Attached files
file | filename |
---|---|
8-K - FORM 8-K - Symetra Financial CORP | v58115e8vk.htm |
EX-99.1 - EX-99.1 - Symetra Financial CORP | v58115exv99w1.htm |
Exhibit 99.2
February 02, 2011
FOURTH QUARTER 2010
Symetra Financial Corporation (SYA)
Financial Supplement
Financial Supplement
All financial information in this document is unaudited
Symetra Financial Corporation
Financial Supplement
Table of Contents
December 31, 2010
Financial Supplement
Table of Contents
December 31, 2010
Page | ||||
Financial Highlights |
1 | |||
Consolidated Results |
||||
Consolidated Income Statement Data |
2 | |||
Consolidated Balance Sheet Data |
3 | |||
Segment Income Statement Data |
4 | |||
Segment Results |
||||
Group Division |
5 | |||
Retirement Division: |
||||
Deferred Annuities (formerly Retirement Services) |
6 | |||
Income Annuities |
7 | |||
Life Division (formerly Individual) |
8 | |||
Other |
9 | |||
Additional Financial Data |
||||
Deferred Policy Acquisition Cost (DAC) Roll Forwards |
10 | |||
Account Value and Reserve Roll Forwards |
11 | |||
Overview of Liabilities and Associated Unrealized Gains |
12 | |||
Investments Summary |
13 | |||
Sales by Segment and Product |
14 | |||
Book Value, Adjusted Book Value and Statutory Book Value per Share |
15 | |||
ROE and Operating ROAE |
16 |
Symetra Financial Corporation
4Q 2010 Financial Supplement
Financial Highlights
(In millions, except per share and metric or percentage data)
4Q 2010 Financial Supplement
Financial Highlights
(In millions, except per share and metric or percentage data)
For the Three Months Ended | For the Twelve Months Ended | |||||||||||||||||||||||||||
Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Dec. 31, | Dec. 31, | ||||||||||||||||||||||
2010 | 2010 | 2010 | 2010 | 2009 | 2010 | 2009 | ||||||||||||||||||||||
Net income |
$ | 62.2 | $ | 56.6 | $ | 35.8 | $ | 46.3 | $ | 32.1 | $ | 200.9 | $ | 128.3 | ||||||||||||||
Net income per common share 1 |
||||||||||||||||||||||||||||
Basic |
$ | 0.45 | $ | 0.41 | $ | 0.26 | $ | 0.35 | $ | 0.29 | $ | 1.48 | $ | 1.15 | ||||||||||||||
Diluted |
$ | 0.45 | $ | 0.41 | $ | 0.26 | $ | 0.35 | $ | 0.29 | $ | 1.48 | $ | 1.15 | ||||||||||||||
Weighted-average common shares outstanding: |
||||||||||||||||||||||||||||
Basic |
137.174 | 137.140 | 137.019 | 131.018 | 111.622 | 135.609 | 111.622 | |||||||||||||||||||||
Diluted |
137.179 | 137.145 | 137.038 | 131.038 | 111.634 | 135.618 | 111.626 | |||||||||||||||||||||
Non-GAAP Financial Measures 2 |
||||||||||||||||||||||||||||
Adjusted operating income |
$ | 48.0 | $ | 43.8 | $ | 41.5 | $ | 41.9 | $ | 32.7 | $ | 175.2 | $ | 147.9 | ||||||||||||||
Adjusted operating income per common share 1: |
||||||||||||||||||||||||||||
Basic |
$ | 0.35 | $ | 0.32 | $ | 0.30 | $ | 0.32 | $ | 0.29 | $ | 1.29 | $ | 1.32 | ||||||||||||||
Diluted |
$ | 0.35 | $ | 0.32 | $ | 0.30 | $ | 0.32 | $ | 0.29 | $ | 1.29 | $ | 1.32 | ||||||||||||||
As of | ||||||||||||||||||||||||||||
Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | ||||||||||||||||||||||||
2010 | 2010 | 2010 | 2010 | 2009 | ||||||||||||||||||||||||
Consolidated Balance Sheet Data |
||||||||||||||||||||||||||||
Total investments |
$ | 23,500.2 | $ | 23,400.5 | $ | 22,356.4 | $ | 21,072.2 | $ | 20,181.0 | ||||||||||||||||||
Total assets |
25,636.9 | 25,302.3 | 24,349.2 | 23,361.6 | 22,435.4 | |||||||||||||||||||||||
Notes payable |
449.0 | 449.0 | 449.0 | 448.9 | 448.9 | |||||||||||||||||||||||
Accumulated other comprehensive income (loss) (net of taxes)
(AOCI) |
432.5 | 819.4 | 501.1 | 159.5 | (49.7 | ) | ||||||||||||||||||||||
Total stockholders equity |
2,380.6 | 2,711.3 | 2,342.8 | 1,971.7 | 1,433.3 | |||||||||||||||||||||||
U.S. Statutory Financial Information: |
||||||||||||||||||||||||||||
Statutory capital and surplus |
$ | 1,752.3 | $ | 1,727.3 | $ | 1,707.1 | $ | 1,666.8 | $ | 1,415.4 | ||||||||||||||||||
Asset valuation reserve (AVR) |
185.1 | 159.8 | 133.8 | 135.6 | 120.5 | |||||||||||||||||||||||
Statutory book value |
$ | 1,937.4 | $ | 1,887.1 | $ | 1,840.9 | $ | 1,802.4 | $ | 1,535.9 | ||||||||||||||||||
Basic common shares outstanding, end of period (page 15) |
118.216 | 118.171 | 118.175 | 118.086 | 92.729 | |||||||||||||||||||||||
Book value per common share |
$ | 17.35 | $ | 19.77 | $ | 17.08 | $ | 14.39 | $ | 12.83 | ||||||||||||||||||
Debt to capital ratio |
15.9% | 14.2% | 16.1% | 18.5% | 23.8 | % | ||||||||||||||||||||||
Non-GAAP Financial Measures 2 |
||||||||||||||||||||||||||||
Adjusted book value (stockholders equity excluding AOCI) |
$ | 1,948.1 | $ | 1,891.9 | $ | 1,841.7 | $ | 1,812.2 | $ | 1,483.0 | ||||||||||||||||||
Adjusted book value per common share : |
||||||||||||||||||||||||||||
Adjusted book value per common share 3 |
$ | 16.48 | $ | 16.01 | $ | 15.58 | $ | 15.35 | $ | 15.99 | ||||||||||||||||||
Adjusted book value per common share, as converted 4 |
$ | 15.79 | $ | 15.38 | $ | 15.02 | $ | 14.81 | $ | 15.23 | ||||||||||||||||||
Statutory book value per common share 5 |
$ | 16.39 | $ | 15.97 | $ | 15.58 | $ | 15.26 | $ | 16.56 | ||||||||||||||||||
Debt to capital ratio, excluding AOCI 6 |
18.7% | 19.2% | 19.6% | 19.9% | 23.2 | % | ||||||||||||||||||||||
For the Twelve Months Ended | ||||||||||||||||||||||||||||
Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | ||||||||||||||||||||||||
2010 | 2010 | 2010 | 2010 | 2009 | ||||||||||||||||||||||||
ROE |
9.3% | 8.6% | 9.9% | 14.5% | 15.4 | % | ||||||||||||||||||||||
Non-GAAP Financial Measure 2 |
||||||||||||||||||||||||||||
Operating ROAE 7 |
9.8% | 9.4% | 9.6% | 10.5% | 10.5 | % |
1 Basic net income and adjusted operating income per common share include all participating securities using the two-class method. Diluted net income and adjusted operating income per common share include the dilutive impact of non-participating securities, based on the application of the treasury stock method. Shares included in these calculations are weighted for the portion of the period they were outstanding. Antidilutive awards were excluded from the computation of diluted earnings per share. Quarterly earnings per share amounts may not add to the full year amounts. | ||
2 Management considers these non-GAAP measures to be a useful supplement to their most comparable GAAP measure in evaluating financial performance and condition. Non-GAAP measures including adjusted operating income and the corresponding basic and diluted per share amounts, adjusted book value and the corresponding per share amounts, statutory book value and the corresponding per share amounts, and operating ROAE have been reconciled to their most directly comparable GAAP measures on pages 2, 15, and 16, respectively. | ||
3 Adjusted book value per common share is calculated based on adjusted book value, divided by outstanding common shares. | ||
4 Adjusted book value per common share, as converted, gives effect to the exercise of the outstanding warrants and is calculated based on adjusted book value plus the assumed proceeds from the warrants, divided by outstanding common shares, plus shares subject to outstanding warrants. | ||
5 Statutory book value per common share is calculated based on statutory book value divided by outstanding common shares. | ||
6 Debt to capital ratio, excluding AOCI is calculated as notes payable divided by the sum of notes payable and adjusted book value. | ||
7 Operating ROAE (return on average equity) is calculated based on adjusted operating income divided by average adjusted book value. The numerator and denominator of this measure have been reconciled to net income and stockholders equity, respectively, their most comparable GAAP measures. |
1
Symetra Financial Corporation
