Symetra Financial CORP - FORM 8-K - EX-99.2

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8-K - FORM 8-K - Symetra Financial CORP	v59656e8vk.htm
EX-99.1 - EX-99.1 - Symetra Financial CORP	v59656exv99w1.htm

Exhibit 99.2

July 27, 2011

SECOND QUARTER 2011

Symetra Financial Corporation (SYA)

Financial Supplement

All financial information in this document is unaudited

Symetra Financial Corporation
Financial Supplement
Table of Contents
June 30, 2011


		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		6
Income Annuities		7
*(including new addition of base interest spread on reserves)*
Life Division		8
*(including new addition of annualized mortality rate)*
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
*(including new addition of fixed indexed annuity and single premium life sales)*
Book Value, Adjusted Book Value and Statutory Book Value per Share		15
ROE and Operating ROAE		16

Symetra Financial Corporation
2Q 2011 Financial Supplement
Financial Highlights
(In millions, except per share and metric or percentage data)



	For the Three Months Ended										For the Six Months Ended
	Jun. 30,		Mar. 31,		Dec. 31,		Sep. 30,		Jun. 30,		Jun. 30,		Jun. 30,
	2011		2011		2010		2010		2010		2011		2010

Net income	$	59.4	$	54.9	$	62.2	$	56.6	$	35.8	$	114.3	$	82.1

Net income per common share ¹
Basic	$	0.43	$	0.40	$	0.45	$	0.41	$	0.26	$	0.83	$	0.61
Diluted	$	0.43	$	0.40	$	0.45	$	0.41	$	0.26	$	0.83	$	0.61

Weighted-average common shares outstanding:
Basic		137.523		137.292		137.174		137.140		137.019		137.408		134.035
Diluted		137.532		137.300		137.179		137.145		137.038		137.417		134.056

Non-GAAP Financial Measures ²
Adjusted operating income	$	49.8	$	45.1	$	48.0	$	43.8	$	41.5	$	94.9	$	83.4

Adjusted operating income per common share: ¹
Basic	$	0.36	$	0.33	$	0.35	$	0.32	$	0.30	$	0.69	$	0.62
Diluted	$	0.36	$	0.33	$	0.35	$	0.32	$	0.30	$	0.69	$	0.62



	As of
	Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,			Jun. 30,
	2011			2011			2010			2010			2010

Consolidated Balance Sheet Data
Total investments	$	24,941.5		$	24,200.5		$	23,500.2		$	23,400.5		$	22,356.4

Total assets		26,942.8			26,422.3			25,636.9			25,302.3			24,349.2

Notes payable		449.1			449.1			449.0			449.0			449.0

Accumulated other comprehensive income(net of taxes) (AOCI)		597.9			434.0			432.5			819.4			501.1

Total stockholders’ equity		2,647.3			2,431.0			2,380.6			2,711.3			2,342.8

U.S. Statutory Financial Information:
Statutory capital and surplus	$	1,827.8		$	1,780.2		$	1,752.3		$	1,727.3		$	1,707.1
Asset valuation reserve (AVR)		212.9			206.1			185.1			159.8			133.8

Statutory book value	$	2,040.7		$	1,986.3		$	1,937.4		$	1,887.1		$	1,840.9


Basic common shares outstanding, end of period (page 15)		118.571			118.535			118.216			118.171			118.175

Book value per common share	$	19.25		$	17.68		$	17.35		$	19.77		$	17.08

Debt to capital ratio		14.5	%		15.6	%		15.9	%		14.2	%		16.1	%

Non-GAAP Financial Measures ²
Adjusted book value (stockholders’ equity excluding AOCI)	$	2,049.4		$	1,997.0		$	1,948.1		$	1,891.9		$	1,841.7
Adjusted book value per common share :
Adjusted book value per common share ³	$	17.28		$	16.85		$	16.48		$	16.01		$	15.58
Adjusted book value per common share, as converted ⁴	$	16.49		$	16.11		$	15.79		$	15.38		$	15.02
Statutory book value per common share ⁵	$	17.21		$	16.76		$	16.39		$	15.97		$	15.58

Debt to capital ratio, excluding AOCI ⁶		18.0	%		18.4	%		18.7	%		19.2	%		19.6	%



	For the Twelve Months Ended
	Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,			Jun. 30,
	2011			2011			2010			2010			2010

ROE		9.3	%		8.8	%		9.3	%		8.6	%		9.9	%

Non-GAAP Financial Measure ²
Operating ROAE ⁷		9.6	%		9.4	%		9.8	%		9.4	%		9.6	%

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 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.

Symetra Financial Corporation
2Q 2011 Financial Supplement
Consolidated Income Statement Data
(In millions, except per share data)


	For the Three Months Ended															For the Six Months Ended
	Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,			Jun. 30,			Jun. 30,			Jun. 30,
	2011			2011			2010			2010			2010			2011			2010

Revenues:
Premiums	$	119.4		$	120.9		$	118.3		$	120.2		$	115.5		$	240.3		$	234.5
Net investment income		312.2			310.0			311.0			304.4			297.1			622.2			584.0
Policy fees, contract charges and other		45.9			44.7			43.1			40.9			41.8			90.6			82.3
Net realized investment gains (losses):
Total other-than-temporary impairment losses on securities		(3.1	)		(0.9	)		(23.1	)		(9.6	)		(2.7	)		(4.0	)		(20.6	)
Less: portion of losses recognized in other comprehensive income		0.3			—			16.9			6.1			1.2			0.3			9.4

Net impairment losses recognized in earnings		(2.8	)		(0.9	)		(6.2	)		(3.5	)		(1.5	)		(3.7	)		(11.2	)
Other net realized investment gains (losses)		16.9			16.5			29.2			23.5			(8.5	)		33.4			8.0

Total net realized investment gains (losses)		14.1			15.6			23.0			20.0			(10.0	)		29.7			(3.2	)

Total revenues		491.6			491.2			495.4			485.5			444.4			982.8			897.6

Benefits and expenses:
Policyholder benefits and claims		83.7			92.3			80.2			85.4			83.3			176.0			169.5
Interest credited		225.1			228.3			231.7			227.8			221.5			453.4			440.0
Other underwriting and operating expenses		70.5			66.0			69.8			63.1			64.2			136.5			123.8
Interest expense		8.0			8.0			8.0			8.0			7.9			16.0			15.9
Amortization of deferred policy acquisition costs		20.0			20.1			15.8			18.0			17.0			40.1			32.4

Total benefits and expenses		407.3			414.7			405.5			402.3			393.9			822.0			781.6


