Symetra Falls Most Since January IPO as It Lowers 2010 Earnings Forecast

Symetra Financial Corp. fell the most since the initial public offering in January, after reducing its forecast for full-year earnings.

Symetra fell 9.2 percent, or $1.12, to $11.03 at 4:02 p.m. in New York Stock Exchange composite trading. The forecast for full-year adjusted operating income was cut to between $1.15 and $1.30 a share from an April estimate of $1.40 to $1.55.

“Low interest rates continued to limit investment income and constrain earnings,” Chief Executive Officer Tom Marra said in the Bellevue, Washington-based company’s statement, which was distributed by Business Wire.

Symetra’s second-quarter net income fell 24 percent to $35.8 million, or 26 cents a share, from $47 million, or 42 cents, in the year-earlier quarter. The insurer reported $10 million in net realized investment losses, compared with a net gain of $2.7 million in the year-earlier quarter.

Earnings per share missed by three cents the 33-cent average estimate of nine analysts surveyed by Bloomberg.

Symetra sold 30.4 million shares at $12 each in its January initial public offering.

To contact the reporter on this story: Sarah Frier in New York at sfrier@bloomberg.net.

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