4Q 2010 Financial Supplement
Consolidated Income Statement Data
(In millions, except per share data)
4Q 2010 Financial Supplement
Consolidated Income Statement Data
(In millions, except per share data)
For the Three Months Ended | For the Twelve Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Dec. 31, | Dec. 31, | ||||||||||||||||||||||||||
2010 | 2010 | 2010 | 2010 | 2009 | 2010 | 2009 | ||||||||||||||||||||||||||
Revenues: |
||||||||||||||||||||||||||||||||
Premiums 1 |
$ | 118.3 | $ | 120.2 | $ | 115.5 | $ | 119.0 | $ | 117.2 | $ | 473.0 | $ | 470.1 | ||||||||||||||||||
Net investment income |
311.0 | 304.4 | 297.1 | 286.9 | 284.2 | 1,199.4 | 1,113.6 | |||||||||||||||||||||||||
Policy fees, contract charges and other 1 |
43.1 | 40.9 | 41.8 | 40.5 | 39.4 | 166.3 | 159.9 | |||||||||||||||||||||||||
Net realized investment gains (losses): |
||||||||||||||||||||||||||||||||
Total other-than-temporary impairment losses on securities |
(23.1 | ) | (9.6 | ) | (2.7 | ) | (17.9 | ) | (23.3 | ) | (53.3 | ) | (191.2 | ) | ||||||||||||||||||
Less: portion of losses recognized in other comprehensive
income |
16.9 | 6.1 | 1.2 | 8.2 | 10.5 | 32.4 | 104.7 | |||||||||||||||||||||||||
Net impairment losses recognized in earnings |
(6.2 | ) | (3.5 | ) | (1.5 | ) | (9.7 | ) | (12.8 | ) | (20.9 | ) | (86.5 | ) | ||||||||||||||||||
Other net realized investment gains (losses) |
29.2 | 23.5 | (8.5 | ) | 16.5 | 12.5 | 60.7 | 57.2 | ||||||||||||||||||||||||
Total net realized investment gains (losses) |
23.0 | 20.0 | (10.0 | ) | 6.8 | (0.3 | ) | 39.8 | (29.3 | ) | ||||||||||||||||||||||
Total revenues |
495.4 | 485.5 | 444.4 | 453.2 | 440.5 | 1,878.5 | 1,714.3 | |||||||||||||||||||||||||
Benefits and expenses: |
||||||||||||||||||||||||||||||||
Policyholder benefits and claims |
80.2 | 85.4 | 83.3 | 86.2 | 88.4 | 335.1 | 350.5 | |||||||||||||||||||||||||
Interest credited |
231.7 | 227.8 | 221.5 | 218.5 | 217.6 | 899.5 | 846.8 | |||||||||||||||||||||||||
Other underwriting and operating expenses |
69.8 | 63.1 | 64.2 | 59.6 | 66.0 | 256.7 | 252.7 | |||||||||||||||||||||||||
Interest expense |
8.0 | 8.0 | 7.9 | 8.0 | 8.0 | 31.9 | 31.8 | |||||||||||||||||||||||||
Amortization of deferred policy acquisition costs |
15.8 | 18.0 | 17.0 | 15.4 | 15.0 | 66.2 | 51.4 | |||||||||||||||||||||||||
Total benefits and expenses |
405.5 | 402.3 | 393.9 | 387.7 | 395.0 | 1,589.4 | 1,533.2 | |||||||||||||||||||||||||
Income from operations before income taxes |
89.9 | 83.2 | 50.5 | 65.5 | 45.5 | 289.1 | 181.1 | |||||||||||||||||||||||||
Provision (benefit) for income taxes: |
||||||||||||||||||||||||||||||||
Current |
11.6 | 18.8 | 17.4 | 9.9 | 10.9 | 57.7 | 6.7 | |||||||||||||||||||||||||
Deferred |
16.1 | 7.8 | (2.7 | ) | 9.3 | 2.5 | 30.5 | 46.1 | ||||||||||||||||||||||||
Total provision for income taxes |
27.7 | 26.6 | 14.7 | 19.2 | 13.4 | 88.2 | 52.8 | |||||||||||||||||||||||||
Net income |
$ | 62.2 | $ | 56.6 | $ | 35.8 | $ | 46.3 | $ | 32.1 | $ | 200.9 | $ | 128.3 | ||||||||||||||||||
Net income per common share2: |
||||||||||||||||||||||||||||||||
Basic |
$ | 0.45 | $ | 0.41 | $ | 0.26 | $ | 0.35 | $ | 0.29 | $ | 1.48 | $ | 1.15 | ||||||||||||||||||
Diluted |
$ | 0.45 | $ | 0.41 | $ | 0.26 | $ | 0.35 | $ | 0.29 | $ | 1.48 | $ | 1.15 | ||||||||||||||||||
Weighted-average number of common shares outstanding: |
||||||||||||||||||||||||||||||||
Basic |
137.174 | 137.140 | 137.019 | 131.018 | 111.622 | 135.609 | 111.622 | |||||||||||||||||||||||||
Diluted |
137.179 | 137.145 | 137.038 | 131.038 | 111.634 | 135.618 | 111.626 | |||||||||||||||||||||||||
Cash dividends declared per common share |
$ | 0.05 | $ | 0.05 | $ | 0.05 | $ | | $ | | $ | 0.15 | $ | | ||||||||||||||||||
Non-GAAP Financial Measures: |
||||||||||||||||||||||||||||||||
Adjusted operating income |
$ | 48.0 | $ | 43.8 | $ | 41.5 | $ | 41.9 | $ | 32.7 | $ | 175.2 | $ | 147.9 | ||||||||||||||||||
Adjusted operating income per common share2: |
||||||||||||||||||||||||||||||||
Basic |
$ | 0.35 | $ | 0.32 | $ | 0.30 | $ | 0.32 | $ | 0.29 | $ | 1.29 | $ | 1.32 | ||||||||||||||||||
Diluted |
$ | 0.35 | $ | 0.32 | $ | 0.30 | $ | 0.32 | $ | 0.29 | $ | 1.29 | $ | 1.32 | ||||||||||||||||||
Weighted-average number of common shares outstanding: |
||||||||||||||||||||||||||||||||
Basic |
137.174 | 137.140 | 137.019 | 131.018 | 111.622 | 135.609 | 111.622 | |||||||||||||||||||||||||
Diluted |
137.179 | 137.145 | 137.038 | 131.038 | 111.634 | 135.618 | 111.626 | |||||||||||||||||||||||||
Reconciliation to net income: |
||||||||||||||||||||||||||||||||
Net income |
$ | 62.2 | $ | 56.6 | $ | 35.8 | $ | 46.3 | $ | 32.1 | $ | 200.9 | $ | 128.3 | ||||||||||||||||||
Less: Net realized investment gains (losses) (net of taxes) |
15.0 | 13.0 | (6.6 | ) | 4.5 | (0.2 | ) | 25.9 | (19.1 | ) | ||||||||||||||||||||||
Add: Net investment gains (losses)
on FIA options (net of taxes) |
0.8 | 0.2 | (0.9 | ) | 0.1 | 0.4 | 0.2 | 0.5 | ||||||||||||||||||||||||
Adjusted operating income |
$ | 48.0 | $ | 43.8 | $ | 41.5 | $ | 41.9 | $ | 32.7 | $ | 175.2 | $ | 147.9 | ||||||||||||||||||
1
Effective January 1, 2010, cost of insurance charges are reported
in policy fees, contract charges and other instead of premiums with no impact
to total revenues. All prior periods have been reclassified to conform to this
presentation.
2
Basic net income and adjusted operating income per common share
include all participating securities using the two-class method. Diluted net
income and adjusted operating income per common share include the dilutive
impact of non-participating securities, based on the application of the
treasury stock method. Shares included in these calculations are weighted for
the portion of the period they were outstanding. Antidilutive awards were
excluded from the computation of diluted earnings per share. Quarterly earnings
per share amounts may not add to the full year amounts.
2
Symetra Financial Corporation
4Q 2010 Financial Supplement
Consolidated Balance Sheet Data
(In millions)
4Q 2010 Financial Supplement
Consolidated Balance Sheet Data
(In millions)
Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | ||||||||||||||||
2010 | 2010 | 2010 | 2010 | 2009 | ||||||||||||||||
Assets |
||||||||||||||||||||
Investments: |
||||||||||||||||||||
Available-for-sale securities: |
||||||||||||||||||||
Fixed maturities, at fair value |
$ | 21,281.8 | $ | 21,450.1 | $ | 20,612.2 | $ | 19,390.6 | $ | 18,594.3 | ||||||||||
Marketable equity securities, at fair value |
45.1 | 45.4 | 43.9 | 37.6 | 36.7 | |||||||||||||||
Trading securities: |
||||||||||||||||||||
Marketable equity securities, at fair value |
189.3 | 158.8 | 141.0 | 151.0 | 154.1 | |||||||||||||||
Mortgage loans, net |
1,713.0 | 1,493.4 | 1,338.1 | 1,225.9 | 1,199.6 | |||||||||||||||
Policy loans |
71.5 | 71.7 | 72.3 | 73.4 | 73.9 | |||||||||||||||
Short-term investments |
2.5 | 2.7 | 2.7 | 54.0 | 2.1 | |||||||||||||||
Investments in limited partnerships |
186.9 | 169.1 | 136.9 | 130.6 | 110.2 | |||||||||||||||
Other invested assets |
10.1 | 9.3 | 9.3 | 9.1 | 10.1 | |||||||||||||||
Total investments |
23,500.2 | 23,400.5 | 22,356.4 | 21,072.2 | 20,181.0 | |||||||||||||||
Cash and cash equivalents |
274.6 | 197.2 | 322.7 | 389.3 | 257.8 | |||||||||||||||
Accrued investment income |
257.6 | 257.5 | 251.6 | 247.5 | 237.2 | |||||||||||||||
Accounts receivable and other receivables |
65.6 | 89.0 | 81.9 | 97.1 | 70.1 | |||||||||||||||
Reinsurance recoverables |
280.8 | 284.8 | 277.3 | 277.9 | 276.6 | |||||||||||||||
Deferred policy acquisition costs |
250.0 | 160.9 | 199.0 | 227.5 | 250.4 | |||||||||||||||
Goodwill |
28.4 | 27.8 | 27.3 | 26.8 | 26.3 | |||||||||||||||
Current income tax recoverable |