Income from operations before income taxes		84.3			76.5			89.9			83.2			50.5			160.8			116.0
Provision (benefit) for income taxes:
Current		31.1			11.2			11.6			18.8			17.4			42.3			27.3
Deferred		(6.2	)		10.4			16.1			7.8			(2.7	)		4.2			6.6

Total provision for income taxes		24.9			21.6			27.7			26.6			14.7			46.5			33.9

Net income	$	59.4		$	54.9		$	62.2		$	56.6		$	35.8		$	114.3		$	82.1


Net income per common share: ¹
Basic	$	0.43		$	0.40		$	0.45		$	0.41		$	0.26		$	0.83		$	0.61
Diluted	$	0.43		$	0.40		$	0.45		$	0.41		$	0.26		$	0.83		$	0.61

Weighted-average number of common shares outstanding:
Basic		137.523			137.292			137.174			137.140			137.019			137.408			134.035
Diluted		137.532			137.300			137.179			137.145			137.038			137.417			134.056

Cash dividends declared per common share	$	0.06		$	0.05		$	0.05		$	0.05		$	0.05		$	0.11		$	0.05

Non-GAAP Financial Measures:
Adjusted operating income	$	49.8		$	45.1		$	48.0		$	43.8		$	41.5		$	94.9		$	83.4

Adjusted operating income per common share: ¹
Basic	$	0.36		$	0.33		$	0.35		$	0.32		$	0.30		$	0.69		$	0.62
Diluted	$	0.36		$	0.33		$	0.35		$	0.32		$	0.30		$	0.69		$	0.62

Weighted-average number of common shares outstanding:
Basic		137.523			137.292			137.174			137.140			137.019			137.408			134.035
Diluted		137.532			137.300			137.179			137.145			137.038			137.417			134.056
Reconciliation to net income:
Net income	$	59.4		$	54.9		$	62.2		$	56.6		$	35.8		$	114.3		$	82.1
Less: Net realized investment gains (losses) (net of taxes)		9.2			10.1			15.0			13.0			(6.6	)		19.3			(2.1	)
Add: Net investment gains (losses)
on FIA options (net of taxes)		(0.4	)		0.3			0.8			0.2			(0.9	)		(0.1	)		(0.8	)

Adjusted operating income	$	49.8		$	45.1		$	48.0		$	43.8		$	41.5		$	94.9		$	83.4


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.

Symetra Financial Corporation
2Q 2011 Financial Supplement
Consolidated Balance Sheet Data
(In millions)


	Jun. 30,		Mar. 31,		Dec. 31,		Sep. 30,		Jun. 30,
	2011		2011		2010		2010		2010

Assets
Investments:
Available-for-sale securities:
Fixed maturities, at fair value	$	22,146.5	$	21,785.4	$	21,281.8	$	21,450.1	$	20,612.2
Marketable equity securities, at fair value		51.2		46.4		45.1		45.4		43.9
Trading securities:
Marketable equity securities, at fair value		380.9		224.7		189.3		158.8		141.0
Mortgage loans, net		2,085.0		1,862.0		1,713.0		1,493.4		1,338.1
Policy loans		69.6		70.4		71.5		71.7		72.3
Short-term investments		2.7		2.4		2.5		2.7		2.7
Investments in limited partnerships		193.8		198.8		186.9		169.1		136.9
Other invested assets		11.8		10.4		10.1		9.3		9.3

Total investments		24,941.5		24,200.5		23,500.2		23,400.5		22,356.4

Cash and cash equivalents		87.4		307.9		274.6		197.2		322.7
Accrued investment income		268.1		267.3		257.6		257.5		251.6
Accounts receivable and other receivables		97.5		63.6		65.6		89.0		81.9
Reinsurance recoverables		288.8		283.9		280.8		284.8		277.3
Deferred policy acquisition costs		238.5		262.5		250.0		160.9		199.0
Goodwill		29.4		28.9		28.4		27.8		27.3
Current income tax recoverable		4.4		—		3.0		—		—
Other assets		99.9		106.2		95.0		58.4		74.0
Separate account assets		887.3		901.5		881.7		826.2		759.0

Total assets	$	26,942.8	$	26,422.3	$	25,636.9	$	25,302.3	$	24,349.2


Liabilities and stockholders’ equity
Funds held under deposit contracts	$	21,909.0	$	21,553.4	$	20,953.3	$	20,107.9	$	19,825.7
Future policy benefits		399.6		399.3		398.4		397.6		397.0
Policy and contract claims		126.4		108.2		116.6		126.1		120.7
Unearned premiums		12.6		12.5		12.2		12.8		14.0
Other policyholders’ funds		109.5		112.9		111.0		109.1		99.5
Notes payable		449.1		449.1		449.0		449.0		449.0
Current income tax payable		—		1.0		—		2.9		2.1
Deferred income tax liabilities, net		192.2		110.2		99.0		291.1		112.0
Other liabilities		209.8		343.2		235.1		268.3		227.4
Separate account liabilities		887.3		901.5		881.7		826.2		759.0

Total liabilities		24,295.5		23,991.3		23,256.3		22,591.0		22,006.4

Preferred stock		—		—		—		—		—
Common stock		1.2		1.2		1.2		1.2		1.2
Additional paid-in-capital		1,452.3		1,451.1		1,450.2		1,449.3		1,449.5
Retained earnings		595.9		544.7		496.7		441.4		391.6
Treasury stock		—		—		—		—		(0.6	)
Accumulated other comprehensive income, net of taxes		597.9		434.0		432.5		819.4		501.1

Total stockholders’ equity		2,647.3		2,431.0		2,380.6		2,711.3		2,342.8

Total liabilities and stockholders’ equity	$	26,942.8	$	26,422.3	$	25,636.9	$	25,302.3	$	24,349.2

Symetra Financial Corporation
2Q 2011 Financial Supplement
Segment Income Statement Data
(In millions)


	For the Three Months Ended																For the Six Months Ended
		Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,			Jun. 30,				Jun. 30,			Jun. 30,
		2011			2011			2010			2010			2010				2011			2010
Operating revenues:
Group Divison		$	117.9		$	117.5		$	116.4		$	117.3		$	113.6			$	235.4		$	229.9
Retirement Division:
Deferred Annuities			133.1			128.7			127.0			124.0			118.8				261.8			231.5
Income Annuities			102.7			105.2			108.7			105.7			104.9				207.9			209.1
Life Division			111.6			112.8			108.8			107.4			107.8				224.4			213.2
Other			11.6			11.9			12.7			11.4			8.0				23.5			15.9

