StanCorp Financial Group, Inc. Earnings: Falls Short of Expectations

StanCorp Financial Group, Inc. (NASDAQ:SFG) reported its results for the second quarter. StanCorp Financial Group, Inc. is a holding company and conducts business through wholly-owned operating subsidiaries throughout the United States. It operates through two segments: Insurance Services and Asset Management.

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StanCorp Financial Group Earnings Cheat Sheet for the Second Quarter

Results: Net income for the accident and health insurance company fell to $18.8 million (42 cents per share) vs. $41.1 million (87 cents per share) a year earlier. This is a decline of 54.3% from the year earlier quarter.

Revenue: Rose 2.1% to $706 million from the year earlier quarter.

Actual vs. Wall St. Expectations: SFG reported adjusted net income of 61 cents per share. By that measure, the company fell short of mean estimate of $1.03 per share. Analysts were expecting revenue of $717.2 million.

Quoting Management: “Second quarter group insurance claims remained elevated and were consistent with our experience in the first quarter,” said Greg Ness, president and chief executive officer. “We are confident in our underwriting methodologies and the pricing actions we have taken to address the higher claims in the current economic environment. We are focused on obtaining and retaining profitable business in order to generate long-term sustainable profitability.”

Key Stats:

Revenue has now gone up for three straight quarters. In the first quarter, revenue rose 5.7% to $717.7 million while the figure rose 3.1% in the fourth quarter of the last fiscal year from the year earlier.

The company fell short of estimates last quarter after being in line with expecations the quarter before with net income of 76 cents.

While the company has been profitable for the last nine quarters, income has fallen year over year by an average of 29.9% over the past five quarters. The quarter hit the hardest was the most recent quarter, that saw a 54.3% drop.

Competitors to Watch: MetLife, Inc. (NYSE:MET), CNO Financial Group, Inc. (NYSE:CNO), Protective Life Corp. (NYSE:PL), Independence Holding Co. (NYSE:IHC), Kansas City Life Insurance Co (NASDAQ:KCLI), Lincoln National Corp. (NYSE:LNC), Presidential Life Corp (NASDAQ:PLFE), Delphi Financial Group, Inc. (NYSE:DFG), American International Group (NYSE:AIG), Torchmark Corporation (NYSE:TMK), and Prudential Financial, Inc. (NYSE:PRU).

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(Source: Xignite Financials)