3.0 | | | 19.6 | 20.2 | |||||||||||||||
Deferred income tax assets, net |
| | | 69.1 | 191.2 | |||||||||||||||
Other assets |
95.0 | 58.4 | 74.0 | 80.5 | 84.5 | |||||||||||||||
Separate account assets |
881.7 | 826.2 | 759.0 | 854.1 | 840.1 | |||||||||||||||
Total assets |
$ | 25,636.9 | $ | 25,302.3 | $ | 24,349.2 | $ | 23,361.6 | $ | 22,435.4 | ||||||||||
Liabilities and stockholders equity |
||||||||||||||||||||
Funds held under deposit contracts |
$ | 20,953.3 | $ | 20,107.9 | $ | 19,825.7 | $ | 19,222.9 | $ | 18,816.7 | ||||||||||
Future policy benefits |
398.4 | 397.6 | 397.0 | 395.8 | 394.9 | |||||||||||||||
Policy and contract claims |
116.6 | 126.1 | 120.7 | 120.6 | 125.6 | |||||||||||||||
Unearned premiums |
12.2 | 12.8 | 14.0 | 14.5 | 12.1 | |||||||||||||||
Other policyholders funds |
111.0 | 109.1 | 99.5 | 108.6 | 113.8 | |||||||||||||||
Notes payable |
449.0 | 449.0 | 449.0 | 448.9 | 448.9 | |||||||||||||||
Current income tax payable |
| 2.9 | 2.1 | | | |||||||||||||||
Deferred income tax liabilities, net |
99.0 | 291.1 | 112.0 | | | |||||||||||||||
Other liabilities |
235.1 | 268.3 | 227.4 | 224.5 | 250.0 | |||||||||||||||
Separate account liabilities |
881.7 | 826.2 | 759.0 | 854.1 | 840.1 | |||||||||||||||
Total liabilities |
23,256.3 | 22,591.0 | 22,006.4 | 21,389.9 | 21,002.1 | |||||||||||||||
Preferred stock |
| | | | | |||||||||||||||
Common stock |
1.2 | 1.2 | 1.2 | 1.2 | 0.9 | |||||||||||||||
Additional paid-in-capital |
1,450.2 | 1,449.3 | 1,449.5 | 1,448.3 | 1,165.7 | |||||||||||||||
Retained earnings |
496.7 | 441.4 | 391.6 | 362.7 | 316.4 | |||||||||||||||
Treasury stock |
| (0.6 | ) | | | |||||||||||||||
Accumulated other comprehensive income (loss),
net of taxes |
432.5 | 819.4 | 501.1 | 159.5 | (49.7 | ) | ||||||||||||||
Total stockholders equity |
2,380.6 | 2,711.3 | 2,342.8 | 1,971.7 | 1,433.3 | |||||||||||||||
Total liabilities and stockholders equity |
$ | 25,636.9 | $ | 25,302.3 | $ | 24,349.2 | $ | 23,361.6 | $ | 22,435.4 | ||||||||||
3
Symetra Financial Corporation
4Q 2010 Financial Supplement
Segment Income Statement Data
(In millions)
4Q 2010 Financial Supplement
Segment Income Statement Data
(In millions)
For the Three Months Ended | For the Twelve Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Dec. 31, | Dec. 31, | ||||||||||||||||||||||||||
2010 | 2010 | 2010 | 2010 | 2009 | 2010 | 2009 | ||||||||||||||||||||||||||
Operating revenues: |
||||||||||||||||||||||||||||||||
Group Divison |
$ | 116.4 | $ | 117.3 | $ | 113.6 | $ | 116.3 | $ | 114.8 | $ | 463.6 | $ | 464.9 | ||||||||||||||||||
Retirement Division: |
||||||||||||||||||||||||||||||||
Deferred Annuities |
127.0 | 124.0 | 118.8 | 112.7 | 111.2 | 482.5 | 405.6 | |||||||||||||||||||||||||
Income Annuities |
108.7 | 105.7 | 104.9 | 104.2 | 104.4 | 423.5 | 422.9 | |||||||||||||||||||||||||
Life Division |
108.8 | 107.4 | 107.8 | 105.4 | 105.9 | 429.4 | 419.8 | |||||||||||||||||||||||||
Other |
12.7 | 11.4 | 8.0 | 7.9 | 5.1 | 40.0 | 31.2 | |||||||||||||||||||||||||
Total |
$ | 473.6 | $ | 465.8 | $ | 453.1 | $ | 446.5 | $ | 441.4 | $ | 1,839.0 | $ | 1,744.4 | ||||||||||||||||||
Segment pre-tax adjusted operating income (loss): |
||||||||||||||||||||||||||||||||
Group Divison |
$ | 21.0 | $ | 16.7 | $ | 18.2 | $ | 15.7 | $ | 10.7 | $ | 71.6 | $ | 55.4 | ||||||||||||||||||
Retirement Division: |
||||||||||||||||||||||||||||||||
Deferred Annuities |
20.9 | 22.5 | 20.6 | 17.3 | 17.3 | 81.3 | 58.6 | |||||||||||||||||||||||||
Income Annuities |
10.9 | 9.5 | 6.4 | 6.4 | 9.4 | 33.2 | 42.4 | |||||||||||||||||||||||||
Life Division |
17.3 | 15.3 | 19.0 | 23.3 | 14.7 | 74.9 | 66.3 | |||||||||||||||||||||||||
Other |
(2.0 | ) | (0.5 | ) | (5.0 | ) | (3.9 | ) | (5.7 | ) | (11.4 | ) | (11.5 | ) | ||||||||||||||||||
Total |
$ | 68.1 | $ | 63.5 | $ | 59.2 | $ | 58.8 | $ | 46.4 | $ | 249.6 | $ | 211.2 | ||||||||||||||||||
4
Symetra Financial Corporation
4Q 2010 Financial Supplement
Group Division
(In millions)
4Q 2010 Financial Supplement
Group Division
(In millions)
For the Three Months Ended | For the Twelve Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Dec. 31, | Dec. 31, | ||||||||||||||||||||||||||
2010 | 2010 | 2010 | 2010 | 2009 | 2010 | 2009 | ||||||||||||||||||||||||||
Operating revenues: |
||||||||||||||||||||||||||||||||
Premiums |
$ | 108.7 | $ | 109.9 | $ | 105.8 | $ | 108.8 | $ | 108.1 | $ | 433.2 | $ | 432.2 | ||||||||||||||||||
Net investment income |
4.6 | 4.7 | 4.8 | 4.6 | 4.5 | 18.7 | 17.8 | |||||||||||||||||||||||||
Policy fees, contract charges and other |
3.1 | 2.7 | 3.0 | 2.9 | 2.2 | 11.7 | 14.9 | |||||||||||||||||||||||||
Total operating revenues |
116.4 | 117.3 | 113.6 | 116.3 | 114.8 | 463.6 | 464.9 | |||||||||||||||||||||||||
Benefits and expenses: |
||||||||||||||||||||||||||||||||
Policyholder benefits and claims |
65.8 | 73.1 | 67.4 | 75.0 | 75.5 | 281.3 | 295.4 | |||||||||||||||||||||||||
Other underwriting and operating expenses |
27.5 | 25.4 | 26.0 | 23.7 | 26.5 | 102.6 | 106.2 | |||||||||||||||||||||||||
Amortization of deferred policy acquisition costs |
2.1 | 2.1 | 2.0 | 1.9 | 2.1 | 8.1 | 7.9 | |||||||||||||||||||||||||
Total benefits and expenses |
95.4 | 100.6 | 95.4 | 100.6 | 104.1 | 392.0 | 409.5 | |||||||||||||||||||||||||
Segment pre-tax adjusted operating income |
$ | 21.0 | $ | 16.7 | $ | 18.2 | $ | 15.7 | $ | 10.7 | $ | 71.6 | $ | 55.4 | ||||||||||||||||||
Operating Metrics: |
||||||||||||||||||||||||||||||||
Group loss ratio 1, 6 |
60.5% | 66.5% | 63.8% | 68.9% | 69.9% | 64.9% | 68.3% | |||||||||||||||||||||||||
Expense ratio 2 |
26.5% | 24.0% | 25.4% | 23.1% | 25.6% | 24.7% | 24.5% | |||||||||||||||||||||||||
Combined ratio 3 |
87.0% | 90.5% | 89.2% | 92.0% | 95.5% | 89.6% | 92.8% | |||||||||||||||||||||||||
Medical stop-loss loss ratio 4, 6 |
62.3% | 68.7% | 65.4% | 70.1% | 71.3% | 66.6% | 69.8% | |||||||||||||||||||||||||
Total sales 5 |
$ | 15.1 | $ | 18.4 | $ | 20.6 | $ | 41.4 | $ | 13.4 | $ | 95.5 | $ | 91.3 | ||||||||||||||||||
Premiums: |
||||||||||||||||||||||||||||||||
Medical stop-loss |
$ | 96.8 | $ | 98.1 | $ | 94.6 | $ | 97.6 | $ | 97.9 | $ | 387.1 | $ | 391.4 | ||||||||||||||||||
Limited benefit medical |
9.5 | 9.1 | 8.5 | 8.0 | 7.7 | 35.1 | 30.5 | |||||||||||||||||||||||||
Other |
2.4 | 2.7 | 2.7 | 3.2 | 2.5 | 11.0 | 10.3 | |||||||||||||||||||||||||
Total premiums earned |
$ | 108.7 | $ | 109.9 | $ | 105.8 | $ | 108.8 | $ | 108.1 | $ | 433.2 | $ | 432.2 | ||||||||||||||||||
5 Year Historical Group Loss Ratio 1: | For the Year | |||||||||||||||||||
For the Three Months Ended | Ended | |||||||||||||||||||
1Q | 2Q | 3Q | 4Q | |||||||||||||||||
2009 |
70.1% | 66.1% | 67.3% | 69.9% | 68.3% | |||||||||||||||
2008 |
71.0% | 66.3% | 59.4% | 66.6% | 65.8% | |||||||||||||||
2007 |
55.7% | 54.8% | 51.0% | 55.9% | 54.3% | |||||||||||||||
2006 |
71.3% | 61.1% | 57.8% | 47.1% | 59.6% | |||||||||||||||
2005 |
71.1% | 70.5% | 66.7% | 61.3% | 67.5% |
1
Group loss ratio represents policyholder benefits and claims incurred divided by premiums earned.
2
Expense ratio is equal to other underwriting and operating expenses of our insurance operations and amortization of DAC divided by premiums earned.
3
Combined ratio is equal to the sum of the loss ratio and the expense ratio.
4
Medical stop-loss loss ratio represents medical stop-loss policyholder benefits and claims incured divided by medical stop-loss premiums earned.
5
Total sales represents annualized first-year premiums.
6
The third quarter 2010 results included one large case with a loss ratio in excess of 95%. This case terminated in fourth quarter 2010. Without this case, the third quarter 2010 group loss ratio would have been 65.3% and the medical
stop-loss loss ratio would have been 67.5%.