Total		$	476.9		$	476.1		$	473.6		$	465.8		$	453.1			$	953.0		$	899.6

Segment pre-tax adjusted operating income (loss):
Group Divison		$	19.0		$	13.8		$	21.0		$	16.7		$	18.2			$	32.8		$	33.9
Retirement Division:
Deferred Annuities			23.0			23.2			20.9			22.5			20.6				46.2			37.9
Income Annuities			12.6			8.9			10.9			9.5			6.4				21.5			12.8
Life Division			17.4			16.9			17.3			15.3			19.0				34.3			42.3
Other			(2.4	)		(1.4	)		(2.0	)		(0.5	)		(5.0	)			(3.8	)		(8.9	)

Total		$	69.6		$	61.4		$	68.1		$	63.5		$	59.2			$	131.0		$	118.0

Symetra Financial Corporation
2Q 2011 Financial Supplement
Group Division
(In millions)


	For the Three Months Ended																For the Six Months Ended
		Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,			Jun. 30,				Jun. 30,			Jun. 30,
	2011				2011			2010			2010			2010				2011			2010
Operating revenues:
Premiums		$	109.8		$	110.0		$	108.7		$	109.9		$	105.8			$	219.8		$	214.6
Net investment income			4.4			4.2			4.6			4.7			4.8				8.6			9.4
Policy fees, contract charges and other			3.7			3.3			3.1			2.7			3.0				7.0			5.9

Total operating revenues			117.9			117.5			116.4			117.3			113.6				235.4			229.9

Benefits and expenses:
Policyholder benefits and claims			68.5			74.3			65.8			73.1			67.4				142.8			142.4
Other underwriting and operating expenses			28.3			27.3			27.5			25.4			26.0				55.6			49.7
Amortization of deferred policy acquisition costs			2.1			2.1			2.1			2.1			2.0				4.2			3.9

Total benefits and expenses			98.9			103.7			95.4			100.6			95.4				202.6			196.0

Segment pre-tax adjusted operating income		$	19.0		$	13.8		$	21.0		$	16.7		$	18.2			$	32.8		$	33.9


Operating Metrics:
Group loss ratio ^{1, 6}			62.4	%		67.6	%		60.5	%		66.5	%		63.8	%			65.0	%		66.4	%
Expense ratio ²			26.9	%		25.9	%		26.5	%		24.0	%		25.4	%			26.4	%		24.3	%

Combined ratio ³			89.3	%		93.5	%		87.0	%		90.5	%		89.2	%			91.4	%		90.7	%

Medical stop-loss — loss ratio ^{4, 6}			63.6	%		69.3	%		62.3	%		68.7	%		65.4	%			66.5	%		67.8	%
Total sales ⁵		$	23.4		$	48.7		$	15.1		$	18.4		$	20.6			$	72.1		$	62.0

Premiums:
Medical stop-loss		$	96.6		$	96.7		$	96.8		$	98.1		$	94.6			$	193.3		$	192.2
Limited benefit medical			10.5			10.7			9.5			9.1			8.5				21.2			16.5
Other			2.7			2.6			2.4			2.7			2.7				5.3			5.9

Total premiums earned		$	109.8		$	110.0		$	108.7		$	109.9		$	105.8			$	219.8		$	214.6


5 Year Historical Group Loss Ratio ¹:													For the Year
	For the Three Months Ended												Ended
	1Q			2Q			3Q			4Q
2010		68.9	%		63.8	%		66.5	%		60.5	%		64.9	%
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	%

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 net of first year policy lapses.

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%.

Symetra Financial Corporation
2Q 2011 Financial Supplement
Retirement Division — Deferred Annuities
(In millions)


	For the Three Months Ended																For the Six Months Ended
		Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,			Jun. 30,				Jun. 30,			Jun. 30,
	2011				2011			2010			2010			2010			2011				2010
Operating revenues:
Net investment income		$	128.2		$	123.1		$	120.8		$	119.0		$	115.3			$	251.3		$	223.1
Policy fees, contract charges and other			5.5			5.1			5.0			4.7			4.8				10.6			9.6
Net investment gains (losses) on FIA options			(0.6	)		0.5			1.2			0.3			(1.3	)			(0.1	)		(1.2	)

Total operating revenues			133.1			128.7			127.0			124.0			118.8				261.8			231.5

Benefits and expenses:
Policyholder benefits and claims			—			(0.1	)		(0.1	)		(0.5	)		0.6				(0.1	)		0.7
Interest credited			79.9			77.6			79.0			75.7			70.4				157.5			138.9
Other underwriting and operating expenses			14.2			12.4			14.9			13.0			13.6				26.6			27.2
Amortization of deferred policy acquisition costs			16.0			15.6			12.3			13.3			13.6				31.6			26.8

Total benefits and expenses			110.1			105.5			106.1			101.5			98.2				215.6			193.6

Segment pre-tax adjusted operating income		$	23.0		$	23.2		$	20.9		$	22.5		$	20.6			$	46.2		$	37.9


Operating Metrics:
Account values — fixed annuities		$	10,127.3		$	9,793.9		$	9,243.7		$	8,805.6		$	8,574.0			$	10,127.3		$	8,574.0
Account values — variable annuities			796.9			809.2			791.1			742.6			682.3				796.9			682.3
Interest spread on average account values ¹			1.81	%		1.82	%		1.81	%		1.85	%		1.97	%			1.83	%		1.91	%
Total sales ²		$	446.5		$	618.4		$	522.9		$	286.4		$	623.9			$	1,064.9		$	1,001.4

¹Interest spread is the difference between the 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.

²Total sales represent deposits for new policies net of first year policy lapses and/or surrenders.

Symetra Financial Corporation
2Q 2011 Financial Supplement
Retirement Division — Deferred Annuities
(In millions)


	For the Three Months Ended																For the Six Months Ended
		Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,			Jun. 30,				Jun. 30,			Jun. 30,
	2011				2011			2010			2010			2010			2011				2010
Operating revenues:
Net investment income		$	102.3		$	105.0		$	108.4		$	105.6		$	104.7			$	207.3		$	208.7
Policy fees, contract charges and other			0.4			0.2			0.3			0.1			0.2				0.6			0.4

Total operating revenues			102.7			105.2			108.7			105.7			104.9				207.9			209.1

Benefits and expenses:
Interest credited			83.6			89.7			91.3			90.1			92.9				173.3			184.9
Other underwriting and operating expenses			5.9			5.9			6.0			5.5			5.2				11.8			10.5
Amortization of deferred policy acquisition costs			0.6			0.7			0.5			0.6			0.4				1.3			0.9

Total benefits and expenses			90.1			96.3			97.8			96.2			98.5				186.4			196.3

Segment pre-tax adjusted operating income		$	12.6		$	8.9		$	10.9		$	9.5		$	6.4			$	21.5		$	12.8


