Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - STANCORP FINANCIAL GROUP INC | d8k.htm |
| EX-99.1 - PRESS RELEASE - STANCORP FINANCIAL GROUP INC | dex991.htm |
EXHIBIT 99.2
STANCORP FINANCIAL GROUP, INC.
STATISTICAL SUPPLEMENT
March 31, 2011
(Unaudited)
| Page | ||||
| Financial Results: |
||||
| Consolidated Financial Highlights |
1 | |||
| Consolidated Financial Results |
2 | |||
| Results by Segment |
3 | |||
| Insurance Services Segment |
4 | |||
| Insurance Services Segment Statistics |
5 | |||
| Asset Management Segment |
6 | |||
| Other |
7 | |||
| Balance Sheets and Investment Statistics: |
||||
| Consolidated Balance Sheets |
8 | |||
| Invested Assets Statistics |
9 | |||
| Other Investment Statistics |
10 | |||
Financial measures that exclude after-tax operating expense reduction initiatives*, after-tax net capital gains and losses and accumulated other comprehensive income (loss) 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 operating expense reduction initiatives* and after-tax net capital gains and losses, along with the GAAP measure of net income per diluted share, because operating expense reduction initiatives* occur infrequently and capital gains and losses are not likely to occur in a stable pattern.
Return on average equity excluding after-tax operating expense reduction initiatives* and after-tax net capital gains and losses from net income and accumulated other comprehensive income (loss) 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 equity. Measuring return on average equity without accumulated other comprehensive income (loss) 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 accumulated other comprehensive income (loss) 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 accumulated other comprehensive income (loss) are ultimately realized. Furthermore, for the purpose of calculating this ratio, management believes exclusion of accumulated other comprehensive income (loss) provides investors with a better measure of return.
Certain prior period amounts may have been reclassified to conform to the current period’s presentation.
| * | Represents costs incurred in 2009 related to operating expense reduction initiatives. |
StanCorp Financial Group, Inc.
1100 SW Sixth Avenue
Portland, Oregon 97204
Investor Inquiries:
Jeff Hallin
Phone: (971) 321-6127
Fax: (971) 321-5037
Email: jeff.hallin@standard.com
Web site address: http://www.stancorpfinancial.com
STANCORP FINANCIAL GROUP, INC.
Financial Highlights
(Dollars in millions – except share data)
CONSOLIDATED
| 2011 | 2010 | |||||||||||||||||||||||||||||||||||||||
| 2006 | 2007 | 2008 | 2009 | 2010 | 1st Qtr | 4th Qtr | 3rd Qtr | 2nd Qtr | 1st Qtr | |||||||||||||||||||||||||||||||
| Income (loss) before income taxes: |
||||||||||||||||||||||||||||||||||||||||
| $ | 282.4 | $ | 322.6 | $ | 366.4 | $ | 356.3 | $ | 313.8 | Insurance Services |
$ | 46.5 | $ | 72.2 | $ | 94.3 | $ | 68.7 | $ | 78.6 | ||||||||||||||||||||
| 38.4 | 42.9 | 34.9 | 37.3 | 56.8 | Asset Management |
19.1 | 16.4 | 15.0 | 13.2 | 12.2 | ||||||||||||||||||||||||||||||
| (11.1 | ) | (23.8 | ) | (160.2 | ) | (77.9 | ) | (87.8 | ) | Other |
(15.5 | ) | (12.3 | ) | (39.7 | ) | (20.8 | ) | (15.0 | ) | ||||||||||||||||||||
| 309.7 | 341.7 | 241.1 | 315.7 | 282.8 | Total income before income taxes |
50.1 | 76.3 | 69.6 | 61.1 | 75.8 | ||||||||||||||||||||||||||||||
| 105.9 | 114.2 | 78.2 | 106.8 | 93.8 | Income taxes |
16.4 | 24.3 | 23.4 | 20.0 | 26.1 | ||||||||||||||||||||||||||||||
| $ | 203.8 | $ | 227.5 | $ | 162.9 | $ | 208.9 | $ | 189.0 | Net income |
$ | 33.7 | $ | 52.0 | $ | 46.2 | $ | 41.1 | $ | 49.7 | ||||||||||||||||||||
| Net income per common share: |
||||||||||||||||||||||||||||||||||||||||
| $ | 3.77 | $ | 4.39 | $ | 3.33 | $ | 4.27 | $ | 4.04 | Basic |
$ | 0.73 | $ | 1.13 | $ | 0.99 | $ | 0.87 | $ | 1.05 | ||||||||||||||||||||
| 3.73 | 4.35 | 3.30 | 4.26 | 4.02 | Diluted |
0.73 | 1.12 | 0.99 | 0.87 | 1.04 | ||||||||||||||||||||||||||||||
| Share data: |
||||||||||||||||||||||||||||||||||||||||
| 54,079,033 | 51,824,050 | 48,917,235 | 48,932,908 | 46,774,277 | Basic weighted-average |
45,933,253 | 46,034,985 | 46,443,127 | 47,235,079 | 47,402,609 | ||||||||||||||||||||||||||||||
| 54,688,114 | 52,344,950 | 49,292,240 | 49,044,543 | 47,006,228 | Diluted weighted-average |
46,190,915 | 46,352,440 | 46,607,410 | 47,510,976 | 47,679,206 | ||||||||||||||||||||||||||||||
| 53,592,178 | 49,155,131 | 48,989,074 | 47,744,524 | 46,159,387 | At period end |
45,384,126 | 46,159,387 | 46,028,626 | 46,959,126 | 47,344,740 | ||||||||||||||||||||||||||||||
| $ | 203.8 | $ | 227.5 | $ | 162.9 | $ | 208.9 | $ | 189.0 | Net income |
$ | 33.7 | $ | 52.0 | $ | 46.2 | $ | 41.1 | $ | 49.7 | ||||||||||||||||||||
| — | — | — | (12.0 | ) | — | After-tax operating expense reduction initiatives* |
— | — | — | — | — | |||||||||||||||||||||||||||||
| 1.2 | (0.4 | ) | (83.4 | ) | (17.3 | ) | (32.1 | ) | After-tax net capital gains (losses) |
(1.5 | ) | (1.0 | ) | (18.6 | ) | (8.1 | ) | (4.4 | ) | |||||||||||||||||||||
| $ | 202.6 | $ | 227.9 | $ | 246.3 | $ | 238.2 | $ | 221.1 | Net income excluding after-tax operating expense reduction initiatives* and after-tax net capital gains (losses) |
$ | 35.2 | $ | 53.0 | $ | 64.8 | $ | 49.2 | $ | 54.1 | ||||||||||||||||||||
| $ | 1.9 | $ | (0.6 | ) | $ | (128.8 | ) | $ | (26.9 | ) | $ | (51.6 | ) | Net capital gains (losses) |
$ | (2.5 | ) | $ | (2.1 | ) | $ | (29.6 | ) | $ | (12.9 | ) | $ | (7.0 | ) | |||||||||||
| 0.7 | (0.2 | ) | (45.4 | ) | (9.6 | ) | (19.5 | ) | Tax expense (benefit) on net capital gains (losses) |
(1.0 | ) | (1.1 | ) | (11.0 | ) | (4.8 | ) | (2.6 | ) | |||||||||||||||||||||
| $ | 1.2 | $ | (0.4 | ) | $ | (83.4 | ) | $ | (17.3 | ) | $ | (32.1 | ) | After-tax net capital gains (losses) |
$ | (1.5 | ) | $ | (1.0 | ) | $ | (18.6 | ) | $ | (8.1 | ) | $ | (4.4 | ) | |||||||||||
| Diluted earnings per common share: |
||||||||||||||||||||||||||||||||||||||||