5
Symetra Financial Corporation
4Q 2010 Financial Supplement
Retirement Division Deferred Annuities
(In millions)
4Q 2010 Financial Supplement
Retirement Division Deferred Annuities
(In millions)
For the Three Months Ended | For the Twelve Months Ended | |||||||||||||||||||||||||||
Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Dec. 31, | Dec. 31, | ||||||||||||||||||||||
2010 | 2010 | 2010 | 2010 | 2009 | 2010 | 2009 | ||||||||||||||||||||||
Operating revenues: |
||||||||||||||||||||||||||||
Net investment income |
$ | 120.8 | $ | 119.0 | $ | 115.3 | $ | 107.8 | $ | 106.2 | $ | 462.9 | $ | 388.0 | ||||||||||||||
Policy fees, contract charges and other |
5.0 | 4.7 | 4.8 | 4.8 | 4.4 | 19.3 | 16.8 | |||||||||||||||||||||
Net investment gains (losses) on FIA options |
1.2 | 0.3 | (1.3 | ) | 0.1 | 0.6 | 0.3 | 0.8 | ||||||||||||||||||||
Total operating revenues |
127.0 | 124.0 | 118.8 | 112.7 | 111.2 | 482.5 | 405.6 | |||||||||||||||||||||
Benefits and expenses: |
||||||||||||||||||||||||||||
Policyholder benefits and claims |
(0.1 | ) | (0.5 | ) | 0.6 | 0.1 | | 0.1 | (2.2 | ) | ||||||||||||||||||
Interest credited |
79.0 | 75.7 | 70.4 | 68.5 | 69.7 | 293.6 | 256.9 | |||||||||||||||||||||
Other underwriting and operating expenses |
14.9 | 13.0 | 13.6 | 13.6 | 14.6 | 55.1 | 55.9 | |||||||||||||||||||||
Amortization of deferred policy acquisition costs |
12.3 | 13.3 | 13.6 | 13.2 | 9.6 | 52.4 | 36.4 | |||||||||||||||||||||
Total benefits and expenses |
106.1 | 101.5 | 98.2 | 95.4 | 93.9 | 401.2 | 347.0 | |||||||||||||||||||||
Segment pre-tax adjusted operating income |
$ | 20.9 | $ | 22.5 | $ | 20.6 | $ | 17.3 | $ | 17.3 | $ | 81.3 | $ | 58.6 | ||||||||||||||
Operating Metrics: |
||||||||||||||||||||||||||||
Account values fixed annuities |
$ | 9,243.7 | $ | 8,805.6 | $ | 8,574.0 | $ | 8,005.4 | $ | 7,655.7 | $ | 9,243.7 | $ | 7,655.7 | ||||||||||||||
Account values variable annuities |
791.1 | 742.6 | 682.3 | 768.0 | 755.7 | 791.1 | 755.7 | |||||||||||||||||||||
Interest spread on average account values1 |
1.81% | 1.85% | 1.97% | 1.86% | 1.83% | 1.87% | 1.81% | |||||||||||||||||||||
Total sales2 |
$ | 522.9 | $ | 286.4 | $ | 623.9 | $ | 377.5 | $ | 261.9 | $ | 1,810.7 | $ | 2,228.4 | ||||||||||||||
1 Interest spread is the difference between net investment yield earned and the credited interest rate to policyholders. The investment yield is the approximate yield on invested assets in the general account attributed to the segment. The credited interest rate is the approximate rate credited on policyholder fixed account values within the segment. Interest credited is subject to contractual terms, including minimum guarantees. |
2 Total sales represent deposits for new policies. |
6
Symetra Financial Corporation
4Q 2010 Financial Supplement
Retirement Division Income Annuities
(In millions)
4Q 2010 Financial Supplement
Retirement Division Income Annuities
(In millions)
For the Three Months Ended | For the Twelve Months Ended | |||||||||||||||||||||||||||
Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Dec. 31, | Dec. 31, | ||||||||||||||||||||||
2010 | 2010 | 2010 | 2010 | 2009 | 2010 | 2009 | ||||||||||||||||||||||
Operating revenues: |
||||||||||||||||||||||||||||
Net investment income |
$ | 108.4 | $ | 105.6 | $ | 104.7 | $ | 104.0 | $ | 104.3 | $ | 422.7 | $ | 422.4 | ||||||||||||||
Policy fees, contract charges and other |
0.3 | 0.1 | 0.2 | 0.2 | 0.1 | 0.8 | 0.5 | |||||||||||||||||||||
Total operating revenues |
108.7 | 105.7 | 104.9 | 104.2 | 104.4 | 423.5 | 422.9 | |||||||||||||||||||||
Benefits and expenses: |
||||||||||||||||||||||||||||
Interest credited |
91.3 | 90.1 | 92.9 | 92.0 | 89.2 | 366.3 | 357.9 | |||||||||||||||||||||
Other underwriting and operating expenses |
6.0 | 5.5 | 5.2 | 5.3 | 5.4 | 22.0 | 21.0 | |||||||||||||||||||||
Amortization of deferred policy acquisition costs |
0.5 | 0.6 | 0.4 | 0.5 | 0.4 | 2.0 | 1.6 | |||||||||||||||||||||
Total benefits and expenses |
97.8 | 96.2 | 98.5 | 97.8 | 95.0 | 390.3 | 380.5 | |||||||||||||||||||||
Segment pre-tax adjusted operating income |
$ | 10.9 | $ | 9.5 | $ | 6.4 | $ | 6.4 | $ | 9.4 | $ | 33.2 | $ | 42.4 | ||||||||||||||
Operating Metrics: |
||||||||||||||||||||||||||||
Reserves 1 |
$ | 6,676.8 | $ | 6,676.8 | $ | 6,716.8 | $ | 6,726.7 | $ | 6,726.3 | $ | 6,676.8 | $ | 6,726.3 | ||||||||||||||
Interest spread on reserves 2 |
0.79 | % | 0.59 | % | 0.49 | % | 0.41 | % | 0.43 | % | 0.57 | % | 0.53 | % | ||||||||||||||
MBS prepayment speed adjustment 3 |
$ | 3.2 | $ | 0.1 | $ | (0.1 | ) | $ | (0.2 | ) | $ | (0.1 | ) | $ | 3.0 | $ | 2.4 | |||||||||||
Mortality gains (losses) 4 |
(0.6 | ) | (0.1 | ) | (1.8 | ) | (0.1 | ) | 1.3 | (2.6 | ) | 5.1 | ||||||||||||||||
Total sales 5 |
67.9 | 58.0 | 67.8 | 66.3 | 83.8 | 260.0 | 251.8 |
5 Year Historical Mortality Gains (Losses)3:
For the Year | ||||||||||||||||||||
For the Three Months Ended | Ended | |||||||||||||||||||
1Q | 2Q | 3Q | 4Q | |||||||||||||||||
2009 |
$ | 4.3 | $ | (0.5 | ) | $ | | $ | 1.3 | $ | 5.1 | |||||||||
2008 |
2.0 | 0.8 | 0.7 | (1.4 | ) | 2.1 | ||||||||||||||
2007 |
1.9 | | (0.9 | ) | (1.1 | ) | (0.1 | ) | ||||||||||||
2006 |
0.2 | 2.4 | 1.3 | 2.4 | 6.3 | |||||||||||||||
2005 |
0.7 | (0.3 | ) | (2.0 | ) | 2.4 | 0.8 |
1 Reserves represent the present value of future income annuity benefits and assumed expenses, discounted by the assumed interest rate. This metric represents the amount of our in-force book of business. | |
2 Interest spread is the difference between net investment yield earned and the credited interest rate on policyholder reserves. The investment yield is the approximate yield on invested assets, excluding equities, in the general account attributed to the segment. The credited interest rate is the approximate rate credited on policyholder reserves within the segment and excludes the gains and losses from funding services and mortality. The 2010 fourth quarter and year-to-date interest spread increased 0.19% and 0.05%, respectively, due to the favorable MBS prepayment speed adjustment. | |
3 | MBS prepayment speed adjustment is the impact to net investment income due to the change in prepayment speeds on the underlying collateral of mortgage-backed securities. |
4 Mortality gains (losses) represents the difference between actual and expected reserves released on death of a life contingent annuity. | |
5 | Total sales represent deposits for new policies. |
7
Symetra Financial Corporation
4Q 2010 Financial Supplement
Life Division
(In millions)
4Q 2010 Financial Supplement
Life Division
(In millions)
For the Three Months Ended | For the Twelve Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Dec. 31, | Dec. 31, | ||||||||||||||||||||||||||
2010 | 2010 | 2010 | 2010 | 2009 | 2010 | 2009 | ||||||||||||||||||||||||||
Operating revenues: |
||||||||||||||||||||||||||||||||
Premiums 1 |
$ | 9.6 | $ | 10.3 | $ | 9.7 | $ | 10.2 | $ | 9.1 | $ | 39.8 | $ | 37.9 | ||||||||||||||||||
Net investment income |
69.4 | 67.5 | 68.3 | 66.1 | 67.2 | 271.3 | 265.2 | |||||||||||||||||||||||||
Policy fees, contract charges and other 1 |
29.8 | 29.6 | 29.8 | 29.1 | 29.6 | 118.3 | 116.7 | |||||||||||||||||||||||||
Total operating revenues |
108.8 | 107.4 | 107.8 | 105.4 | 105.9 | 429.4 | 419.8 | |||||||||||||||||||||||||
Benefits and expenses: |
||||||||||||||||||||||||||||||||
Policyholder benefits and claims |
14.5 | 12.8 | 15.3 | 11.1 | 12.9 | 53.7 | 57.3 | |||||||||||||||||||||||||
Interest credited |
62.0 | 63.1 | 59.1 | 58.5 | 59.6 | 242.7 | 235.3 | |||||||||||||||||||||||||
Other underwriting and operating expenses |
14.1 | 14.2 | 13.4 | 12.7 | 15.8 | 54.4 | 55.4 | |||||||||||||||||||||||||
Amortization of deferred policy acquisition costs |
0.9 | 2.0 | 1.0 | (0.2 | ) | 2.9 | 3.7 | 5.5 | ||||||||||||||||||||||||
Total benefits and expenses |
91.5 | 92.1 | 88.8 | 82.1 | 91.2 | 354.5 | 353.5 | |||||||||||||||||||||||||
Segment pre-tax adjusted operating income |
$ | 17.3 | $ | 15.3 | $ | 19.0 | $ | 23.3 | $ | 14.7 | $ | 74.9 | $ | 66.3 | ||||||||||||||||||
Operating Metrics: |
||||||||||||||||||||||||||||||||
Insurance in force (direct)2 |
$ | 50,679.0 | $ | 49,792.9 | $ | 49,912.3 | $ | 50,056.5 | $ | 50,030.3 | $ | 50,679.0 | $ | 50,030.3 | ||||||||||||||||||
Claims,
excluding BOLI3 |
11.3 | 12.0 | 13.5 | 13.9 | 12.6 | 50.7 | 53.5 | |||||||||||||||||||||||||
BOLI account value4 |
$ | 4,365.4 | $ | 3,969.7 | $ | 3,886.0 | $ | 3,853.2 | $ | 3,789.1 | $ | 4,365.4 | $ | 3,789.1 | ||||||||||||||||||
UL account value4 |
607.0 | 596.9 | 588.9 | 585.3 | 583.8 | 607.0 | 583.8 | |||||||||||||||||||||||||
PGAAP reserve balance5 |