Operating Metrics:
Reserves ¹		$	6,646.6		$	6,681.4		$	6,676.8		$	6,676.8		$	6,716.8			$	6,646.6		$	6,716.8
Interest spread on reserves ²			0.48	%		0.58	%		0.79	%		0.59	%		0.49	%			0.55	%		0.45	%
Base interest spread on reserves ³			0.52	%		0.47	%		0.61	%		0.59	%		0.50	%			0.51	%		0.46	%
MBS prepayment speed adjustment ⁴		$	(0.7	)	$	1.8		$	3.2		$	0.1		$	(0.1	)		$	1.1		$	(0.3	)
Mortality gains (losses) ⁵			4.9			0.7			(0.6	)		(0.1	)		(1.8	)			5.6			(1.9	)
Total sales ⁶			38.7			64.5			67.9			58.0			67.8				103.2			134.1


5 Year Historical Mortality Gains (Losses):⁵													For the Year
	For the Three Months Ended												Ended
	1Q			2Q			3Q			4Q
2010	$	(0.1	)	$	(1.8	)	$	(0.1	)	$	(0.6	)	$	(2.6	)
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

¹Reserves 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.

²Interest spread is the difference between the 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.

³Base interest spread on reserves is equal to interest spread on reserves excluding MBS prepayment speed adjustment.

⁴MBS 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.

⁵Mortality gains (losses) represents the difference between actual and expected reserves released on our life contingent annuities.

⁶Total sales represent deposits for new policies net of first year policy lapses and/or surrenders.

Symetra Financial Corporation
2Q 2011 Financial Supplement
Life Division
(In millions)


	For the Three Months Ended																For the Six Months Ended
		Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,			Jun. 30,				Jun. 30,			Jun. 30,
	2011				2011			2010			2010			2010			2011				2010
Operating revenues:
Premiums		$	9.6		$	10.9		$	9.6		$	10.3		$	9.7			$	20.5		$	19.9
Net investment income			71.1			71.2			69.4			67.5			68.3				142.3			134.4
Policy fees, contract charges and other			30.9			30.7			29.8			29.6			29.8				61.6			58.9

Total operating revenues			111.6			112.8			108.8			107.4			107.8				224.4			213.2

Benefits and expenses:
Policyholder benefits and claims			15.2			18.1			14.5			12.8			15.3				33.3			26.4
Interest credited			62.2			61.7			62.0			63.1			59.1				123.9			117.6
Other underwriting and operating expenses			15.5			14.4			14.1			14.2			13.4				29.9			26.1
Amortization of deferred policy acquisition costs			1.3			1.7			0.9			2.0			1.0				3.0			0.8

Total benefits and expenses			94.2			95.9			91.5			92.1			88.8				190.1			170.9

Segment pre-tax adjusted operating income		$	17.4		$	16.9		$	17.3		$	15.3		$	19.0			$	34.3		$	42.3


Operating Metrics:
Individual insurance:
Individual insurance in force ¹		$	37,439.7		$	37,689.0		$	38,011.5		$	38,289.1		$	38,502.3			$	37,439.7		$	38,502.3
Individual claims ²			12.1			15.7			11.3			12.0			13.5				27.8			27.4
Annualized mortality rate ³			0.13	%		0.17	%		0.12	%		0.13	%		0.14	%			0.15	%		0.14	%
UL account value ⁴		$	635.5		$	617.3		$	607.0		$	596.9		$	588.9			$	635.5		$	588.9
UL interest spread ⁵			1.24	%		1.59	%		1.54	%		1.57	%		1.59	%			1.42	%		1.47	%
Individual sales ⁶		$	2.9		$	2.4		$	2.4		$	2.6		$	2.4			$	5.3		$	5.2
BOLI:
BOLI insurance in force ¹		$	12,681.6		$	12,681.3		$	12,667.5		$	11,503.8		$	11,410.0			$	12,681.6		$	11,410.0
BOLI account value ⁴			4,442.0			4,403.0			4,365.4			3,969.7			3,886.0			$	4,442.0		$	3,886.0
BOLI PGAAP reserve balance ⁷			23.6			25.8			27.9			30.0			32.4				23.6			32.4
BOLI ROA ⁸			0.98	%		1.14	%		0.92	%		0.92	%		1.28	%			1.07	%		1.17	%
BOLI sales ⁹		$	—		$	—		$	35.9		$	7.5		$	—			$	—		$	2.7


5 Year Historical Individual Claims:									For the Year
	For the Three Months Ended								Ended
	1Q		2Q		3Q		4Q
2010		13.9		13.5		12.0		11.3		50.7
2009		14.7		13.4		12.8		12.6		53.5
2008		14.3		13.6		13.7		12.1		53.7
2007		13.5		14.0		12.1		11.6		51.2
2006		13.3		11.9		11.8		13.4		50.4

¹ Insurance in force represents dollar face amounts of policies without adjustments for reinsurance.

²Individual claims repesents incurred claims, net of reinsurance, on our term and universal life policies.

³Annualized mortality rate is defined as annualized claims divided by insurance in force.

⁴UL account value and BOLI account value represent our liabilities to our policyholders.

⁵UL 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. Interest credited tends to move gradually over time to reflect actions by management to respond to competitive pressures and profit margins. The 2010 year-to-date second quarter credited rate to policyholders has been adjusted to exclude a reserve adjustment related to a persistency bonus. Without this adjustment the 2010 year-to-date second quarter UL interest spread would be 3.49%.

⁶Individual sales represent annualized first year premiums for recurring premium products, and 10% of new single premiums deposits net of first year policy lapses and/or surrenders.

⁷Purchase 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.

⁸BOLI 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.

⁹BOLI sales represent 10% of new BOLI total deposits.

