UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) January 29, 2015
STANCORP FINANCIAL GROUP, INC.
(Exact name of registrant as specified in its charter)
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State of Oregon |
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1-14925 |
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93-1253576 |
(State or other jurisdiction of incorporation) |
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(Commission File Number) |
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(I.R.S. Employer Identification No.) |
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1100 SW Sixth Avenue, Portland, Oregon |
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97204 |
(Address of principal executive offices) |
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(Zip Code) |
(971) 321-7000
(Registrants telephone number, including area code)
No Change
(Former name, former address and former fiscal year, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Section 2 Financial Information
Item 2.02 Results of Operations and Financial Condition
On
January 29, 2015, StanCorp Financial Group, Inc. issued a press release reporting the Companys fourth quarter and full year 2014 financial results. A copy of the press release is furnished as exhibit 99.1 and a copy of the Companys
Statistical Supplement dated December 31, 2014 is furnished as exhibit 99.2.
Section 9 Financial Statements and Exhibits
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
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99.1 |
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StanCorp Financial Group, Inc. press release dated January 29, 2015 |
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99.2 |
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StanCorp Financial Group, Inc. Statistical Supplement dated December 31, 2014 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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STANCORP FINANCIAL GROUP, INC. |
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Dated: January 29, 2015 |
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/s/ Floyd F. Chadee |
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Floyd F. Chadee |
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Senior Vice President and
Chief Financial Officer |
EXHIBIT INDEX
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Exhibit No. |
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Description |
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* 99.1 |
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StanCorp Financial Group, Inc. press release dated January 29, 2015 |
* 99.2 |
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StanCorp Financial Group, Inc. Statistical Supplement dated December 31, 2014 |
Exhibit 99.1
January 29, 2015
StanCorp Financial Group, Inc. Reports Fourth Quarter and Full
Year 2014 Earnings
PORTLAND, Ore. January 29, 2015 StanCorp Financial Group, Inc. (NYSE: SFG) today reported net income
of $56.2 million, or $1.32 per diluted share for the fourth quarter of 2014, compared to $65.0 million, or $1.46 per diluted share for the fourth quarter of 2013. After-tax net capital losses were $4.4 million for the fourth quarter of 2014,
compared to $1.3 million for the fourth quarter of 2013.
Net income excluding after-tax net capital losses was $1.42 per diluted share for
the fourth quarter of 2014, compared to $1.49 per diluted share for the fourth quarter of 2013 (see discussion of non-GAAP financial measures below). The decrease in net income per share was primarily due to lower premiums and lower net investment
income, partially offset by lower diluted weighted-average shares outstanding and a lower effective tax rate for the fourth quarter of 2014.
We are pleased with our fourth quarter and full year 2014 results given the economic headwinds that have impacted our industry, said Greg
Ness, chairman, president and chief executive officer. As we look into 2015, we expect continued good performance from our businesses, despite ongoing challenges for the industry as a result of a lower interest rate environment.
2014 Results
Net income was
$219.3 million, or $5.05 per diluted share for 2014, compared to $228.5 million, or $5.13 per diluted share for 2013. After-tax net capital losses were $8.8 million for 2014, compared to $9.4 million for 2013.
Net income excluding after-tax net capital losses was $5.25 per diluted share for 2014, compared to $5.34 per diluted share for 2013. The decrease was
primarily due to lower operating expenses for 2013, which included savings of $20.6 million or $0.30 per diluted share due to an amendment of the Companys postretirement medical plan, which did not recur for 2014.
The Company reported net income return on average equity, excluding after-tax net capital losses from net income and accumulated other comprehensive
income (AOCI) from equity, of 11.2% for 2014, compared to 12.3% for 2013.
2015 Guidance
For 2015 the Company expects net income per diluted share, excluding after-tax net capital gains and losses, and net income return on average equity,
excluding after-tax net capital gains and losses from net income and AOCI from equity, to be in line with 2014. This guidance includes the following expectations:
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Employee Benefits premiums Relatively flat premiums for 2015 compared to 2014; |
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Employee Benefits benefit ratio Annual benefit ratio in the range of 77% to 79%; |
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Interest rates Continued pressure from a low interest rate environment; |
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Operating expenses Additional expense of $10.5 million, or $0.16 per diluted share related to the adoption of a new mortality table for the
Companys retirement plans; |
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Effective income tax rate Effective income tax rate in the range of 26% to 27%. The adoption of the accounting guidance for affordable housing
tax credit investments will decrease net income per diluted share by approximately $0.30 (see Accounting Pronouncements); and |
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Share repurchases Capital deployment for share repurchases to be consistent with 2014. |
Actual results may vary due to changes in the interest rate environment and other factors described in Forward-Looking Information below.
Business Segments
Insurance
Services
Employee Benefits
Employee Benefits reported income before income taxes of $53.6 million for the fourth quarter of 2014, compared to $67.2 million for the fourth quarter of 2013. The decrease was primarily due to lower
premiums and lower net investment income.
Employee Benefits reported income before income taxes of $201.8 million for 2014, compared to
$216.4 million for 2013. The decrease was primarily due to lower premiums and lower net investment income, partially offset by favorable claims experience.
Employee Benefits premiums decreased 3.5% from $479.0 million for the fourth quarter of 2013 to $462.2 million for the fourth quarter of 2014. Employee Benefits premiums decreased from $1.93 billion for
2013 to $1.84 billion for 2014. The decrease for the fourth quarter and full year 2014 was primarily due to lower Employee Benefits sales in the first half of 2014 compared to prior periods.
Employee Benefits annualized new sales were $79.3 million for the fourth quarter of 2014, compared to $69.6 million for the fourth quarter of 2013 and $215.6 million for 2014, compared to $222.1 million
for 2013. The increase in sales for the fourth quarter of 2014 reflected an increase in proposal activity.
The benefit ratio for Employee
Benefits, measured as benefits to policyholders and interest credited as a percentage of premiums, was 77.4% for the fourth quarter of 2014, compared to a more favorable benefit ratio of 76.1% for the fourth quarter of 2013. The benefit ratio can
fluctuate widely from quarter to quarter and tends to be more stable when measured on an annual basis.
The annual benefit ratio for Employee
Benefits, measured as benefits to policyholders and interest credited as a percentage of premiums, was 77.8% for 2014, compared to 78.9% for 2013.
The discount rate used for newly established long term disability claim reserves was 4.00% for the fourth quarter of 2014, compared to 3.75% for the fourth quarter of 2013. 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 approximately $2 million.
The Companys new money investment rate was 4.56% for the fourth quarter of 2014, compared to 4.33% for
the fourth quarter of 2013. The 12-month reserve interest margin between the Companys new money rate and average reserve discount rate was 55 basis points for the fourth quarter of 2014, compared to 49 basis points for the fourth quarter of
2013.
Individual Disability
Individual Disability reported income before income taxes of $15.4 million for the fourth quarter of 2014, compared to $16.7 million for the fourth
quarter of 2013 and income before income taxes of $52.9 million for 2014, compared to $56.0 million for 2013.
Individual Disability premiums
were $51.8 million for the fourth quarter of 2014, compared to $48.5 million for the fourth quarter of 2013 and premiums were $199.1 million for 2014, compared to $190.5 million for 2013.
The benefit ratio for Individual Disability was 60.0% for the fourth quarter of 2014, compared to 57.5% for the fourth quarter of 2013 and was 65.3% for 2014, compared to 63.9% for 2013. Due to the
relatively small size of the Individual Disability business, the benefit ratio generally fluctuates more on a quarterly basis and tends to be more stable when measured on an annual basis.
Asset Management
Asset Management reported income before income taxes of $18.7
million for the fourth quarter of 2014, compared to $19.5 million for the fourth quarter of 2013. The net impact to income before income taxes from hedging activities related to the Companys equity-indexed annuity product was a decrease of
$0.7 million for the fourth quarter of 2014 and an increase of $0.8 million for the fourth quarter of 2013. Asset Management reported income before income taxes of $77.9 million for 2014, compared to $79.3 million for 2013.
Assets under administration, which include assets related to retirement plans, individual fixed annuities, private client wealth management and
commercial mortgage loans managed for third-party investors, increased 7.4% to $26.53 billion at December 31, 2014 from $24.70 billion at December 31, 2013, primarily reflecting higher equity values and positive cash flows for retirement
plan assets under administration.
Commercial mortgage loan originations were $256.8 million for the fourth quarter of 2014, compared to
$251.2 million for the fourth quarter of 2013. Commercial mortgage loan originations were $1.18 billion for 2014, compared to $1.30 billion for 2013, the decrease reflected increased competition in the commercial mortgage origination 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 primarily related to the
disposition or impairment of the Companys invested assets and adjustments made in consolidation.
The Other category reported a loss
before income taxes of $14.4 million for the fourth quarter of 2014, compared to $11.0 million for the fourth quarter of 2013. Net capital losses were $7.2 million for the fourth quarter of 2014, compared to $2.8 million for the fourth quarter of
2013. The loss before income taxes excluding net capital losses was $7.2 million for the fourth quarter of 2014, compared to $8.2 million for the fourth quarter of 2013, reflecting lower interest expense as a result of debt repurchased earlier in
the year.
The Other category reported a loss before income taxes of $45.7 million for 2014, compared to $38.7 million
for 2013. Net capital losses were $14.0 million for 2014, compared to $15.7 million for 2013. The loss before income taxes excluding net capital losses was $31.7 million for 2014, compared to $23.0 million for 2013. The increase in loss before
income taxes excluding net capital losses was primarily due to the amendment of the Companys postretirement medical plan that resulted in a $20.6 million decrease in operating expenses for the first half of 2013, which did not recur for 2014.
Cash and Investments
At
December 31, 2014, the Companys total cash and investments consisted of 56.8% fixed maturity securities, 38.8% commercial mortgage loans, 2.6% other invested assets and real estate, and 1.8% cash and cash equivalents. The overall
weighted-average credit rating of the fixed maturity securities portfolio was A- (Standard & Poors) at December 31, 2014.
At December 31, 2014, commercial mortgage loans in the Companys investment portfolio totaled $5.32 billion on approximately 6,500 commercial
mortgage loans. The average loan balance retained by the Company in the portfolio was $0.8 million. Commercial mortgage loans more than 60 days delinquent were 0.16% of the portfolio balance at December 31, 2014, compared to 0.28% at
December 31, 2013.
Book Value
The Companys book value per share increased 5.8% from $48.79 at December 31, 2013, to $51.61 at December 31, 2014. AOCI decreased $20.4 million from $134.7 million at December 31,
2013 to $114.3 million at December 31, 2014, primarily due to adjustments recorded for the Companys retirement plans, partially offset by an increase in net unrealized capital gains in the Companys fixed maturity securities
portfolio related to lower market interest rates. The Companys book value per share excluding AOCI increased 6.9% from $45.73 at December 31, 2013, to $48.90 at December 31, 2014 (see discussion of non-GAAP financial measures below).
Capital Management
The
Company deployed $248.8 million of capital through its annual cash dividend to shareholders and the repurchase of shares and debt for 2014.
Share Repurchases
For the fourth
quarter of 2014, the Company repurchased 446,199 shares at a total cost of $27.9 million, which reflects a volume weighted-average price per share of $62.52.
For 2014, the Company repurchased 2,383,175 shares at a total cost of $147.0 million, which reflects a volume weighted-average price per share of $61.67.
At December 31, 2014, the Company had 2.0 million shares remaining under its share repurchase authorization. Diluted weighted-average shares
outstanding were 42,563,312 for the fourth quarter of 2014, compared to 44,493,139 for the fourth quarter of 2013.
Shareholder Dividend
In the fourth quarter of 2014, the Company paid an annual dividend to shareholders of $1.30 per share for a total distribution of $54.7 million. The dividend per share was an 18.2% increase over the 2013
dividend of $1.10 per share. This represents the fifteenth consecutive annual increase to the shareholder dividend.
Debt Repurchase
In the first quarter of 2014, the Company repurchased $47.1 million of its 6.90% junior subordinated debentures (Subordinated
Debt), which matures on June 1, 2067 and is non-callable prior to June 1, 2017. The Company had $252.9 million of Subordinated Debt outstanding at December 31, 2014.
Available Capital
The Companys available capital was approximately $530 million and
$515 million at December 31, 2014 and September 30, 2014, respectively. The income from its statutory insurance subsidiaries and adjustments to statutory reserves in the fourth quarter of 2014 were partially offset by share repurchases and
an allocation for expected annual interest and shareholder dividends. Available capital includes capital at its statutory insurance subsidiaries in excess of the Companys target risk-based capital (RBC) ratio of 300% and cash and
capital at the holding company and non-insurance subsidiaries. The RBC ratio was approximately 445% at December 31, 2014.
Accounting
Pronouncements
In January 2014, the Financial Accounting Standards Board issued Accounting Standards Update (ASU)
No. 2014-01, Accounting for Investments in Qualified Affordable Housing Projects. This ASU permits entities to account for qualified affordable housing projects under the proportional amortization method (PAM) of accounting.
Under PAM, the cost of the investments is amortized in each period in proportion to the tax credits and benefits of tax losses received in that period and allows the amortization of the investments and the tax benefits to be recognized in income
taxes on the consolidated statements of income.
The Company expects to adopt this ASU effective January 1, 2015 resulting in a decrease
in the beginning balance of 2015 retained earnings between $15 million and $20 million. Based on currently held investments at December 31, 2014, the Company estimates the adoption of the ASU will result in a decrease in net income per diluted
share of approximately $0.30 for 2015. The adoption of this ASU will change the timing of the benefit realized in net income but will not change the cumulative total benefit to net income over the life of the investments.
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.
Net income 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 net income return on average equity. Measuring net
income return on average equity without AOCI excludes the effect of market value fluctuations of the Companys fixed maturity securities associated with changes in interest rates and other
market data. Management believes that measuring net income return on average equity without AOCI is important to investors because the turnover of the Companys 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. StanCorps 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 relations website at www.stancorpfinancial.com.
Conference Call
StanCorp management will hold an investor and analyst conference call on January 30, 2015, at noon Eastern time (9:00 a.m. Pacific time) to review
StanCorps fourth quarter and full year 2014 results.
To listen to the live webcast of this conference call, visit
www.stancorpfinancial.com. Windows Media PlayerTM
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 20, 2015.
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 13597119. The telephone replay will be available through February 9, 2015.
Forward-Looking Information
Some of the statements contained in this earnings release,
including estimates, projections, expected operating results, statements related to business plans, strategies, objectives, and the assumptions upon which those statements are based, are forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995 and Section 21E of the Securities Exchange Act. Forward-looking statements also include, without limitation, any statement that includes words such as expects, anticipates,
intends, plans, believes, estimates, seeks, will be, will continue, will likely result and similar expressions that are predictive in nature or that
depend on or refer to future events or conditions. The Companys forward-looking statements are not guarantees of future performance and involve uncertainties that are difficult to predict. They involve risks and uncertainties which may cause
actual results to differ materially from the forward-looking statements. The risks and uncertainties are detailed in reports filed by StanCorp with the Securities and Exchange Commission, including Forms 10-Q and 10-K.
As a provider of financial products and services, the Companys actual results of operations may vary
significantly in response to economic trends, interest rates, investment performance, claims experience, operating expenses and pricing. Given these uncertainties or circumstances, investors are cautioned not to place undue reliance on
forward-looking statements as a predictor of future results. The Company assumes no obligation to publicly update or revise any forward-looking statements including annual guidance, whether as a result of new information, future events or otherwise.
The following factors could cause the Companys results to differ materially from management expectations suggested by forward-looking
statements:
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Growth of sales, premiums, annuity deposits, cash flows, assets under administration including performance of equity investments in the separate
account, gross profits and profitability. |
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Availability of capital required to support business growth and the effective use of capital, including the ability to achieve financing through debt
or equity. |
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Changes in liquidity needs and the liquidity of assets in its investment portfolios, including the ability to pledge collateral as required.
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Performance of business acquired through reinsurance or acquisition. |
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Changes in financial strength and credit ratings. |
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Changes in the regulatory environment at the state or federal level. |
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Changes in accounting standards, practices or policies. |
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Findings in litigation or other legal proceedings. |
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Intent and ability to hold investments consistent with its investment strategy. |
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Receipt of dividends from, or contributions to, its subsidiaries. |
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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. |
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Adequacy of asset-liability management. |
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Events of terrorism, natural disasters or other catastrophic events, including losses from a disease pandemic. |
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Benefit ratios, including changes in claims incidence, severity and recovery. |
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Levels of customer persistency. |
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Adequacy of reserves established for future policy benefits. |
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The effect of changes in interest rates on reserves, policyholder funds, investment income, bond call premiums and commercial mortgage loan prepayment
fees. |
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Levels of employment and wage growth and the impact of rising benefit costs on employer budgets for employee benefits. |
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Competition from other insurers and financial services companies, including the ability to competitively price its products.
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Ability of reinsurers to meet their obligations. |
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Availability, adequacy and pricing of reinsurance and catastrophe reinsurance coverage and potential charges incurred. |
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Achievement of anticipated levels of operating expenses. |
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Adequacy of diversification of risk within its fixed maturity securities portfolio by industries, issuers and maturities. |
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Adequacy of diversification of risk within its commercial mortgage loan portfolio by borrower, property type and geographic region.