| $ | 3.73 | $ | 4.35 | $ | 3.30 | $ | 4.26 | $ | 4.02 | Net income |
$ | 0.73 | $ | 1.12 | $ | 0.99 | $ | 0.87 | $ | 1.04 | ||||||||||||||||||||
| — | — | — | (0.25 | ) | — | After-tax operating expense reduction initiatives* |
— | — | — | — | — | |||||||||||||||||||||||||||||
| 0.03 | — | (1.70 | ) | (0.35 | ) | (0.68 | ) | After-tax net capital gains (losses) |
(0.03 | ) | (0.02 | ) | (0.40 | ) | (0.17 | ) | (0.09 | ) | ||||||||||||||||||||||
| $ | 3.70 | $ | 4.35 | $ | 5.00 | $ | 4.86 | $ | 4.70 | Net income excluding after-tax operating expense reduction initiatives* and after-tax net capital gains (losses) |
$ | 0.76 | $ | 1.14 | $ | 1.39 | $ | 1.04 | $ | 1.13 | ||||||||||||||||||||
| $ | 1,464.5 | $ | 1,429.0 | $ | 1,380.3 | $ | 1,735.4 | $ | 1,912.1 | Shareholders’ equity |
$ | 1,901.7 | $ | 1,912.1 | $ | 2,001.6 | $ | 1,912.3 | $ | 1,803.6 | ||||||||||||||||||||
| (8.1 | ) | 16.8 | (153.9 | ) | 71.4 | 160.9 | Accumulated other comprehensive income (loss) |
151.4 | 160.9 | 268.4 | 191.0 | 106.3 | ||||||||||||||||||||||||||||
| $ | 1,472.6 | $ | 1,412.2 | $ | 1,534.2 | $ | 1,664.0 | $ | 1,751.2 | Shareholders’ equity excluding accumulated other comprehensive income (loss) |
$ | 1,750.3 | $ | 1,751.2 | $ | 1,733.2 | $ | 1,721.3 | $ | 1,697.3 | ||||||||||||||||||||
| 14.2 | % | 15.7 | % | 11.6 | % | 13.4 | % | 10.4 | % | Net income return on average equity |
7.1 | % | 10.6 | % | 9.4 | % | 8.8 | % | 11.2 | % | ||||||||||||||||||||
| 14.4 | 15.8 | 11.1 | 13.1 | 11.1 | Net income return on average equity (excluding accumulated other comprehensive income (loss)) |
7.7 | 11.9 | 10.7 | 9.6 | 11.8 | ||||||||||||||||||||||||||||||
| 14.3 | 15.8 | 16.7 | 14.9 | 12.9 | Net income return on average equity (excluding after-tax operating expense reduction initiatives*, after-tax net capital gains (losses) and accumulated other comprehensive income (loss)) |
8.0 | 12.2 | 15.0 | 11.5 | 12.9 | ||||||||||||||||||||||||||||||
| Book value per common share: |
||||||||||||||||||||||||||||||||||||||||
| $ | 27.33 | $ | 29.07 | $ | 28.18 | $ | 36.35 | $ | 41.42 | Including accumulated other comprehensive income (loss) |
$ | 41.90 | $ | 41.42 | $ | 43.49 | $ | 40.72 | $ | 38.10 | ||||||||||||||||||||
| (0.15 | ) | 0.34 | (3.14 | ) | 1.50 | 3.48 | Accumulated other comprehensive income (loss) |
3.33 | 3.48 | 5.84 | 4.06 | 2.25 | ||||||||||||||||||||||||||||
| $ | 27.48 | $ | 28.73 | $ | 31.32 | $ | 34.85 | $ | 37.94 | Excluding accumulated other comprehensive income (loss) |
$ | 38.57 | $ | 37.94 | $ | 37.65 | $ | 36.66 | $ | 35.85 | ||||||||||||||||||||
| 3,280 | 3,437 | 3,436 | 3,150 | 3,091 | Number of employees |
3,078 | 3,091 | 3,090 | 3,104 | 3,129 | ||||||||||||||||||||||||||||||
| * | Represents costs incurred in 2009 related to operating expense reduction initiatives. |
Page 1
STANCORP FINANCIAL GROUP, INC.
Financial Results
(In millions)
CONSOLIDATED
| 2011 | 2010 | |||||||||||||||||||||||||||||||||||||||
| 2006 | 2007 | 2008 | 2009 | 2010 | 1st Qtr | 4th Qtr | 3rd Qtr | 2nd Qtr | 1st Qtr | |||||||||||||||||||||||||||||||
| Revenues: |
||||||||||||||||||||||||||||||||||||||||
| $ | 1,935.0 | $ | 2,078.3 | $ | 2,140.2 | $ | 2,101.9 | $ | 2,097.7 | Premiums |
$ | 533.8 | $ | 524.5 | $ | 532.8 | $ | 532.9 | $ | 507.5 | ||||||||||||||||||||
| 77.1 | 115.2 | 114.6 | 108.5 | 116.5 | Administrative fees |
29.4 | 29.8 | 29.1 | 29.3 | 28.3 | ||||||||||||||||||||||||||||||
| 478.9 | 516.3 | 541.0 | 586.5 | 602.5 | Net investment income |
157.0 | 158.0 | 152.7 | 141.9 | 149.9 | ||||||||||||||||||||||||||||||
| Net capital gains (losses): |
||||||||||||||||||||||||||||||||||||||||
| — | (2.5 | ) | (104.9 | ) | (5.9 | ) | (0.7 | ) | Total other-than-temporary impairment losses on fixed maturity securities – available-for-sale |
(0.9 | ) | — | (0.6 | ) | (0.1 | ) | — | |||||||||||||||||||||||
| 1.9 | 1.9 | (23.9 | ) | (21.0 | ) | (50.9 | ) | All other net capital gains (losses) |
(1.6 | ) | (2.1 | ) | (29.0 | ) | (12.8 | ) | (7.0 | ) | ||||||||||||||||||||||
| 1.9 | (0.6 | ) | (128.8 | ) | (26.9 | ) | (51.6 | ) | Total net capital gains (losses) |
(2.5 | ) | (2.1 | ) | (29.6 | ) | (12.9 | ) | (7.0 | ) | |||||||||||||||||||||
| 2,492.9 | 2,709.2 | 2,667.0 | 2,770.0 | 2,765.1 | Total revenues |
717.7 | 710.2 | 685.0 | 691.2 | 678.7 | ||||||||||||||||||||||||||||||
| Benefits and expenses: |
||||||||||||||||||||||||||||||||||||||||
| 1,513.1 | 1,591.8 | 1,589.4 | 1,575.7 | 1,619.8 | Benefits to policyholders |
440.1 | 412.1 | 400.9 | 424.4 | 382.4 | ||||||||||||||||||||||||||||||
| 97.7 | 108.8 | 110.7 | 145.6 | 158.4 | Interest credited |
40.4 | 41.8 | 44.1 | 32.9 | 39.6 | ||||||||||||||||||||||||||||||
| 370.3 | 434.8 | 469.2 | 476.2 | 446.2 | Operating expenses |
118.3 | 111.4 | 108.5 | 111.5 | 114.8 | ||||||||||||||||||||||||||||||
| 183.6 | 198.0 | 227.6 | 202.0 | 206.1 | Commissions and bonuses |
58.8 | 51.5 | 51.5 | 48.2 | 54.9 | ||||||||||||||||||||||||||||||
| 34.6 | 36.4 | 37.3 | 34.2 | 34.7 | Premium taxes |
9.4 | 8.6 | 8.4 | 8.6 | 9.1 | ||||||||||||||||||||||||||||||
| 17.9 | 30.7 | 39.2 | 39.2 | 38.9 | Interest expense |
9.7 | 9.7 | 9.7 | 9.8 | 9.7 | ||||||||||||||||||||||||||||||
| (78.5 | ) | (86.2 | ) | (115.3 | ) | (93.9 | ) | (92.9 | ) | Deferral of acquisition costs |
(29.9 | ) | (21.1 | ) | (24.8 | ) | (21.8 | ) | (25.2 | ) | ||||||||||||||||||||
| 44.5 | 53.2 | 67.8 | 75.3 | 71.1 | Amortization of deferred acquisition costs, value of business acquired and other intangible assets |
20.8 | 19.9 | 17.1 | 16.5 | 17.6 | ||||||||||||||||||||||||||||||
| 2,183.2 | 2,367.5 | 2,425.9 | 2,454.3 | 2,482.3 | Total benefits and expenses |
667.6 | 633.9 | 615.4 | 630.1 | 602.9 | ||||||||||||||||||||||||||||||
| 309.7 | 341.7 | 241.1 | 315.7 | 282.8 | Income before income taxes |
50.1 | 76.3 | 69.6 | 61.1 | 75.8 | ||||||||||||||||||||||||||||||
| 105.9 | 114.2 | 78.2 | 106.8 | 93.8 | Income taxes |
16.4 | 24.3 | 23.4 | 20.0 | 26.1 | ||||||||||||||||||||||||||||||
| 203.8 | 227.5 | 162.9 | 208.9 | 189.0 | Net income |