Symetra Financial Corporation
2Q 2011 Financial Supplement
Other
(In millions)


	For the Three Months Ended																For the Six Months Ended
		Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,			Jun. 30,				Jun. 30,			Jun. 30,
	2011				2011			2010			2010			2010			2011				2010
Operating revenues:
Net investment income		$	6.2		$	6.5		$	7.8		$	7.6		$	4.0			$	12.7		$	8.4
Policy fees, contract charges and other			5.4			5.4			4.9			3.8			4.0				10.8			7.5

Total operating revenues			11.6			11.9			12.7			11.4			8.0				23.5			15.9

Benefits and expenses:
Interest credited			(0.6	)		(0.7	)		(0.6	)		(1.1	)		(0.9	)			(1.3	)		(1.4	)
Other underwriting and operating expenses			6.6			6.0			7.3			5.0			6.0				12.6			10.3
Interest expense			8.0			8.0			8.0			8.0			7.9				16.0			15.9

Total benefits and expenses			14.0			13.3			14.7			11.9			13.0				27.3			24.8

Segment pre-tax adjusted operating loss		$	(2.4	)	$	(1.4	)	$	(2.0	)	$	(0.5	)	$	(5.0	)		$	(3.8	)	$	(8.9	)

Symetra Financial Corporation
2Q 2011 Financial Supplement
Deferred Policy Acquisition Cost (DAC) Roll Forwards
(In millions)


	For the Three Months Ended															For the Six Months Ended
	Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,			Jun. 30,			Jun. 30,			Jun. 30,
	2011			2011			2010			2010			2010			2011			2010

Summary — Total Company
Unamortized balance, beginning of period	$	403.6		$	387.4		$	369.7		$	360.8		$	339.8		$	387.4		$	325.7
Deferral of acquisition costs:
Commissions		20.4			28.8			21.4			18.1			30.6			49.2			52.1
Other acquisition expenses		8.0			8.2			12.8			9.4			8.6			16.2			17.6

Total deferral of acquisition costs		28.4			37.0			34.2			27.5			39.2			65.4			69.7
Adjustments related to investment gains		(0.6	)		(0.7	)		(0.7	)		(0.6	)		(1.2	)		(1.3	)		(2.2	)
Amortization		(20.0	)		(20.1	)		(15.8	)		(17.6	)		(17.0	)		(40.1	)		(34.1	)
Unlocking		—			—			—			(0.4	)		—			—			1.7

Total amortization		(20.0	)		(20.1	)		(15.8	)		(18.0	)		(17.0	)		(40.1	)		(32.4	)

Unamortized balance, end of period		411.4			403.6			387.4			369.7			360.8			411.4			360.8
Accum effect of net unrealized gains		(172.9	)		(141.1	)		(137.4	)		(208.8	)		(161.8	)		(172.9	)		(161.8	)

DAC balance, end of period	$	238.5		$	262.5		$	250.0		$	160.9		$	199.0		$	238.5		$	199.0


Group Division
Unamortized balance, beginning of period	$	3.4		$	3.6		$	3.8		$	3.5		$	3.4		$	3.6		$	3.2
Deferral of acquisition costs:
Other acquisition expenses		2.1			1.9			1.9			2.4			2.1			4.0			4.2

Total deferral of acquisition costs		2.1			1.9			1.9			2.4			2.1			4.0			4.2
Amortization		(2.1	)		(2.1	)		(2.1	)		(2.1	)		(2.0	)		(4.2	)		(3.9	)
Unamortized balance, end of period		3.4			3.4			3.6			3.8			3.5			3.4			3.5

DAC balance, end of period	$	3.4		$	3.4		$	3.6		$	3.8		$	3.5		$	3.4		$	3.5


Retirement Division — Deferred Annuities
Unamortized balance, beginning of period	$	296.2		$	283.2		$	274.6		$	271.6		$	255.7		$	283.2		$	249.1
Deferral of acquisition costs:
Commissions		16.8			24.4			16.9			12.8			25.9			41.2			41.9
Other acquisition expenses		4.5			4.9			4.8			4.1			4.8			9.4			9.5

Total deferral of acquisition costs		21.3			29.3			21.7			16.9			30.7			50.6			51.4
Adjustments related to investment gains		(0.4	)		(0.7	)		(0.8	)		(0.6	)		(1.2	)		(1.1	)		(2.1	)
Amortization		(16.0	)		(15.6	)		(12.3	)		(13.3	)		(13.6	)		(31.6	)		(26.8	)
Unlocking		—			—			—			—			—			—			—

Total amortization		(16.0	)		(15.6	)		(12.3	)		(13.3	)		(13.6	)		(31.6	)		(26.8	)

Unamortized balance, end of period		301.1			296.2			283.2			274.6			271.6			301.1			271.6
Accum effect of net unrealized gains		(165.6	)		(136.2	)		(132.4	)		(201.7	)		(157.9	)		(165.6	)		(157.9	)

DAC balance, end of period	$	135.5		$	160.0		$	150.8		$	72.9		$	113.7		$	135.5		$	113.7


Retirement Division — Income Annuities
Unamortized balance, beginning of period	$	33.1		$	31.2		$	28.9		$	27.0		$	24.7		$	31.2		$	22.4
Deferral of acquisition costs:
Commissions		1.5			2.3			2.5			2.1			2.3			3.8			4.7
Other acquisition expenses		0.3			0.3			0.3			0.4			0.4			0.6			0.8

Total deferral of acquisition costs		1.8			2.6			2.8			2.5			2.7			4.4			5.5
Amortization		(0.6	)		(0.7	)		(0.5	)		(0.6	)		(0.4	)		(1.3	)		(0.9	)
Unamortized balance, end of period		34.3			33.1			31.2			28.9			27.0			34.3			27.0

DAC balance, end of period	$	34.3		$	33.1		$	31.2		$	28.9		$	27.0		$	34.3		$	27.0


Life Division
Unamortized balance, beginning of period	$	70.9		$	69.4		$	62.4		$	58.7		$	56.0		$	69.4		$	51.0
Deferral of acquisition costs:
Commissions		2.1			2.1			2.0			3.2			2.4			4.2			5.5
Other acquisition expenses		1.1			1.1			5.8			2.5			1.3			2.2			3.1

Total deferral of acquisition costs		3.2			3.2			7.8			5.7			3.7			6.4			8.6
Adjustments related to inv (gains) losses		(0.2	)		—			0.1			—			—			(0.2	)		(0.1	)
Amortization		(1.3	)		(1.7	)		(0.9	)		(1.6	)		(1.0	)		(3.0	)		(2.5	)
Unlocking		—			—			—			(0.4	)		—			—			1.7

Total amortization		(1.3	)		(1.7	)		(0.9	)		(2.0	)		(1.0	)		(3.0	)		(0.8	)

Unamortized balance, end of period		72.6			70.9			69.4			62.4			58.7			72.6			58.7
Accum effect of net unrealized gains		(7.3	)		(4.9	)		(5.0	)		(7.1	)		(3.9	)		(7.3	)		(3.9	)

DAC balance, end of period	$	65.3		$	66.0		$	64.4		$	55.3		$	54.8		$	65.3		$	54.8

Symetra Financial Corporation
2Q 2011 Financial Supplement
Account Value and Reserve Roll Forwards
(In millions)


	For the Three Months Ended															For the Six Months Ended
	Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,			Jun. 30,			Jun. 30,			Jun. 30,
	2011			2011			2010			2010			2010			2011			2010