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Credit quality of the holdings in its investment portfolios. |
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The condition of the economy and expectations for interest rate changes. |
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The effect of changing levels of bond call premiums, commercial mortgage loan prepayment fees and commercial mortgage loan participation levels on cash
flows. |
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Experience in delinquency rates or loss experience in its commercial mortgage loan portfolio. |
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Adequacy of commercial mortgage loan loss allowance. |
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Concentration of commercial mortgage loan assets collateralized in certain states such as California. |
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Environmental liability exposure resulting from commercial mortgage loan and real estate investments. |
Contacts
Investor Relations and Financial Media
Jeff Hallin
Vice President, Investor Relations and Capital Markets
(971)
321-6127
jeff.hallin@standard.com
General Media
Bob Speltz
Senior Director, Public Affairs
(971) 321-3162
bob.speltz@standard.com
STANCORP FINANCIAL GROUP, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
(Dollars in millions-except per share data)
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Three Months Ended |
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Year ended |
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December 31, |
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December 31, |
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2014 |
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2013 |
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2014 |
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2013 |
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Revenues: |
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Premiums: |
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Insurance Services |
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$ |
514.0 |
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$ |
527.5 |
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$ |
2,041.9 |
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$ |
2,117.4 |
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Asset Management |
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1.8 |
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1.1 |
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10.5 |
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6.9 |
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Total premiums |
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515.8 |
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528.6 |
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2,052.4 |
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2,124.3 |
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Administrative fees: |
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Insurance Services |
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4.4 |
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4.4 |
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16.7 |
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15.3 |
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Asset Management |
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34.2 |
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32.2 |
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133.4 |
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124.9 |
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Other |
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(4.8 |
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(4.6 |
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(19.3 |
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(18.6 |
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Total administrative fees |
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33.8 |
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32.0 |
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130.8 |
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121.6 |
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Net investment income: |
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Insurance Services |
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75.2 |
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79.7 |
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299.5 |
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320.6 |
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Asset Management |
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72.2 |
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75.8 |
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283.3 |
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293.2 |
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Other |
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6.0 |
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5.3 |
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18.1 |
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16.1 |
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Total net investment income |
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153.4 |
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160.8 |
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600.9 |
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629.9 |
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Net capital losses: |
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Total other-than-temporary impairment losses on fixed maturity securitiesavailable-for-sale |
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(0.8 |
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(0.1 |
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(1.2 |
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(1.1 |
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All other net capital losses |
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(6.4 |
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(2.7 |
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(12.8 |
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(14.6 |
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Total net capital losses |
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(7.2 |
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(2.8 |
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(14.0 |
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(15.7 |
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|
|
|
|
|
|
Total revenues |
|
|
695.8 |
|
|
|
718.6 |
|
|
|
2,770.1 |
|
|
|
2,860.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefits and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefits to policyholders |
|
|
394.1 |
|
|
|
394.5 |
|
|
|
1,582.2 |
|
|
|
1,655.4 |
|
Interest credited |
|
|
41.8 |
|
|
|
45.6 |
|
|
|
164.6 |
|
|
|
176.4 |
|
Operating expenses |
|
|
122.3 |
|
|
|
118.3 |
|
|
|
470.6 |
|
|
|
442.6 |
|
Commissions and bonuses |
|
|
52.5 |
|
|
|
51.4 |
|
|
|
207.2 |
|
|
|
207.9 |
|
Premium taxes |
|
|
6.8 |
|
|
|
7.6 |
|
|
|
31.5 |
|
|
|
35.3 |
|
Interest expense |
|
|
7.7 |
|
|
|
8.7 |
|
|
|
31.8 |
|
|
|
34.4 |
|
Net (increase) decrease in deferred acquisition costs, value of business acquired and other intangible assets |
|
|
(2.7 |
) |
|
|
0.1 |
|
|
|
(4.7 |
) |
|
|
(4.9 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total benefits and expenses |
|
|
622.5 |
|
|
|
626.2 |
|
|
|
2,483.2 |
|
|
|
2,547.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income taxes: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Insurance Services |
|
|
69.0 |
|
|
|
83.9 |
|
|
|
254.7 |
|
|
|
272.4 |
|
Asset Management |
|
|
18.7 |
|
|
|
19.5 |
|
|
|
77.9 |
|
|
|
79.3 |
|
Other |
|
|
(14.4 |
) |
|
|
(11.0 |
) |
|
|
(45.7 |
) |
|
|
(38.7 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total income before income taxes |
|
|
73.3 |
|
|
|
92.4 |
|
|
|
286.9 |
|
|
|
313.0 |
|
Income taxes |
|
|
17.1 |
|
|
|
27.4 |
|
|
|
67.6 |
|
|
|
84.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
56.2 |
|
|
$ |
65.0 |
|
|
$ |
219.3 |
|
|
$ |
228.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
1.33 |
|
|
$ |
1.48 |
|
|
$ |
5.10 |
|
|
$ |
5.16 |
|
Diluted |
|
|
1.32 |
|
|
|
1.46 |
|
|
|
5.05 |
|
|
|
5.13 |
|
Weighted-average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
42,110,016 |
|
|
|
44,051,958 |
|
|
|
43,018,215 |
|
|
|
44,243,364 |
|
Diluted |
|
|
42,563,312 |
|
|
|
44,493,139 |
|
|
|
43,455,136 |
|
|
|
44,527,405 |
|
STANCORP FINANCIAL GROUP, INC.
UNAUDITED CONSOLIDATED BALANCE SHEETS
(Dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
December 31, 2014 |
|
|
December 31, 2013 |
|
A S S E T S |
|
|
|
|
|
|
|
|
Investments: |
|
|
|
|
|
|
|
|
Fixed maturity securitiesavailable-for-sale (amortized cost of $7,390.0 and $6,811.9) |
|
$ |
7,773.7 |
|
|
$ |
7,120.5 |
|
Commercial mortgage loans, net |
|
|
5,321.1 |
|
|
|
5,405.1 |
|
Real estate, net |
|
|
37.0 |
|
|
|
65.7 |
|
Other invested assets |
|
|
320.9 |
|
|
|
196.5 |
|
|
|
|
|
|
|
|
|
|
Total investments |
|
|
13,452.7 |
|
|
|
12,787.8 |
|
Cash and cash equivalents |
|
|
251.1 |
|
|
|
379.3 |
|
Premiums and other receivables |
|
|
118.4 |
|
|
|
118.2 |
|
Accrued investment income |
|
|
108.0 |
|
|
|
106.8 |
|
Amounts recoverable from reinsurers |
|
|
994.2 |
|
|
|
988.1 |
|
Deferred acquisition costs, value of business acquired and other intangible assets, net |
|
|
381.0 |
|
|
|
371.3 |
|
Goodwill |
|
|
36.0 |
|
|
|
36.0 |
|
Property and equipment, net |
|
|
79.3 |
|
|
|
84.7 |
|
Other assets |
|
|
129.4 |
|
|
|
127.9 |
|
Separate account assets |
|
|
7,179.8 |
|
|
|
6,393.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
22,729.9 |
|
|
$ |
21,393.3 |
|
|
|
|
|
|
|
|
|
|
L I A B I L I T I E S A N D S H A R E H O L D E R S E Q U I T Y |
|
|
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
Future policy benefits and claims |
|
$ |
5,832.3 |
|
|
$ |
5,846.9 |
|
Other policyholder funds |
|
|
6,537.8 |
|
|
|
6,051.6 |
|
Deferred tax liabilities, net |
|
|
63.1 |
|
|
|
64.7 |
|
Short-term debt |
|
|
1.1 |
|
|
|
1.5 |
|
Long-term debt |
|
|
503.9 |
|
|
|
551.9 |
|
Other liabilities |
|
|
440.1 |
|
|
|
330.7 |
|
Separate account liabilities |
|
|
7,179.8 |
|
|
|
6,393.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
20,558.1 |
|
|
|
19,240.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
|
|
|
Shareholders equity: |
|
|
|
|
|
|
|
|
Preferred stock, 100,000,000 shares authorized; none issued |
|
|
|
|
|
|
|
|
Common stock, no par, 300,000,000 shares authorized; 42,077,825 and 44,126,389 shares issued and outstanding at December 31,
2014 and December 31, 2013, respectively |
|
|
5.3 |
|
|
|
68.0 |
|
Accumulated other comprehensive income |
|
|
114.3 |
|
|
|
134.7 |
|
Retained earnings |
|
|
2,052.2 |
|
|
|
1,950.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders equity |
|
|
2,171.8 |
|
|
|
2,152.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders equity |
|
$ |
22,729.9 |
|
|
$ |
21,393.3 |
|
|
|
|
|
|
|
|
|
|
STANCORP FINANCIAL GROUP, INC.
UNAUDITED STATISTICAL AND OPERATING DATA
AT OR FOR THE PERIODS INDICATED
(Dollars in millions-except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended December 31, |
|
|
Year
ended December 31, |
|
|
|
2014 |
|
|
2013 |
|
|
2014 |
|
|
2013 |
|
|
|
|
|
|
Benefit ratio: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% of total revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee Benefits (including interest credited) |
|
|
67.7 |
% |
|
|
66.3 |
% |
|
|
68.1 |
% |
|
|
68.8 |
% |
Individual Disability |
|
|
47.9 |
|
|
|
45.1 |
|
|
|
51.7 |
|
|
|
50.0 |
|
% of total premiums: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee Benefits (including interest credited) |
|
|
77.4 |
% |
|
|
76.1 |
% |
|
|
77.8 |
% |
|
|
78.9 |
% |
Individual Disability |
|
|
60.0 |
|
|
|
57.5 |
|
|
|
65.3 |
|
|
|
63.9 |
|
|
|
|
|
|
Reconciliation of non-GAAP financial measures: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
56.2 |
|
|
$ |
65.0 |
|
|
$ |
219.3 |
|
|
$ |
228.5 |
|
After-tax net capital losses |
|
|
(4.4 |
) |
|
|
(1.3 |
) |
|
|
(8.8 |
) |
|
|
(9.4 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income excluding after-tax net capital losses |
|
$ |
60.6 |
|
|
$ |
66.3 |
|
|
$ |
228.1 |
|
|
$ |
237.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net capital losses |
|
$ |
(7.2 |
) |
|
$ |
(2.8 |
) |
|
$ |
(14.0 |
) |
|
$ |
(15.7 |
) |
Tax benefit on net capital losses |
|
|
(2.8 |
) |
|
|
(1.5 |
) |
|
|
(5.2 |
) |
|
|
(6.3 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
After-tax net capital losses |
|
$ |
(4.4 |
) |
|
$ |
(1.3 |
) |
|
$ |
(8.8 |
) |
|
$ |
(9.4 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per diluted common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
1.32 |
|
|
$ |
1.46 |
|
|
$ |
5.05 |
|
|
$ |
5.13 |
|
After-tax net capital losses |
|
|
(0.10 |
) |
|
|
(0.03 |
) |
|
|
(0.20 |
) |
|
|
(0.21 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income excluding after-tax net capital losses |
|
$ |
1.42 |
|
|
$ |
1.49 |
|
|
$ |
5.25 |
|
|
$ |
5.34 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders equity |
|
|
|
|
|
|
|
|
|
$ |
2,171.8 |
|
|
$ |
2,152.8 |
|
Accumulated other comprehensive income |
|
|
|
|
|
|
|
|
|
|
114.3 |
|
|
|
134.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders equity excluding accumulated other comprehensive income |
|
|
|
|
|
|
|
|
|
$ |
2,057.5 |
|
|
$ |
2,018.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income return on average equity |
|
|
|
|
|
|
|
|
|
|
10.1 |
% |
|
|
10.6 |
% |
Net income return on average equity (excluding accumulated other comprehensive income) |
|
|
|
|
|
|
|
|
|
|
10.8 |
|
|
|
11.8 |
|
Net income return on average equity (excluding after-tax net capital losses and accumulated other comprehensive
income) |
|
|
|
|
|
|
|
|
|
|
11.2 |
|
|
|
12.3 |
|
|
|
|
|
|
Statutory data - insurance subsidiaries:* |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gain from operations before federal income taxes and realized capital gains (losses) |
|
$ |
60.7 |
|
|
$ |
90.5 |
|
|
$ |
268.5 |
|
|
$ |
272.8 |
|
Net gain from operations after federal income taxes and before realized capital gains (losses) |
|
|
50.4 |
|
|
|
75.1 |
|
|
|
212.6 |
|
|
|
197.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
|
December 31, |
|
|
|
|
|
|
|
|
|
2014 |
|
|
2013 |
|
|
|
|
|
|
Capital and surplus |
|
|
|
|
|
|
|
|
|
$ |
1,228.4 |
|
|
$ |
1,359.0 |
|
Asset valuation reserve |
|
|
|
|
|
|
|
|
|
|
106.2 |
|
|
|
127.5 |
|
* |
Statutory data represents Standard Insurance Company and The Standard Life Insurance Company of New York |
Exhibit 99.2
STANCORP FINANCIAL GROUP, INC.
STATISTICAL SUPPLEMENT
December 31, 2014
(Unaudited)
|
|
|
|
|
|
|
Page |
|
Financial Results: |
|
|
|
|
Consolidated Financial Highlights |
|
|
1 |
|
Consolidated Financial Results |
|
|
2 |
|
Results by Segment |
|
|
3 |
|
Insurance Services |
|
|
4 |
|
Employee Benefits |
|
|
5 |
|
Individual Disability |
|
|
6 |
|
Asset Management |
|
|
7 |
|
Other |
|
|
8 |
|
Balance Sheets and Investment Statistics: |
|
|
|
|
Consolidated Balance Sheets |
|
|
9 |
|
Cash and Investments Statistics |
|
|
10 |
|
Other Investment Statistics |
|
|
11 |
|
Financial measures that exclude 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 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.
Net income return on average equity excluding 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 net income return on average equity. Measuring net income
return on average equity excluding accumulated other comprehensive income (loss) excludes the effect of market value fluctuations of the Companys fixed maturity securities associated with changes in interest rates and other market data.
Management believes that measuring net income return on average equity excluding accumulated other comprehensive income (loss) is important to investors because the low turnover of the Companys 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
periods presentation.
StanCorp Financial Group, Inc.
1100 SW Sixth Avenue
Portland, Oregon 97204
Investor Inquiries:
Jeff Hallin
Phone: (971) 321-6127
Fax: (971) 321-5037
jeff.hallin@standard.com
www.stancorpfinancial.com
STANCORP FINANCIAL GROUP, INC.