33.7 | 52.0 | 46.2 | 41.1 | 49.7 | ||||||||||||||||||||||||||||||
| Other comprehensive income (loss), net of tax: |
||||||||||||||||||||||||||||||||||||||||
| Unrealized gains (losses) on securities – available-for-sale: |
||||||||||||||||||||||||||||||||||||||||
| (41.7 | ) | 25.0 | (206.0 | ) | 210.8 | 100.5 | Net unrealized capital gains (losses) on securities available-for-sale |
(9.0 | ) | (103.8 | ) | 78.4 | 86.8 | 39.1 | ||||||||||||||||||||||||||
| (1.7 | ) | (2.0 | ) | 80.3 | 3.5 | (9.6 | ) | Reclassification adjustment for net capital (gains) losses included in net income |
(2.8 | ) | (2.1 | ) | (1.9 | ) | (3.0 | ) | (2.6 | ) | ||||||||||||||||||||||
| Employee benefit plans: |
||||||||||||||||||||||||||||||||||||||||
| — | 0.3 | (45.9 | ) | 8.4 | (5.0 | ) | Prior service credit (cost) and net gains (losses) arising during the period, net |
1.5 | (2.5 | ) | — | — | (2.5 | ) | ||||||||||||||||||||||||||
| — | 1.6 | 0.9 | 4.9 | 3.6 | Reclassification adjustment for amortization to net periodic pension cost, net |
0.8 | 0.9 | 0.9 | 0.9 | 0.9 | ||||||||||||||||||||||||||||||
| (43.4 | ) | 24.9 | (170.7 | ) | 227.6 | 89.5 | Total |
(9.5 | ) | (107.5 | ) | 77.4 | 84.7 | 34.9 | ||||||||||||||||||||||||||
| $ | 160.4 | $ | 252.4 | $ | (7.8 | ) | $ | 436.5 | $ | 278.5 | Comprehensive income (loss) |
$ | 24.2 | $ | (55.5 | ) | $ | 123.6 | $ | 125.8 | $ | 84.6 | ||||||||||||||||||
| Statutory data - insurance subsidiaries: |
||||||||||||||||||||||||||||||||||||||||
| $ | 271.1 | $ | 309.3 | $ | 341.6 | $ | 375.0 | $ | 317.4 | Net gain from operations before federal income taxes and realized capital gains (losses) |
$ | 43.7 | $ | 75.9 | $ | 90.1 | $ | 70.2 | $ | 81.2 | ||||||||||||||||||||
| 172.8 | 197.2 | 235.0 | 251.4 | 202.4 | Net gain from operations after federal income taxes and before realized capital gains (losses) |
26.6 | 45.5 | 51.2 | 54.3 | 51.4 | ||||||||||||||||||||||||||||||
| 967.5 | 1,047.8 | 1,154.6 | 1,243.2 | 1,226.8 | Capital and surplus |
1,237.1 | 1,226.8 | 1,213.2 | 1,204.6 | 1,239.6 | ||||||||||||||||||||||||||||||
| 96.6 | 102.2 | 78.8 | 89.7 | 95.6 | Asset valuation reserve |
97.1 | 95.6 | 99.2 | 93.0 | 94.9 | ||||||||||||||||||||||||||||||
Page 2
STANCORP FINANCIAL GROUP, INC.
Financial Results
(In millions)
RESULTS BY SEGMENT
| 2011 | 2010 | |||||||||||||||||||||||||||||||||||||||
| 2006 | 2007 | 2008 | 2009 | 2010 | 1st Qtr | 4th Qtr | 3rd Qtr | 2nd Qtr | 1st Qtr | |||||||||||||||||||||||||||||||
| Revenues: |
||||||||||||||||||||||||||||||||||||||||
| Premiums: |
||||||||||||||||||||||||||||||||||||||||
| $ | 1,927.4 | $ | 2,063.6 | $ | 2,109.1 | $ | 2,067.2 | $ | 2,056.2 | Insurance Services |
$ | 530.5 | $ | 512.0 | $ | 514.2 | $ | 523.6 | $ | 506.4 | ||||||||||||||||||||
| 7.6 | 14.7 | 31.1 | 34.7 | 41.5 | Asset Management |
3.3 | 12.5 | 18.6 | 9.3 | 1.1 | ||||||||||||||||||||||||||||||
| 1,935.0 | 2,078.3 | 2,140.2 | 2,101.9 | 2,097.7 | Total premiums |
533.8 | 524.5 | 532.8 | 532.9 | 507.5 | ||||||||||||||||||||||||||||||
| Administrative fees: |
||||||||||||||||||||||||||||||||||||||||
| 8.7 | 8.4 | 9.2 | 8.3 | 9.6 | Insurance Services |
2.7 | 2.7 | 2.6 | 2.3 | 2.0 | ||||||||||||||||||||||||||||||
| 78.3 | 118.7 | 118.3 | 114.1 | 121.5 | Asset Management |
30.6 | 30.7 | 30.3 | 30.6 | 29.9 | ||||||||||||||||||||||||||||||
| (9.9 | ) | (11.9 | ) | (12.9 | ) | (13.9 | ) | (14.6 | ) | Other |
(3.9 | ) | (3.6 | ) | (3.8 | ) | (3.6 | ) | (3.6 | ) | ||||||||||||||||||||
| 77.1 | 115.2 | 114.6 | 108.5 | 116.5 | Total administrative fees |
29.4 | 29.8 | 29.1 | 29.3 | 28.3 | ||||||||||||||||||||||||||||||
| Net investment income: |
||||||||||||||||||||||||||||||||||||||||
| 313.4 | 325.8 | 337.5 | 335.1 | 338.9 | Insurance Services |
84.4 | 86.4 | 84.8 | 83.7 | 84.0 | ||||||||||||||||||||||||||||||
| 151.3 | 170.2 | 183.8 | 234.0 | 251.0 | Asset Management |
69.6 | 69.8 | 65.9 | 54.0 | 61.3 | ||||||||||||||||||||||||||||||
| 14.2 | 20.3 | 19.7 | 17.4 | 12.6 | Other |
3.0 | 1.8 | 2.0 | 4.2 | 4.6 | ||||||||||||||||||||||||||||||
| 478.9 | 516.3 | 541.0 | 586.5 | 602.5 | Total net investment income |
157.0 | 158.0 | 152.7 | 141.9 | 149.9 | ||||||||||||||||||||||||||||||
| 1.9 | (0.6 | ) | (128.8 | ) | (26.9 | ) | (51.6 | ) | Net capital gains (losses) |
(2.5 | ) | (2.1 | ) | (29.6 | ) | (12.9 | ) | (7.0 | ) | |||||||||||||||||||||
| 2,492.9 | 2,709.2 | 2,667.0 | 2,770.0 | 2,765.1 | Total revenues |
717.7 | 710.2 | 685.0 | 691.2 | 678.7 | ||||||||||||||||||||||||||||||
| Benefits and expenses: |
||||||||||||||||||||||||||||||||||||||||
| 1,967.1 | 2,075.2 | 2,089.4 | 2,054.3 | 2,090.9 | Insurance Services |
571.1 | 528.9 | 507.3 | 540.9 | 513.8 | ||||||||||||||||||||||||||||||
| 198.8 | 260.7 | 298.3 | 345.5 | 357.2 | Asset Management |
84.4 | 96.6 | 99.8 | 80.7 | 80.1 | ||||||||||||||||||||||||||||||
| 17.3 | 31.6 | 38.2 | 54.5 | 34.2 | Other |
12.1 | 8.4 | 8.3 | 8.5 | 9.0 | ||||||||||||||||||||||||||||||
| 2,183.2 | 2,367.5 | 2,425.9 | 2,454.3 | 2,482.3 | Total benefits and expenses |
667.6 | 633.9 | 615.4 | 630.1 | 602.9 | ||||||||||||||||||||||||||||||
| Income (loss) before income taxes: |
||||||||||||||||||||||||||||||||||||||||
| 282.4 | 322.6 | 366.4 | 356.3 | 313.8 | Insurance Services |
46.5 | 72.2 | 94.3 | 68.7 | 78.6 | ||||||||||||||||||||||||||||||
| 38.4 | 42.9 | 34.9 | 37.3 | 56.8 | Asset Management |
19.1 | 16.4 | 15.0 | 13.2 | 12.2 | ||||||||||||||||||||||||||||||
| (11.1 | ) | (23.8 | ) | (160.2 | ) | (77.9 | ) | (87.8 | ) | Other |
(15.5 | ) | (12.3 | ) | (39.7 | ) | (20.8 | ) | (15.0 | ) | ||||||||||||||||||||
| 309.7 | 341.7 | 241.1 | 315.7 | 282.8 | Total income before income taxes |
50.1 | 76.3 | 69.6 | 61.1 | 75.8 | ||||||||||||||||||||||||||||||
| 105.9 | 114.2 | 78.2 | 106.8 | 93.8 | Income taxes |
16.4 | 24.3 | 23.4 | 20.0 | 26.1 | ||||||||||||||||||||||||||||||
| $ | 203.8 | $ | 227.5 | $ | 162.9 | $ | 208.9 | $ | 189.0 | Net income |
$ | 33.7 | $ | 52.0 | $ | 46.2 | $ | 41.1 | $ | 49.7 | ||||||||||||||||||||
Page 3
STANCORP FINANCIAL GROUP, INC.