Retirement Division:
Deferred Annuities:
Fixed Account Values
Account value, beginning of period	$	9,793.9		$	9,243.7		$	8,805.6		$	8,574.0		$	8,005.4		$	9,243.7		$	7,655.7
Deposits		498.5			659.2			560.3			321.1			667.6			1,157.7			1,090.4
Interest credited		90.5			88.2			88.8			84.9			80.4			178.7			157.6
Withdrawals and transfers		(252.2	)		(203.4	)		(207.5	)		(177.3	)		(174.6	)		(455.6	)		(343.5	)
Other		(3.4	)		6.2			(3.5	)		2.9			(4.8	)		2.8			13.8

Account value, end of period	$	10,127.3		$	9,793.9		$	9,243.7		$	8,805.6		$	8,574.0		$	10,127.3		$	8,574.0

Income Annuities:
Reserves
Reserves, beginning of period	$	6,681.4		$	6,676.8		$	6,676.8		$	6,716.8		$	6,726.7		$	6,676.8		$	6,726.3
Deposits		37.7			65.3			67.1			56.7			67.6			103.0			130.4
Interest credited		95.5			96.2			96.2			96.3			96.8			191.7			193.8
Benefit payments		(160.7	)		(146.2	)		(161.9	)		(186.1	)		(167.9	)		(306.9	)		(315.1	)
Other		(7.3	)		(10.7	)		(1.4	)		(6.9	)		(6.4	)		(18.0	)		(18.6	)

Reserves, end of period	$	6,646.6		$	6,681.4		$	6,676.8		$	6,676.8		$	6,716.8		$	6,646.6		$	6,716.8

Life Division:
BOLI Account Values
Account value, beginning of period	$	4,403.0		$	4,365.4		$	3,969.7		$	3,886.0		$	3,853.2		$	4,365.4		$	3,789.1
Deposits		—			—			358.2			74.5			—			—			27.6
Interest credited		54.9			54.1			54.6			55.7			52.0			109.0			104.0
Surrenders/claims		—			—			—			(32.2	)		(0.3	)		—			(0.3	)
Administrative charges and other		(15.9	)		(16.5	)		(17.1	)		(14.3	)		(18.9	)		(32.4	)		(34.4	)

Account value, end of period	$	4,442.0		$	4,403.0		$	4,365.4		$	3,969.7		$	3,886.0		$	4,442.0		$	3,886.0

UL Account Values
Account value, beginning of period	$	617.3		$	607.0		$	596.9		$	588.9		$	585.3		$	607.0		$	583.8
Deposits		33.2			28.3			25.0			22.2			19.1			61.5			41.6
Interest credited		6.8			6.4			6.3			6.4			6.1			13.2			6.5
Surrenders/claims		(7.3	)		(13.3	)		(6.6	)		(5.9	)		(7.3	)		(20.6	)		(14.6	)
Administrative charges and other		(14.5	)		(11.1	)		(14.6	)		(14.7	)		(14.3	)		(25.6	)		(28.4	)

Account value, end of period	$	635.5		$	617.3		$	607.0		$	596.9		$	588.9		$	635.5		$	588.9

Symetra Financial Corporation
2Q 2011 Financial Supplement
Overview of Liabilities and Associated Unrealized Gains
(In millions)


	As of Jun. 30, 2011
	Policyholder Liability		% of Total			Unrealized gains⁷
Illiquid Liabilities
Structured settlements & other SPIAs ¹	$	6,642.5				$	277.9
Deferred annuities with 5 year payout provision or MVA ²		371.3					19.9
Traditional insurance (net of reinsurance) ³		185.1					9.2
Group health & life (net of reinsurance) ³		101.4					2.0

Total illiquid liabilities		7,300.3		32.9	%		309.0

Somewhat Liquid Liabilities
Bank-owned life insurance (BOLI) ⁴		4,522.7					209.0
Deferred annuities with surrender charges of 5% or higher		6,887.7					369.4
Universal life with surrender charges of 5% or higher		212.6					10.6

Total somewhat liquid liabilities		11,623.0		52.4	%		589.0

Fully Liquid Liabilities
Deferred annuities with surrender charges of:
3% up to 5%		538.2					28.9
Less than 3%		164.7					8.8
No surrender charges ⁵		2,113.4					113.3
Universal life with surrender charges less than 5%		437.3					21.6
BOLI ⁶		5.3					0.2
Traditional insurance (net of reinsurance) ⁶		4.3					0.2
Group health & life (net of reinsurance) ⁶		12.3					0.2

Total fully liquid liabilities		3,275.5		14.7	%		173.2
Assets supporting surplus portfolio							86.5

Total	$	22,198.8		100.0	%	$	1,157.7


Reconciliation of unrealized gains to AOCI:
Unrealized gains from above						$	1,157.7
Tax on unrealized gains and losses on available for sale securities							(405.2	)
Adjustment for deferred policy acquisition costs and deferred sales inducements valuation allowance, net of tax							(152.9	)
Other							(1.7	)

AOCI						$	597.9

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 and charges may be applicable.

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.

Symetra Financial Corporation
2Q 2011 Financial Supplement
Investments Summary
(In millions)


	As of
	Jun. 30,						Mar. 31,						Dec. 31,						Sep. 30,						Jun. 30,
	2011			%			2011			%			2010			%			2010			%			2010			%

Portfolio Composition:
Available-for-sale securities:
Fixed maturities, at fair value	$	22,146.5			88.8	%	$	21,785.4			90.0	%	$	21,281.8			90.6	%	$	21,450.1			91.7	%	$	20,612.2			92.2	%
Marketable equity securities, at fair value		51.2			0.2	%		46.4			0.2	%		45.1			0.2	%		45.4			0.2	%		43.9			0.2	%
Trading securities:
Marketable equity securities, at fair value		380.9			1.5	%		224.7			0.9	%		189.3			0.8	%		158.8			0.7	%		141.0			0.6	%
Mortgage loans, net		2,085.0			8.4	%		1,862.0			7.7	%		1,713.0			7.3	%		1,493.4			6.4	%		1,338.1			6.0	%
Policy loans		69.6			0.3	%		70.4			0.3	%		71.5			0.3	%		71.7			0.3	%		72.3			0.3	%
Short-term investments		2.7			0.0	%		2.4			0.0	%		2.5			0.0	%		2.7			0.0	%		2.7			0.0	%
Investment in limited partnerships		193.8			0.8	%		198.8			0.8	%		186.9			0.8	%		169.1			0.7	%		136.9			0.6	%
Other invested assets		11.8			0.0	%		10.4			0.1	%		10.1			0.0	%		9.3			0.0	%		9.3			0.1	%