Financial Highlights
(Dollars in millions-except per share data)
CONSOLIDATED
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014 |
|
|
2013 |
|
2010 |
|
|
2011 |
|
|
2012 |
|
|
2013 |
|
|
2014 |
|
|
|
|
4th Qtr |
|
|
3rd Qtr |
|
|
2nd Qtr |
|
|
1st Qtr |
|
|
4th Qtr |
|
|
3rd Qtr |
|
|
2nd Qtr |
|
|
1st Qtr |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income taxes: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
310.4 |
|
|
$ |
201.2 |
|
|
$ |
179.8 |
|
|
$ |
272.4 |
|
|
$ |
254.7 |
|
|
Insurance Services |
|
$ |
69.0 |
|
|
$ |
89.3 |
|
|
$ |
39.7 |
|
|
$ |
56.7 |
|
|
$ |
83.9 |
|
|
$ |
78.3 |
|
|
$ |
61.4 |
|
|
$ |
48.8 |
|
|
55.5 |
|
|
|
61.3 |
|
|
|
64.0 |
|
|
|
79.3 |
|
|
|
77.9 |
|
|
Asset Management |
|
|
18.7 |
|
|
|
20.8 |
|
|
|
22.0 |
|
|
|
16.4 |
|
|
|
19.5 |
|
|
|
21.9 |
|
|
|
20.7 |
|
|
|
17.2 |
|
|
(87.8 |
) |
|
|
(71.0 |
) |
|
|
(60.4 |
) |
|
|
(38.7 |
) |
|
|
(45.7 |
) |
|
Other |
|
|
(14.4 |
) |
|
|
(13.2 |
) |
|
|
(10.4 |
) |
|
|
(7.7 |
) |
|
|
(11.0 |
) |
|
|
(18.4 |
) |
|
|
(3.6 |
) |
|
|
(5.7 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
278.1 |
|
|
|
191.5 |
|
|
|
183.4 |
|
|
|
313.0 |
|
|
|
286.9 |
|
|
Total income before income taxes |
|
|
73.3 |
|
|
|
96.9 |
|
|
|
51.3 |
|
|
|
65.4 |
|
|
|
92.4 |
|
|
|
81.8 |
|
|
|
78.5 |
|
|
|
60.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
92.2 |
|
|
|
54.8 |
|
|
|
44.9 |
|
|
|
84.5 |
|
|
|
67.6 |
|
|
Income taxes |
|
|
17.1 |
|
|
|
25.8 |
|
|
|
9.4 |
|
|
|
15.3 |
|
|
|
27.4 |
|
|
|
22.8 |
|
|
|
20.8 |
|
|
|
13.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
185.9 |
|
|
$ |
136.7 |
|
|
$ |
138.5 |
|
|
$ |
228.5 |
|
|
$ |
219.3 |
|
|
Net income |
|
$ |
56.2 |
|
|
$ |
71.1 |
|
|
$ |
41.9 |
|
|
$ |
50.1 |
|
|
$ |
65.0 |
|
|
$ |
59.0 |
|
|
$ |
57.7 |
|
|
$ |
46.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
3.97 |
|
|
$ |
3.05 |
|
|
$ |
3.13 |
|
|
$ |
5.16 |
|
|
$ |
5.10 |
|
|
Basic |
|
$ |
1.33 |
|
|
$ |
1.66 |
|
|
$ |
0.97 |
|
|
$ |
1.14 |
|
|
$ |
1.48 |
|
|
$ |
1.33 |
|
|
$ |
1.30 |
|
|
$ |
1.05 |
|
|
3.95 |
|
|
|
3.04 |
|
|
|
3.12 |
|
|
|
5.13 |
|
|
|
5.05 |
|
|
Diluted |
|
|
1.32 |
|
|
|
1.65 |
|
|
|
0.96 |
|
|
|
1.13 |
|
|
|
1.46 |
|
|
|
1.32 |
|
|
|
1.30 |
|
|
|
1.05 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
46,774,277 |
|
|
|
44,876,650 |
|
|
|
44,283,771 |
|
|
|
44,243,364 |
|
|
|
43,018,215 |
|
|
Basic weighted-average |
|
|
42,110,016 |
|
|
|
42,777,337 |
|
|
|
43,311,156 |
|
|
|
43,896,627 |
|
|
|
44,051,958 |
|
|
|
44,271,160 |
|
|
|
44,257,095 |
|
|
|
44,426,153 |
|
|
47,006,228 |
|
|
|
45,016,070 |
|
|
|
44,359,891 |
|
|
|
44,527,405 |
|
|
|
43,455,136 |
|
|
Diluted weighted-average |
|
|
42,563,312 |
|
|
|
43,184,170 |
|
|
|
43,710,063 |
|
|
|
44,381,944 |
|
|
|
44,493,139 |
|
|
|
44,610,358 |
|
|
|
44,398,120 |
|
|
|
44,500,049 |
|
|
46,159,387 |
|
|
|
44,268,859 |
|
|
|
44,419,448 |
|
|
|
44,126,389 |
|
|
|
42,077,825 |
|
|
At period end |
|
|
42,077,825 |
|
|
|
42,475,479 |
|
|
|
42,949,566 |
|
|
|
43,748,487 |
|
|
|
44,126,389 |
|
|
|
43,995,153 |
|
|
|
44,149,730 |
|
|
|
44,323,664 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
185.9 |
|
|
$ |
136.7 |
|
|
$ |
138.5 |
|
|
$ |
228.5 |
|
|
$ |
219.3 |
|
|
Net income |
|
$ |
56.2 |
|
|
$ |
71.1 |
|
|
$ |
41.9 |
|
|
$ |
50.1 |
|
|
$ |
65.0 |
|
|
$ |
59.0 |
|
|
$ |
57.7 |
|
|
$ |
46.8 |
|
|
(32.1 |
) |
|
|
(4.5 |
) |
|
|
(5.4 |
) |
|
|
(9.4 |
) |
|
|
(8.8 |
) |
|
After-tax net capital losses |
|
|
(4.4 |
) |
|
|
(3.4 |
) |
|
|
(0.3 |
) |
|
|
(0.7 |
) |
|
|
(1.3 |
) |
|
|
(5.5 |
) |
|
|
(1.6 |
) |
|
|
(1.0 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
218.0 |
|
|
$ |
141.2 |
|
|
$ |
143.9 |
|
|
$ |
237.9 |
|
|
$ |
228.1 |
|
|
Net income excluding after-tax net capital losses |
|
$ |
60.6 |
|
|
$ |
74.5 |
|
|
$ |
42.2 |
|
|
$ |
50.8 |
|
|
$ |
66.3 |
|
|
$ |
64.5 |
|
|
$ |
59.3 |
|
|
$ |
47.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
(51.6 |
) |
|
$ |
(6.9 |
) |
|
$ |
(8.7 |
) |
|
$ |
(15.7 |
) |
|
$ |
(14.0 |
) |
|
Net capital losses |
|
$ |
(7.2 |
) |
|
$ |
(5.2 |
) |
|
$ |
(0.5 |
) |
|
$ |
(1.1 |
) |
|
$ |
(2.8 |
) |
|
$ |
(8.7 |
) |
|
$ |
(2.6 |
) |
|
$ |
(1.6 |
) |
|
(19.5 |
) |
|
|
(2.4 |
) |
|
|
(3.3 |
) |
|
|
(6.3 |
) |
|
|
(5.2 |
) |
|
Tax benefit on net capital losses |
|
|
(2.8 |
) |
|
|
(1.8 |
) |
|
|
(0.2 |
) |
|
|
(0.4 |
) |
|
|
(1.5 |
) |
|
|
(3.2 |
) |
|
|
(1.0 |
) |
|
|
(0.6 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
(32.1 |
) |
|
$ |
(4.5 |
) |
|
$ |
(5.4 |
) |
|
$ |
(9.4 |
) |
|
$ |
(8.8 |
) |
|
After-tax net capital losses |
|
$ |
(4.4 |
) |
|
$ |
(3.4 |
) |
|
$ |
(0.3 |
) |
|
$ |
(0.7 |
) |
|
$ |
(1.3 |
) |
|
$ |
(5.5 |
) |
|
$ |
(1.6 |
) |
|
$ |
(1.0 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per diluted common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
3.95 |
|
|
$ |
3.04 |
|
|
$ |
3.12 |
|
|
$ |
5.13 |
|
|
$ |
5.05 |
|
|
Net income |
|
$ |
1.32 |
|
|
$ |
1.65 |
|
|
$ |
0.96 |
|
|
$ |
1.13 |
|
|
$ |
1.46 |
|
|
$ |
1.32 |
|
|
$ |
1.30 |
|
|
$ |
1.05 |
|
|
(0.68 |
) |
|
|
(0.10 |
) |
|
|
(0.12 |
) |
|
|
(0.21 |
) |
|
|
(0.20 |
) |
|
After-tax net capital losses |
|
|
(0.10 |
) |
|
|
(0.08 |
) |
|
|
(0.01 |
) |
|
|
(0.01 |
) |
|
|
(0.03 |
) |
|
|
(0.13 |
) |
|
|
(0.04 |
) |
|
|
(0.02 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
4.63 |
|
|
$ |
3.14 |
|
|
$ |
3.24 |
|
|
$ |
5.34 |
|
|
$ |
5.25 |
|
|
Net income excluding after-tax net capital losses |
|
$ |
1.42 |
|
|
$ |
1.73 |
|
|
$ |
0.97 |
|
|
$ |
1.14 |
|
|
$ |
1.49 |
|
|
$ |
1.45 |
|
|
$ |
1.34 |
|
|
$ |
1.07 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
1,894.6 |
|
|
$ |
1,990.4 |
|
|
$ |
2,169.0 |
|
|
$ |
2,152.8 |
|
|
$ |
2,171.8 |
|
|
Shareholders equity |
|
$ |
2,171.8 |
|
|
$ |
2,267.3 |
|
|
$ |
2,261.9 |
|
|
$ |
2,227.9 |
|
|
$ |
2,152.8 |
|
|
$ |
2,117.2 |
|
|
$ |
2,077.0 |
|
|
$ |
2,187.6 |
|
|
160.9 |
|
|
|
235.1 |
|
|
|
309.3 |
|
|
|
134.7 |
|
|
|
114.3 |
|
|
Accumulated other comprehensive income |
|
|
114.3 |
|
|
|
188.7 |
|
|
|
225.9 |
|
|
|
184.9 |
|
|
|
134.7 |
|
|
|
121.7 |
|
|
|
127.3 |
|
|
|
286.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
1,733.7 |
|
|
$ |
1,755.3 |
|
|
$ |
1,859.7 |
|
|
$ |
2,018.1 |
|
|
$ |
2,057.5 |
|
|
Shareholders equity excluding accumulated other comprehensive income |
|
$ |
2,057.5 |
|
|
$ |
2,078.6 |
|
|
$ |
2,036.0 |
|
|
$ |
2,043.0 |
|
|
$ |
2,018.1 |
|
|
$ |
1,995.5 |
|
|
$ |
1,949.7 |
|
|
$ |
1,901.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.3 |
% |
|
|
7.0 |
% |
|
|
6.7 |
% |
|
|
10.6 |
% |
|
|
10.1 |
% |
|
Net income return on average equity |
|
|
10.1 |
% |
|
|
12.6 |
% |
|
|
7.5 |
% |
|
|
9.1 |
% |
|
|
12.2 |
% |
|
|
11.3 |
% |
|
|
10.8 |
% |
|
|
8.6 |
% |
|
11.0 |
|
|
|
7.8 |
|
|
|
7.7 |
|
|
|
11.8 |
|
|
|
10.8 |
|
|
Net income return on average equity (excluding accumulated other comprehensive income) |
|
|
10.9 |
|
|
|
13.8 |
|
|
|
8.2 |
|
|
|
9.9 |
|
|
|
13.0 |
|
|
|
12.0 |
|
|
|
12.0 |
|
|
|
10.0 |
|
|
12.9 |
|
|
|
8.1 |
|
|
|
8.0 |
|
|
|
12.3 |
|
|
|
11.2 |
|
|
Net income return on average equity (excluding after-tax net capital losses and accumulated other comprehensive
income) |
|
|
11.7 |
|
|
|
14.5 |
|
|
|
8.3 |
|
|
|
10.0 |
|
|
|
13.2 |
|
|
|
13.1 |
|
|
|
12.3 |
|
|
|
10.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
41.04 |
|
|
$ |
44.96 |
|
|
$ |
48.83 |
|
|
$ |
48.79 |
|
|
$ |
51.61 |
|
|
Including accumulated other comprehensive income |
|
$ |
51.61 |
|
|
$ |
53.38 |
|
|
$ |
52.66 |
|
|
$ |
50.93 |
|
|
$ |
48.79 |
|
|
$ |
48.12 |
|
|
$ |
47.04 |
|
|
$ |
49.36 |
|
|
3.48 |
|
|
|
5.31 |
|
|
|
6.96 |
|
|
|
3.06 |
|
|
|
2.71 |
|
|
Accumulated other comprehensive income |
|
|
2.71 |
|
|
|
4.44 |
|
|
|
5.26 |
|
|
|
4.23 |
|
|
|
3.06 |
|
|
|
2.76 |
|
|
|
2.88 |
|
|
|
6.46 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
37.56 |
|
|
$ |
39.65 |
|
|
$ |
41.87 |
|
|
$ |
45.73 |
|
|
$ |
48.90 |
|
|
Excluding accumulated other comprehensive income |
|
$ |
48.90 |
|
|
$ |
48.94 |
|
|
$ |
47.40 |
|
|
$ |
46.70 |
|
|
$ |
45.73 |
|
|
$ |
45.36 |
|
|
$ |
44.16 |
|
|
$ |
42.90 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,091 |
|
|
|
2,974 |
|
|
|
2,875 |
|
|
|
2,702 |
|
|
|
2,803 |
|
|
Number of employees |
|
|
2,803 |
|
|
|
2,787 |
|
|
|
2,748 |
|
|
|
2,733 |
|
|
|
2,702 |
|
|
|
2,662 |
|
|
|
2,674 |
|
|
|
2,766 |
|
Page 1
STANCORP FINANCIAL GROUP, INC.
Financial Results
(In millions)
CONSOLIDATED
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014 |
|
|
2013 |
|
2010 |
|
|
2011 |
|
|
2012 |
|
|
2013 |
|
|
2014 |
|
|
|
|
4th Qtr |
|
|
3rd Qtr |
|
|
2nd Qtr |
|
|
1st Qtr |
|
|
4th Qtr |
|
|
3rd Qtr |
|
|
2nd Qtr |
|
|
1st Qtr |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
2,097.7 |
|
|
$ |
2,153.3 |
|
|
$ |
2,163.9 |
|
|
$ |
2,124.3 |
|
|
$ |
2,052.4 |
|
|
Premiums |
|
$ |
515.8 |
|
|
$ |
507.3 |
|
|
$ |
519.2 |
|
|
$ |
510.1 |
|
|
$ |
528.6 |
|
|
$ |
524.4 |
|
|
$ |
535.1 |
|
|
$ |
536.2 |
|
|
116.5 |
|
|
|
115.5 |
|
|
|
114.7 |
|
|
|
121.6 |
|
|
|
130.8 |
|
|
Administrative fees |
|
|
33.8 |
|
|
|
32.8 |
|
|
|
32.6 |
|
|
|
31.6 |
|
|
|
32.0 |
|
|
|
30.5 |
|
|
|
30.4 |
|
|
|
28.7 |
|
|
602.5 |
|
|
|
612.8 |
|
|
|
628.5 |
|
|
|
629.9 |
|
|
|
600.9 |
|
|
Net investment income |
|
|
153.4 |
|
|
|
147.1 |
|
|
|
149.8 |
|
|
|
150.6 |
|
|
|
160.8 |
|
|
|
155.8 |
|
|
|
154.1 |
|
|
|
159.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net capital losses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.7 |
) |
|
|
(1.8 |
) |
|
|
(3.2 |
) |
|
|
(1.1 |
) |
|
|
(1.2 |
) |
|
Total other-than-temporary impairment losses on fixed maturity securitiesavailable-for-sale |
|
|
(0.8 |
) |
|
|
(0.3 |
) |
|
|
(0.1 |
) |
|
|
|
|
|
|
(0.1 |
) |
|
|
(0.4 |
) |
|
|
(0.3 |
) |
|
|
(0.3 |
) |
|
(50.9 |
) |
|
|
(5.1 |
) |
|
|
(5.5 |
) |
|
|
(14.6 |
) |
|
|
(12.8 |
) |
|
All other net capital losses |
|
|
(6.4 |
) |
|
|
(4.9 |
) |
|
|
(0.4 |
) |
|
|
(1.1 |
) |
|
|
(2.7 |
) |
|
|
(8.3 |
) |
|
|
(2.3 |
) |
|
|
(1.3 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(51.6 |
) |
|
|
(6.9 |
) |
|
|
(8.7 |
) |
|
|
(15.7 |
) |
|
|
(14.0 |
) |
|
Total net capital losses |
|
|
(7.2 |
) |
|
|
(5.2 |
) |
|
|
(0.5 |
) |
|
|
(1.1 |
) |
|
|
(2.8 |
) |
|
|
(8.7 |
) |
|
|
(2.6 |
) |
|
|
(1.6 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,765.1 |
|
|
|
2,874.7 |
|
|
|
2,898.4 |
|
|
|
2,860.1 |
|
|
|
2,770.1 |
|
|
Total revenues |
|
|
695.8 |
|
|
|
682.0 |
|
|
|
701.1 |
|
|
|
691.2 |
|
|
|
718.6 |
|
|
|
702.0 |
|
|
|
717.0 |
|
|
|
722.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefits and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,619.8 |
|
|
|
1,771.2 |
|
|
|
1,793.0 |
|
|
|
1,655.4 |
|
|
|
1,582.2 |
|
|
Benefits to policyholders |
|
|
394.1 |
|
|
|
360.8 |
|
|
|
426.2 |
|
|
|
401.1 |
|
|
|
394.5 |
|
|
|
395.0 |
|
|
|
424.1 |
|
|
|
441.8 |
|
|
158.4 |
|
|
|
161.0 |
|
|
|
171.3 |
|
|
|
176.4 |
|
|
|
164.6 |
|
|
Interest credited |
|
|
41.8 |
|
|
|
38.7 |
|
|
|
40.6 |
|
|
|
43.5 |
|
|
|
45.6 |
|
|
|
43.9 |
|
|
|
40.3 |
|
|
|
46.6 |
|
|
446.2 |
|
|
|
471.2 |
|
|
|
470.5 |
|
|
|
442.6 |
|
|
|
470.6 |
|
|
Operating expenses |
|
|
122.3 |
|
|
|
119.9 |
|
|
|
115.3 |
|
|
|
113.1 |
|
|
|
118.3 |
|
|
|
114.8 |
|
|
|
104.4 |
|
|
|
105.1 |
|
|
206.1 |
|
|
|
218.7 |
|
|
|
203.7 |
|
|
|
207.9 |
|
|
|
207.2 |
|
|
Commissions and bonuses |
|
|
52.5 |
|
|
|
53.2 |
|
|
|
49.7 |
|
|
|
51.8 |
|
|
|
51.4 |
|
|
|
51.9 |
|
|
|
50.8 |
|
|
|
53.8 |
|
|
34.7 |
|
|
|
36.7 |
|
|
|
37.5 |
|
|
|
35.3 |
|
|
|
31.5 |
|
|
Premium taxes |
|
|
6.8 |
|
|
|
7.5 |
|
|
|
8.1 |
|
|
|
9.1 |
|
|
|
7.6 |
|
|
|
9.1 |
|
|
|
9.1 |
|
|
|
9.5 |
|
|
38.9 |
|
|
|
38.9 |
|
|
|
39.9 |
|
|
|
34.4 |
|
|
|
31.8 |
|
|
Interest expense |
|
|
7.7 |
|
|
|
7.8 |
|
|
|
7.9 |
|
|
|
8.4 |
|
|
|
8.7 |
|
|
|
8.6 |
|
|
|
8.6 |
|
|
|
8.5 |
|
|
(76.0 |
) |
|
|
(81.7 |
) |
|
|
(71.4 |
) |
|
|
(76.9 |
) |
|
|
(80.1 |
) |
|
Deferral of acquisition costs |
|
|
(21.2 |
) |
|
|
(22.2 |
) |
|
|
(16.5 |
) |
|
|
(20.2 |
) |
|
|
(19.0 |
) |
|
|
(19.8 |
) |
|
|
(17.4 |
) |
|
|
(20.7 |
) |
|
58.9 |
|
|
|
67.2 |
|
|
|
70.5 |
|
|
|
72.0 |
|
|
|
75.4 |
|
|
Amortization of deferred acquisition costs, value of business acquired and other intangible assets |
|
|
18.5 |
|
|
|
19.4 |
|
|
|
18.5 |
|
|
|
19.0 |
|
|
|
19.1 |
|
|
|
16.7 |
