverable from reinsurers                   972.4          949.3
Deferred acquisition costs, value of business         346.5          344.9
acquired and other intangible assets, net
Goodwill                                              36.0           36.0
Property and equipment, net                           90.7           101.3
Other assets                                          69.3           113.9
Separate account assets                               5,154.3        4,593.5
                                                                      
                      Total assets                 $  19,791.3    $  18,403.2
                                                                      
LIABILITIES AND SHAREHOLDERS’ EQUITY
                                                                      
Liabilities:
  Future policy benefits and claims                $  5,843.2     $  5,683.6
  Other policyholder funds                            5,531.1        5,078.1
  Deferred tax liabilities, net                       148.1          103.0
  Short-term debt                                     1.0            251.2
  Long-term debt                                      551.4          300.9
  Other liabilities                                   393.2          402.5
  Separate account liabilities                        5,154.3        4,593.5
                                                                      
      Total liabilities                               17,622.3       16,412.8
                                                                      
Commitments and contingencies
                                                                      
Shareholders’ equity:
  Preferred stock, 100,000,000 shares                 ---            ---
  authorized; none issued
  Common stock, no par, 300,000,000 shares
  authorized; 44,419,448 and 44,268,859
      shares issued at December 31, 2012 and          89.6           82.4
      December 31, 2011, respectively
  Accumulated other comprehensive income              309.3          235.1
  Retained earnings                                   1,770.1        1,672.9
                                                                      
      Total shareholders' equity                      2,169.0        1,990.4
                                                                      
                      Total liabilities and        $  19,791.3    $  18,403.2
                      shareholders’ equity

                             
STANCORP FINANCIAL GROUP, INC.
UNAUDITED STATISTICAL AND OPERATING DATA
AT OR FOR THE PERIODS INDICATED
(Dollars in millions)
                                                                              
                              Three Months Ended   Year ended
                              December 31,         December 31,
                              2012        2011     2012          2011
                                                                              
Benefit ratio:
  % of total revenues:
    Group Insurance
    (including interest          72.4   %   71.8 %    72.9     %    72.1     %
    credited)
    Individual Disability        57.1       54.3      50.4          51.4
    Insurance
    Insurance Services
    segment (including           70.9       70.2      70.8          70.3
    interest credited)
  % of total premiums:
    Group Insurance
    (including interest          83.7   %   82.8 %    83.9     %    83.1     %
    credited)
    Individual Disability        73.8       70.9      65.8          67.3
    Insurance
    Insurance Services
    segment (including           82.8       81.8      82.4          81.8
    interest credited)
                                                                              
Reconciliation of non-GAAP
financial measures:
  Net income                  $  38.4     $ 38.6   $  138.5      $  136.7
       After-tax net
       capital (losses)          (1.1)      0.7       (5.4)         (4.5)
       gains
  Net income excluding
  after-tax net capital       $  39.5     $ 37.9   $  143.9      $  141.2
  (losses) gains
                                                                              
  Net capital (losses)        $  (1.9)    $ 1.0    $  (8.7)      $  (6.9)
  gains
       Tax (benefit)
       expense on net            (0.8)      0.3       (3.3)         (2.4)
       capital (losses)
       gains
  After-tax net capital       $  (1.1)    $ 0.7    $  (5.4)      $  (4.5)
  (losses) gains
                                                                              
  Diluted earnings per
  common share:
  Net income                  $  0.87     $ 0.87   $  3.12       $  3.04
       After-tax net
       capital (losses)          (0.02)     0.02      (0.12)        (0.10)
       gains
  Net income excluding
  after-tax net capital       $  0.89     $ 0.85   $  3.24       $  3.14
  (losses) gains
                                                                              
  Shareholders' equity                             $  2,169.0    $  1,990.4
       Accumulated other                              309.3         235.1
       comprehensive income
  Shareholders' equity
  excluding accumulated
  other
    comprehensive income                           $  1,859.7    $  1,755.3
                                                                              
                                                                              
  Net income return on                                6.7      %    7.0      %
  average equity
  Net income return on
  average equity (excluding
  accumulated
    other comprehensive                               7.7           7.8
    income)
  Net income return on
  average equity (excluding
  after-tax
    net capital losses and
    accumulated other
       comprehensive                                  8.0           8.1
       income)
                                                                              
Statutory data - insurance
subsidiaries:
  Net gain from operations
  before federal income
  taxes and
    realized capital gains    $  32.7     $ 40.7   $  182.3      $  185.1
    (losses)
  Net gain from operations
  after federal income
  taxes and
    before realized capital      22.8       44.4      138.8         143.1
    gains (losses)
                                                                              
                                                   December      December
                                                   31,           31,
                                                   2012          2011
                                                  
  Capital and surplus                              $  1,260.6    $  1,193.1
  Asset valuation reserve                             117.5         107.2
                                                                              

Contact:

StanCorp Financial Group, Inc.
Investor Relations and Financial Media
Jeff Hallin, 971-321-6127
jeff.hallin@standard.com
or
General Media
Bob Speltz, 971-321-3162
bob.speltz@standard.com
Sponsored Links
Advertisement
Advertisements
Sponsored Links
Advertisement