27.9 | 30.0 | 32.4 | 34.5 | 36.7 | 27.9 | 36.7 | |||||||||||||||||||||||||
BOLI ROA6 |
0.92% | 0.92% | 1.28% | 1.08% | 0.65% | 1.03% | 1.08% | |||||||||||||||||||||||||
UL interest spread7 |
1.54% | 1.57% | 1.59% | 1.37% | 1.11% | 1.50% | 1.20% | |||||||||||||||||||||||||
Total sales, excluding BOLI8 |
$ | 2.4 | $ | 2.6 | $ | 2.4 | $ | 2.8 | $ | 2.7 | $ | 10.2 | $ | 10.5 | ||||||||||||||||||
BOLI sales9 |
35.9 | 7.5 | - | 2.7 | - | 46.1 | 2.5 | |||||||||||||||||||||||||
1 Effective January 1, 2010, cost of insurance charges are reported in policy fees, contract charges and other instead of premiums with no impact to total revenues. All prior periods have been reclassified to conform to this presentation. |
2 Insurance in force represents dollar face amounts of policies. |
3 Claims exclude BOLI (bank-owned life insurance) claims included in BOLI ROA and surrenders. This metric replaces the Mortality Ratio. Management views the Claims, excluding BOLI metric as more meaningful information. |
4 BOLI account value and UL account value represent our liability to our policyholders. |
5 Purchase accounting reserve, or PGAAP reserve, represents impact of purchase accounting on policyholder liabilities. This PGAAP reserve is amortized as a reduction to policyholder benefits according to the pattern of profitability of the book of business of policies in force at the purchase accounting date, August 2, 2004. |
6 The BOLI ROA is a measure of the gross margin on our BOLI book of business. This metric is calculated as the difference between our BOLI revenue earnings rate and our BOLI policy benefits rate. The revenue earnings rate is calculated as revenues divided by average invested assets. The policy benefits rate is calculated as total policy benefits divided by average account value. The policy benefits used in this metric do not include expenses. |
7 UL interest spread is the difference between the investment yield earned and the credited interest rate to policyholders. The investment yield is the approximate yield on invested assets in the general account attributed to the UL policies. The credited interest rate is the approximate rate credited on UL policyholder fixed account values. Interest credited to UL policyholders account values is subject to contractual terms, including minimum guarantees. The 2009 fourth quarter, 2010 first quarter and 2010 year-to-date credited rate to policyholders have been adjusted to exclude a reserve adjustment related to a persistency bonus. Without this adjustment the 2009 fourth quarter, 2010 first quarter, and 2010 year-to-date UL interest spread would be 4.83%, 5.40%, and 2.50%, respectively. |
8 Total sales, excluding BOLI represent annualized first year premiums and 10% of single premium new deposits. |
9 BOLI sales represent 10% of new BOLI total deposits. |
8
Symetra Financial Corporation
4Q 2010 Financial Supplement
Other
(In millions)
4Q 2010 Financial Supplement
Other
(In millions)
For the Three Months Ended | For the Twelve Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Dec. 31, | Dec. 31, | ||||||||||||||||||||||||||
2010 | 2010 | 2010 | 2010 | 2009 | 2010 | 2009 | ||||||||||||||||||||||||||
Operating revenues: |
||||||||||||||||||||||||||||||||
Net investment income |
$ | 7.8 | $ | 7.6 | $ | 4.0 | $ | 4.4 | $ | 2.0 | $ | 23.8 | $ | 20.2 | ||||||||||||||||||
Policy fees, contract charges and other |
4.9 | 3.8 | 4.0 | 3.5 | 3.1 | 16.2 | 11.0 | |||||||||||||||||||||||||
Total operating revenues |
12.7 | 11.4 | 8.0 | 7.9 | 5.1 | 40.0 | 31.2 | |||||||||||||||||||||||||
Benefits and expenses: |
||||||||||||||||||||||||||||||||
Interest credited |
(0.6 | ) | (1.1 | ) | (0.9 | ) | (0.5 | ) | (0.9 | ) | (3.1 | ) | (3.3 | ) | ||||||||||||||||||
Other underwriting and operating expenses |
7.3 | 5.0 | 6.0 | 4.3 | 3.7 | 22.6 | 14.2 | |||||||||||||||||||||||||
Interest expense |
8.0 | 8.0 | 7.9 | 8.0 | 8.0 | 31.9 | 31.8 | |||||||||||||||||||||||||
Total benefits and expenses |
14.7 | 11.9 | 13.0 | 11.8 | 10.8 | 51.4 | 42.7 | |||||||||||||||||||||||||
Segment pre-tax adjusted operating loss |
$ | (2.0 | ) | $ | (0.5 | ) | $ | (5.0 | ) | $ | (3.9 | ) | $ | (5.7 | ) | $ | (11.4 | ) | $ | (11.5 | ) | |||||||||||
9
Symetra Financial Corporation
4Q 2010 Financial Supplement
Deferred Policy Acquisition Cost (DAC) Roll Forwards
(In millions)
4Q 2010 Financial Supplement
Deferred Policy Acquisition Cost (DAC) Roll Forwards
(In millions)
For the Three Months Ended | For the Twelve Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Dec. 31, | Dec. 31, | ||||||||||||||||||||||||||
2010 | 2010 | 2010 | 2010 | 2009 | 2010 | 2009 | ||||||||||||||||||||||||||
Summary Total Company |
||||||||||||||||||||||||||||||||
Unamortized balance, beginning of period |
$ | 369.7 | $ | 360.8 | $ | 339.8 | $ | 325.7 | $ | 315.4 | $ | 325.7 | $ | 219.5 | ||||||||||||||||||
Deferral of acquisition costs: |
||||||||||||||||||||||||||||||||
Commissions |
21.4 | 18.1 | 30.6 | 21.5 | 16.1 | 91.6 | 116.9 | |||||||||||||||||||||||||
Other acquisition expenses |
12.8 | 9.4 | 8.6 | 9.0 | 9.0 | 39.8 | 31.4 | |||||||||||||||||||||||||
Total deferral of acquisition costs |
34.2 | 27.5 | 39.2 | 30.5 | 25.1 | 131.4 | 148.3 | |||||||||||||||||||||||||
Adjustments related to inv (gains) losses |
(0.7 | ) | (0.6 | ) | (1.2 | ) | (1.0 | ) | 0.2 | (3.5 | ) | 9.3 | ||||||||||||||||||||
Amortization |
(15.8 | ) | (17.6 | ) | (17.0 | ) | (17.1 | ) | (13.0 | ) | (67.5 | ) | (48.3 | ) | ||||||||||||||||||
Unlocking |
| (0.4 | ) | | 1.7 | (2.0 | ) | 1.3 | (3.1 | ) | ||||||||||||||||||||||
Total amortization |
(15.8 | ) | (18.0 | ) | (17.0 | ) | (15.4 | ) | (15.0 | ) | (66.2 | ) | (51.4 | ) | ||||||||||||||||||
Unamortized balance, end of period |
387.4 | 369.7 | 360.8 | 339.8 | 325.7 | 387.4 | 325.7 | |||||||||||||||||||||||||
Accum effect of net unrealized gains |
(137.4 | ) | (208.8 | ) | (161.8 | ) | (112.3 | ) | (75.3 | ) | (137.4 | ) | (75.3 | ) | ||||||||||||||||||
DAC balance, end of period |
$ | 250.0 | $ | 160.9 | $ | 199.0 | $ | 227.5 | $ | 250.4 | $ | 250.0 | $ | 250.4 | ||||||||||||||||||
Group Division |
||||||||||||||||||||||||||||||||
Unamortized balance, beginning of period |
$ | 3.8 | $ | 3.5 | $ | 3.4 | $ | 3.2 | $ | 3.5 | $ | 3.2 | $ | 3.3 | ||||||||||||||||||
Deferral of acquisition costs: |
||||||||||||||||||||||||||||||||
Other acquisition expenses |
1.9 | 2.4 | 2.1 | 2.1 | 1.8 | 8.5 | 7.8 | |||||||||||||||||||||||||
Total deferral of acquisition costs |
1.9 | 2.4 | 2.1 | 2.1 | 1.8 | 8.5 | 7.8 | |||||||||||||||||||||||||
Amortization |
(2.1 | ) | (2.1 | ) | (2.0 | ) | (1.9 | ) | (2.1 | ) | (8.1 | ) | (7.9 | ) | ||||||||||||||||||
Unamortized balance, end of period |
3.6 | 3.8 | 3.5 | 3.4 | 3.2 | 3.6 | 3.2 | |||||||||||||||||||||||||
DAC balance, end of period |
$ | 3.6 | $ | 3.8 | $ | 3.5 | $ | 3.4 | $ | 3.2 | $ | 3.6 | $ | 3.2 | ||||||||||||||||||
Retirement Division Deferred Annuities |
||||||||||||||||||||||||||||||||
Unamortized balance, beginning of period |
$ | 274.6 | $ | 271.6 | $ | 255.7 | $ | 249.1 | $ | 240.5 | $ | 249.1 | $ | 158.7 | ||||||||||||||||||
Deferral of acquisition costs: |
||||||||||||||||||||||||||||||||
Commissions |
16.9 | 12.8 | 25.9 | 16.0 | 11.7 | 71.6 | 99.2 | |||||||||||||||||||||||||
Other acquisition expenses |
4.8 | 4.1 | 4.8 | 4.7 | 6.3 | 18.4 | 18.6 | |||||||||||||||||||||||||
Total deferral of acquisition costs |
21.7 | 16.9 | 30.7 | 20.7 | 18.0 | 90.0 | 117.8 | |||||||||||||||||||||||||
Adjustments related to inv (gains) losses |
(0.8 | ) | (0.6 | ) | (1.2 | ) | (0.9 | ) | 0.2 | (3.5 | ) | 9.0 | ||||||||||||||||||||
Amortization |
(12.3 | ) | (13.3 | ) | (13.6 | ) | (13.2 | ) | (9.6 | ) | (52.4 | ) | (35.3 | ) | ||||||||||||||||||
Unlocking |
| | | | | | (1.1 | ) | ||||||||||||||||||||||||
Total amortization |
(12.3 | ) | (13.3 | ) | (13.6 | ) | (13.2 | ) | (9.6 | ) | (52.4 | ) | (36.4 | ) | ||||||||||||||||||
Unamortized balance, end of period |
283.2 | 274.6 | 271.6 | 255.7 | 249.1 | 283.2 | 249.1 | |||||||||||||||||||||||||
Accum effect of net unrealized gains |
(132.4 | ) | (201.7 | ) | (157.9 | ) | (110.0 | ) | (74.3 | ) | (132.4 | ) | (74.3 | ) | ||||||||||||||||||
DAC balance, end of period |
$ | 150.8 | $ | 72.9 | $ | 113.7 | $ | 145.7 | $ | 174.8 | $ | 150.8 | $ | 174.8 | ||||||||||||||||||
Retirement Division Income Annuities |
||||||||||||||||||||||||||||||||
Unamortized balance, beginning of period |
$ | 28.9 | $ | 27.0 | $ | 24.7 | $ | 22.4 | $ | 19.7 | $ | 22.4 | $ | 14.5 | ||||||||||||||||||
Deferral of acquisition costs: |
||||||||||||||||||||||||||||||||
Commissions |
2.5 | 2.1 | 2.3 | 2.4 | 2.9 | 9.3 | 8.8 | |||||||||||||||||||||||||