|
|
|
18.6 |
|
|
|
17.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,487.0 |
|
|
|
2,683.2 |
|
|
|
2,715.0 |
|
|
|
2,547.1 |
|
|
|
2,483.2 |
|
|
Total benefits and expenses |
|
|
622.5 |
|
|
|
585.1 |
|
|
|
649.8 |
|
|
|
625.8 |
|
|
|
626.2 |
|
|
|
620.2 |
|
|
|
638.5 |
|
|
|
662.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
278.1 |
|
|
|
191.5 |
|
|
|
183.4 |
|
|
|
313.0 |
|
|
|
286.9 |
|
|
Income before income taxes |
|
|
73.3 |
|
|
|
96.9 |
|
|
|
51.3 |
|
|
|
65.4 |
|
|
|
92.4 |
|
|
|
81.8 |
|
|
|
78.5 |
|
|
|
60.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
92.2 |
|
|
|
54.8 |
|
|
|
44.9 |
|
|
|
84.5 |
|
|
|
67.6 |
|
|
Income taxes |
|
|
17.1 |
|
|
|
25.8 |
|
|
|
9.4 |
|
|
|
15.3 |
|
|
|
27.4 |
|
|
|
22.8 |
|
|
|
20.8 |
|
|
|
13.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
185.9 |
|
|
|
136.7 |
|
|
|
138.5 |
|
|
|
228.5 |
|
|
|
219.3 |
|
|
Net income |
|
|
56.2 |
|
|
|
71.1 |
|
|
|
41.9 |
|
|
|
50.1 |
|
|
|
65.0 |
|
|
|
59.0 |
|
|
|
57.7 |
|
|
|
46.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income (loss), net of tax: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized gains (losses) on securitiesavailable-for-sale: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
100.5 |
|
|
|
103.4 |
|
|
|
71.4 |
|
|
|
(205.3 |
) |
|
|
50.3 |
|
|
Net unrealized capital gains (losses) on securities available-for-sale |
|
|
(5.0 |
) |
|
|
(37.0 |
) |
|
|
41.1 |
|
|
|
51.2 |
|
|
|
(29.3 |
) |
|
|
(7.8 |
) |
|
|
(151.0 |
) |
|
|
(17.2 |
) |
|
(9.6 |
) |
|
|
(5.9 |
) |
|
|
(3.6 |
) |
|
|
(4.5 |
) |
|
|
(2.0 |
) |
|
Reclassification adjustment for net capital (gains) losses included in net income |
|
|
0.1 |
|
|
|
(0.6 |
) |
|
|
(0.6 |
) |
|
|
(0.9 |
) |
|
|
(0.7 |
) |
|
|
0.3 |
|
|
|
(2.9 |
) |
|
|
(1.2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee benefit plans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5.0 |
) |
|
|
(26.6 |
) |
|
|
|
|
|
|
41.2 |
|
|
|
(70.4 |
) |
|
Prior service credit (cost) and net gains (losses) arising during the period, net |
|
|
(70.0 |
) |
|
|
|
|
|
|
|
|
|
|
(0.4 |
) |
|
|
41.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.6 |
|
|
|
3.3 |
|
|
|
6.4 |
|
|
|
(6.0 |
) |
|
|
1.7 |
|
|
Reclassification adjustment for amortization to net periodic pension (credit) cost, net |
|
|
0.5 |
|
|
|
0.4 |
|
|
|
0.5 |
|
|
|
0.3 |
|
|
|
1.8 |
|
|
|
1.9 |
|
|
|
(4.9 |
) |
|
|
(4.8 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
89.5 |
|
|
|
74.2 |
|
|
|
74.2 |
|
|
|
(174.6 |
) |
|
|
(20.4 |
) |
|
Total |
|
|
(74.4 |
) |
|
|
(37.2 |
) |
|
|
41.0 |
|
|
|
50.2 |
|
|
|
13.0 |
|
|
|
(5.6 |
) |
|
|
(158.8 |
) |
|
|
(23.2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
275.4 |
|
|
$ |
210.9 |
|
|
$ |
212.7 |
|
|
$ |
53.9 |
|
|
$ |
198.9 |
|
|
Comprehensive income (loss) |
|
$ |
(18.2 |
) |
|
$ |
33.9 |
|
|
$ |
82.9 |
|
|
$ |
100.3 |
|
|
$ |
78.0 |
|
|
$ |
53.4 |
|
|
$ |
(101.1 |
) |
|
$ |
23.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Statutory data - insurance subsidiaries:* |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
317.4 |
|
|
$ |
185.1 |
|
|
$ |
182.3 |
|
|
$ |
272.8 |
|
|
$ |
268.5 |
|
|
Net gain from operations before federal income taxes and realized capital gains (losses) |
|
$ |
60.7 |
|
|
$ |
108.9 |
|
|
$ |
48.3 |
|
|
$ |
50.6 |
|
|
$ |
90.5 |
|
|
$ |
87.0 |
|
|
$ |
66.4 |
|
|
$ |
28.9 |
|
|
202.4 |
|
|
|
143.1 |
|
|
|
138.8 |
|
|
|
197.9 |
|
|
|
212.6 |
|
|
Net gain from operations after federal income taxes and before realized capital gains (losses) |
|
|
50.4 |
|
|
|
80.9 |
|
|
|
40.4 |
|
|
|
40.9 |
|
|
|
75.1 |
|
|
|
56.1 |
|
|
|
42.3 |
|
|
|
24.4 |
|
|
1,226.8 |
|
|
|
1,193.1 |
|
|
|
1,259.6 |
|
|
|
1,359.0 |
|
|
|
1,228.4 |
|
|
Capital and surplus |
|
|
1,228.4 |
|
|
|
1,188.8 |
|
|
|
1,358.9 |
|
|
|
1,357.5 |
|
|
|
1,359.0 |
|
|
|
1,294.1 |
|
|
|
1,268.8 |
|
|
|
1,266.6 |
|
|
95.6 |
|
|
|
107.2 |
|
|
|
117.5 |
|
|
|
127.5 |
|
|
|
106.2 |
|
|
Asset valuation reserve |
|
|
106.2 |
|
|
|
131.7 |
|
|
|
132.2 |
|
|
|
129.8 |
|
|
|
127.5 |
|
|
|
136.2 |
|
|
|
132.8 |
|
|
|
120.3 |
|
* |
Statutory data represents Standard Insurance Company and The Standard Life Insurance Company of New York. |
Page 2
STANCORP FINANCIAL GROUP, INC.
Financial Results
(In millions)
RESULTS BY
SEGMENT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014 |
|
|
2013 |
|
2010 |
|
|
2011 |
|
|
2012 |
|
|
2013 |
|
|
2014 |
|
|
|
|
4th Qtr |
|
|
3rd Qtr |
|
|
2nd Qtr |
|
|
1st Qtr |
|
|
4th Qtr |
|
|
3rd Qtr |
|
|
2nd Qtr |
|
|
1st Qtr |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premiums: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
1,892.9 |
|
|
$ |
1,973.0 |
|
|
$ |
1,980.6 |
|
|
$ |
1,926.9 |
|
|
$ |
1,842.8 |
|
|
Employee Benefits |
|
$ |
462.2 |
|
|
$ |
453.9 |
|
|
$ |
467.3 |
|
|
$ |
459.4 |
|
|
$ |
479.0 |
|
|
$ |
474.7 |
|
|
$ |
487.0 |
|
|
$ |
486.2 |
|
|
163.3 |
|
|
|
172.3 |
|
|
|
176.6 |
|
|
|
190.5 |
|
|
|
199.1 |
|
|
Individual Disability |
|
|
51.8 |
|
|
|
50.3 |
|
|
|
48.9 |
|
|
|
48.1 |
|
|
|
48.5 |
|
|
|
48.3 |
|
|
|
46.7 |
|
|
|
47.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,056.2 |
|
|
|
2,145.3 |
|
|
|
2,157.2 |
|
|
|
2,117.4 |
|
|
|
2,041.9 |
|
|
Insurance Services |
|
|
514.0 |
|
|
|
504.2 |
|
|
|
516.2 |
|
|
|
507.5 |
|
|
|
527.5 |
|
|
|
523.0 |
|
|
|
533.7 |
|
|
|
533.2 |
|
|
41.5 |
|
|
|
8.0 |
|
|
|
6.7 |
|
|
|
6.9 |
|
|
|
10.5 |
|
|
Asset Management |
|
|
1.8 |
|
|
|
3.1 |
|
|
|
3.0 |
|
|
|
2.6 |
|
|
|
1.1 |
|
|
|
1.4 |
|
|
|
1.4 |
|
|
|
3.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,097.7 |
|
|
|
2,153.3 |
|
|
|
2,163.9 |
|
|
|
2,124.3 |
|
|
|
2,052.4 |
|
|
Total premiums |
|
|
515.8 |
|
|
|
507.3 |
|
|
|
519.2 |
|
|
|
510.1 |
|
|
|
528.6 |
|
|
|
524.4 |
|
|
|
535.1 |
|
|
|
536.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Administrative fees: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9.3 |
|
|
|
12.0 |
|
|
|
13.7 |
|
|
|
15.1 |
|
|
|
16.5 |
|
|
Employee Benefits |
|
|
4.3 |
|
|
|
3.8 |
|
|
|
4.2 |
|
|
|
4.2 |
|
|
|
4.4 |
|
|
|
3.8 |
|
|
|
3.4 |
|
|
|
3.5 |
|
|
0.3 |
|
|
|
0.3 |
|
|
|
0.2 |
|
|
|
0.2 |
|
|
|
0.2 |
|
|
Individual Disability |
|
|
0.1 |
|
|
|
|
|
|
|
0.1 |
|
|
|
|
|
|
|
|
|
|
|
0.1 |
|
|
|
0.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9.6 |
|
|
|
12.3 |
|
|
|
13.9 |
|
|
|
15.3 |
|
|
|
16.7 |
|
|
Insurance Services |
|
|
4.4 |
|
|
|
3.8 |
|
|
|
4.3 |
|
|
|
4.2 |
|
|
|
4.4 |
|
|
|
3.9 |
|
|
|
3.5 |
|
|
|
3.5 |
|
|
121.5 |
|
|
|
119.9 |
|
|
|
118.8 |
|
|
|
124.9 |
|
|
|
133.4 |
|
|
Asset Management |
|
|
34.2 |
|
|
|
33.9 |
|
|
|
33.1 |
|
|
|
32.2 |
|
|
|
32.2 |
|
|
|
31.3 |
|
|
|
31.5 |
|
|
|
29.9 |
|
|
(14.6 |
) |
|
|
(16.7 |
) |
|
|
(18.0 |
) |
|
|
(18.6 |
) |
|
|
(19.3 |
) |
|
Other |
|
|
(4.8 |
) |
|
|
(4.9 |
) |
|
|
(4.8 |
) |
|
|
(4.8 |
) |
|
|
(4.6 |
) |
|
|
(4.7 |
) |
|
|
(4.6 |
) |
|
|
(4.7 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
116.5 |
|
|
|
115.5 |
|
|
|
114.7 |
|
|
|
121.6 |
|
|
|
130.8 |
|
|
Total administrative fees |
|
|
33.8 |
|
|
|
32.8 |
|
|
|
32.6 |
|
|
|
31.6 |
|
|
|
32.0 |
|
|
|
30.5 |
|
|
|
30.4 |
|
|
|
28.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
286.3 |
|
|
|
288.6 |
|
|
|
286.0 |
|
|
|
267.8 |
|
|
|
247.4 |
|
|
Employee Benefits |
|
|
62.2 |
|
|
|
60.7 |
|
|
|
62.1 |
|
|
|
62.4 |
|
|
|
66.4 |
|
|
|
65.8 |
|
|
|
67.0 |
|
|
|
68.6 |
|
|
52.6 |
|
|
|
52.7 |
|
|
|
53.7 |
|
|
|
52.8 |
|
|
|
52.1 |
|
|
Individual Disability |
|
|
13.0 |
|
|
|
13.0 |
|
|
|
13.0 |
|
|
|
13.1 |
|
|
|
13.3 |
|
|
|
13.2 |
|
|
|
12.9 |
|
|
|
13.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
338.9 |
|
|
|
341.3 |
|
|
|
339.7 |
|
|
|
320.6 |
|
|
|
299.5 |
|
|
Insurance Services |
|
|
75.2 |
|
|
|
73.7 |
|
|
|
75.1 |
|
|
|
75.5 |
|
|
|
79.7 |
|
|
|
79.0 |
|
|
|
79.9 |
|
|
|
82.0 |
|
|
251.0 |
|
|
|
262.7 |
|
|
|
278.6 |
|
|
|
293.2 |
|
|
|
283.3 |
|
|
Asset Management |
|
|
72.2 |
|
|
|
69.4 |
|
|
|
72.2 |
|
|
|
69.5 |
|
|
|
75.8 |
|
|
|
73.4 |
|
|
|
70.7 |
|
|
|
73.3 |
|
|
12.6 |
|
|
|
8.8 |
|
|
|
10.2 |
|
|
|
16.1 |
|
|
|
18.1 |
|
|
Other |
|
|
6.0 |
|
|
|
4.0 |
|
|
|
2.5 |
|
|
|
5.6 |
|
|
|
5.3 |
|
|
|
3.4 |
|
|
|
3.5 |
|
|
|
3.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
602.5 |
|
|
|
612.8 |
|
|
|
628.5 |
|
|
|
629.9 |
|
|
|
600.9 |
|
|
Total net investment income |
|
|
153.4 |
|
|
|
147.1 |
|
|
|
149.8 |
|
|
|
150.6 |
|
|
|
160.8 |
|
|
|
155.8 |
|
|
|
154.1 |
|
|
|
159.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(51.6 |
) |
|
|
(6.9 |
) |
|
|
(8.7 |
) |
|
|
(15.7 |
) |
|
|
(14.0 |
) |
|
Net capital losses |
|
|
(7.2 |
) |
|
|
(5.2 |
) |
|
|
(0.5 |
) |
|
|
(1.1 |
) |
|
|
(2.8 |
) |
|
|
(8.7 |
) |
|
|
(2.6 |
) |
|
|
(1.6 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,765.1 |
|
|
|
2,874.7 |
|
|
|
2,898.4 |
|
|
|
2,860.1 |
|
|
|
2,770.1 |
|
|
Total revenues |
|
|
695.8 |
|
|
|
682.0 |
|
|
|
701.1 |
|
|
|
691.2 |
|
|
|
718.6 |
|
|
|
702.0 |
|
|
|
717.0 |
|
|
|
722.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefits and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,925.1 |
|
|
|
2,117.7 |
|
|
|
2,150.5 |
|
|
|
1,993.4 |
|
|
|
1,904.9 |
|
|
Employee Benefits |
|
|
475.1 |
|
|
|
441.5 |
|
|
|
500.9 |
|
|
|
487.4 |
|
|
|
482.6 |
|
|
|
475.7 |
|
|
|
510.8 |
|
|
|
524.3 |
|
|
169.2 |
|
|
|
180.0 |
|
|
|
180.5 |
|
|
|
187.5 |
|
|
|
198.5 |
|
|
Individual Disability |
|
|
49.5 |
|
|
|
50.9 |
|
|
|
55.0 |
|
|
|
43.1 |
|
|
|
45.1 |
|
|
|
51.9 |
|
|
|
44.9 |
|
|
|
45.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,094.3 |
|
|
|
2,297.7 |
|
|
|
2,331.0 |
|
|
|
2,180.9 |
|
|
|
2,103.4 |
|
|
Insurance Services |
|
|
524.6 |
|
|
|
492.4 |
|
|
|
555.9 |
|
|
|
530.5 |
|
|
|
527.7 |
|
|
|
527.6 |
|
|
|
555.7 |
|
|
|
569.9 |
|
|
358.5 |
|
|
|
329.3 |
|
|
|
340.1 |
|
|
|
345.7 |
|
|
|
349.3 |
|
|
Asset Management |
|
|
89.5 |
|
|
|
85.6 |
|
|
|
86.3 |
|
|
|
87.9 |
|
|
|
89.6 |
|
|
|
84.2 |
|
|
|
82.9 |
|
|
|
89.0 |
|
|
34.2 |
|
|
|
56.2 |
|
|
|
43.9 |
|
|
|
20.5 |
|
|
|
30.5 |
|
|
Other |
|
|
8.4 |
|
|
|
7.1 |
|
|
|
7.6 |
|
|
|
7.4 |
|
|
|
8.9 |
|
|
|
8.4 |
|
|
|
(0.1 |
) |
|
|
3.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,487.0 |
|
|
|
2,683.2 |
|
|
|
2,715.0 |
|
|
|
2,547.1 |
|
|
|
2,483.2 |
|
|
Total benefits and expenses |
|
|
622.5 |
|
|
|
585.1 |
|
|
|
649.8 |
|
|
|
625.8 |
|
|
|
626.2 |
|
|
|
620.2 |
|
|
|
638.5 |
|
|
|
662.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income taxes: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
263.4 |
|
|
|
155.9 |
|
|
|
129.8 |
|
|
|
216.4 |
|
|
|
201.8 |
|
|
Employee Benefits |
|
|
53.6 |
|
|
|
76.9 |
|
|
|
32.7 |
|
|
|
38.6 |
|
|
|
67.2 |
|
|
|
68.6 |
|
|
|
46.6 |
|
|
|
34.0 |
|
|
47.0 |
|
|
|
45.3 |
|
|
|
50.0 |
|
|
|
56.0 |
|
|
|
52.9 |
|
|
Individual Disability |
|
|
15.4 |
|
|
|
12.4 |
|
|
|
7.0 |
|
|
|
18.1 |
|
|
|
16.7 |
|
|
|
9.7 |
|
|
|
14.8 |
|
|
|
14.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
310.4 |
|
|
|
201.2 |
|
|
|
179.8 |
|
|
|
272.4 |
|
|
|
254.7 |
|
|
Insurance Services |
|
|
69.0 |
|
|
|
89.3 |
|
|
|
39.7 |
|
|
|
56.7 |
|
|
|
83.9 |
|
|
|
78.3 |
|
|
|
61.4 |
|
|
|
48.8 |
|
|
55.5 |
|
|
|
61.3 |
|
|
|
64.0 |
|
|
|
79.3 |
|
|
|
77.9 |
|
|
Asset Management |
|
|
18.7 |
|
|
|
20.8 |
|
|
|
22.0 |
|
|
|
16.4 |
|
|
|
19.5 |
|
|
|
21.9 |
|
|
|
20.7 |
|
|
|
17.2 |
|
|
(87.8 |
) |
|
|
(71.0 |
) |
|
|
(60.4 |
) |
|
|
(38.7 |
) |
|
|
(45.7 |
) |
|
Other |
|
|
(14.4 |
) |
|
|
(13.2 |
) |
|
|
(10.4 |
) |
|
|
(7.7 |
) |
|
|
(11.0 |
) |
|
|
(18.4 |
) |
|
|
(3.6 |
) |
|
|
(5.7 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
278.1 |
|
|
|
191.5 |
|
|
|
183.4 |
|
|
|
313.0 |
|
|
|
286.9 |
|
|
Total income before income taxes |
|
|
73.3 |
|
|
|
96.9 |
|
|
|
51.3 |
|
|
|
65.4 |
|
|
|
92.4 |
|
|
|
81.8 |
|
|
|
78.5 |
|
|
|
60.3 |
|
|
92.2 |
|
|
|
54.8 |
|
|
|
44.9 |
|
|
|
84.5 |
|
|
|
67.6 |
|
|
Income taxes |
|
|
17.1 |
|
|
|
25.8 |
|
|
|
9.4 |
|
|
|
15.3 |
|
|
|
27.4 |
|
|
|
22.8 |
|
|
|
20.8 |
|
|
|
13.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
185.9 |
|
|
$ |
136.7 |
|
|
$ |
138.5 |
|
|
$ |
228.5 |
|
|
$ |
219.3 |
|
|
Net income |
|
$ |
56.2 |
|
|
$ |
71.1 |
|
|
$ |
41.9 |
|
|
$ |
50.1 |
|
|
$ |
65.0 |
|
|
$ |
59.0 |
|
|
$ |
57.7 |
|
|
$ |
46.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Page 3
STANCORP FINANCIAL GROUP, INC.