Financial Results
(Dollars in millions)
INSURANCE SERVICES SEGMENT
| 2011 | 2010 | |||||||||||||||||||||||||||||||||||||||
| 2006 | 2007 | 2008 | 2009 | 2010 | 1st Qtr | 4th Qtr | 3rd Qtr | 2nd Qtr | 1st Qtr | |||||||||||||||||||||||||||||||
| Revenues: |
||||||||||||||||||||||||||||||||||||||||
| $1,927.4 | $ | 2,063.6 | $ | 2,109.1 | $ | 2,067.2 | $ | 2,056.2 | Premiums |
$ | 530.5 | $ | 512.0 | $ | 514.2 | $ | 523.6 | $ | 506.4 | |||||||||||||||||||||
| 8.7 | 8.4 | 9.2 | 8.3 | 9.6 | Administrative fees |
2.7 | 2.7 | 2.6 | 2.3 | 2.0 | ||||||||||||||||||||||||||||||
| 313.4 | 325.8 | 337.5 | 335.1 | 338.9 | Net investment income |
84.4 | 86.4 | 84.8 | 83.7 | 84.0 | ||||||||||||||||||||||||||||||
| 2,249.5 | 2,397.8 | 2,455.8 | 2,410.6 | 2,404.7 | Total revenues |
617.6 | 601.1 | 601.6 | 609.6 | 592.4 | ||||||||||||||||||||||||||||||
| Benefits and expenses: |
||||||||||||||||||||||||||||||||||||||||
| 1,497.1 | 1,569.4 | 1,549.7 | 1,530.3 | 1,566.4 | Benefits to policyholders |
434.3 | 397.0 | 379.6 | 411.7 | 378.1 | ||||||||||||||||||||||||||||||
| 13.3 | 16.1 | 10.8 | 4.7 | 4.8 | Interest credited |
1.0 | 1.0 | 1.4 | 1.3 | 1.1 | ||||||||||||||||||||||||||||||
| 291.8 | 313.2 | 338.4 | 333.9 | 331.8 | Operating expenses |
86.5 | 82.9 | 81.1 | 82.6 | 85.2 | ||||||||||||||||||||||||||||||
| 155.5 | 167.5 | 175.8 | 169.8 | 175.7 | Commissions and bonuses |
50.5 | 43.3 | 44.0 | 40.0 | 48.4 | ||||||||||||||||||||||||||||||
| 34.6 | 36.4 | 37.3 | 34.2 | 34.5 | Premium taxes |
9.4 | 8.5 | 8.5 | 8.4 | 9.1 | ||||||||||||||||||||||||||||||
| (62.4 | ) | (70.6 | ) | (75.2 | ) | (73.1 | ) | (76.2 | ) | Deferral of acquisition costs |
(25.2 | ) | (16.9 | ) | (20.5 | ) | (16.4 | ) | (22.4 | ) | ||||||||||||||||||||
| 37.2 | 43.2 | 52.6 | 54.5 | 53.9 | Amortization of deferred acquisition costs, value of business acquired and other intangible assets |
14.6 | 13.1 | 13.2 | 13.3 | 14.3 | ||||||||||||||||||||||||||||||
| 1,967.1 | 2,075.2 | 2,089.4 | 2,054.3 | 2,090.9 | Total benefits and expenses |
571.1 | 528.9 | 507.3 | 540.9 | 513.8 | ||||||||||||||||||||||||||||||
| $ 282.4 | $ | 322.6 | $ | 366.4 | $ | 356.3 | $ | 313.8 | Income before income taxes |
$ | 46.5 | $ | 72.2 | $ | 94.3 | $ | 68.7 | $ | 78.6 | |||||||||||||||||||||
| Benefit ratio (including interest credited): |
||||||||||||||||||||||||||||||||||||||||
| 67.1 | % | 66.1 | % | 63.5 | % | 63.7 | % | 65.3 | % | % of total revenues |
70.5 | % | 66.2 | % | 63.3 | % | 67.7 | % | 64.0 | % | ||||||||||||||||||||
| 78.4 | 76.8 | 74.0 | 74.3 | 76.4 | % of total premiums |
82.1 | 77.7 | 74.1 | 78.9 | 74.9 | ||||||||||||||||||||||||||||||
| Statistics (% of total premiums): |
||||||||||||||||||||||||||||||||||||||||
| 15.1 | % | 15.2 | % | 16.0 | % | 16.2 | % | 16.1 | % | Operating expenses |
16.3 | % | 16.2 | % | 15.8 | % | 15.8 | % | 16.8 | % | ||||||||||||||||||||
| 14.7 | 15.6 | 17.4 | 17.2 | 15.3 | Income before income taxes |
8.8 | 14.1 | 18.3 | 13.1 | 15.5 | ||||||||||||||||||||||||||||||
Page 4
STANCORP FINANCIAL GROUP, INC.