Other acquisition expenses |
0.3 | 0.4 | 0.4 | 0.4 | 0.2 | 1.5 | 0.7 | |||||||||||||||||||||||||
Total deferral of acquisition costs |
2.8 | 2.5 | 2.7 | 2.8 | 3.1 | 10.8 | 9.5 | |||||||||||||||||||||||||
Amortization |
(0.5 | ) | (0.6 | ) | (0.4 | ) | (0.5 | ) | (0.4 | ) | (2.0 | ) | (1.6 | ) | ||||||||||||||||||
Unamortized balance, end of period |
31.2 | 28.9 | 27.0 | 24.7 | 22.4 | 31.2 | 22.4 | |||||||||||||||||||||||||
DAC balance, end of period |
$ | 31.2 | $ | 28.9 | $ | 27.0 | $ | 24.7 | $ | 22.4 | $ | 31.2 | $ | 22.4 | ||||||||||||||||||
Life Division |
||||||||||||||||||||||||||||||||
Unamortized balance, beginning of period |
$ | 62.4 | $ | 58.7 | $ | 56.0 | $ | 51.0 | $ | 51.7 | $ | 51.0 | $ | 43.0 | ||||||||||||||||||
Deferral of acquisition costs: |
||||||||||||||||||||||||||||||||
Commissions |
2.0 | 3.2 | 2.4 | 3.1 | 1.5 | 10.7 | 8.9 | |||||||||||||||||||||||||
Other acquisition expenses |
5.8 | 2.5 | 1.3 | 1.8 | 0.7 | 11.4 | 4.3 | |||||||||||||||||||||||||
Total deferral of acquisition costs |
7.8 | 5.7 | 3.7 | 4.9 | 2.2 | 22.1 | 13.2 | |||||||||||||||||||||||||
Adjustments related to inv (gains) losses |
0.1 | | | (0.1 | ) | | | 0.3 | ||||||||||||||||||||||||
Amortization |
(0.9 | ) | (1.6 | ) | (1.0 | ) | (1.5 | ) | (0.9 | ) | (5.0 | ) | (3.5 | ) | ||||||||||||||||||
Unlocking |
| (0.4 | ) | | 1.7 | (2.0 | ) | 1.3 | (2.0 | ) | ||||||||||||||||||||||
Total amortization |
(0.9 | ) | (2.0 | ) | (1.0 | ) | 0.2 | (2.9 | ) | (3.7 | ) | (5.5 | ) | |||||||||||||||||||
Unamortized balance, end of period |
69.4 | 62.4 | 58.7 | 56.0 | 51.0 | 69.4 | 51.0 | |||||||||||||||||||||||||
Accum effect of net unrealized gains |
(5.0 | ) | (7.1 | ) | (3.9 | ) | (2.3 | ) | (1.0 | ) | (5.0 | ) | (1.0 | ) | ||||||||||||||||||
DAC balance, end of period |
$ | 64.4 | $ | 55.3 | $ | 54.8 | $ | 53.7 | $ | 50.0 | $ | 64.4 | $ | 50.0 | ||||||||||||||||||
10
Symetra Financial Corporation
4Q 2010 Financial Supplement
Account Value and Reserve Roll Forwards
(In millions)
4Q 2010 Financial Supplement
Account Value and Reserve Roll Forwards
(In millions)
For the Three Months Ended | For the Twelve Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Dec. 31, | Dec. 31, | ||||||||||||||||||||||||||
2010 | 2010 | 2010 | 2010 | 2009 | 2010 | 2009 | ||||||||||||||||||||||||||
Retirement Division: |
||||||||||||||||||||||||||||||||
Deferred Annuities: |
||||||||||||||||||||||||||||||||
Fixed Account Values |
||||||||||||||||||||||||||||||||
Account value, beginning of period |
$ | 8,805.6 | $ | 8,574.0 | $ | 8,005.4 | $ | 7,655.7 | $ | 7,464.1 | $ | 7,655.7 | $ | 5,724.9 | ||||||||||||||||||
Deposits |
560.3 | 321.1 | 667.6 | 422.8 | 307.8 | 1,971.8 | 2,355.5 | |||||||||||||||||||||||||
Interest credited |
88.8 | 84.9 | 80.4 | 77.2 | 78.3 | 331.3 | 288.3 | |||||||||||||||||||||||||
Withdrawals and transfers |
(207.5 | ) | (177.3 | ) | (174.6 | ) | (168.9 | ) | (191.3 | ) | (728.3 | ) | (665.0 | ) | ||||||||||||||||||
Other |
(3.5 | ) | 2.9 | (4.8 | ) | 18.6 | (3.2 | ) | 13.2 | (48.0 | ) | |||||||||||||||||||||
Account value, end of period |
$ | 9,243.7 | $ | 8,805.6 | $ | 8,574.0 | $ | 8,005.4 | $ | 7,655.7 | $ | 9,243.7 | $ | 7,655.7 | ||||||||||||||||||
Income Annuities: |
||||||||||||||||||||||||||||||||
Reserves |
||||||||||||||||||||||||||||||||
Reserves, beginning of period |
$ | 6,676.8 | $ | 6,716.8 | $ | 6,726.7 | $ | 6,726.3 | $ | 6,722.7 | $ | 6,726.3 | $ | 6,761.2 | ||||||||||||||||||
Deposits |
67.1 | 56.7 | 67.6 | 62.8 | 80.5 | 254.2 | 242.2 | |||||||||||||||||||||||||
Interest credited |
96.2 | 96.3 | 96.8 | 97.0 | 96.8 | 386.3 | 387.7 | |||||||||||||||||||||||||
Benefit payments |
(161.9 | ) | (186.1 | ) | (167.9 | ) | (147.2 | ) | (170.3 | ) | (663.1 | ) | (659.9 | ) | ||||||||||||||||||
Other |
(1.4 | ) | (6.9 | ) | (6.4 | ) | (12.2 | ) | (3.4 | ) | (26.9 | ) | (4.9 | ) | ||||||||||||||||||
Reserves, end of period |
$ | 6,676.8 | $ | 6,676.8 | $ | 6,716.8 | $ | 6,726.7 | $ | 6,726.3 | $ | 6,676.8 | $ | 6,726.3 | ||||||||||||||||||
Life Division: |
||||||||||||||||||||||||||||||||
BOLI Account Values |
||||||||||||||||||||||||||||||||
Account value, beginning of period |
$ | 3,969.7 | $ | 3,886.0 | $ | 3,853.2 | $ | 3,789.1 | $ | 3,754.9 | $ | 3,789.1 | $ | 3,700.4 | ||||||||||||||||||
Deposits |
358.2 | 74.5 | | 27.6 | | 460.3 | 25.0 | |||||||||||||||||||||||||
Interest credited |
54.6 | 55.7 | 52.0 | 52.0 | 50.7 | 214.3 | 208.1 | |||||||||||||||||||||||||
Surrenders |
| (32.2 | ) | (0.3 | ) | | | (32.5 | ) | (83.9 | ) | |||||||||||||||||||||
Administrative charges and other |
(17.1 | ) | (14.3 | ) | (18.9 | ) | (15.5 | ) | (16.5 | ) | (65.8 | ) | (60.5 | ) | ||||||||||||||||||
Account value, end of period |
$ | 4,365.4 | $ | 3,969.7 | $ | 3,886.0 | $ | 3,853.2 | $ | 3,789.1 | $ | 4,365.4 | $ | 3,789.1 | ||||||||||||||||||
UL Account Values |
||||||||||||||||||||||||||||||||
Account value, beginning of period |
$ | 596.9 | $ | 588.9 | $ | 585.3 | $ | 583.8 | $ | 584.8 | $ | 583.8 | $ | 580.3 | ||||||||||||||||||
Deposits |
25.0 | 22.2 | 19.1 | 22.5 | 18.9 | 88.8 | 69.0 | |||||||||||||||||||||||||
Interest credited |
6.3 | 6.4 | 6.1 | 0.4 | 1.1 | 19.2 | 20.6 | |||||||||||||||||||||||||
Surrenders |
(6.6 | ) | (5.9 | ) | (7.3 | ) | (7.3 | ) | (7.0 | ) | (27.1 | ) | (30.2 | ) | ||||||||||||||||||
Administrative charges and other |
(14.6 | ) | (14.7 | ) | (14.3 | ) | (14.1 | ) | (14.0 | ) | (57.7 | ) | (55.9 | ) | ||||||||||||||||||
Account value, end of period |
$ | 607.0 | $ | 596.9 | $ | 588.9 | $ | 585.3 | $ | 583.8 | $ | 607.0 | $ | 583.8 | ||||||||||||||||||
11
Symetra Financial Corporation
4Q 2010 Financial Supplement
Overview of Liabilities and Associated Unrealized Gains
(In millions)
4Q 2010 Financial Supplement
Overview of Liabilities and Associated Unrealized Gains
(In millions)
As of Dec. 31, 2010 | ||||||||||||
Policyholder Liability |
% of Total | Unrealized gains7 |
||||||||||
Illiquid Liabilities |
||||||||||||
Structured settlements & other SPIAs 1 |
$ | 6,670.4 | $ | 178.9 | ||||||||
Deferred annuities with 5 year payout provision or MVA2 |
377.1 | 18.1 | ||||||||||
Traditional insurance (net of reinsurance)3 |
185.6 | 9.0 | ||||||||||
Group health & life (net of reinsurance)3 |
95.9 | 2.6 | ||||||||||
Total illiquid liabilities |
7,329.0 | 34.5 | % | 208.6 | ||||||||
Somewhat Liquid Liabilities |
||||||||||||
Bank-owned life insurance (BOLI)4 |
4,444.0 | 145.1 | ||||||||||
Deferred annuities with surrender charges of 5% or higher |
6,176.8 | 296.2 | ||||||||||
Universal life with surrender charges of 5% or higher |
181.7 | 6.6 | ||||||||||
Total somewhat liquid liabilities |
10,802.5 | 50.9 | % | 447.9 | ||||||||
Fully Liquid Liabilities |
||||||||||||
Deferred
annuities with surrender charges of: |
||||||||||||
3% up to 5% |
462.6 | 22.2 | ||||||||||
Less than 3% |
231.2 | 11.0 | ||||||||||
No surrender charges5 |
1,946.9 | 93.4 | ||||||||||
Universal life with surrender charges less than 5% |
439.9 | 15.7 | ||||||||||
BOLI6 |
2.0 | 0.1 | ||||||||||
Traditional insurance (net of reinsurance)6 |
2.2 | 0.1 | ||||||||||
Group health & life (net of reinsurance)6 |
17.7 | 0.5 | ||||||||||
Total fully liquid liabilities |
3,102.5 | 14.6 | % | 143.0 | ||||||||
Assets supporting surplus portfolio |
50.0 | |||||||||||
Total |
$ | 21,234.0 | 100.0 | % | $ | 849.5 | ||||||
Reconciliation of unrealized gains to AOCI: |
||||
Unrealized gains from above |
$ | 849.5 | ||
Tax on unrealized gains and losses on available for sale securities |
(297.3 | ) | ||
Adjustment for deferred policy acquisition costs and deferred sales inducements valuation allowance, net of tax |
(117.9 | ) | ||
Other |
(1.8 | ) | ||
AOCI |
$ | 432.5 | ||
1 | These contracts cannot be surrendered. The benefits are specified in the contracts as fixed amounts to be paid over the next several decades. |
2 | In a liquidity crisis situation, we could invoke the five-year payout provision so that the contract value with interest is paid out ratably over five years. |
3 | The surrender value on these contracts is generally zero. Represents incurred but not reported claim liabilities. |
4 The biggest deterrent to surrender is the taxation on the gain within these contracts, which includes a 10% non-deductible penalty tax. Banks can exchange certain of these contracts with other carriers, tax-free. However, a significant portion of this business may not qualify for this tax-free treatment due to the employment status of the original covered employees. | |