Financial Results
(Dollars in millions)
INSURANCE SERVICES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014 |
|
|
2013 |
|
2010 |
|
|
2011 |
|
|
2012 |
|
|
2013 |
|
|
2014 |
|
|
|
|
4th Qtr |
|
|
3rd Qtr |
|
|
2nd Qtr |
|
|
1st Qtr |
|
|
4th Qtr |
|
|
3rd Qtr |
|
|
2nd Qtr |
|
|
1st Qtr |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
2,056.2 |
|
|
$ |
2,145.3 |
|
|
$ |
2,157.2 |
|
|
$ |
2,117.4 |
|
|
$ |
2,041.9 |
|
|
Premiums |
|
$ |
514.0 |
|
|
$ |
504.2 |
|
|
$ |
516.2 |
|
|
$ |
507.5 |
|
|
$ |
527.5 |
|
|
$ |
523.0 |
|
|
$ |
533.7 |
|
|
$ |
533.2 |
|
|
9.6 |
|
|
|
12.3 |
|
|
|
13.9 |
|
|
|
15.3 |
|
|
|
16.7 |
|
|
Administrative fees |
|
|
4.4 |
|
|
|
3.8 |
|
|
|
4.3 |
|
|
|
4.2 |
|
|
|
4.4 |
|
|
|
3.9 |
|
|
|
3.5 |
|
|
|
3.5 |
|
|
338.9 |
|
|
|
341.3 |
|
|
|
339.7 |
|
|
|
320.6 |
|
|
|
299.5 |
|
|
Net investment income |
|
|
75.2 |
|
|
|
73.7 |
|
|
|
75.1 |
|
|
|
75.5 |
|
|
|
79.7 |
|
|
|
79.0 |
|
|
|
79.9 |
|
|
|
82.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,404.7 |
|
|
|
2,498.9 |
|
|
|
2,510.8 |
|
|
|
2,453.3 |
|
|
|
2,358.1 |
|
|
Total revenues |
|
|
593.6 |
|
|
|
581.7 |
|
|
|
595.6 |
|
|
|
587.2 |
|
|
|
611.6 |
|
|
|
605.9 |
|
|
|
617.1 |
|
|
|
618.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefits and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,566.4 |
|
|
|
1,750.9 |
|
|
|
1,773.3 |
|
|
|
1,637.7 |
|
|
|
1,561.4 |
|
|
Benefits to policyholders |
|
|
388.8 |
|
|
|
355.2 |
|
|
|
421.0 |
|
|
|
396.4 |
|
|
|
390.7 |
|
|
|
391.2 |
|
|
|
419.8 |
|
|
|
436.0 |
|
|
4.8 |
|
|
|
4.6 |
|
|
|
4.2 |
|
|
|
4.3 |
|
|
|
2.6 |
|
|
Interest credited |
|
|
|
|
|
|
0.7 |
|
|
|
1.2 |
|
|
|
0.7 |
|
|
|
1.5 |
|
|
|
0.6 |
|
|
|
1.3 |
|
|
|
0.9 |
|
|
331.8 |
|
|
|
338.7 |
|
|
|
349.1 |
|
|
|
340.0 |
|
|
|
349.2 |
|
|
Operating expenses |
|
|
90.2 |
|
|
|
89.3 |
|
|
|
85.5 |
|
|
|
84.2 |
|
|
|
87.5 |
|
|
|
86.1 |
|
|
|
84.3 |
|
|
|
82.1 |
|
|
175.7 |
|
|
|
185.1 |
|
|
|
172.7 |
|
|
|
174.2 |
|
|
|
170.6 |
|
|
Commissions and bonuses |
|
|
41.5 |
|
|
|
43.4 |
|
|
|
41.3 |
|
|
|
44.4 |
|
|
|
42.3 |
|
|
|
43.5 |
|
|
|
42.5 |
|
|
|
45.9 |
|
|
34.5 |
|
|
|
36.6 |
|
|
|
37.5 |
|
|
|
35.2 |
|
|
|
31.5 |
|
|
Premium taxes |
|
|
6.8 |
|
|
|
7.5 |
|
|
|
8.1 |
|
|
|
9.1 |
|
|
|
7.5 |
|
|
|
9.1 |
|
|
|
9.1 |
|
|
|
9.5 |
|
|
(61.3 |
) |
|
|
(64.5 |
) |
|
|
(55.9 |
) |
|
|
(60.3 |
) |
|
|
(61.4 |
) |
|
Deferral of acquisition costs |
|
|
(14.7 |
) |
|
|
(16.6 |
) |
|
|
(13.0 |
) |
|
|
(17.1 |
) |
|
|
(14.8 |
) |
|
|
(15.4 |
) |
|
|
(13.2 |
) |
|
|
(16.9 |
) |
|
42.4 |
|
|
|
46.3 |
|
|
|
50.1 |
|
|
|
49.8 |
|
|
|
49.5 |
|
|
Amortization of deferred acquisition costs, value of business acquired and other intangible assets |
|
|
12.0 |
|
|
|
12.9 |
|
|
|
11.8 |
|
|
|
12.8 |
|
|
|
13.0 |
|
|
|
12.5 |
|
|
|
11.9 |
|
|
|
12.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,094.3 |
|
|
|
2,297.7 |
|
|
|
2,331.0 |
|
|
|
2,180.9 |
|
|
|
2,103.4 |
|
|
Total benefits and expenses |
|
|
524.6 |
|
|
|
492.4 |
|
|
|
555.9 |
|
|
|
530.5 |
|
|
|
527.7 |
|
|
|
527.6 |
|
|
|
555.7 |
|
|
|
569.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
310.4 |
|
|
$ |
201.2 |
|
|
$ |
179.8 |
|
|
$ |
272.4 |
|
|
$ |
254.7 |
|
|
Income before income taxes |
|
$ |
69.0 |
|
|
$ |
89.3 |
|
|
$ |
39.7 |
|
|
$ |
56.7 |
|
|
$ |
83.9 |
|
|
$ |
78.3 |
|
|
$ |
61.4 |
|
|
$ |
48.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Statistics (% of total premiums): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
16.1 |
% |
|
|
15.8 |
% |
|
|
16.2 |
% |
|
|
16.1 |
% |
|
|
17.1 |
% |
|
Operating expenses |
|
|
17.5 |
% |
|
|
17.7 |
% |
|
|
16.6 |
% |
|
|
16.6 |
% |
|
|
16.6 |
% |
|
|
16.5 |
% |
|
|
15.8 |
% |
|
|
15.4 |
% |
|
15.1 |
|
|
|
9.4 |
|
|
|
8.3 |
|
|
|
12.9 |
|
|
|
12.5 |
|
|
Income before income taxes |
|
|
13.4 |
|
|
|
17.7 |
|
|
|
7.7 |
|
|
|
11.2 |
|
|
|
15.9 |
|
|
|
15.0 |
|
|
|
11.5 |
|
|
|
9.2 |
|
Page 4
STANCORP FINANCIAL GROUP, INC.
Financial Results
(Dollars in millions)
EMPLOYEE BENEFITS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014 |
|
|
2013 |
|
2010 |
|
|
2011 |
|
|
2012 |
|
|
2013 |
|
|
2014 |
|
|
|
|
4th Qtr |
|
|
3rd Qtr |
|
|
2nd Qtr |
|
|
1st Qtr |
|
|
4th Qtr |
|
|
3rd Qtr |
|
|
2nd Qtr |
|
|
1st Qtr |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premiums: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
835.7 |
|
|
$ |
892.6 |
|
|
$ |
883.7 |
|
|
$ |
849.7 |
|
|
$ |
808.6 |
|
|
Life and AD&D |
|
$ |
203.5 |
|
|
$ |
202.0 |
|
|
$ |
202.9 |
|
|
$ |
200.2 |
|
|
$ |
209.4 |
|
|
$ |
210.4 |
|
|
$ |
214.5 |
|
|
$ |
215.4 |
|
|
799.9 |
|
|
|
803.3 |
|
|
|
801.4 |
|
|
|
783.0 |
|
|
|
753.8 |
|
|
LTD |
|
|
188.1 |
|
|
|
187.1 |
|
|
|
189.4 |
|
|
|
189.2 |
|
|
|
193.4 |
|
|
|
191.3 |
|
|
|
198.0 |
|
|
|
200.3 |
|
|
203.7 |
|
|
|
208.0 |
|
|
|
212.6 |
|
|
|
229.0 |
|
|
|
219.0 |
|
|
STD |
|
|
52.0 |
|
|
|
55.2 |
|
|
|
57.5 |
|
|
|
54.3 |
|
|
|
57.1 |
|
|
|
56.4 |
|
|
|
59.6 |
|
|
|
55.9 |
|
|
81.5 |
|
|
|
81.6 |
|
|
|
78.9 |
|
|
|
78.3 |
|
|
|
79.0 |
|
|
Other |
|
|
20.5 |
|
|
|
19.9 |
|
|
|
19.4 |
|
|
|
19.2 |
|
|
|
20.2 |
|
|
|
19.8 |
|
|
|
19.2 |
|
|
|
19.1 |
|
|
(27.9 |
) |
|
|
(12.5 |
) |
|
|
4.0 |
|
|
|
(13.1 |
) |
|
|
(17.6 |
) |
|
Experience rated refunds |
|
|
(1.9 |
) |
|
|
(10.3 |
) |
|
|
(1.9 |
) |
|
|
(3.5 |
) |
|
|
(1.1 |
) |
|
|
(3.2 |
) |
|
|
(4.3 |
) |
|
|
(4.5 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,892.9 |
|
|
|
1,973.0 |
|
|
|
1,980.6 |
|
|
|
1,926.9 |
|
|
|
1,842.8 |
|
|
Total premiums |
|
|
462.2 |
|
|
|
453.9 |
|
|
|
467.3 |
|
|
|
459.4 |
|
|
|
479.0 |
|
|
|
474.7 |
|
|
|
487.0 |
|
|
|
486.2 |
|
|
9.3 |
|
|
|
12.0 |
|
|
|
13.7 |
|
|
|
15.1 |
|
|
|
16.5 |
|
|
Administrative fees |
|
|
4.3 |
|
|
|
3.8 |
|
|
|
4.2 |
|
|
|
4.2 |
|
|
|
4.4 |
|
|
|
3.8 |
|
|
|
3.4 |
|
|
|
3.5 |
|
|
286.3 |
|
|
|
288.6 |
|
|
|
286.0 |
|
|
|
267.8 |
|
|
|
247.4 |
|
|
Net investment income |
|
|
62.2 |
|
|
|
60.7 |
|
|
|
62.1 |
|
|
|
62.4 |
|
|
|
66.4 |
|
|
|
65.8 |
|
|
|
67.0 |
|
|
|
68.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,188.5 |
|
|
|
2,273.6 |
|
|
|
2,280.3 |
|
|
|
2,209.8 |
|
|
|
2,106.7 |
|
|
Total revenues |
|
|
528.7 |
|
|
|
518.4 |
|
|
|
533.6 |
|
|
|
526.0 |
|
|
|
549.8 |
|
|
|
544.3 |
|
|
|
557.4 |
|
|
|
558.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefits and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,457.3 |
|
|
|
1,635.0 |
|
|
|
1,657.1 |
|
|
|
1,515.9 |
|
|
|
1,431.4 |
|
|
Benefits to policyholders |
|
|
357.7 |
|
|
|
321.1 |
|
|
|
382.2 |
|
|
|
370.4 |
|
|
|
362.8 |
|
|
|
356.0 |
|
|
|
390.2 |
|
|
|
406.9 |
|
|
4.8 |
|
|
|
4.6 |
|
|
|
4.2 |
|
|
|
4.3 |
|
|
|
2.6 |
|
|
Interest credited |
|
|
|
|
|
|
0.7 |
|
|
|
1.2 |
|
|
|
0.7 |
|
|
|
1.5 |
|
|
|
0.6 |
|
|
|
1.3 |
|
|
|
0.9 |
|
|
306.2 |
|
|
|
312.3 |
|
|
|
323.6 |
|
|
|
313.3 |
|
|
|
321.4 |
|
|
Operating expenses |
|
|
83.1 |
|
|
|
82.2 |
|
|
|
78.7 |
|
|
|
77.4 |
|
|
|
80.5 |
|
|
|
79.0 |
|
|
|
77.9 |
|
|
|
75.9 |
|
|
129.9 |
|
|
|
137.1 |
|
|
|
125.1 |
|
|
|
126.7 |
|
|
|
122.6 |
|
|
Commissions and bonuses |
|
|
29.1 |
|
|
|
30.5 |
|
|
|
29.7 |
|
|
|
33.3 |
|
|
|
30.2 |
|
|
|
30.4 |
|
|
|
31.1 |
|
|
|
35.0 |
|
|
31.1 |
|
|
|
33.0 |
|
|
|
33.6 |
|
|
|
31.3 |
|
|
|
27.9 |
|
|
Premium taxes |
|
|
5.9 |
|
|
|
6.6 |
|
|
|
7.3 |
|
|
|
8.1 |
|
|
|
6.6 |
|
|
|
8.1 |
|
|
|
8.1 |
|
|
|
8.5 |
|
|
(25.5 |
) |
|
|
(27.4 |
) |
|
|
(18.3 |
) |
|
|
(22.2 |
) |
|
|
(23.4 |
) |
|
Deferral of acquisition costs |
|
|
(6.0 |
) |
|
|
(5.3 |
) |
|
|
(3.9 |
) |
|
|
(8.2 |
) |
|
|
(5.8 |
) |
|
|
(4.4 |
) |
|
|
(3.6 |
) |
|
|
(8.4 |
) |
|
21.3 |
|
|
|
23.1 |
|
|
|
25.2 |
|
|
|
24.1 |
|
|
|
22.4 |
|
|
Amortization of deferred acquisition costs, value of business acquired and other intangible assets |
|
|
5.3 |
|
|
|
5.7 |
|
|
|
5.7 |
|
|
|
5.7 |
|
|
|
6.8 |
|
|
|
6.0 |
|
|
|
5.8 |
|
|
|
5.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,925.1 |
|
|
|
2,117.7 |
|
|
|
2,150.5 |
|
|
|
1,993.4 |
|
|
|
1,904.9 |
|
|
Total benefits and expenses |
|
|
475.1 |
|
|
|
441.5 |
|
|
|
500.9 |
|
|
|
487.4 |
|
|
|
482.6 |
|
|
|
475.7 |
|
|
|
510.8 |
|
|
|
524.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
263.4 |
|
|
$ |
155.9 |
|
|
$ |
129.8 |
|
|
$ |
216.4 |
|
|
$ |
201.8 |
|
|
Income before income taxes |
|
$ |
53.6 |
|
|
$ |
76.9 |
|
|
$ |
32.7 |
|
|
$ |
38.6 |
|
|
$ |
67.2 |
|
|
$ |
68.6 |
|
|
$ |
46.6 |
|
|
$ |
34.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefit ratio (including interest credited): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
66.8 |
% |
|
|
72.1 |
% |
|
|
72.9 |
% |
|
|
68.8 |
% |
|
|
68.1 |
% |
|
% of total revenues |
|
|
67.7 |
% |
|
|
62.1 |
% |
|
|
71.9 |
% |
|
|
70.6 |
% |
|
|
66.3 |
% |
|
|
65.5 |
% |
|
|
70.2 |
% |
|
|
73.0 |
% |
|
77.2 |
|
|
|
83.1 |
|
|
|
83.9 |
|
|
|
78.9 |
|
|
|
77.8 |
|
|
% of total premiums |
|
|
77.4 |
|
|
|
70.9 |
|
|
|
82.0 |
|
|
|
80.8 |
|
|
|
76.1 |
|
|
|
75.1 |
|
|
|
80.4 |
|
|
|
83.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Statistics (% of total premiums): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
16.2 |
% |
|
|
15.8 |
% |
|
|
16.3 |
% |
|
|
16.3 |
% |
|
|
17.4 |
% |
|
Operating expenses |
|
|
18.0 |
% |
|
|
18.1 |
% |
|
|
16.8 |
% |
|
|
16.8 |
% |
|
|
16.8 |
% |
|
|
16.6 |
% |
|
|
16.0 |
% |
|
|
15.6 |
% |
|
13.9 |
|
|
|
7.9 |
|
|
|
6.6 |
|
|
|
11.2 |
|
|
|
11.0 |
|
|
Income before income taxes |
|
|
11.6 |
|
|
|
16.9 |
|
|
|
7.0 |
|
|
|
8.4 |
|
|
|
14.0 |
|
|
|
14.5 |
|
|
|
9.6 |
|
|
|
7.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annualized new sales: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
156.9 |
|
|
$ |
155.5 |
|
|
$ |
104.0 |
|
|
$ |
89.9 |
|
|
$ |
87.5 |
|
|
Life and AD&D |
|
$ |
32.2 |
|
|
$ |
22.5 |
|
|
$ |
5.1 |
|
|
$ |
27.7 |
|
|
$ |
27.2 |
|
|
$ |
10.0 |
|
|
$ |
6.0 |
|
|
$ |
46.7 |
|
|
103.1 |
|
|
|
107.7 |
|
|
|
88.4 |
|
|
|
66.0 |
|
|
|
66.6 |
|
|
LTD |
|
|
26.3 |
|
|
|
16.9 |
|
|
|
7.9 |
|
|
|
15.5 |
|
|
|
24.7 |
|
|
|
9.0 |
|
|
|
10.0 |
|
|
|
22.3 |
|
|
45.1 |
|
|
|
42.6 |
|
|
|
31.2 |
|
|
|
40.6 |
|
|
|
31.8 |
|
|
STD |
|
|
12.6 |
|
|
|
7.8 |
|
|
|
2.9 |
|
|
|
8.5 |
|
|
|
12.7 |
|
|
|
3.0 |
|
|
|
6.6 |
|
|
|
18.3 |
|
|
25.5 |
|
|
|
30.6 |
|
|
|
21.4 |
|
|
|
25.6 |
|
|
|
29.7 |
|
|
Other |
|
|
8.2 |
|
|
|
5.6 |
|
|
|
5.1 |
|
|
|
10.8 |
|
|
|
5.0 |
|
|
|
7.7 |
|
|
|
2.6 |
|
|
|
10.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
330.6 |
|
|
$ |
336.4 |
|
|
$ |
245.0 |
|
|
$ |
222.1 |
|
|
$ |
215.6 |
|
|
Total annualized new sales |
|
$ |
79.3 |
|
|
$ |
52.8 |
|
|
$ |
21.0 |
|
|
$ |
62.5 |
|
|
$ |
69.6 |
|
|
$ |
29.7 |
|
|
$ |
25.2 |
|
|
$ |
97.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Persistency (% of premiums): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
89.8 |
% |
|
|
89.8 |
% |
|
|
87.3 |
% |
|
|
85.2 |
% |
|
|
86.7 |
% |
|
Life and AD&D |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
89.1 |
|
|
|
89.7 |
|
|
|
87.8 |
|
|
|
87.9 |
|
|
|
88.6 |
|
|
LTD |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
87.9 |
|
|
|
87.1 |
|
|
|
86.6 |
|
|
|
91.9 |
|
|
|
82.0 |
|
|
STD |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
78.3 |
|
|
|
76.7 |
|
|
|
74.2 |
|
|
|
79.3 |
|
|
|
73.5 |
|
|
Other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
88.7 |
% |
|
|
88.8 |
% |
|
|
86.7 |
% |
|
|
86.7 |
% |
|
|
86.1 |
% |
|
Total persistency |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Page 5
STANCORP FINANCIAL GROUP, INC.