Insurance Services Segment Statistics
(Dollars in millions)
INSURANCE SERVICES SEGMENT
| 2011 | 2010 | |||||||||||||||||||||||||||||||||||||||
| 2006 | 2007 | 2008 | 2009 | 2010 | 1st Qtr | 4th Qtr | 3rd Qtr | 2nd Qtr | 1st Qtr | |||||||||||||||||||||||||||||||
| Group Insurance: |
||||||||||||||||||||||||||||||||||||||||
| Premiums: |
||||||||||||||||||||||||||||||||||||||||
| $ | 735.0 | $ | 807.2 | $ | 850.3 | $ | 819.6 | $ | 835.7 | Life and AD&D |
$ | 221.6 | $ | 210.2 | $ | 210.9 | $ | 209.6 | $ | 205.0 | ||||||||||||||||||||
| 809.9 | 869.8 | 862.9 | 825.6 | 799.9 | LTD |
200.1 | 200.6 | 200.6 | 197.9 | 200.8 | ||||||||||||||||||||||||||||||
| 211.1 | 219.5 | 215.5 | 205.7 | 203.7 | STD |
51.4 | 51.6 | 50.8 | 50.6 | 50.7 | ||||||||||||||||||||||||||||||
| 72.9 | 70.8 | 75.8 | 79.5 | 81.5 | Other |
19.8 | 20.4 | 20.3 | 20.5 | 20.3 | ||||||||||||||||||||||||||||||
| (22.6 | ) | (37.2 | ) | (44.6 | ) | (40.2 | ) | (27.9 | ) | Experience rated refunds |
(4.5 | ) | (11.7 | ) | (9.9 | ) | 4.6 | (10.9 | ) | |||||||||||||||||||||
| $ | 1,806.3 | $ | 1,930.1 | $ | 1,959.9 | $ | 1,890.2 | $ | 1,892.9 | Total premiums |
$ | 488.4 | $ | 471.1 | $ | 472.7 | $ | 483.2 | $ | 465.9 | ||||||||||||||||||||
| Benefit ratio (including interest credited): |
||||||||||||||||||||||||||||||||||||||||
| 68.0 | % | 67.4 | % | 63.9 | % | 64.7 | % | 66.8 | % | % of total revenues |
73.1 | % | 66.7 | % | 65.3 | % | 69.5 | % | 65.8 | % | ||||||||||||||||||||
| 78.3 | 77.4 | 73.6 | 74.7 | 77.2 | % of total premiums |
84.2 | 77.4 | 75.5 | 79.9 | 76.1 | ||||||||||||||||||||||||||||||
| Statistics (% of total premiums): |
||||||||||||||||||||||||||||||||||||||||
| 14.9 | % | 15.1 | % | 16.1 | % | 16.3 | % | 16.2 | % | Operating expenses |
16.3 | % | 16.2 | % | 15.8 | % | 15.8 | % | 16.9 | % | ||||||||||||||||||||
| 14.2 | 14.5 | 17.2 | 16.4 | 14.0 | Income before income taxes |
6.3 | 14.2 | 16.4 | 11.7 | 14.0 | ||||||||||||||||||||||||||||||
| Sales (annualized new premiums) reported at contract effective date: |
||||||||||||||||||||||||||||||||||||||||
| $ | 138.0 | $ | 181.4 | $ | 134.8 | $ | 124.8 | $ | 156.9 | Life and AD&D |
$ | 77.4 | $ | 35.0 | $ | 24.9 | $ | 23.5 | $ | 73.5 | ||||||||||||||||||||
| 114.1 | 168.7 | 93.5 | 95.3 | 103.1 | LTD |
50.2 | 22.2 | 23.4 | 10.8 | 46.7 | ||||||||||||||||||||||||||||||
| 42.1 | 34.2 | 33.5 | 35.6 | 45.1 | STD |
22.3 | 11.1 | 7.1 | 4.6 | 22.3 | ||||||||||||||||||||||||||||||
| 23.6 | 24.5 | 30.7 | 32.1 | 25.5 | Other |
10.4 | 4.8 | 4.3 | 3.7 | 12.7 | ||||||||||||||||||||||||||||||
| $ | 317.8 | $ | 408.8 | $ | 292.5 | $ | 287.8 | $ | 330.6 | Total sales |
$ | 160.3 | $ | 73.1 | $ | 59.7 | $ | 42.6 | $ | 155.2 | ||||||||||||||||||||
| Persistency (% of premiums): |
||||||||||||||||||||||||||||||||||||||||
| 89.0 | % | 89.9 | % | 83.3 | % | 84.4 | % | 89.8 | % | Life and AD&D |
||||||||||||||||||||||||||||||
| 88.9 | 87.5 | 83.4 | 85.6 | 89.1 | LTD |
|||||||||||||||||||||||||||||||||||
| 87.4 | 82.9 | 81.0 | 77.8 | 87.9 | STD |
|||||||||||||||||||||||||||||||||||
| 76.0 | 74.3 | 79.0 | 77.2 | 78.3 | Other |
|||||||||||||||||||||||||||||||||||
| 88.1 | % | 87.4 | % | 82.9 | % | 83.8 | % | 88.7 | % | Total persistency |
||||||||||||||||||||||||||||||
| Individual Disability: |
||||||||||||||||||||||||||||||||||||||||
| $ | 121.1 | $ | 133.5 | $ | 149.2 | $ | 177.0 | $ | 163.3 | Premiums: |
$ | 42.1 | $ | 40.9 | $ | 41.5 | $ | 40.4 | $ | 40.5 | ||||||||||||||||||||
| Benefit ratio: |
||||||||||||||||||||||||||||||||||||||||
| 56.9 | % | 50.6 | % | 59.2 | % | 54.1 | % | 50.5 | % | % of total revenues |
43.6 | % | 61.7 | % | 44.0 | % | 49.8 | % | 46.4 | % | ||||||||||||||||||||
| 79.4 | 69.3 | 78.7 | 69.3 | 66.8 | % of total premiums |
57.2 | 81.9 | 58.1 | 66.1 | 61.2 | ||||||||||||||||||||||||||||||
| Statistics (% of premiums): |
||||||||||||||||||||||||||||||||||||||||
| 19.4 | % | 16.6 | % | 15.7 | % | 14.2 | % | 15.7 | % | Operating expenses |
16.9 | % | 15.6 | % | 15.4 | % | 15.8 | % | 15.8 | % | ||||||||||||||||||||
| 21.6 | 32.2 | 19.6 | 25.7 | 29.3 | Income before income taxes |
37.5 | 13.0 | 40.5 | 30.4 | 33.3 | ||||||||||||||||||||||||||||||
| $ | 21.5 | $ | 23.9 | $ | 26.4 | $ | 23.0 | $ | 21.1 | Disability sales |
$ | 5.5 | $ | 5.3 | $ | 6.7 | $ | 4.8 | $ | 4.3 | ||||||||||||||||||||
| 95.1 | % | 95.0 | % | 94.7 | % | 92.9 | % | 94.8 | % | Disability persistency (% of premiums) |
||||||||||||||||||||||||||||||
Page 5
STANCORP FINANCIAL GROUP, INC.
