Late Fall 2009
StanCorp Financial Group, Inc. Reports Third Quarter 2009 Earnings
StanCorp Financial Group, Inc. (NYSE:SFG) reported net income for the third quarter of 2009 of $59.9 million, or $1.21 per diluted share, compared to net income for the third quarter of 2008 of $40.2 million, or $0.82 per diluted share.1 After-tax net capital gains were $2.2 million for the third quarter of 2009, compared to after-tax net capital losses of $31.6 million for the third quarter of 2008. The Company recorded one-time costs of $3.2 million, or $2.1 million after-tax, for the third quarter of 2009 for severance costs and other expenses associated with enhancing operating efficiencies.
Net income excluding after-tax one-time costs and after-tax net capital gains and losses was $1.21 per diluted share for the third quarter of 2009, compared to $1.46 per diluted share for the third quarter of 2008 (see discussion of non-GAAP financial measures below). Results for the third quarter of 2009 reflected comparatively less favorable claims experience and lower premiums in the group insurance business. These factors were partially offset by the operating expense reduction initiatives as well as comparatively favorable claims experience in the individual disability business.
“Our results continue to reflect strong performance in this challenging economic environment, and we are beginning to benefit from enhanced operating efficiencies,” said Greg Ness, president and chief executive officer. “While we expect the economic and competitive landscape to present challenges in the fourth quarter and into 2010, our strong capital position allows us to focus on growth and on building value for shareholders.”
1 Earnings were released on October 20, 2009.