Financial Results
(Dollars in millions)
INDIVIDUAL DISABILITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014 |
|
|
2013 |
|
2010 |
|
|
2011 |
|
|
2012 |
|
|
2013 |
|
|
2014 |
|
|
|
|
4th Qtr |
|
|
3rd Qtr |
|
|
2nd Qtr |
|
|
1st Qtr |
|
|
4th Qtr |
|
|
3rd Qtr |
|
|
2nd Qtr |
|
|
1st Qtr |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
163.3 |
|
|
$ |
172.3 |
|
|
$ |
176.6 |
|
|
$ |
190.5 |
|
|
$ |
199.1 |
|
|
Premiums |
|
$ |
51.8 |
|
|
$ |
50.3 |
|
|
$ |
48.9 |
|
|
$ |
48.1 |
|
|
$ |
48.5 |
|
|
$ |
48.3 |
|
|
$ |
46.7 |
|
|
$ |
47.0 |
|
|
0.3 |
|
|
|
0.3 |
|
|
|
0.2 |
|
|
|
0.2 |
|
|
|
0.2 |
|
|
Administrative fees |
|
|
0.1 |
|
|
|
|
|
|
|
0.1 |
|
|
|
|
|
|
|
|
|
|
|
0.1 |
|
|
|
0.1 |
|
|
|
|
|
|
52.6 |
|
|
|
52.7 |
|
|
|
53.7 |
|
|
|
52.8 |
|
|
|
52.1 |
|
|
Net investment income |
|
|
13.0 |
|
|
|
13.0 |
|
|
|
13.0 |
|
|
|
13.1 |
|
|
|
13.3 |
|
|
|
13.2 |
|
|
|
12.9 |
|
|
|
13.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
216.2 |
|
|
|
225.3 |
|
|
|
230.5 |
|
|
|
243.5 |
|
|
|
251.4 |
|
|
Total revenues |
|
|
64.9 |
|
|
|
63.3 |
|
|
|
62.0 |
|
|
|
61.2 |
|
|
|
61.8 |
|
|
|
61.6 |
|
|
|
59.7 |
|
|
|
60.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefits and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
109.1 |
|
|
|
115.9 |
|
|
|
116.2 |
|
|
|
121.8 |
|
|
|
130.0 |
|
|
Benefits to policyholders |
|
|
31.1 |
|
|
|
34.1 |
|
|
|
38.8 |
|
|
|
26.0 |
|
|
|
27.9 |
|
|
|
35.2 |
|
|
|
29.6 |
|
|
|
29.1 |
|
|
25.6 |
|
|
|
26.4 |
|
|
|
25.5 |
|
|
|
26.7 |
|
|
|
27.8 |
|
|
Operating expenses |
|
|
7.1 |
|
|
|
7.1 |
|
|
|
6.8 |
|
|
|
6.8 |
|
|
|
7.0 |
|
|
|
7.1 |
|
|
|
6.4 |
|
|
|
6.2 |
|
|
45.8 |
|
|
|
48.0 |
|
|
|
47.6 |
|
|
|
47.5 |
|
|
|
48.0 |
|
|
Commissions and bonuses |
|
|
12.4 |
|
|
|
12.9 |
|
|
|
11.6 |
|
|
|
11.1 |
|
|
|
12.1 |
|
|
|
13.1 |
|
|
|
11.4 |
|
|
|
10.9 |
|
|
3.4 |
|
|
|
3.6 |
|
|
|
3.9 |
|
|
|
3.9 |
|
|
|
3.6 |
|
|
Premium taxes |
|
|
0.9 |
|
|
|
0.9 |
|
|
|
0.8 |
|
|
|
1.0 |
|
|
|
0.9 |
|
|
|
1.0 |
|
|
|
1.0 |
|
|
|
1.0 |
|
|
(35.8 |
) |
|
|
(37.1 |
) |
|
|
(37.6 |
) |
|
|
(38.1 |
) |
|
|
(38.0 |
) |
|
Deferral of acquisition costs |
|
|
(8.7 |
) |
|
|
(11.3 |
) |
|
|
(9.1 |
) |
|
|
(8.9 |
) |
|
|
(9.0 |
) |
|
|
(11.0 |
) |
|
|
(9.6 |
) |
|
|
(8.5 |
) |
|
21.1 |
|
|
|
23.2 |
|
|
|
24.9 |
|
|
|
25.7 |
|
|
|
27.1 |
|
|
Amortization of deferred acquisition costs, value of business acquired and other intangible assets |
|
|
6.7 |
|
|
|
7.2 |
|
|
|
6.1 |
|
|
|
7.1 |
|
|
|
6.2 |
|
|
|
6.5 |
|
|
|
6.1 |
|
|
|
6.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
169.2 |
|
|
|
180.0 |
|
|
|
180.5 |
|
|
|
187.5 |
|
|
|
198.5 |
|
|
Total benefits and expenses |
|
|
49.5 |
|
|
|
50.9 |
|
|
|
55.0 |
|
|
|
43.1 |
|
|
|
45.1 |
|
|
|
51.9 |
|
|
|
44.9 |
|
|
|
45.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
47.0 |
|
|
$ |
45.3 |
|
|
$ |
50.0 |
|
|
$ |
56.0 |
|
|
$ |
52.9 |
|
|
Income before income taxes |
|
$ |
15.4 |
|
|
$ |
12.4 |
|
|
$ |
7.0 |
|
|
$ |
18.1 |
|
|
$ |
16.7 |
|
|
$ |
9.7 |
|
|
$ |
14.8 |
|
|
$ |
14.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefit ratio: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
50.5 |
% |
|
|
51.4 |
% |
|
|
50.4 |
% |
|
|
50.0 |
% |
|
|
51.7 |
% |
|
% of total revenues |
|
|
47.9 |
% |
|
|
53.9 |
% |
|
|
62.6 |
% |
|
|
42.5 |
% |
|
|
45.1 |
% |
|
|
57.1 |
% |
|
|
49.6 |
% |
|
|
48.2 |
% |
|
66.8 |
|
|
|
67.3 |
|
|
|
65.8 |
|
|
|
63.9 |
|
|
|
65.3 |
|
|
% of total premiums |
|
|
60.0 |
|
|
|
67.8 |
|
|
|
79.3 |
|
|
|
54.1 |
|
|
|
57.5 |
|
|
|
72.9 |
|
|
|
63.4 |
|
|
|
61.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Statistics (% of premiums): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
15.7 |
% |
|
|
15.3 |
% |
|
|
14.4 |
% |
|
|
14.0 |
% |
|
|
14.0 |
% |
|
Operating expenses |
|
|
13.7 |
% |
|
|
14.1 |
% |
|
|
13.9 |
% |
|
|
14.1 |
% |
|
|
14.4 |
% |
|
|
14.7 |
% |
|
|
13.7 |
% |
|
|
13.2 |
% |
|
28.8 |
|
|
|
26.3 |
|
|
|
28.3 |
|
|
|
29.4 |
|
|
|
26.6 |
|
|
Income before income taxes |
|
|
29.7 |
|
|
|
24.7 |
|
|
|
14.3 |
|
|
|
37.6 |
|
|
|
34.4 |
|
|
|
20.1 |
|
|
|
31.7 |
|
|
|
31.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
21.1 |
|
|
$ |
22.2 |
|
|
$ |
21.1 |
|
|
$ |
21.3 |
|
|
$ |
22.6 |
|
|
Annualized new sales |
|
$ |
5.9 |
|
|
$ |
7.3 |
|
|
$ |
4.9 |
|
|
$ |
4.5 |
|
|
$ |
5.2 |
|
|
$ |
6.8 |
|
|
$ |
5.3 |
|
|
$ |
4.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
94.8 |
% |
|
|
95.1 |
% |
|
|
95.0 |
% |
|
|
94.5 |
% |
|
|
94.6 |
% |
|
Persistency (% of premiums) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
Page 6
STANCORP FINANCIAL GROUP, INC.
Financial Results
(Dollars in millions)
ASSET
MANAGEMENT
|
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|
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|
|
|
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|
|
|
|
|
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|
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2014 |
|
|
2013 |
|
2010 |
|
|
2011 |
|
|
2012 |
|
|
2013 |
|
|
2014 |
|
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|
|
4th Qtr |
|
|
3rd Qtr |
|
|
2nd Qtr |
|
|
1st Qtr |
|
|
4th Qtr |
|
|
3rd Qtr |
|
|
2nd Qtr |
|
|
1st Qtr |
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|
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|
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
41.5 |
|
|
$ |
8.0 |
|
|
$ |
6.7 |
|
|
$ |
6.9 |
|
|
$ |
10.5 |
|
|
Premiums |
|
$ |
1.8 |
|
|
$ |
3.1 |
|
|
$ |
3.0 |
|
|
$ |
2.6 |
|
|
$ |
1.1 |
|
|
$ |
1.4 |
|
|
$ |
1.4 |
|
|
$ |
3.0 |
|
|
121.5 |
|
|
|
119.9 |
|
|
|
118.8 |
|
|
|
124.9 |
|
|
|
133.4 |
|
|
Administrative fees |
|
|
34.2 |
|
|
|
33.9 |
|
|
|
33.1 |
|
|
|
32.2 |
|
|
|
32.2 |
|
|
|
31.3 |
|
|
|
31.5 |
|
|
|
29.9 |
|
|
251.0 |
|
|
|
262.7 |
|
|
|
278.6 |
|
|
|
293.2 |
|
|
|
283.3 |
|
|
Net investment income |
|
|
72.2 |
|
|
|
69.4 |
|
|
|
72.2 |
|
|
|
69.5 |
|
|
|
75.8 |
|
|
|
73.4 |
|
|
|
70.7 |
|
|
|
73.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
414.0 |
|
|
|
390.6 |
|
|
|
404.1 |
|
|
|
425.0 |
|
|
|
427.2 |
|
|
Total revenues |
|
|
108.2 |
|
|
|
106.4 |
|
|
|
108.3 |
|
|
|
104.3 |
|
|
|
109.1 |
|
|
|
106.1 |
|
|
|
103.6 |
|
|
|
106.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
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|
|
|
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|
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|
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|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefits and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
53.4 |
|
|
|
20.3 |
|
|
|
19.7 |
|
|
|
17.7 |
|
|
|
20.8 |
|
|
Benefits to policyholders |
|
|
5.3 |
|
|
|
5.6 |
|
|
|
5.2 |
|
|
|
4.7 |
|
|
|
3.8 |
|
|
|
3.8 |
|
|
|
4.3 |
|
|
|
5.8 |
|
|
153.6 |
|
|
|
156.4 |
|
|
|
167.1 |
|
|
|
172.1 |
|
|
|
162.0 |
|
|
Interest credited |
|
|
41.8 |
|
|
|
38.0 |
|
|
|
39.4 |
|
|
|
42.8 |
|
|
|
44.1 |
|
|
|
43.3 |
|
|
|
39.0 |
|
|
|
45.7 |
|
|
119.0 |
|
|
|
115.2 |
|
|
|
117.4 |
|
|
|
116.5 |
|
|
|
122.7 |
|
|
Operating expenses |
|
|
31.4 |
|
|
|
31.3 |
|
|
|
30.1 |
|
|
|
29.9 |
|
|
|
30.6 |
|
|
|
28.9 |
|
|
|
28.8 |
|
|
|
28.2 |
|
|
30.4 |
|
|
|
33.6 |
|
|
|
31.0 |
|
|
|
33.7 |
|
|
|
36.6 |
|
|
Commissions and bonuses |
|
|
11.0 |
|
|
|
9.8 |
|
|
|
8.4 |
|
|
|
7.4 |
|
|
|
9.1 |
|
|
|
8.4 |
|
|
|
8.3 |
|
|
|
7.9 |
|
|
0.2 |
|
|
|
0.1 |
|
|
|
|
|
|
|
0.1 |
|
|
|
|
|
|
Premium taxes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(14.7 |
) |
|
|
(17.2 |
) |
|
|
(15.5 |
) |
|
|
(16.6 |
) |
|
|
(18.7 |
) |
|
Deferral of acquisition costs |
|
|
(6.5 |
) |
|
|
(5.6 |
) |
|
|
(3.5 |
) |
|
|
(3.1 |
) |
|
|
(4.2 |
) |
|
|
(4.4 |
) |
|
|
(4.2 |
) |
|
|
(3.8 |
) |
|
16.5 |
|
|
|
20.9 |
|
|
|
20.4 |
|
|
|
22.2 |
|
|
|
25.9 |
|
|
Amortization of deferred acquisition costs, value of business acquired and other intangible assets |
|
|
6.5 |
|
|
|
6.5 |
|
|
|
6.7 |
|
|
|
6.2 |
|
|
|
6.1 |
|
|
|
4.2 |
|
|
|
6.7 |
|
|
|
5.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
358.5 |
|
|
|
329.3 |
|
|
|
340.1 |
|
|
|
345.7 |
|
|
|
349.3 |
|
|
Total benefits and expenses |
|
|
89.5 |
|
|
|
85.6 |
|
|
|
86.3 |
|
|
|
87.9 |
|
|
|
89.6 |
|
|
|
84.2 |
|
|
|
82.9 |
|
|
|
89.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
55.5 |
|
|
$ |
61.3 |
|
|
$ |
64.0 |
|
|
$ |
79.3 |
|
|
$ |
77.9 |
|
|
Income before income taxes |
|
$ |
18.7 |
|
|
$ |
20.8 |
|
|
$ |
22.0 |
|
|
$ |
16.4 |
|
|
$ |
19.5 |
|
|
$ |
21.9 |
|
|
$ |
20.7 |
|
|
$ |
17.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets under administration: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
15,281.7 |
|
|
$ |
13,764.9 |
|
|
$ |
14,855.4 |
|
|
$ |
17,346.4 |
|
|
$ |
19,021.9 |
|
|
Retirement Plans |
|
$ |
19,021.9 |
|
|
$ |
18,533.4 |
|
|
$ |
18,701.1 |
|
|
$ |
17,790.6 |
|
|
$ |
17,346.4 |
|
|
$ |
16,516.8 |
|
|
$ |
15,739.8 |
|
|
$ |
15,751.9 |
|
|
2,684.2 |
|
|
|
2,975.7 |
|
|
|
3,206.4 |
|
|
|
3,378.9 |
|
|
|
3,317.7 |
|
|
Individual Annuities |
|
|
3,317.7 |
|
|
|
3,290.8 |
|
|
|
3,250.4 |
|
|
|
3,310.9 |
|
|
|
3,378.9 |
|
|
|
3,390.1 |
|
|
|
3,307.8 |
|
|
|
3,252.1 |
|
|
2,697.3 |
|
|
|
2,691.6 |
|
|
|
2,781.5 |
|
|
|
3,056.0 |
|
|
|
3,304.1 |
|
|
Mortgage loans for other investors |
|
|
3,304.1 |
|
|
|
3,255.0 |
|
|
|
3,175.3 |
|
|
|
3,114.0 |
|
|
|
3,056.0 |
|
|
|
2,983.4 |
|
|
|
2,899.1 |
|
|
|
2,843.6 |
|
|
1,224.5 |
|
|
|
1,001.5 |
|
|
|
849.0 |
|
|
|
913.7 |
|
|
|
884.4 |
|
|
Private client wealth management |
|
|
884.4 |
|
|
|
894.8 |
|
|
|
901.7 |
|
|
|
913.8 |
|
|
|
913.7 |
|
|
|
897.8 |
|
|
|
885.2 |
|
|
|
888.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
21,887.7 |
|
|
$ |
20,433.7 |
|
|
$ |
21,692.3 |
|
|
$ |
24,695.0 |
|
|
$ |
26,528.1 |
|
|
Total assets under administration |
|
$ |
26,528.1 |
|
|
$ |
25,974.0 |
|
|
$ |
26,028.5 |
|
|
$ |
25,129.3 |
|
|
$ |
24,695.0 |
|
|
$ |
23,788.1 |
|
|
$ |
22,831.9 |
|
|
$ |
22,736.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annualized operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(% of average assets under administration) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.57 |
% |
|
|
0.58 |
% |
|
|
0.59 |
% |
|
|
0.52 |
% |
|
|
0.47 |
% |
|
Retirement Plans |
|
|
0.47 |
% |
|
|
0.47 |
% |
|
|
0.47 |
% |
|
|
0.48 |
% |
|
|
0.52 |
% |
|
|
0.51 |
% |
|
|
0.53 |
% |
|
|
0.52 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest credited: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(% of net investment income) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
56.5 |
% |
|
|
54.6 |
% |
|
|
53.7 |
% |
|
|
54.5 |
% |
|
|
57.9 |
% |
|
Retirement Plans |
|
|
57.7 |
% |
|
|
58.7 |
% |
|
|
56.6 |
% |
|
|
58.5 |
% |
|
|
54.3 |
% |
|
|
55.0 |
% |
|
|
54.4 |
% |
|
|
54.1 |
% |
|
69.0 |
|
|
|
66.5 |
|
|
|
68.1 |
|
|
|
65.4 |
|
|
|
61.3 |
|
|
Individual Annuities |
|
|
62.3 |
|
|
|
56.7 |
|
|
|
58.6 |
|
|
|
67.0 |
|
|
|
63.6 |
|
|
|
66.6 |
|
|
|
60.5 |
|
|
|
70.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
363.8 |
|
|
$ |
410.3 |
|
|
$ |
364.2 |
|
|
$ |
387.9 |
|
|
$ |
396.4 |
|
|
Individual Annuity sales |
|
$ |
137.7 |
|
|
$ |
124.0 |
|
|
$ |
78.9 |
|
|
$ |
55.8 |
|
|
$ |
81.6 |
|
|
$ |
118.3 |
|
|
$ |
100.1 |
|
|
$ |
87.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
887.5 |
|
|
$ |
1,007.7 |
|
|
$ |
1,184.2 |
|
|
$ |
1,303.1 |
|
|
$ |
1,177.4 |
|
|
Commercial mortgage loans originated |
|
$ |
256.8 |
|
|
$ |
303.5 |
|
|
$ |
372.0 |
|
|
$ |
245.1 |
|
|
$ |
251.2 |
|
|
$ |
414.1 |
|
|
$ |
364.1 |
|
|
$ |
273.7 |
|
Page 7
STANCORP FINANCIAL GROUP, INC.