5 Approximately half of this business has been with the Company for over a decade, contains lifetime minimum interest guarantees of 4.0% to 4.5% and has been free of surrender charges for many years. This business has experienced high persistency given the high lifetime guarantees that have not been available in the market on new issues for many years. | |
6 | Represents reported claim liabilities. |
7 | Represents the pre-tax unrealized gains of the investment portfolio supporting the related policyholder liability. |
12
Symetra Financial Corporation
4Q 2010 Financial Supplement
Investments Summary
(In millions)
4Q 2010 Financial Supplement
Investments Summary
(In millions)
As of | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | ||||||||||||||||||||||||||||||||||||||||||||||||
2010 | % | 2010 | % | 2010 | % | 2010 | % | 2009 | % | |||||||||||||||||||||||||||||||||||||||||||
Portfolio Composition: |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale securities: |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed maturities, at fair value |
$ | 21,281.8 | 90.6 | % | $ | 21,450.1 | 91.7 | % | $ | 20,612.2 | 92.2 | % | $ | 19,390.6 | 92.0 | % | $ | 18,594.3 | 92.1 | % | ||||||||||||||||||||||||||||||||
Marketable equity securities, at fair value |
45.1 | 0.2 | % | 45.4 | 0.2 | % | 43.9 | 0.2 | % | 37.6 | 0.2 | % | 36.7 | 0.2 | % | |||||||||||||||||||||||||||||||||||||
Trading securities: |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Marketable equity securities, at fair value |
189.3 | 0.8 | % | 158.8 | 0.7 | % | 141.0 | 0.6 | % | 151.0 | 0.7 | % | 154.1 | 0.8 | % | |||||||||||||||||||||||||||||||||||||
Mortgage loans, net |
1,713.0 | 7.3 | % | 1,493.4 | 6.4 | % | 1,338.1 | 6.0 | % | 1,225.9 | 5.8 | % | 1,199.6 | 5.9 | % | |||||||||||||||||||||||||||||||||||||
Policy loans |
71.5 | 0.3 | % | 71.7 | 0.3 | % | 72.3 | 0.3 | % | 73.4 | 0.4 | % | 73.9 | 0.4 | % | |||||||||||||||||||||||||||||||||||||
Short-term investments |
2.5 | 0.0 | % | 2.7 | 0.0 | % | 2.7 | 0.0 | % | 54.0 | 0.3 | % | 2.1 | 0.0 | % | |||||||||||||||||||||||||||||||||||||
Investment in limited partnerships |
186.9 | 0.8 | % | 169.1 | 0.7 | % | 136.9 | 0.6 | % | 130.6 | 0.6 | % | 110.2 | 0.6 | % | |||||||||||||||||||||||||||||||||||||
Other invested assets |
10.1 | 0.0 | % | 9.3 | 0.0 | % | 9.3 | 0.1 | % | 9.1 | 0.0 | % | 10.1 | 0.0 | % | |||||||||||||||||||||||||||||||||||||
Total investments |
23,500.2 | 100.0 | % | 23,400.5 | 100.0 | % | 22,356.4 | 100.0 | % | 21,072.2 | 100.0 | % | 20,181.0 | 100.0 | % | |||||||||||||||||||||||||||||||||||||
Cash and cash equivalents |
274.6 | 197.2 | 322.7 | 389.3 | 257.8 | |||||||||||||||||||||||||||||||||||||||||||||||
Total investments, cash and cash equivalents |
$ | 23,774.8 | $ | 23,597.7 | $ | 22,679.1 | $ | 21,461.5 | $ | 20,438.8 | ||||||||||||||||||||||||||||||||||||||||||
Fixed Maturities Securities by Credit Quality1: |
||||||||||||||||||||||||||||||||||||||||||||||||||||
1: AAA, AA, A |
$ | 13,042.4 | 61.3 | % | $ | 12,798.7 | 59.7 | % | $ | 12,116.4 | 58.8 | % | $ | 11,350.3 | 58.5 | % | $ | 11,031.3 | 59.3 | % | ||||||||||||||||||||||||||||||||
2: BBB |
6,981.9 | 32.8 | % | 7,681.7 | 35.8 | % | 7,465.0 | 36.2 | % | 6,960.2 | 35.9 | % | 6,530.9 | 35.1 | % | |||||||||||||||||||||||||||||||||||||
Total investment grade |
20,024.3 | 94.1 | % | 20,480.4 | 95.5 | % | 19,581.4 | 95.0 | % | 18,310.5 | 94.4 | % | 17,562.2 | 94.4 | % | |||||||||||||||||||||||||||||||||||||
3: BB |
679.0 | 3.2 | % | 570.4 | 2.7 | % | 642.0 | 3.1 | % | 688.4 | 3.6 | % | 641.3 | 3.5 | % | |||||||||||||||||||||||||||||||||||||
4: B |
393.8 | 1.8 | % | 268.1 | 1.2 | % | 264.6 | 1.3 | % | 250.2 | 1.3 | % | 219.2 | 1.2 | % | |||||||||||||||||||||||||||||||||||||
5: CCC & lower |
164.8 | 0.8 | % | 111.0 | 0.5 | % | 105.4 | 0.5 | % | 122.7 | 0.6 | % | 113.5 | 0.6 | % | |||||||||||||||||||||||||||||||||||||
6: In or near default |
19.9 | 0.1 | % | 20.2 | 0.1 | % | 18.8 | 0.1 | % | 18.8 | 0.1 | % | 58.1 | 0.3 | % | |||||||||||||||||||||||||||||||||||||
Total below investment grade |
1,257.5 | 5.9 | % | 969.7 | 4.5 | % | 1,030.8 | 5.0 | % | 1,080.1 | 5.6 | % | 1,032.1 | 5.6 | % | |||||||||||||||||||||||||||||||||||||
Total fixed maturities |
$ | 21,281.8 | 100.0 | % | $ | 21,450.1 | 100.0 | % | $ | 20,612.2 | 100.0 | % | $ | 19,390.6 | 100.0 | % | $ | 18,594.3 | 100.0 | % | ||||||||||||||||||||||||||||||||
Fixed Maturities by Issuer Type: |
||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. government and agencies |
$ | 33.1 | 0.2 | % | $ | 96.0 | 0.5 | % | $ | 123.0 | 0.6 | % | $ | 44.1 | 0.2 | % | $ | 43.9 | 0.2 | % | ||||||||||||||||||||||||||||||||
State and political subdivisions |
452.8 | 2.1 | % | 473.3 | 2.2 | % | 471.8 | 2.3 | % | 489.9 | 2.5 | % | 483.0 | 2.6 | % | |||||||||||||||||||||||||||||||||||||
Foreign governments |
23.6 | 0.1 | % | 24.9 | 0.1 | % | 25.0 | 0.1 | % | 26.2 | 0.1 | % | 27.4 | 0.2 | % | |||||||||||||||||||||||||||||||||||||
Corporate securities |
14,541.4 | 68.3 | % | 14,779.3 | 68.9 | % | 14,025.0 | 68.1 | % | 13,049.3 | 67.3 | % | 12,400.0 | 66.7 | % | |||||||||||||||||||||||||||||||||||||
Residential mortgage-backed securities |
3,801.6 | 17.9 | % | 3,840.0 | 17.9 | % | 3,806.2 | 18.4 | % | 3,649.3 | 18.8 | % | 3,536.4 | 19.0 | % | |||||||||||||||||||||||||||||||||||||
Commercial mortgage-baced securities |
1,887.3 | 8.9 | % | 1,911.0 | 8.9 | % | 1,829.5 | 8.9 | % | 1,774.8 | 9.2 | % | 1,789.4 | 9.6 | % | |||||||||||||||||||||||||||||||||||||
Other debt obligations |
542.0 | 2.5 | % | 325.6 | 1.5 | % | 331.7 | 1.6 | % | 357.0 | 1.9 | % | 314.2 | 1.7 | % | |||||||||||||||||||||||||||||||||||||
Total fixed maturities |
$ | 21,281.8 | 100.0 | % | $ | 21,450.1 | 100.0 | % | $ | 20,612.2 | 100.0 | % | $ | 19,390.6 | 100.0 | % | $ | 18,594.3 | 100.0 | % | ||||||||||||||||||||||||||||||||
Effective Duration |
5.5 | 5.4 | 5.4 | 5.3 | 5.4 | |||||||||||||||||||||||||||||||||||||||||||||||
Average Investment Yield |
5.49 | % | 5.51 | % | 5.50 | % | 5.48 | % | 5.62 | % | ||||||||||||||||||||||||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | ||||||||||||||||||||||||||||||||||||||||||||||||
2010 | % | 2010 | % | 2010 | % | 2010 | % | 2009 | % | |||||||||||||||||||||||||||||||||||||||||||
Average Daily Cash and Cash Equivalent Balances: |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Group Division |
$ | 8.8 | 2.8 | % | $ | 10.5 | 4.7 | % | $ | 9.5 | 3.2 | % | $ | 5.6 | 1.5 | % | $ | 4.7 | 2.1 | % | ||||||||||||||||||||||||||||||||
Retirement Division: |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Annuities |
150.6 | 47.5 | % | 54.4 | 24.3 | % | 174.4 | 57.9 | % | 177.6 | 48.2 | % | 163.2 | 75.2 | % | |||||||||||||||||||||||||||||||||||||
Income Annuities |
11.4 | 3.6 | % | 21.6 | 9.6 | % | 8.2 | 2.7 | % | 19.0 | 5.2 | % | 29.0 | 13.4 | % | |||||||||||||||||||||||||||||||||||||
Life Division |
124.9 | 39.4 | % | 112.9 | 50.3 | % | 42.6 | 14.1 | % | 31.2 | 8.5 | % | (51.5 | ) | -23.7 | % | ||||||||||||||||||||||||||||||||||||
Other |
21.1 | 6.7 | % | 24.8 | 11.1 | % | 66.5 | 22.1 | % | 134.9 | 36.6 | % | 71.7 | 33.0 | % | |||||||||||||||||||||||||||||||||||||
Total |
$ | 316.8 | 100.0 | % | $ | 224.2 | 100.0 | % | $ | 301.2 | 100.0 | % | $ | 368.3 | 100.0 | % | $ | 217.1 | 100.0 | % | ||||||||||||||||||||||||||||||||
For the Three Months Ended | For the Twelve Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||
Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Dec. 31, | Dec. 31, | ||||||||||||||||||||||||||||||||||||||||||||||
2010 | 2010 | 2010 | 2010 | 2009 | 2010 | 2009 | ||||||||||||||||||||||||||||||||||||||||||||||
MBS Prepayment Speed Adjustment:2 |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Group Division |
$ | - | $ | - | $ | 0.1 | $ | - | $ | - | $ | 0.1 | $ | - | ||||||||||||||||||||||||||||||||||||||
Retirement Division: |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Annuities |
0.2 | 0.1 | (0.2 | ) | 0.3 | (0.2 | ) | 0.4 | 0.1 | |||||||||||||||||||||||||||||||||||||||||||
Income Annuities |
3.2 | 0.1 | (0.1 | ) | (0.2 | ) | (0.1 | ) | 3.0 | 2.4 | ||||||||||||||||||||||||||||||||||||||||||
Life Division |
1.1 | - | 0.2 | (0.1 | ) | 0.1 | 1.2 | 1.5 | ||||||||||||||||||||||||||||||||||||||||||||
Other |
0.1 | 0.1 | (0.1 | ) | - | - | 0.1 | 0.1 | ||||||||||||||||||||||||||||||||||||||||||||
Total |
$ | 4.6 | $ | 0.3 | $ | (0.1 | ) | $ | - | $ | (0.2 | ) | $ | 4.8 | $ | 4.1 | ||||||||||||||||||||||||||||||||||||
1
Credit quality is based on NAIC (National Association of Insurance Commissioners) designation with presentation of the S&P equivalent credit ratings.
2
MBS prepayment speed adjustment is the impact to net investment income due to the change in prepayment speeds on the underlying collateral of mortgage-backed securities.