Total investments		24,941.5			100.0	%		24,200.5			100.0	%		23,500.2			100.0	%		23,400.5			100.0	%		22,356.4			100.0	%
Cash and cash equivalents		87.4						307.9						274.6						197.2						322.7

Total investments, cash and cash equivalents	$	25,028.9					$	24,508.4					$	23,774.8					$	23,597.7					$	22,679.1

Fixed Maturities Securities by Credit Quality: ¹
1: AAA, AA, A	$	13,391.0			60.5	%	$	13,141.0			60.3	%	$	13,042.4			61.3	%	$	12,798.7			59.7	%	$	12,116.4			58.8	%
2: BBB		7,274.2			32.8	%		7,306.9			33.6	%		6,981.9			32.8	%		7,681.7			35.8	%		7,465.0			36.2	%


Total investment grade		20,665.2			93.3	%		20,447.9			93.9	%		20,024.3			94.1	%		20,480.4			95.5	%		19,581.4			95.0	%
3: BB		853.6			3.9	%		719.5			3.3	%		679.0			3.2	%		570.4			2.7	%		642.0			3.1	%
4: B		480.3			2.2	%		462.7			2.1	%		393.8			1.8	%		268.1			1.2	%		264.6			1.3	%
5: CCC & lower		139.4			0.6	%		146.6			0.7	%		164.8			0.8	%		111.0			0.5	%		105.4			0.5	%
6: In or near default		8.0			0.0	%		8.7			0.0	%		19.9			0.1	%		20.2			0.1	%		18.8			0.1	%

Total below investment grade		1,481.3			6.7	%		1,337.5			6.1	%		1,257.5			5.9	%		969.7			4.5	%		1,030.8			5.0	%

Total fixed maturities	$	22,146.5			100.0	%	$	21,785.4			100.0	%	$	21,281.8			100.0	%	$	21,450.1			100.0	%	$	20,612.2			100.0	%

Fixed Maturities by Issuer Type:
U.S. government and agencies	$	43.1			0.2	%	$	156.7			0.7	%	$	33.1			0.2	%	$	96.0			0.5	%	$	123.0			0.6	%
State and political subdivisions		523.6			2.4	%		462.8			2.1	%		452.8			2.1	%		473.3			2.2	%		471.8			2.3	%
Foreign governments		21.9			0.1	%		21.7			0.1	%		23.6			0.1	%		24.9			0.1	%		25.0			0.1	%
Corporate securities		15,544.2			70.2	%		14,996.9			68.8	%		14,541.4			68.3	%		14,779.3			68.9	%		14,025.0			68.1	%
Residential mortgage-backed securities		3,631.4			16.4	%		3,815.3			17.5	%		3,801.6			17.9	%		3,840.0			17.9	%		3,806.2			18.4	%
Commercial mortgage-baced securities		1,816.9			8.2	%		1,802.9			8.3	%		1,887.3			8.9	%		1,911.0			8.9	%		1,829.5			8.9	%
Other debt obligations		565.4			2.5	%		529.1			2.5	%		542.0			2.5	%		325.6			1.5	%		331.7			1.6	%

Total fixed maturities	$	22,146.5			100.0	%	$	21,785.4			100.0	%	$	21,281.8			100.0	%	$	21,450.1			100.0	%	$	20,612.2			100.0	%

Effective Duration		5.7						5.6						5.5						5.4						5.4

Average Investment Yield		5.28	%					5.32	%					5.49	%					5.51	%					5.50	%


	For the Three Months Ended
	Jun. 30,					Mar. 31,					Dec. 31,					Sep. 30,					Jun. 30,
	2011		%			2011		%			2010		%			2010		%			2010		%
Average Daily Cash and Cash Equivalent Balances:
Group Division	$	11.4		4.8	%	$	5.7		2.3	%	$	8.8		2.8	%	$	10.5		4.7	%	$	9.5		3.2	%
Retirement Division:
Deferred Annuities		44.6		18.9	%		113.2		46.4	%		150.6		47.5	%		54.4		24.3	%		174.4		57.9	%
Income Annuities		107.3		45.4	%		25.8		10.6	%		11.4		3.6	%		21.6		9.6	%		8.2		2.7	%
Life Division		69.7		29.5	%		85.6		35.1	%		124.9		39.4	%		112.9		50.3	%		42.6		14.1	%
Other		3.4		1.4	%		13.8		5.6	%		21.1		6.7	%		24.8		11.1	%		66.5		22.1	%

Total	$	236.4		100.0	%	$	244.1		100.0	%	$	316.8		100.0	%	$	224.2		100.0	%	$	301.2		100.0	%


	For the Three Months Ended												For the Six Months Ended
	Jun. 30,			Mar. 31,		Dec. 31,		Sep. 30,		Jun. 30,			Jun. 30,			Jun. 30,
	2011			2011		2010		2010		2010			2011			2010
MBS Prepayment Speed Adjustment: ²
Group Division	$	—		$	—	$	—	$	—	$	0.1		$	—		$	0.1
Retirement Division:
Deferred Annuities		(0.5	)		0.2		0.2		0.1		(0.2	)		(0.3	)		(0.1	)
Income Annuities		(0.7	)		1.8		3.2		0.1		(0.1	)		1.1			—
Life Division		(0.5	)		0.8		1.1		—		0.2			0.3			0.2
Other		0.2			0.3		0.1		0.1		(0.1	)		0.5			—

Total	$	(1.5	)	$	3.1	$	4.6	$	0.3	$	(0.1	)	$	1.6		$	0.2

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.

Symetra Financial Corporation
2Q 2011 Financial Supplement
Sales by Segment and Product
(In millions)


	For the Three Months Ended										For the Six Months Ended
	Jun. 30,		Mar. 31,		Dec. 31,		Sep. 30,		Jun. 30,		Jun. 30,		Jun. 30,
	2011		2011		2010		2010		2010		2011		2010
Group Division ¹
Medical stop-loss	$	18.1	$	41.9	$	11.7	$	15.1	$	13.9	$	60.0	$	52.3
Limited benefit medical		4.7		6.0		2.9		2.8		5.4		10.7		7.6
Group life & disability		0.6		0.8		0.5		0.5		1.3		1.4		2.1

Total	$	23.4	$	48.7	$	15.1	$	18.4	$	20.6	$	72.1	$	62.0
Retirement Division — Deferred Annuities ²
Fixed annuities	$	437.4	$	609.0	$	514.0	$	276.5	$	616.8	$	1,046.4	$	986.3
Fixed indexed annuity		3.1	$	—	$	—	$	—	$	—		3.1		—
Variable annuities		5.1		6.0		4.4		5.4		4.0		11.1		8.7
Retirement plans		0.9		3.4		4.5		4.5		3.1		4.3		6.4