Financial Results
(In millions)
OTHER
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014 |
|
|
2013 |
|
2010 |
|
|
2011 |
|
|
2012 |
|
|
2013 |
|
|
2014 |
|
|
|
|
4th Qtr |
|
|
3rd Qtr |
|
|
2nd Qtr |
|
|
1st Qtr |
|
|
4th Qtr |
|
|
3rd Qtr |
|
|
2nd Qtr |
|
|
1st Qtr |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
(14.6 |
) |
|
$ |
(16.7 |
) |
|
$ |
(18.0 |
) |
|
$ |
(18.6 |
) |
|
$ |
(19.3 |
) |
|
Administrative fees |
|
$ |
(4.8 |
) |
|
$ |
(4.9 |
) |
|
$ |
(4.8 |
) |
|
$ |
(4.8 |
) |
|
$ |
(4.6 |
) |
|
$ |
(4.7 |
) |
|
$ |
(4.6 |
) |
|
$ |
(4.7 |
) |
|
12.6 |
|
|
|
8.8 |
|
|
|
10.2 |
|
|
|
16.1 |
|
|
|
18.1 |
|
|
Net investment income |
|
|
6.0 |
|
|
|
4.0 |
|
|
|
2.5 |
|
|
|
5.6 |
|
|
|
5.3 |
|
|
|
3.4 |
|
|
|
3.5 |
|
|
|
3.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net capital losses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.7 |
) |
|
|
(1.8 |
) |
|
|
(3.2 |
) |
|
|
(1.1 |
) |
|
|
(1.2 |
) |
|
Total other-than-temporary impairment losses on fixed maturity securitiesavailable-for-sale |
|
|
(0.8 |
) |
|
|
(0.3 |
) |
|
|
(0.1 |
) |
|
|
|
|
|
|
(0.1 |
) |
|
|
(0.4 |
) |
|
|
(0.3 |
) |
|
|
(0.3 |
) |
|
(50.9 |
) |
|
|
(5.1 |
) |
|
|
(5.5 |
) |
|
|
(14.6 |
) |
|
|
(12.8 |
) |
|
All other net capital losses |
|
|
(6.4 |
) |
|
|
(4.9 |
) |
|
|
(0.4 |
) |
|
|
(1.1 |
) |
|
|
(2.7 |
) |
|
|
(8.3 |
) |
|
|
(2.3 |
) |
|
|
(1.3 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(51.6 |
) |
|
|
(6.9 |
) |
|
|
(8.7 |
) |
|
|
(15.7 |
) |
|
|
(14.0 |
) |
|
Total net capital losses |
|
|
(7.2 |
) |
|
|
(5.2 |
) |
|
|
(0.5 |
) |
|
|
(1.1 |
) |
|
|
(2.8 |
) |
|
|
(8.7 |
) |
|
|
(2.6 |
) |
|
|
(1.6 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(53.6 |
) |
|
|
(14.8 |
) |
|
|
(16.5 |
) |
|
|
(18.2 |
) |
|
|
(15.2 |
) |
|
Total revenues |
|
|
(6.0 |
) |
|
|
(6.1 |
) |
|
|
(2.8 |
) |
|
|
(0.3 |
) |
|
|
(2.1 |
) |
|
|
(10.0 |
) |
|
|
(3.7 |
) |
|
|
(2.4 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefits and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4.6 |
) |
|
|
17.3 |
|
|
|
4.0 |
|
|
|
(13.9 |
) |
|
|
(1.3 |
) |
|
Operating expenses |
|
|
0.7 |
|
|
|
(0.7 |
) |
|
|
(0.3 |
) |
|
|
(1.0 |
) |
|
|
0.2 |
|
|
|
(0.2 |
) |
|
|
(8.7 |
) |
|
|
(5.2 |
) |
|
38.8 |
|
|
|
38.9 |
|
|
|
39.9 |
|
|
|
34.4 |
|
|
|
31.8 |
|
|
Interest expense |
|
|
7.7 |
|
|
|
7.8 |
|
|
|
7.9 |
|
|
|
8.4 |
|
|
|
8.7 |
|
|
|
8.6 |
|
|
|
8.6 |
|
|
|
8.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
34.2 |
|
|
|
56.2 |
|
|
|
43.9 |
|
|
|
20.5 |
|
|
|
30.5 |
|
|
Total benefits and expenses |
|
|
8.4 |
|
|
|
7.1 |
|
|
|
7.6 |
|
|
|
7.4 |
|
|
|
8.9 |
|
|
|
8.4 |
|
|
|
(0.1 |
) |
|
|
3.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
(87.8 |
) |
|
$ |
(71.0 |
) |
|
$ |
(60.4 |
) |
|
$ |
(38.7 |
) |
|
$ |
(45.7 |
) |
|
Loss before income taxes |
|
$ |
(14.4 |
) |
|
$ |
(13.2 |
) |
|
$ |
(10.4 |
) |
|
$ |
(7.7 |
) |
|
$ |
(11.0 |
) |
|
$ |
(18.4 |
) |
|
$ |
(3.6 |
) |
|
$ |
(5.7 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Page 8
STANCORP FINANCIAL GROUP, INC.
Consolidated Balance Sheets
(In millions)
CONSOLIDATED
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014 |
|
|
2013 |
|
2010 |
|
|
2011 |
|
|
2012 |
|
|
2013 |
|
|
2014 |
|
|
|
|
4th Qtr |
|
|
3rd Qtr |
|
|
2nd Qtr |
|
|
1st Qtr |
|
|
4th Qtr |
|
|
3rd Qtr |
|
|
2nd Qtr |
|
|
1st Qtr |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
6,419.1 |
|
|
$ |
6,769.5 |
|
|
$ |
7,190.7 |
|
|
$ |
7,120.5 |
|
|
$ |
7,773.7 |
|
|
Fixed maturity securitiesavailable-for-sale |
|
$ |
7,773.7 |
|
|
$ |
7,654.6 |
|
|
$ |
7,468.4 |
|
|
$ |
7,393.5 |
|
|
$ |
7,120.5 |
|
|
$ |
7,015.8 |
|
|
$ |
7,034.3 |
|
|
$ |
7,248.7 |
|
|
4,513.6 |
|
|
|
4,902.3 |
|
|
|
5,267.4 |
|
|
|
5,405.1 |
|
|
|
5,321.1 |
|
|
Commercial mortgage loans, net |
|
|
5,321.1 |
|
|
|
5,342.6 |
|
|
|
5,453.3 |
|
|
|
5,383.7 |
|
|
|
5,405.1 |
|
|
|
5,510.8 |
|
|
|
5,426.2 |
|
|
|
5,320.4 |
|
|
153.1 |
|
|
|
92.7 |
|
|
|
95.5 |
|
|
|
65.7 |
|
|
|
37.0 |
|
|
Real estate, net |
|
|
37.0 |
|
|
|
44.3 |
|
|
|
49.2 |
|
|
|
60.3 |
|
|
|
65.7 |
|
|
|
79.8 |
|
|
|
90.8 |
|
|
|
94.2 |
|
|
60.8 |
|
|
|
130.9 |
|
|
|
175.5 |
|
|
|
196.5 |
|
|
|
320.9 |
|
|
Other invested assets |
|
|
320.9 |
|
|
|
284.8 |
|
|
|
290.4 |
|
|
|
200.2 |
|
|
|
196.5 |
|
|
|
199.9 |
|
|
|
201.7 |
|
|
|
206.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11,146.6 |
|
|
|
11,895.4 |
|
|
|
12,729.1 |
|
|
|
12,787.8 |
|
|
|
13,452.7 |
|
|
Total investments |
|
|
13,452.7 |
|
|
|
13,326.3 |
|
|
|
13,261.3 |
|
|
|
13,037.7 |
|
|
|
12,787.8 |
|
|
|
12,806.3 |
|
|
|
12,753.0 |
|
|
|
12,870.2 |
|
|
152.0 |
|
|
|
138.4 |
|
|
|
160.7 |
|
|
|
379.3 |
|
|
|
251.1 |
|
|
Cash and cash equivalents |
|
|
251.1 |
|
|
|
263.3 |
|
|
|
237.7 |
|
|
|
253.0 |
|
|
|
379.3 |
|
|
|
345.4 |
|
|
|
199.7 |
|
|
|
143.3 |
|
|
101.9 |
|
|
|
118.8 |
|
|
|
123.0 |
|
|
|
118.2 |
|
|
|
118.4 |
|
|
Premiums and other receivables |
|
|
118.4 |
|
|
|
132.0 |
|
|
|
122.0 |
|
|
|
118.7 |
|
|
|
118.2 |
|
|
|
123.4 |
|
|
|
126.9 |
|
|
|
121.9 |
|
|
110.8 |
|
|
|
111.7 |
|
|
|
109.3 |
|
|
|
106.8 |
|
|
|
108.0 |
|
|
Accrued investment income |
|
|
108.0 |
|
|
|
108.1 |
|
|
|
105.9 |
|
|
|
107.6 |
|
|
|
106.8 |
|
|
|
108.7 |
|
|
|
109.6 |
|
|
|
112.8 |
|
|
938.3 |
|
|
|
949.3 |
|
|
|
972.4 |
|
|
|
988.1 |
|
|
|
994.2 |
|
|
Amounts recoverable from reinsurers |
|
|
994.2 |
|
|
|
987.4 |
|
|
|
986.1 |
|
|
|
984.3 |
|
|
|
988.1 |
|
|
|
983.4 |
|
|
|
980.8 |
|
|
|
979.0 |
|
|
330.2 |
|
|
|
344.9 |
|
|
|
346.5 |
|
|
|
371.3 |
|
|
|
381.0 |
|
|
Deferred acquisition costs, value of business acquired and other intangible assets, net |
|
|
381.0 |
|
|
|
376.2 |
|
|
|
368.0 |
|
|
|
371.3 |
|
|
|
371.3 |
|
|
|
369.5 |
|
|
|
367.2 |
|
|
|
352.4 |
|
|
36.0 |
|
|
|
36.0 |
|
|
|
36.0 |
|
|
|
36.0 |
|
|
|
36.0 |
|
|
Goodwill |
|
|
36.0 |
|
|
|
36.0 |
|
|
|
36.0 |
|
|
|
36.0 |
|
|
|
36.0 |
|
|
|
36.0 |
|
|
|
36.0 |
|
|
|
36.0 |
|
|
111.5 |
|
|
|
101.3 |
|
|
|
90.7 |
|
|
|
84.7 |
|
|
|
79.3 |
|
|
Property and equipment, net |
|
|
79.3 |
|
|
|
82.6 |
|
|
|
82.2 |
|
|
|
83.8 |
|
|
|
84.7 |
|
|
|
84.4 |
|
|
|
83.8 |
|
|
|
86.9 |
|
|
101.7 |
|
|
|
113.9 |
|
|
|
69.3 |
|
|
|
127.9 |
|
|
|
129.4 |
|
|
Other assets |
|
|
129.4 |
|
|
|
94.9 |
|
|
|
124.0 |
|
|
|
135.3 |
|
|
|
127.9 |
|
|
|
59.2 |
|
|
|
59.7 |
|
|
|
66.9 |
|
|
4,787.4 |
|
|
|
4,593.5 |
|
|
|
5,154.3 |
|
|
|
6,393.2 |
|
|
|
7,179.8 |
|
|
Separate account assets |
|
|
7,179.8 |
|
|
|
7,031.9 |
|
|
|
7,133.5 |
|
|
|
6,528.3 |
|
|
|
6,393.2 |
|
|
|
6,010.0 |
|
|
|
5,629.9 |
|
|
|
5,600.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
17,816.4 |
|
|
$ |
18,403.2 |
|
|
$ |
19,791.3 |
|
|
$ |
21,393.3 |
|
|
$ |
22,729.9 |
|
|
Total assets |
|
$ |
22,729.9 |
|
|
$ |
22,438.7 |
|
|
$ |
22,456.7 |
|
|
$ |
21,656.0 |
|
|
$ |
21,393.3 |
|
|
$ |
20,926.3 |
|
|
$ |
20,346.6 |
|
|
$ |
20,369.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
5,502.3 |
|
|
$ |
5,683.6 |
|
|
$ |
5,843.2 |
|
|
$ |
5,846.9 |
|
|
$ |
5,832.3 |
|
|
Future policy benefits and claims |
|
$ |
5,832.3 |
|
|
$ |
5,818.0 |
|
|
$ |
5,855.7 |
|
|
$ |
5,830.2 |
|
|
$ |
5,846.9 |
|
|
$ |
5,853.0 |
|
|
$ |
5,861.3 |
|
|
$ |
5,851.9 |
|
|
4,627.8 |
|
|
|
5,078.1 |
|
|
|
5,531.1 |
|
|
|
6,051.6 |
|
|
|
6,537.8 |
|
|
Other policyholder funds |
|
|
6,537.8 |
|
|
|
6,372.2 |
|
|
|
6,204.6 |
|
|
|
6,174.5 |
|
|
|
6,051.6 |
|
|
|
5,945.1 |
|
|
|
5,759.2 |
|
|
|
5,630.8 |
|
|
48.9 |
|
|
|
103.0 |
|
|
|
148.1 |
|
|
|
64.7 |
|
|
|
63.1 |
|
|
Deferred tax liabilities, net |
|
|
63.1 |
|
|
|
91.5 |
|
|
|
119.1 |
|
|
|
98.3 |
|
|
|
64.7 |
|
|
|
48.9 |
|
|
|
61.0 |
|
|
|
147.6 |
|
|
2.2 |
|
|
|
251.2 |
|
|
|
1.0 |
|
|
|
1.5 |
|
|
|
1.1 |
|
|
Short-term debt |
|
|
1.1 |
|
|
|
1.2 |
|
|
|
1.9 |
|
|
|
1.7 |
|
|
|
1.5 |
|
|
|
1.2 |
|
|
|
1.1 |
|
|
|
1.1 |
|
|
551.9 |
|
|
|
300.9 |
|
|
|
551.4 |
|
|
|
551.9 |
|
|
|
503.9 |
|
|
Long-term debt |
|
|
503.9 |
|
|
|
503.7 |
|
|
|
504.3 |
|
|
|
504.8 |
|
|
|
551.9 |
|
|
|
551.5 |
|
|
|
551.4 |
|
|
|
551.6 |
|
|
401.3 |
|
|
|
402.5 |
|
|
|
393.2 |
|
|
|
330.7 |
|
|
|
440.1 |
|
|
Other liabilities |
|
|
440.1 |
|
|
|
352.9 |
|
|
|
375.7 |
|
|
|
290.3 |
|
|
|
330.7 |
|
|
|
399.4 |
|
|
|
405.7 |
|
|
|
398.8 |
|
|
4,787.4 |
|
|
|
4,593.5 |
|
|
|
5,154.3 |
|
|
|
6,393.2 |
|
|
|
7,179.8 |
|
|
Separate account liabilities |
|
|
7,179.8 |
|
|
|
7,031.9 |
|
|
|
7,133.5 |
|
|
|
6,528.3 |
|
|
|
6,393.2 |
|
|
|
6,010.0 |
|
|
|
5,629.9 |
|
|
|
5,600.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
15,921.8 |
|
|
|
16,412.8 |
|
|
|
17,622.3 |
|
|
|
19,240.5 |
|
|
|
20,558.1 |
|
|
Total liabilities |
|
|
20,558.1 |
|
|
|
20,171.4 |
|
|
|
20,194.8 |
|
|
|
19,428.1 |
|
|
|
19,240.5 |
|
|
|
18,809.1 |
|
|
|
18,269.6 |
|
|
|
18,181.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
158.2 |
|
|
|
82.4 |
|
|
|
89.6 |
|
|
|
68.0 |
|
|
|
5.3 |
|
|
Common stock |
|
|
5.3 |
|
|
|
|
|
|
|
|
|
|
|
42.8 |
|
|
|
68.0 |
|
|
|
61.9 |
|
|
|
75.1 |
|
|
|
84.6 |
|
|
160.9 |
|
|
|
235.1 |
|
|
|
309.3 |
|
|
|
134.7 |
|
|
|
114.3 |
|
|
Accumulated other comprehensive income |
|
|
114.3 |
|
|
|
188.7 |
|
|
|
225.9 |
|
|
|
184.9 |
|
|
|
134.7 |
|
|
|
121.7 |
|
|
|
127.3 |
|
|
|
286.1 |
|
|
1,575.5 |
|
|
|
1,672.9 |
|
|
|
1,770.1 |
|
|
|
1,950.1 |
|
|
|
2,052.2 |
|
|
Retained earnings |
|
|
2,052.2 |
|
|
|
2,078.6 |
|
|
|
2,036.0 |
|
|
|
2,000.2 |
|
|
|
1,950.1 |
|
|
|
1,933.6 |
|
|
|
1,874.6 |
|
|
|
1,816.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,894.6 |
|
|
|
1,990.4 |
|
|
|
2,169.0 |
|
|
|
2,152.8 |
|
|
|
2,171.8 |
|
|
Total shareholders equity |
|
|
2,171.8 |
|
|
|
2,267.3 |
|
|
|
2,261.9 |
|
|
|
2,227.9 |
|
|
|
2,152.8 |
|
|
|
2,117.2 |
|
|
|
2,077.0 |
|
|
|
2,187.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
17,816.4 |
|
|
$ |
18,403.2 |
|
|
$ |
19,791.3 |
|
|
$ |
21,393.3 |
|
|
$ |
22,729.9 |
|
|
Total liabilities and shareholders equity |
|
$ |
22,729.9 |
|
|
$ |
22,438.7 |
|
|
$ |
22,456.7 |
|
|
$ |
21,656.0 |
|
|
$ |
21,393.3 |
|
|
$ |
20,926.3 |
|
|
$ |
20,346.6 |
|
|
$ |
20,369.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Page 9
STANCORP FINANCIAL GROUP, INC.