13
Symetra Financial Corporation
4Q 2010 Financial Supplement
Sales by Segment and Product
(In millions)
4Q 2010 Financial Supplement
Sales by Segment and Product
(In millions)
For the Three Months Ended | For the Twelve Months Ended | |||||||||||||||||||||||||||
Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Dec. 31, | Dec. 31, | ||||||||||||||||||||||
2010 | 2010 | 2010 | 2010 | 2009 | 2010 | 2009 | ||||||||||||||||||||||
Group Division |
||||||||||||||||||||||||||||
Medical stop-loss |
$ | 11.7 | $ | 15.1 | $ | 13.9 | $ | 38.4 | $ | 10.2 | $ | 79.1 | $ | 77.7 | ||||||||||||||
Limited benefit medical |
2.9 | 2.8 | 5.4 | 2.2 | 2.0 | 13.3 | 10.5 | |||||||||||||||||||||
Group life & disability |
0.5 | 0.5 | 1.3 | 0.8 | 1.2 | 3.1 | 3.1 | |||||||||||||||||||||
Total |
$ | 15.1 | $ | 18.4 | $ | 20.6 | $ | 41.4 | $ | 13.4 | $ | 95.5 | $ | 91.3 | ||||||||||||||
Retirement Division Deferred Annuities |
||||||||||||||||||||||||||||
Fixed annuities |
$ | 514.0 | $ | 276.5 | $ | 616.8 | $ | 369.5 | $ | 249.9 | $ | 1,776.8 | $ | 2,152.0 | ||||||||||||||
Variable annuities |
4.4 | 5.4 | 4.0 | 4.7 | 6.7 | 18.5 | 20.2 | |||||||||||||||||||||
Retirement plans1 |
4.5 | 4.5 | 3.1 | 3.3 | 5.3 | 15.4 | 56.2 | |||||||||||||||||||||
Total |
$ | 522.9 | $ | 286.4 | $ | 623.9 | $ | 377.5 | $ | 261.9 | $ | 1,810.7 | $ | 2,228.4 | ||||||||||||||
Retirement Division Income Annuities |
||||||||||||||||||||||||||||
SPIA |
$ | 31.9 | $ | 31.4 | $ | 47.2 | $ | 43.1 | $ | 62.1 | $ | 153.6 | $ | 189.5 | ||||||||||||||
Structured settlements |
36.0 | 26.6 | 20.6 | 23.2 | 21.7 | 106.4 | 62.3 | |||||||||||||||||||||
Total |
$ | 67.9 | $ | 58.0 | $ | 67.8 | $ | 66.3 | $ | 83.8 | $ | 260.0 | $ | 251.8 | ||||||||||||||
Life Division |
||||||||||||||||||||||||||||
Term life insurance |
$ | 0.4 | $ | 1.1 | $ | 1.1 | $ | 1.5 | $ | 1.5 | $ | 4.1 | $ | 5.1 | ||||||||||||||
Permanent life insurance |
2.0 | 1.5 | 1.3 | 1.3 | 1.2 | 6.1 | 5.4 | |||||||||||||||||||||
BOLI |
35.9 | 7.5 | | 2.7 | | 46.1 | 2.5 | |||||||||||||||||||||
Total |
$ | 38.3 | $ | 10.1 | $ | 2.4 | $ | 5.5 | $ | 2.7 | $ | 56.3 | $ | 13.0 | ||||||||||||||
1 Includes Symetras sales of third party mutual funds which were
discontinued in 2009. Symetra recognizes fee-based income and does not include
sales of this product in account value figures.
14
Symetra Financial Corporation
4Q 2010 Financial Supplement
Book Value, Adjusted Book Value and Statutory Book Value per Share
(In millions, except per share amounts)
4Q 2010 Financial Supplement
Book Value, Adjusted Book Value and Statutory Book Value per Share
(In millions, except per share amounts)
As of | |||||||||||||||||||||
Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | |||||||||||||||||
2010 | 2010 | 2010 | 2010 | 2009 | |||||||||||||||||
Book value per common share 1
|
$ | 17.35 | $ | 19.77 | $ | 17.08 | $ | 14.39 | $ | 12.83 | |||||||||||
Non-GAAP Financial Measures: |
|||||||||||||||||||||
Adjusted book value per common share 2
|
$ | 16.48 | $ | 16.01 | $ | 15.58 | $ | 15.35 | $ | 15.99 | |||||||||||
Adjusted book value per common share, as converted 3
|
$ | 15.79 | $ | 15.38 | $ | 15.02 | $ | 14.81 | $ | 15.23 | |||||||||||
Statutory book value per common share 4
|
$ | 16.39 | $ | 15.97 | $ | 15.58 | $ | 15.26 | $ | 16.56 | |||||||||||
Numerator: |
|||||||||||||||||||||
Total stockholders equity
|
$ | 2,380.6 | $ | 2,711.3 | $ | 2,342.8 | $ | 1,971.7 | $ | 1,433.3 | |||||||||||
AOCI 5
|
432.5 | 819.4 | 501.1 | 159.5 | (49.7 | ) | |||||||||||||||
Adjusted book value
|
$ | 1,948.1 | $ | 1,891.9 | $ | 1,841.7 | $ | 1,812.2 | $ | 1,483.0 | |||||||||||
Assumed proceeds from exercise of warrants
|
218.1 | 218.1 | 218.1 | 218.1 | 218.1 | ||||||||||||||||
Adjusted book value, as converted
|
$ | 2,166.2 | $ | 2,110.0 | $ | 2,059.8 | $ | 2,030.3 | $ | 1,701.1 | |||||||||||
Total stockholders equity
|
$ | 2,380.6 | $ | 2,711.3 | $ | 2,342.8 | $ | 1,971.7 | $ | 1,433.3 | |||||||||||
Stockholders equity of non-insurance entities
|
(238.6 | ) | (227.0 | ) | (214.0 | ) | (224.2 | ) | (154.1 | ) | |||||||||||
Statutory adjustments
|
(389.7 | ) | (597.2 | ) | (287.9 | ) | 54.9 | 136.2 | |||||||||||||
Asset valuation reserve (AVR)
|
185.1 | 159.8 | 133.8 | 135.6 | 120.5 | ||||||||||||||||
Statutory book value
|
$ | 1,937.4 | $ | 1,887.1 | $ | 1,840.9 | $ | 1,802.4 | $ | 1,535.9 | |||||||||||
Denominator: 6
|
|||||||||||||||||||||
Basic common shares outstanding
|
118.216 | 118.171 | 118.175 | 118.086 | 92.729 | ||||||||||||||||
Diluted common shares outstanding
|
137.192 | 137.147 | 137.151 | 137.062 | 111.705 | ||||||||||||||||
1 Book value per common share is calculated based on stockholders equity divided by diluted common shares outstanding.
2 Adjusted book value per common share is calculated based on stockholders equity less AOCI, divided by basic common shares outstanding.
3 Adjusted book value per common share, as converted gives effect to the exercise of the outstanding warrants and is calculated based on
stockholders equity less AOCI plus the assumed proceeds from the warrants, divided by diluted common shares outstanding.
4 Statutory book value per common share is calculated based on statutory book value divided by basic common shares outstanding.
5 Accumulated other comprehensive income (loss) (net of taxes).
As of | ||||||||||||||||||||
Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | ||||||||||||||||
2010 | 2010 | 2010 | 2010 | 2009 | ||||||||||||||||
6 Share reconciliation: | ||||||||||||||||||||
Basic common shares outstanding, beginning of period
|
118.171 | 118.175 | 118.086 | 92.729 | 92.729 | |||||||||||||||
Primary shares issued in IPO
|
- | - | - | 25.260 | - | |||||||||||||||
Employee stock purchase plan shares issued
|
0.033 | - | - | - | - | |||||||||||||||
Restricted shares issued
|
0.030 | 0.010 | 0.137 | 0.097 | - | |||||||||||||||
Restricted shares forfeited
|
(0.018 | ) | (0.014 | ) | - | - | - | |||||||||||||
Shares repurchased/retired
|
- | - | (0.048 | ) | - | - | ||||||||||||||
Basic common shares outstanding, end of period
|
118.216 | 118.171 | 118.175 | 118.086 | 92.729 | |||||||||||||||
Outstanding warrants
|
18.976 | 18.976 | 18.976 | 18.976 | 18.976 | |||||||||||||||
Diluted common shares outstanding, end of period
|
137.192 | 137.147 | 137.151 | 137.062 | 111.705 | |||||||||||||||
15
Symetra Financial Corporation
4Q 2010 Financial Supplement
ROE and Operating ROAE
(In millions)
4Q 2010 Financial Supplement
ROE and Operating ROAE
(In millions)
Twelve Months Ended | ||||||||||||||||||||||
Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | ||||||||||||||||||
2010 | 2010 | 2010 | 2010 | 2009 | ||||||||||||||||||
ROE: |
||||||||||||||||||||||
Net income for the twelve months ended1 |
$ | 200.9 | $ | 170.8 | $ | 158.3 | $ | 169.5 | $ | 128.3 | ||||||||||||
Average stockholders equity 2 |
$ | 2,167.9 | $ | 1,987.9 | $ | 1,598.4 | $ | 1,169.5 | $ | 832.4 | ||||||||||||
ROE |
9.3% | 8.6% | 9.9% | 14.5% | 15.4% | |||||||||||||||||
Operating ROAE: |
||||||||||||||||||||||
Adjusted operating income for the twelve months ended1 |
$ | 175.2 | $ | 159.9 | $ | 153.8 | $ | 157.6 | $ | 147.9 | ||||||||||||
Average adjusted book value3 |
$ | 1,795.4 | $ | 1,695.9 | $ | 1,598.8 | $ | 1,502.4 | $ | 1,407.7 | ||||||||||||
Operating ROAE |
9.8% | 9.4% | 9.6% | 10.5% | 10.5% | |||||||||||||||||
1
The twelve months ended information is derived by adding the four most recent quarters of net income or adjusted operating
income.
2
Average stockholders equity is derived by averaging ending stockholders equity for the most recent five quarters.
3
Average adjusted book value is derived by averaging ending stockholders equity less AOCI, for the most recent five quarters.
Calculation of average stockholders equity:
The following data can be used to recalculate the average stockholders equity and average adjusted
book value amounts used in the calculation of ROE and operating ROAE.
As of | |||||||||||||||
2010 | 2009 | 2008 | |||||||||||||
Stockholders Equity |
|||||||||||||||
Dec. 31 | $ | 2,380.6 | $ | 1,433.3 | $ | 286.2 | |||||||||
Sep. 30 | 2,711.3 | 1,480.5 | 560.9 | ||||||||||||
Jun. 30 | 2,342.8 | 763.7 | 998.8 | ||||||||||||
Mar. 31 | 1,971.7 | 198.5 | 1,178.1 | ||||||||||||
AOCI |
|||||||||||||||
Dec. 31 | $ | 432.5 | $ | (49.7 | ) | $ | (1,052.6 | ) | |||||||
Sep. 30 | 819.4 | 29.8 | (782.8 | ) | |||||||||||
Jun. 30 | 501.1 | (642.9 | ) | (349.7 | ) | ||||||||||
Mar. 31 | 159.5 | (1,161.1 | ) | (141.9 | ) |
Reconciliation of adjusted operating income:
The following data in connection with other data found throughout the supplement can be used to
recalculate adjusted operating income for the twelve months ended June 30, 2010, March 31, 2010,
and December 31, 2009.
Three Months Ended | ||||||||||||
Sep. 30, | Jun. 30, | Mar. 31, | ||||||||||
2009 | 2009 | 2009 | ||||||||||
Net income |
$ | 44.1 | $ | 47.0 | $ | 5.1 | ||||||
Less: Net realized investment gains (losses) (net of taxes) |
7.3 | 1.8 | (28.0 | ) | ||||||||
Add: Net investment gains (losses) on FIA options (net of taxes) |
0.9 | 0.1 | (0.9 | ) | ||||||||
Adjusted operating income |
$ | 37.7 | $ | 45.3 | $ | 32.2 | ||||||
16