Total	$	446.5	$	618.4	$	522.9	$	286.4	$	623.9	$	1,064.9	$	1,001.4
Retirement Division — Income Annuities ²
SPIA	$	25.1	$	33.1	$	31.9	$	31.4	$	47.2	$	58.2	$	90.3
Structured settlements		13.6		31.4		36.0		26.6		20.6		45.0		43.8

Total	$	38.7	$	64.5	$	67.9	$	58.0	$	67.8	$	103.2	$	134.1
Life Division
Term life ¹	$	0.6	$	0.4	$	0.4	$	1.1	$	1.1	$	1.0	$	2.6
Universal life ³		0.2		0.4		0.7		0.5		0.6		0.6		0.9
Single premium life ³		2.1		1.6		1.3		1.0		0.7		3.7		1.7

Individual sales		2.9		2.4		2.4		2.6		2.4		5.3		5.2
BOLI ⁴		—		—		35.9		7.5		—		—		2.7

Total	$	2.9	$	2.4	$	38.3	$	10.1	$	2.4	$	5.3	$	7.9


¹ Represents annualized first-year premiums net of first year policy lapses.

² Represents deposits for new policies net of first year policy lapses and/or surrenders.

³ Represents 10% of new deposits net of first year policy lapses and/or surrenders.

⁴ Represents 10% of new deposits.

Symetra Financial Corporation
2Q 2011 Financial Supplement
Book Value, Adjusted Book Value and Statutory Book Value per Share
(In millions, except per share amounts)


	As of
	Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,			Jun. 30,
	2011			2011			2010			2010			2010
Book value per common share ¹	$	19.25		$	17.68		$	17.35		$	19.77		$	17.08

Non-GAAP Financial Measures:
Adjusted book value per common share ²	$	17.28		$	16.85		$	16.48		$	16.01		$	15.58
Adjusted book value per common share, as converted ³	$	16.49		$	16.11		$	15.79		$	15.38		$	15.02
Statutory book value per common share ⁴	$	17.21		$	16.76		$	16.39		$	15.97		$	15.58

Numerator:
Total stockholders’ equity	$	2,647.3		$	2,431.0		$	2,380.6		$	2,711.3		$	2,342.8
AOCI ⁵		597.9			434.0			432.5			819.4			501.1

Adjusted book value	$	2,049.4		$	1,997.0		$	1,948.1		$	1,891.9		$	1,841.7

Assumed proceeds from exercise of warrants		218.1			218.1			218.1			218.1			218.1

Adjusted book value, as converted	$	2,267.5		$	2,215.1		$	2,166.2		$	2,110.0		$	2,059.8

Total stockholders’ equity	$	2,647.3		$	2,431.0		$	2,380.6		$	2,711.3		$	2,342.8
Stockholders’ equity of non-insurance entities		(245.5	)		(250.8	)		(238.6	)		(227.0	)		(214.0	)
Statutory adjustments		(574.0	)		(400.0	)		(389.7	)		(757.0	)		(421.7	)
Asset valuation reserve (AVR)		212.9			206.1			185.1			159.8			133.8

Statutory book value	$	2,040.7		$	1,986.3		$	1,937.4		$	1,887.1		$	1,840.9

Denominator: ⁶

Basic common shares outstanding		118.571			118.535			118.216			118.171			118.175
Diluted common shares outstanding		137.547			137.511			137.192			137.147			137.151


¹Book value per common share is calculated based on stockholders’ equity divided by diluted common shares outstanding.

²Adjusted book value per common share is calculated based on stockholders’ equity less AOCI, divided by basic common shares outstanding.

³Adjusted 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.

⁴Statutory book value per common share is calculated based on statutory book value divided by basic common shares outstanding.

⁵Accumulated other comprehensive income (loss) (net of taxes).


	As of
	Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,			Jun. 30,
	2011			2011			2010			2010			2010
⁶ Reconciliation of outstanding shares:
Basic common shares outstanding, beginning of period		118.535			118.216			118.171			118.175			118.086
Primary shares issued in IPO		—			—			—			—			—
Employee stock purchase plan shares issued		0.029			0.024			0.033			—			—
Restricted shares issued		0.009			0.297			0.030			0.010			0.137
Restricted shares forfeited		(0.002	)		(0.002	)		(0.018	)		(0.014	)		—
Shares repurchased/retired		—			—			—			—			(0.048	)

Basic common shares outstanding, end of period		118.571			118.535			118.216			118.171			118.175
Outstanding warrants		18.976			18.976			18.976			18.976			18.976
Diluted common shares outstanding, end of period		137.547			137.511			137.192			137.147			137.151

Symetra Financial Corporation
2Q 2011 Financial Supplement
ROE and Operating ROAE
(In millions)


				Twelve Months Ended
	Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,			Jun. 30,
	2011			2011			2010			2010			2010
ROE:
Net income for the twelve months ended ¹	$	233.1		$	209.5		$	200.9		$	170.8		$	158.3
Average stockholders’ equity ²	$	2,502.6		$	2,367.5		$	2,167.9		$	1,987.9		$	1,598.4
ROE		9.3	%		8.8	%		9.3	%		8.6	%		9.9	%
Operating ROAE:
Adjusted operating income for the twelve months ended ¹	$	186.7		$	178.4		$	175.2		$	159.9		$	153.8
Average adjusted book value³	$	1,945.6		$	1,898.2		$	1,795.4		$	1,695.9		$	1,598.8
Operating ROAE		9.6	%		9.4	%		9.8	%		9.4	%		9.6	%


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
	2011		2010		2009
Stockholders’ Equity
Dec. 31			$	2,380.6	$	1,433.3
Sep. 30				2,711.3		1,480.5
Jun. 30		2,647.3		2,342.8		763.7
Mar. 31		2,431.0		1,971.7		198.5
AOCI
Dec. 31			$	432.5	$	(49.7	)
Sep. 30				819.4		29.8
Jun. 30		597.9		501.1		(642.9	)
Mar. 31		434.0		159.5		(1,161.1	)

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 December 31, 2010, September 30, 2010, and June 30, 2010.


	Three Months Ended
	Mar. 31,		Dec. 31,		Sep. 30,
	2010		2009		2009
Net income	$	46.3		$32.1		$44.1
Less: Net realized investment gains (losses) (net of taxes)		4.5		(0.2)		7.3
Add: Net investment gains on FIA options (net of taxes)		0.1		0.4		0.9
Adjusted operating income	$	41.9		$32.7		$37.7

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