Cash and Investments Statistics
(Dollars in millions)
CONSOLIDATED
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014 |
|
|
2013 |
|
2010 |
|
|
2011 |
|
|
2012 |
|
|
2013 |
|
|
2014 |
|
|
|
|
4th Qtr |
|
|
3rd Qtr |
|
|
2nd Qtr |
|
|
1st Qtr |
|
|
4th Qtr |
|
|
3rd Qtr |
|
|
2nd Qtr |
|
|
1st Qtr |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed maturity securitiesavailable-for-sale: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
5,620.7 |
|
|
$ |
5,983.3 |
|
|
$ |
6,222.3 |
|
|
$ |
6,179.2 |
|
|
$ |
6,715.1 |
|
|
Public |
|
$ |
6,715.1 |
|
|
$ |
6,615.1 |
|
|
$ |
6,419.6 |
|
|
$ |
6,409.0 |
|
|
$ |
6,179.2 |
|
|
$ |
6,108.6 |
|
|
$ |
6,130.1 |
|
|
$ |
6,287.0 |
|
|
798.4 |
|
|
|
786.2 |
|
|
|
968.4 |
|
|
|
941.3 |
|
|
|
1,058.6 |
|
|
Private |
|
|
1,058.6 |
|
|
|
1,039.5 |
|
|
|
1,048.8 |
|
|
|
984.5 |
|
|
|
941.3 |
|
|
|
907.2 |
|
|
|
904.2 |
|
|
|
961.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,419.1 |
|
|
|
6,769.5 |
|
|
|
7,190.7 |
|
|
|
7,120.5 |
|
|
|
7,773.7 |
|
|
Total fixed maturity securitiesavailable-for-sale |
|
|
7,773.7 |
|
|
|
7,654.6 |
|
|
|
7,468.4 |
|
|
|
7,393.5 |
|
|
|
7,120.5 |
|
|
|
7,015.8 |
|
|
|
7,034.3 |
|
|
|
7,248.7 |
|
|
4,513.6 |
|
|
|
4,902.3 |
|
|
|
5,267.4 |
|
|
|
5,405.1 |
|
|
|
5,321.1 |
|
|
Commercial mortgage loans, net |
|
|
5,321.1 |
|
|
|
5,342.6 |
|
|
|
5,453.3 |
|
|
|
5,383.7 |
|
|
|
5,405.1 |
|
|
|
5,510.8 |
|
|
|
5,426.2 |
|
|
|
5,320.4 |
|
|
153.1 |
|
|
|
92.7 |
|
|
|
95.5 |
|
|
|
65.7 |
|
|
|
37.0 |
|
|
Real estate, net |
|
|
37.0 |
|
|
|
44.3 |
|
|
|
49.2 |
|
|
|
60.3 |
|
|
|
65.7 |
|
|
|
79.8 |
|
|
|
90.8 |
|
|
|
94.2 |
|
|
60.8 |
|
|
|
130.9 |
|
|
|
175.5 |
|
|
|
196.5 |
|
|
|
320.9 |
|
|
Other invested assets |
|
|
320.9 |
|
|
|
284.8 |
|
|
|
290.4 |
|
|
|
200.2 |
|
|
|
196.5 |
|
|
|
199.9 |
|
|
|
201.7 |
|
|
|
206.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11,146.6 |
|
|
|
11,895.4 |
|
|
|
12,729.1 |
|
|
|
12,787.8 |
|
|
|
13,452.7 |
|
|
Total investments |
|
|
13,452.7 |
|
|
|
13,326.3 |
|
|
|
13,261.3 |
|
|
|
13,037.7 |
|
|
|
12,787.8 |
|
|
|
12,806.3 |
|
|
|
12,753.0 |
|
|
|
12,870.2 |
|
|
152.0 |
|
|
|
138.4 |
|
|
|
160.7 |
|
|
|
379.3 |
|
|
|
251.1 |
|
|
Cash and cash equivalents |
|
|
251.1 |
|
|
|
263.3 |
|
|
|
237.7 |
|
|
|
253.0 |
|
|
|
379.3 |
|
|
|
345.4 |
|
|
|
199.7 |
|
|
|
143.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
11,298.6 |
|
|
$ |
12,033.8 |
|
|
$ |
12,889.8 |
|
|
$ |
13,167.1 |
|
|
$ |
13,703.8 |
|
|
Total cash and investments |
|
$ |
13,703.8 |
|
|
$ |
13,589.6 |
|
|
$ |
13,499.0 |
|
|
$ |
13,290.7 |
|
|
$ |
13,167.1 |
|
|
$ |
13,151.7 |
|
|
$ |
12,952.7 |
|
|
$ |
13,013.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent of cash and investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
56.8 |
% |
|
|
56.3 |
% |
|
|
55.8 |
% |
|
|
54.1 |
% |
|
|
56.8 |
% |
|
Fixed maturity securitiesavailable-for-sale |
|
|
56.8 |
% |
|
|
56.4 |
% |
|
|
55.3 |
% |
|
|
55.6 |
% |
|
|
54.1 |
% |
|
|
53.3 |
% |
|
|
54.3 |
% |
|
|
55.7 |
% |
|
39.9 |
|
|
|
40.7 |
|
|
|
40.9 |
|
|
|
41.1 |
|
|
|
38.8 |
|
|
Commercial mortgage loans, net |
|
|
38.8 |
|
|
|
39.3 |
|
|
|
40.4 |
|
|
|
40.5 |
|
|
|
41.1 |
|
|
|
41.9 |
|
|
|
41.9 |
|
|
|
40.9 |
|
|
1.4 |
|
|
|
0.8 |
|
|
|
0.7 |
|
|
|
0.5 |
|
|
|
0.3 |
|
|
Real estate, net |
|
|
0.3 |
|
|
|
0.3 |
|
|
|
0.4 |
|
|
|
0.5 |
|
|
|
0.5 |
|
|
|
0.6 |
|
|
|
0.7 |
|
|
|
0.7 |
|
|
0.6 |
|
|
|
1.0 |
|
|
|
1.4 |
|
|
|
1.4 |
|
|
|
2.3 |
|
|
Other invested assets |
|
|
2.3 |
|
|
|
2.1 |
|
|
|
2.1 |
|
|
|
1.5 |
|
|
|
1.4 |
|
|
|
1.6 |
|
|
|
1.6 |
|
|
|
1.6 |
|
|
1.3 |
|
|
|
1.2 |
|
|
|
1.2 |
|
|
|
2.9 |
|
|
|
1.8 |
|
|
Cash and cash equivalents |
|
|
1.8 |
|
|
|
1.9 |
|
|
|
1.8 |
|
|
|
1.9 |
|
|
|
2.9 |
|
|
|
2.6 |
|
|
|
1.5 |
|
|
|
1.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed maturity securitiesavailable-for-sale: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
106.7 |
% |
|
|
109.0 |
% |
|
|
110.3 |
% |
|
|
104.5 |
% |
|
|
105.2 |
% |
|
Market value as a % of amortized cost |
|
|
105.2 |
% |
|
|
105.3 |
% |
|
|
106.4 |
% |
|
|
105.5 |
% |
|
|
104.5 |
% |
|
|
105.4 |
% |
|
|
105.6 |
% |
|
|
109.6 |
% |
Page 10
STANCORP FINANCIAL GROUP, INC.
Other Investment Statistics
(Dollars in millions)
CONSOLIDATED
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014 |
|
|
2013 |
|
2010 |
|
|
2011 |
|
|
2012 |
|
|
2013 |
|
|
2014 |
|
|
|
|
4th Qtr |
|
|
3rd Qtr |
|
|
2nd Qtr |
|
|
1st Qtr |
|
|
4th Qtr |
|
|
3rd Qtr |
|
|
2nd Qtr |
|
|
1st Qtr |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio yield: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5.31 |
% |
|
|
5.08 |
% |
|
|
4.66 |
% |
|
|
4.34 |
% |
|
|
3.99 |
% |
|
Fixed maturity securities - available-for-sale |
|
|
3.99 |
% |
|
|
4.03 |
% |
|
|
4.15 |
% |
|
|
4.18 |
% |
|
|
4.34 |
% |
|
|
4.45 |
% |
|
|
4.51 |
% |
|
|
4.58 |
% |
|
6.45 |
|
|
|
6.34 |
|
|
|
6.09 |
|
|
|
5.84 |
|
|
|
5.61 |
|
|
Commercial mortgage loans, net |
|
|
5.61 |
|
|
|
5.66 |
|
|
|
5.72 |
|
|
|
5.80 |
|
|
|
5.84 |
|
|
|
5.89 |
|
|
|
5.96 |
|
|
|
6.03 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed maturity securities - available-for-sale: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quality rating (as % of fixed maturities): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
71.8 |
% |
|
|
70.2 |
% |
|
|
66.2 |
% |
|
|
63.4 |
% |
|
|
61.8 |
% |
|
A- or higher |
|
|
61.8 |
% |
|
|
62.3 |
% |
|
|
62.2 |
% |
|
|
62.7 |
% |
|
|
63.4 |
% |
|
|
63.8 |
% |
|
|
64.3 |
% |
|
|
65.7 |
% |
|
23.0 |
|
|
|
24.6 |
|
|
|
28.4 |
|
|
|
31.0 |
|
|
|
32.7 |
|
|
BBB- to BBB+ |
|
|
32.7 |
|
|
|
32.0 |
|
|
|
31.8 |
|
|
|
31.5 |
|
|
|
31.0 |
|
|
|
30.8 |
|
|
|
30.2 |
|
|
|
28.7 |
|
|
3.5 |
|
|
|
3.9 |
|
|
|
3.8 |
|
|
|
4.0 |
|
|
|
3.9 |
|
|
BB- to BB+ |
|
|
3.9 |
|
|
|
3.8 |
|
|
|
4.1 |
|
|
|
4.1 |
|
|
|
4.0 |
|
|
|
3.8 |
|
|
|
3.8 |
|
|
|
4.0 |
|
|
1.7 |
|
|
|
1.3 |
|
|
|
1.6 |
|
|
|
1.6 |
|
|
|
1.6 |
|
|
B+ or lower |
|
|
1.6 |
|
|
|
1.9 |
|
|
|
1.9 |
|
|
|
1.7 |
|
|
|
1.6 |
|
|
|
1.6 |
|
|
|
1.7 |
|
|
|
1.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial mortgage loan statistics: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sixty-day delinquencies: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
19.6 |
|
|
$ |
17.1 |
|
|
$ |
21.3 |
|
|
$ |
15.2 |
|
|
$ |
8.6 |
|
|
Book value |
|
$ |
8.6 |
|
|
$ |
10.6 |
|
|
$ |
14.4 |
|
|
$ |
21.7 |
|
|
$ |
15.2 |
|
|
$ |
19.6 |
|
|
$ |
12.6 |
|
|
$ |
19.1 |
|
|
0.43 |
% |
|
|
0.34 |
% |
|
|
0.40 |
% |
|
|
0.28 |
% |
|
|
0.16 |
% |
|
Rates - overall % |
|
|
0.16 |
% |
|
|
0.19 |
% |
|
|
0.26 |
% |
|
|
0.40 |
% |
|
|
0.28 |
% |
|
|
0.35 |
% |
|
|
0.23 |
% |
|
|
0.35 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
118.6 |
|
|
$ |
40.3 |
|
|
$ |
23.6 |
|
|
$ |
20.0 |
|
|
$ |
5.2 |
|
|
Foreclosed during period |
|
$ |
|
|
|
$ |
1.7 |
|
|
$ |
0.6 |
|
|
$ |
2.9 |
|
|
$ |
9.2 |
|
|
$ |
1.5 |
|
|
$ |
2.7 |
|
|
$ |
6.6 |
|
|
9.3 |
|
|
|
5.1 |
|
|
|
9.8 |
|
|
|
7.4 |
|
|
|
0.5 |
|
|
In process of foreclosure |
|
|
0.5 |
|
|
|
1.4 |
|
|
|
5.5 |
|
|
|
3.0 |
|
|
|
7.4 |
|
|
|
5.8 |
|
|
|
4.1 |
|
|
|
6.7 |
|
|
8.2 |
|
|
|
5.1 |
|
|
|
9.8 |
|
|
|
7.4 |
|
|
|
0.5 |
|
|
Included in sixty-day delinquencies |
|
|
0.5 |
|
|
|
1.4 |
|
|
|
5.5 |
|
|
|
3.0 |
|
|
|
7.4 |
|
|
|
5.8 |
|
|
|
4.1 |
|
|
|
6.7 |
|
|
76.6 |
|
|
|
93.7 |
|
|
|
77.6 |
|
|
|
100.8 |
|
|
|
108.8 |
|
|
Net balance of restructured loans* |
|
|
108.8 |
|
|
|
97.6 |
|
|
|
95.5 |
|
|
|
88.5 |
|
|
|
100.8 |
|
|
|
103.3 |
|
|
|
110.6 |
|
|
|
80.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reserve balances: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
36.1 |
|
|
$ |
48.1 |
|
|
$ |
46.6 |
|
|
$ |
43.6 |
|
|
$ |
40.0 |
|
|
Commercial mortgage loans, net |
|
$ |
40.0 |
|
|
$ |
41.5 |
|
|
$ |
44.4 |
|
|
$ |
43.5 |
|
|
$ |
43.6 |
|
|
$ |
46.6 |
|
|
$ |
46.8 |
|
|
$ |
42.8 |
|
* |
Amount is calculated using statutory accounting principles |
Page 11
Stancorp (NYSE:SFG)
Historical Stock Chart
From Jun 2024 to Jul 2024
Stancorp (NYSE:SFG)
Historical Stock Chart
From Jul 2023 to Jul 2024