Financial Results
(Dollars in millions)
ASSET MANAGEMENT SEGMENT
| 2011 | 2010 | |||||||||||||||||||||||||||||||||||||||
| 2006 | 2007 | 2008 | 2009 | 2010 | 1st Qtr | 4th Qtr | 3rd Qtr | 2nd Qtr | 1st Qtr | |||||||||||||||||||||||||||||||
| Revenues: |
||||||||||||||||||||||||||||||||||||||||
| $ | 7.6 | $ | 14.7 | $ | 31.1 | $ | 34.7 | $ | 41.5 | Premiums |
$ | 3.3 | $ | 12.5 | $ | 18.6 | $ | 9.3 | $ | 1.1 | ||||||||||||||||||||
| 78.3 | 118.7 | 118.3 | 114.1 | 121.5 | Administrative fees |
30.6 | 30.7 | 30.3 | 30.6 | 29.9 | ||||||||||||||||||||||||||||||
| 151.3 | 170.2 | 183.8 | 234.0 | 251.0 | Net investment income |
69.6 | 69.8 | 65.9 | 54.0 | 61.3 | ||||||||||||||||||||||||||||||
| 237.2 | 303.6 | 333.2 | 382.8 | 414.0 | Total revenues |
103.5 | 113.0 | 114.8 | 93.9 | 92.3 | ||||||||||||||||||||||||||||||
| Benefits and expenses: |
||||||||||||||||||||||||||||||||||||||||
| 16.0 | 22.4 | 39.7 | 45.4 | 53.4 | Benefits to policyholders |
5.8 | 15.1 | 21.3 | 12.7 | 4.3 | ||||||||||||||||||||||||||||||
| 84.4 | 92.7 | 99.9 | 140.9 | 153.6 | Interest credited |
39.4 | 40.8 | 42.7 | 31.6 | 38.5 | ||||||||||||||||||||||||||||||
| 78.6 | 120.2 | 131.4 | 126.9 | 119.0 | Operating expenses |
29.4 | 29.8 | 28.8 | 30.1 | 30.3 | ||||||||||||||||||||||||||||||
| 28.1 | 30.5 | 51.8 | 32.2 | 30.4 | Commissions and bonuses |
8.3 | 8.2 | 7.5 | 8.2 | 6.5 | ||||||||||||||||||||||||||||||
| — | — | — | — | 0.2 | Premium taxes |
— | 0.1 | (0.1 | ) | 0.2 | — | |||||||||||||||||||||||||||||
| 0.5 | 0.5 | 0.4 | 0.1 | 0.1 | Interest expense |
— | — | — | 0.1 | — | ||||||||||||||||||||||||||||||
| (16.1 | ) | (15.6 | ) | (40.1 | ) | (20.8 | ) | (16.7 | ) | Deferral of acquisition costs |
(4.7 | ) | (4.2 | ) | (4.3 | ) | (5.4 | ) | (2.8 | ) | ||||||||||||||||||||
| 7.3 | 10.0 | 15.2 | 20.8 | 17.2 | Amortization of deferred acquisition costs, value of business acquired and other intangible assets |
6.2 | 6.8 | 3.9 | 3.2 | 3.3 | ||||||||||||||||||||||||||||||
| 198.8 | 260.7 | 298.3 | 345.5 | 357.2 | Total benefits and expenses |
84.4 | 96.6 | 99.8 | 80.7 | 80.1 | ||||||||||||||||||||||||||||||
| $ | 38.4 | $ | 42.9 | $ | 34.9 | $ | 37.3 | $ | 56.8 | Income before income taxes |
$ | 19.1 | $ | 16.4 | $ | 15.0 | $ | 13.2 | $ | 12.2 | ||||||||||||||||||||
| Assets under administration: |
||||||||||||||||||||||||||||||||||||||||
| $ | 16,240.0 | $ | 18,725.6 | $ | 14,467.3 | $ | 15,780.3 | $ | 15,281.7 | Retirement Plans * |
$ | 15,309.7 | $ | 15,281.7 | $ | 14,695.0 | $ | 13,838.0 | $ | 15,521.0 | ||||||||||||||||||||
| 1,234.9 | 1,295.9 | 2,056.6 | 2,390.9 | 2,684.2 | Individual Annuities |
2,750.6 | 2,684.2 | 2,610.1 | 2,524.8 | 2,430.3 | ||||||||||||||||||||||||||||||
| 1,407.0 | 1,899.4 | 2,526.2 | 2,588.8 | 2,697.3 | Mortgage loans for other investors |
2,670.7 | 2,697.3 | 2,645.2 | 2,608.9 | 2,605.3 | ||||||||||||||||||||||||||||||
| 137.5 | 447.3 | 644.7 | 1,093.9 | 1,224.5 | Private client wealth management |
1,230.5 | 1,224.5 | 1,179.7 | 1,021.5 | 1,081.1 | ||||||||||||||||||||||||||||||
| $ | 19,019.4 | $ | 22,368.2 | $ | 19,694.8 | $ | 21,853.9 | $ | 21,887.7 | Total assets under administration |
$ | 21,961.5 | $ | 21,887.7 | $ | 21,130.0 | $ | 19,993.2 | $ | 21,637.7 | ||||||||||||||||||||
| Annualized operating expenses: |
||||||||||||||||||||||||||||||||||||||||
| (% of average assets under administration) |
||||||||||||||||||||||||||||||||||||||||
| 0.59 | % | 0.56 | % | 0.62 | % | 0.65 | % | 0.57 | % | Retirement Plans * |
0.56 | % | 0.60 | % | 0.60 | % | 0.62 | % | 0.57 | % | ||||||||||||||||||||
| Interest credited: |
||||||||||||||||||||||||||||||||||||||||
| (% of investment income) |
||||||||||||||||||||||||||||||||||||||||
| 54.5 | % | 54.9 | % | 57.0 | % | 57.5 | % | 56.5 | % | Retirement Plans |
53.6 | % | 54.9 | % | 57.1 | % | 57.2 | % | 56.9 | % | ||||||||||||||||||||
| 64.4 | 67.0 | 64.2 | 68.4 | 69.0 | Individual Annuities |
61.9 | 63.5 | 75.6 | 63.5 | 73.2 | ||||||||||||||||||||||||||||||
| $ | 214.2 | $ | 210.7 | $ | 895.4 | $ | 398.8 | $ | 363.8 | Individual Annuity sales |
$ | 90.4 | $ | 94.2 | $ | 95.7 | $ | 118.2 | $ | 55.7 | ||||||||||||||||||||
| $ | 942.8 | $ | 1,447.3 | $ | 1,373.8 | $ | 718.5 | $ | 887.5 | Commercial mortgage loans originated |
$ | 196.3 | $ | 215.8 | $ | 330.4 | $ | 200.7 | $ | 140.6 | ||||||||||||||||||||
| * | Includes the July 2006 acquisition of Invesmart, Inc. and the July 2007 acquisition of DPA, Inc. |
Page 6
STANCORP FINANCIAL GROUP, INC.
Financial Results
(In millions)
OTHER
| 2011 | 2010 | |||||||||||||||||||||||||||||||||||||||
| 2006 | 2007 | 2008 | 2009 | 2010 | 1st Qtr | 4th Qtr | 3rd Qtr | 2nd Qtr | 1st Qtr | |||||||||||||||||||||||||||||||
| Revenues: |
||||||||||||||||||||||||||||||||||||||||
| $ | (9.9 | ) | $ | (11.9 | ) | $ | (12.9 | ) | $ | (13.9 | ) | $ | (14.6 | ) | Administrative fees |
$ | (3.9 | ) | $ | (3.6 | ) | $ | (3.8 | ) | $ | (3.6 | ) | $ | (3.6 | ) | ||||||||||
| 14.2 | 20.3 | 19.7 | 17.4 | 12.6 | Net investment income |
3.0 | 1.8 | 2.0 | 4.2 | 4.6 | ||||||||||||||||||||||||||||||
| Net capital gains (losses): |
||||||||||||||||||||||||||||||||||||||||
| — | (2.5 | ) | (104.9 | ) | (5.9 | ) | (0.7 | ) | Total other-than-temporary impairment losses on fixed maturity securities – available-for-sale |
(0.9 | ) | — | (0.6 | ) | (0.1 | ) | — | |||||||||||||||||||||||
| 1.9 | 1.9 | (23.9 | ) | (21.0 | ) | (50.9 | ) | All other net capital gains (losses) |
(1.6 | ) | (2.1 | ) | (29.0 | ) | (12.8 | ) | (7.0 | ) | ||||||||||||||||||||||
| 1.9 | (0.6 | ) | (128.8 | ) | (26.9 | ) | (51.6 | ) | Total net capital gains (losses) |
(2.5 | ) | (2.1 | ) | (29.6 | ) | (12.9 | ) | (7.0 | ) | |||||||||||||||||||||
| 6.2 | 7.8 | (122.0 | ) | (23.4 | ) | (53.6 | ) | Total revenues |
(3.4 | ) | (3.9 | ) | (31.4 | ) | (12.3 | ) | (6.0 | ) | ||||||||||||||||||||||
| Benefits and expenses: |
||||||||||||||||||||||||||||||||||||||||
| (0.1 | ) | 1.4 | (0.6 | ) | 15.4 | (4.6 | ) | Operating expenses |
2.4 | (1.3 | ) | (1.4 | ) | (1.2 | ) | (0.7 | ) | |||||||||||||||||||||||
| 17.4 | 30.2 | 38.8 | 39.1 | 38.8 | Interest expense |
9.7 | 9.7 | 9.7 | 9.7 | 9.7 | ||||||||||||||||||||||||||||||
| 17.3 | 31.6 | 38.2 | 54.5 | 34.2 | Total benefits and expenses |
12.1 | 8.4 | 8.3 | 8.5 | 9.0 | ||||||||||||||||||||||||||||||
| $ | (11.1 | ) | $ | (23.8 | ) | $ | (160.2 | ) | $ | (77.9 | ) | $ | (87.8 | ) | Loss before income taxes |
$ | (15.5 | ) | $ | (12.3 | ) | $ | (39.7 | ) | $ | (20.8 | ) | $ | (15.0 | ) | ||||||||||
Page 7
STANCORP FINANCIAL GROUP, INC.
