Symetra Financial CORP - FORM 8-K - EX-99.2 - QUARTERLY FINANCIAL SUPPLEMENT FOR THE QUARTER ENDED SEPTEMBER 30, 2011

Attached files

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8-K - FORM 8-K - Symetra Financial CORP	d247546d8k.htm
EX-99.1 - PRESS RELEASE OF SYMETRA FINANCIAL CORPORATION - Symetra Financial CORP	d247546dex991.htm

Exhibit 99.2

October 26, 2011

THIRD QUARTER 2011

Symetra Financial Corporation (SYA)

Financial Supplement

All financial information in this document is unaudited

Symetra Financial Corporation

Financial Supplement

Table of Contents

September 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
(including new addition of Fixed Annuity Account Values by Contract Minimum Interest Guarantee)
Income Annuities		7
Life Division		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

Addendum *(New)*
RMBS Prepayment Exposure		17
CMBS Prepayment Exposure		18
European Exposure		19

Symetra Financial Corporation

3Q 2011 Financial Supplement

Financial Highlights

(In millions, except per share and metric or percentage data)


	For the Three Months Ended															For the Nine Months Ended
	Sep. 30, 2011			Jun. 30, 2011			Mar. 31, 2011			Dec. 31, 2010			Sep. 30, 2010			Sep. 30, 2011		Sep. 30, 2010
Net income	$	11.1		$	59.4		$	54.9		$	62.2		$	56.6		$	125.4	$	138.7

Net income per common share ¹
Basic	$	0.08		$	0.43		$	0.40		$	0.45		$	0.41		$	0.91	$	1.03
Diluted	$	0.08		$	0.43		$	0.40		$	0.45		$	0.41		$	0.91	$	1.03

Weighted-average common shares outstanding:
Basic		137.559			137.523			137.292			137.174			137.140			137.459		135.082
Diluted		137.571			137.532			137.300			137.179			137.145			137.470		135.096

Non-GAAP Financial Measures ²
Adjusted operating income	$	47.6		$	49.8		$	45.1		$	48.0		$	43.8		$	142.5	$	127.2

Adjusted operating income per common share: ¹
Basic	$	0.35		$	0.36		$	0.33		$	0.35		$	0.32		$	1.04	$	0.94
Diluted	$	0.35		$	0.36		$	0.33		$	0.35		$	0.32		$	1.04	$	0.94

	As of
	Sep. 30, 2011			Jun. 30, 2011			Mar. 31, 2011			Dec. 31, 2010			Sep. 30, 2010
Consolidated Balance Sheet Data
Total investments	$	25,852.2		$	24,941.5		$	24,200.5		$	23,500.2		$	23,400.5

Total assets		27,816.7			26,942.8			26,422.3			25,636.9			25,302.3

Notes payable		449.2			449.1			449.1			449.0			449.0

Accumulated other comprehensive income(net of taxes) (AOCI)		1,006.5			597.9			434.0			432.5			819.4

Total stockholders’ equity		3,060.0			2,647.3			2,431.0			2,380.6			2,711.3

U.S. Statutory Financial Information:
Statutory capital and surplus	$	1,806.9		$	1,827.8		$	1,780.2		$	1,752.3		$	1,727.3
Asset valuation reserve (AVR)		189.8			212.9			206.1			185.1			159.8


Statutory book value	$	1,996.7		$	2,040.7		$	1,986.3		$	1,937.4		$	1,887.1



Common shares outstanding, end of period (page 15)		118.595			118.571			118.535			118.216			118.171

Book value per common share	$	22.24		$	19.25		$	17.68		$	17.35		$	19.77

Debt to capital ratio		12.8	%		14.5	%		15.6	%		15.9	%		14.2	%

Non-GAAP Financial Measures ²
Adjusted book value (stockholders’ equity excluding AOCI)	$	2,053.5		$	2,049.4		$	1,997.0		$	1,948.1		$	1,891.9
Adjusted book value per common share :
Adjusted book value per common share ³	$	17.32		$	17.28		$	16.85		$	16.48		$	16.01
Adjusted book value per common share, as converted ⁴	$	16.51		$	16.49		$	16.11		$	15.79		$	15.38
Statutory book value per common share ⁵	$	16.84		$	17.21		$	16.76		$	16.39		$	15.97

Debt to capital ratio, excluding AOCI ⁶		17.9	%		18.0	%		18.4	%		18.7	%		19.2	%

	For the Twelve Months Ended
	Sep. 30, 2011			Jun. 30, 2011			Mar. 31, 2011			Dec. 31, 2010			Sep. 30, 2010
ROE		7.1	%		9.3	%		8.8	%		9.3	%		8.6	%

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

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.

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 common shares outstanding.

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 and shares subject to outstanding warrants.

⁵ Statutory book value per common share is calculated based on statutory book value divided by common shares outstanding.