Consolidated Balance Sheets
(In millions)
CONSOLIDATED
| 2011 | 2010 | |||||||||||||||||||||||||||||||||||||||
| 2006 | 2007 | 2008 | 2009 | 2010 | 1st Qtr | 4th Qtr | 3rd Qtr | 2nd Qtr | 1st Qtr | |||||||||||||||||||||||||||||||
| ASSETS |
||||||||||||||||||||||||||||||||||||||||
| Investments: |
||||||||||||||||||||||||||||||||||||||||
| $ | 4,786.0 | $ | 4,997.1 | $ | 5,200.3 | $ | 6,167.3 | $ | 6,419.1 | Fixed maturity securities – available-for-sale |
$ | 6,444.5 | $ | 6,419.1 | $ | 6,509.2 | $ | 6,367.5 | $ | 6,292.2 | ||||||||||||||||||||
| — | 4.5 | 1.4 | 1.1 | — | Short-term investments |
— | — | 0.7 | 0.8 | 1.0 | ||||||||||||||||||||||||||||||
| 3,316.0 | 3,657.7 | 4,083.6 | 4,284.8 | 4,513.6 | Commercial mortgage loans, net |
4,615.0 | 4,513.6 | 4,468.0 | 4,313.7 | 4,304.5 | ||||||||||||||||||||||||||||||
| 89.9 | 71.8 | 81.3 | 113.5 | 210.6 | Real estate, net |
222.0 | 210.6 | 209.5 | 205.3 | 113.3 | ||||||||||||||||||||||||||||||
| 4.0 | 3.9 | 3.4 | 3.1 | 3.3 | Policy loans |
3.2 | 3.3 | 3.2 | 3.1 | 3.1 | ||||||||||||||||||||||||||||||
| 8,195.9 | 8,735.0 | 9,370.0 | 10,569.8 | 11,146.6 | Total investments |
11,284.7 | 11,146.6 | 11,190.6 | 10,890.4 | 10,714.1 | ||||||||||||||||||||||||||||||
| 56.0 | 205.8 | 280.5 | 108.3 | 152.0 | Cash and cash equivalents |
86.5 | 152.0 | 141.4 | 162.8 | 99.3 | ||||||||||||||||||||||||||||||
| 99.2 | 106.8 | 101.9 | 104.4 | 101.9 | Premiums and other receivables |
114.6 | 101.9 | 118.8 | 110.9 | 101.7 | ||||||||||||||||||||||||||||||
| 89.5 | 93.1 | 103.1 | 108.8 | 110.8 | Accrued investment income |
114.9 | 110.8 | 114.0 | 109.7 | 114.9 | ||||||||||||||||||||||||||||||
| 913.6 | 929.6 | 944.0 | 935.0 | 938.3 | Amounts recoverable from reinsurers |
940.5 | 938.3 | 939.6 | 935.0 | 936.7 | ||||||||||||||||||||||||||||||
| 309.2 | 288.8 | 334.5 | 338.8 | 357.1 | Deferred acquisition costs, value of business acquired and other intangible assets, net |
372.1 | 357.1 | 344.9 | 345.7 | 344.4 | ||||||||||||||||||||||||||||||
| 33.5 | 36.0 | 36.0 | 36.0 | 36.0 | Goodwill |
36.0 | 36.0 | 36.0 | 36.0 | 36.0 | ||||||||||||||||||||||||||||||
| 84.6 | 126.9 | 136.1 | 127.2 | 111.5 | Property and equipment, net |
107.9 | 111.5 | 116.3 | 119.3 | 122.6 | ||||||||||||||||||||||||||||||
| — | — | 75.1 | — | — | Deferred tax assets, net |
— | — | — | — | — | ||||||||||||||||||||||||||||||
| 24.6 | 74.5 | 98.1 | 66.7 | 101.7 | Other assets |
67.5 | 101.7 | 75.8 | 43.9 | 37.2 | ||||||||||||||||||||||||||||||
| 3,832.5 | 4,386.4 | 3,075.9 | 4,174.5 | 4,787.4 | Separate account assets |
5,056.5 | 4,787.4 | 4,398.7 | 3,976.1 | 4,393.5 | ||||||||||||||||||||||||||||||
| $ | 13,638.6 | $ | 14,982.9 | $ | 14,555.2 | $ | 16,569.5 | $ | 17,843.3 | Total assets |
$ | 18,181.2 | $ | 17,843.3 | $ | 17,476.1 | $ | 16,729.8 | $ | 16,900.4 | ||||||||||||||||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||||||||||||||||||||||||||||||||||||||
| Liabilities: |
||||||||||||||||||||||||||||||||||||||||
| $ | 4,927.6 | $ | 5,158.7 | $ | 5,285.9 | $ | 5,368.7 | $ | 5,502.3 | Future policy benefits and claims |
$ | 5,531.5 | $ | 5,502.3 | $ | 5,463.9 | $ | 5,423.5 | $ | 5,369.0 | ||||||||||||||||||||
| 2,937.8 | 3,153.8 | 3,944.1 | 4,337.1 | 4,627.8 | Other policyholder funds |
4,692.6 | 4,627.8 | 4,547.7 | 4,470.6 | 4,388.0 | ||||||||||||||||||||||||||||||
| 22.9 | 15.6 | — | 30.0 | 58.3 | Deferred tax liabilities, net |
53.1 | 58.3 | 121.9 | 96.0 | 55.8 | ||||||||||||||||||||||||||||||
| 2.4 | 4.0 | 3.7 | 2.9 | 2.2 | Short-term debt |
1.8 | 2.2 | 2.5 | 2.8 | 2.8 | ||||||||||||||||||||||||||||||
| 261.1 | 562.6 | 561.5 | 553.2 | 551.9 | Long-term debt |
551.6 | 551.9 | 552.3 | 552.7 | 552.9 | ||||||||||||||||||||||||||||||
| 189.8 | 272.8 | 303.8 | 367.7 | 401.3 | Other liabilities |
392.4 | 401.3 | 387.5 | 295.8 | 334.8 | ||||||||||||||||||||||||||||||
| 3,832.5 | 4,386.4 | 3,075.9 | 4,174.5 | 4,787.4 | Separate account liabilities |
5,056.5 | 4,787.4 | 4,398.7 | 3,976.1 | 4,393.5 | ||||||||||||||||||||||||||||||
| 12,174.1 | 13,553.9 | 13,174.9 | 14,834.1 | 15,931.2 | Total liabilities |
16,279.5 | 15,931.2 | 15,474.5 | 14,817.5 | 15,096.8 | ||||||||||||||||||||||||||||||
| Shareholders’ equity: |
||||||||||||||||||||||||||||||||||||||||
| 479.9 | 267.1 | 262.9 | 220.4 | 158.2 | Common stock |
123.6 | 158.2 | 152.6 | 186.9 | 204.0 | ||||||||||||||||||||||||||||||
| (8.1 | ) | 16.8 | (153.9 | ) | 71.4 | 160.9 | Accumulated other comprehensive income (loss) |
151.4 | 160.9 | 268.4 | 191.0 | 106.3 | ||||||||||||||||||||||||||||
| 992.7 | 1,145.1 | 1,271.3 | 1,443.6 | 1,593.0 | Retained earnings |
1,626.7 | 1,593.0 | 1,580.6 | 1,534.4 | 1,493.3 | ||||||||||||||||||||||||||||||
| 1,464.5 | 1,429.0 | 1,380.3 | 1,735.4 | 1,912.1 | Total shareholders’ equity |
1,901.7 | 1,912.1 | 2,001.6 | 1,912.3 | 1,803.6 | ||||||||||||||||||||||||||||||
| $ | 13,638.6 | $ | 14,982.9 | $ | 14,555.2 | $ | 16,569.5 | $ | 17,843.3 | Total liabilities and shareholders’ equity |
$ | 18,181.2 | $ | 17,843.3 | $ | 17,476.1 | $ | 16,729.8 | $ | 16,900.4 | ||||||||||||||||||||
Page 8
STANCORP FINANCIAL GROUP, INC.
Invested Assets Statistics
(Dollars in millions)
CONSOLIDATED
| 2011 | 2010 | |||||||||||||||||||||||||||||||||||||||
| 2006 | 2007 | 2008 | 2009 | 2010 | 1st Qtr | 4th Qtr | 3rd Qtr | 2nd Qtr | 1st Qtr | |||||||||||||||||||||||||||||||
| Investments: |
||||||||||||||||||||||||||||||||||||||||
| Fixed maturity securities – available-for-sale: |
||||||||||||||||||||||||||||||||||||||||
| $ | 4,205.0 | $ | 4,390.8 | $ | 4,547.1 | $ | 5,367.1 | $ | 5,620.7 | Public |
$ | 5,647.7 | $ | 5,620.7 | $ | 5,688.1 | $ | 5,523.5 | $ | 5,467.7 | ||||||||||||||||||||
| 581.0 | 606.3 | 653.2 | 800.2 | 798.4 | Private |
796.8 | 798.4 | 821.1 | 844.0 | 824.5 | ||||||||||||||||||||||||||||||
| 4,786.0 | 4,997.1 | 5,200.3 | 6,167.3 | 6,419.1 | Total fixed maturity securities – available-for-sale |
6,444.5 | 6,419.1 | 6,509.2 | 6,367.5 | 6,292.2 | ||||||||||||||||||||||||||||||
| — | 4.5 | 1.4 | 1.1 | — | Short-term investments |
— | — | 0.7 | 0.8 | 1.0 | ||||||||||||||||||||||||||||||
| 3,316.0 | 3,657.7 | 4,083.6 | 4,284.8 | 4,513.6 | Commercial mortgage loans, net |
4,615.0 | 4,513.6 | 4,468.0 | 4,313.7 | 4,304.5 | ||||||||||||||||||||||||||||||
| 89.9 | 71.8 | 81.3 | 113.5 | 210.6 | Real estate, net |
222.0 | 210.6 | 209.5 | 205.3 | 113.3 | ||||||||||||||||||||||||||||||
| 4.0 | 3.9 | 3.4 | 3.1 | 3.3 | Policy loans |
3.2 | 3.3 | 3.2 | 3.1 | 3.1 | ||||||||||||||||||||||||||||||
| $ | 8,195.9 | $ | 8,735.0 | $ | 9,370.0 | $ | 10,569.8 | $ | 11,146.6 | Total investments |
$ | 11,284.7 | $ | 11,146.6 | $ | 11,190.6 | $ | 10,890.4 | $ | 10,714.1 | ||||||||||||||||||||
| Percent of investments: |
||||||||||||||||||||||||||||||||||||||||
| 58.4 | % | 57.2 | % | 55.5 | % | 58.3 | % | 57.6 | % | Fixed maturity securities – available-for-sale |
57.1 | % | 57.6 | % | 58.2 | % | 58.5 | % | 58.7 | % | ||||||||||||||||||||
| — | 0.1 | — | — | — | Short-term investments |
— | — | — | — | — | ||||||||||||||||||||||||||||||
| 40.4 | 41.9 | 43.6 | 40.5 | 40.5 | Commercial mortgage loans, net |
40.9 | 40.5 | 39.9 | 39.6 | 40.2 | ||||||||||||||||||||||||||||||
| 1.1 | 0.8 | 0.9 | 1.2 | 1.9 | Real estate, net |
2.0 | 1.9 | 1.9 | 1.9 | 1.1 | ||||||||||||||||||||||||||||||
| 0.1 | — | — | — | — | Other |
— | — | — | — | — | ||||||||||||||||||||||||||||||
| Fixed maturity securities – available-for-sale: |
||||||||||||||||||||||||||||||||||||||||
| 100.6 | % | 101.3 | % | 97.6 | % | 104.2 | % | 106.7 | % | Market value as a % of amortized cost |
106.1 | % | 106.7 | % | 109.6 | % | 107.3 | % | 105.2 | % | ||||||||||||||||||||
Page 9
STANCORP FINANCIAL GROUP, INC.
Other Investment Statistics
(Dollars in millions)
CONSOLIDATED
| 2011 | 2010 | |||||||||||||||||||||||||||||||||||||||
| 2006 | 2007 | 2008 | 2009 | 2010 | 1st Qtr | 4th Qtr | 3rd Qtr | 2nd Qtr | 1st Qtr | |||||||||||||||||||||||||||||||
| Portfolio yield: |
||||||||||||||||||||||||||||||||||||||||
| 5.57 | % | 5.57 | % | 5.63 | % | 5.46 | % | 5.31 | % | Fixed maturity securities – available-for-sale |
5.26 | % | 5.31 | % | 5.35 | % | 5.38 | % | 5.40 | % | ||||||||||||||||||||
| 6.40 | 6.36 | 6.39 | 6.46 | 6.45 | Commercial mortgage loans, net |
6.42 | 6.45 | 6.46 | 6.47 | 6.47 | ||||||||||||||||||||||||||||||
| Fixed maturity securities – available-for-sale: |
||||||||||||||||||||||||||||||||||||||||
| Quality rating (as % of fixed maturities): |
||||||||||||||||||||||||||||||||||||||||
| 74.1 | % | 72.5 | % | 71.5 | % | 69.8 | % | 71.5 | % | A or higher |
70.8 | % | 71.5 | % | 71.4 | % | 71.5 | % | 70.4 | % | ||||||||||||||||||||
| 22.3 | 23.4 | 23.6 | 24.8 | 23.3 | BBB/Baa |
23.7 | 23.3 | 23.4 | 23.2 | 24.1 | ||||||||||||||||||||||||||||||
| 2.0 | 2.4 | 2.8 | 3.5 | 3.4 | BB/Ba |
3.8 | 3.4 | 3.4 | 3.6 | 3.6 | ||||||||||||||||||||||||||||||
| 1.6 | 1.7 | 2.1 | 1.9 | 1.8 | B or lower |
1.7 | 1.8 | 1.8 | 1.7 | 1.9 | ||||||||||||||||||||||||||||||
| Commercial mortgage loan statistics: |
||||||||||||||||||||||||||||||||||||||||
| Sixty-day delinquencies: |
||||||||||||||||||||||||||||||||||||||||
| $ | 2.9 | $ | 1.9 | $ | 7.8 | $ | 17.3 | $ | 19.6 | Book value |
$ | 19.6 | $ | 19.6 | $ | 19.0 | $ | 17.8 | $ | 19.0 | ||||||||||||||||||||
| 0.09 | % | 0.05 | % | 0.19 | % | 0.40 | % | 0.43 | % | Rates - overall % |
0.42 | % | 0.43 | % | 0.42 | % | 0.41 | % | 0.44 | % | ||||||||||||||||||||
| $ | 1.8 | $ | 0.5 | $ | 6.8 | $ | 33.2 | $ | 118.6 | Foreclosed during period |
$ | 10.0 | $ | 13.5 | $ | 6.7 | $ | 96.4 | $ | 2.0 | ||||||||||||||||||||
| 1.2 | 0.7 | 3.9 | 6.2 | 9.3 | In process of foreclosure |
8.0 | 9.3 | 11.0 | 8.0 | 9.9 | ||||||||||||||||||||||||||||||
| 1.2 | 0.7 | 3.9 | 6.2 | 8.2 | Included in sixty-day delinquencies |
6.6 | 8.2 | 11.0 | 8.0 | 9.9 | ||||||||||||||||||||||||||||||
| 6.8 | 3.4 | 6.2 | 28.7 | 76.6 | Net balance of restructured loans |
82.9 | 76.6 | 65.9 | 62.1 | 31.3 | ||||||||||||||||||||||||||||||
| Reserve balances: |
||||||||||||||||||||||||||||||||||||||||
| $ | 2.4 | $ | 3.0 | $ | 6.8 | $ | 19.6 | $ | 36.1 | Commercial mortgage loans, net |
$ | 39.4 | $ | 36.1 | $ | 36.8 | $ | 27.1 | $ | 29.3 | ||||||||||||||||||||
Page 10