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

3Q 2011 Financial Supplement

Consolidated Income Statement Data

(In millions, except per share data)

		0000000		0000000		0000000		0000000		0000000		0000000		0000000
	For the Three Months Ended										For the Nine Months Ended
	Sep. 30,		Jun. 30,		Mar. 31,		Dec. 31,		Sep. 30,		Sep. 30,		Sep. 30,
	2011		2011		2011		2010		2010		2011		2010
Revenues:
Premiums	$	150.5	$	119.4	$	120.9	$	118.3	$	120.2	$	390.8	$	354.7
Net investment income		315.5		312.2		310.0		311.0		304.4		937.7		888.4
Policy fees, contract charges and other		45.5		45.9		44.7		43.1		40.9		136.1		123.2
Net realized investment gains (losses):
Total other-than-temporary impairment losses on securities		(5.0)		(3.1)		(0.9)		(23.1)		(9.6)		(9.0)		(30.2)
Less: portion of losses recognized in other comprehensive income		0.1		0.3		—		16.9		6.1		0.4		15.5

Net impairment losses recognized in earnings		(4.9)		(2.8)		(0.9)		(6.2)		(3.5)		(8.6)		(14.7)
Other net realized investment gains (losses)		(51.9)		16.9		16.5		29.2		23.5		(18.5)		31.5

Total net realized investment gains (losses)		(56.8)		14.1		15.6		23.0		20.0		(27.1)		16.8

Total revenues		454.7		491.6		491.2		495.4		485.5		1,437.5		1,383.1

Benefits and expenses:
Policyholder benefits and claims		109.4		83.7		92.3		80.2		85.4		285.4		254.9
Interest credited		229.3		225.1		228.3		231.7		227.8		682.7		667.8
Other underwriting and operating expenses		77.4		70.5		66.0		69.8		63.1		213.9		186.9
Interest expense		8.0		8.0		8.0		8.0		8.0		24.0		23.9
Amortization of deferred policy acquisition costs		19.0		20.0		20.1		15.8		18.0		59.1		50.4

Total benefits and expenses		443.1		407.3		414.7		405.5		402.3		1,265.1		1,183.9


Income from operations before income taxes		11.6		84.3		76.5		89.9		83.2		172.4		199.2
Provision (benefit) for income taxes:
Current		26.0		31.1		11.2		11.6		18.8		68.3		46.1
Deferred		(25.5)		(6.2)		10.4		16.1		7.8		(21.3)		14.4

Total provision for income taxes		0.5		24.9		21.6		27.7		26.6		47.0		60.5

Net income	$	11.1	$	59.4	$	54.9	$	62.2	$	56.6	$	125.4	$	138.7


Net income per common share: ¹
Basic	$	0.08	$	0.43	$	0.40	$	0.45	$	0.41	$	0.91	$	1.03
Diluted	$	0.08	$	0.43	$	0.40	$	0.45	$	0.41	$	0.91	$	1.03
Weighted-average number of common shares outstanding:
Basic		137.559		137.523		137.292		137.174		137.140		137.459		135.082
Diluted		137.571		137.532		137.300		137.179		137.145		137.470		135.096

Cash dividends declared per common share	$	0.06	$	0.06	$	0.05	$	0.05	$	0.05	$	0.17	$	0.10
Non-GAAP Financial Measures:
Adjusted operating income	$	47.6	$	49.8	$	45.1	$	48.0	$	43.8	$	142.5	$	127.2


Adjusted operating income per common share: ¹
Basic	$	0.35	$	0.36	$	0.33	$	0.35	$	0.32	$	1.04	$	0.94
Diluted	$	0.35	$	0.36	$	0.33	$	0.35	$	0.32	$	1.04	$	0.94

Weighted-average number of common shares outstanding:
Basic		137.559		137.523		137.292		137.174		137.140		137.459		135.082
Diluted		137.571		137.532		137.300		137.179		137.145		137.470		135.096
Reconciliation to net income:
Net income	$	11.1	$	59.4	$	54.9	$	62.2	$	56.6	$	125.4	$	138.7
Less: Net realized investment gains (losses) (net of taxes)		(36.9)		9.2		10.1		15.0		13.0		(17.6)		10.9
Add: Net investment gains (losses) on FIA options (net of taxes)		(0.4)		(0.4)		0.3		0.8		0.2		(0.5)		(0.6)

Adjusted operating income	$	47.6	$	49.8	$	45.1	$	48.0	$	43.8	$	142.5	$	127.2

¹Basic 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

3Q 2011 Financial Supplement

Consolidated Balance Sheet Data

(In millions)


	Sep. 30,		Jun. 30,		Mar. 31,		Dec. 31,		Sep. 30,
	2011		2011		2011		2010		2010
Assets
Investments:
Available-for-sale securities:
Fixed maturities, at fair value	$	22,881.6	$	22,146.5	$	21,785.4	$	21,281.8	$	21,450.1
Marketable equity securities, at fair value		50.3		51.2		46.4		45.1		45.4
Trading securities:
Marketable equity securities, at fair value		338.1		380.9		224.7		189.3		158.8
Mortgage loans, net		2,277.3		2,085.0		1,862.0		1,713.0		1,493.4
Policy loans		69.5		69.6		70.4		71.5		71.7
Short-term investments		2.5		2.7		2.4		2.5		2.7
Investments in limited partnerships		214.6		193.8		198.8		186.9		169.1
Other invested assets		18.3		11.8		10.4		10.1		9.3

Total investments		25,852.2		24,941.5		24,200.5		23,500.2		23,400.5
Cash and cash equivalents		182.8		87.4		307.9		274.6		197.2
Accrued investment income		271.4		268.1		267.3		257.6		257.5
Accounts receivable and other receivables		133.5		97.5		63.6		65.6		89.0
Reinsurance recoverables		291.5		288.8		283.9		280.8		284.8
Deferred policy acquisition costs		202.1		238.5		262.5		250.0		160.9
Goodwill		29.9		29.4		28.9		28.4		27.8
Current income tax recoverable		—		4.4		—		3.0		—
Other assets		107.0		99.9		106.2		95.0		58.4
Separate account assets		746.3		887.3		901.5		881.7		826.2

Total assets	$	27,816.7	$	26,942.8	$	26,422.3	$	25,636.9	$	25,302.3

Liabilities and stockholders’ equity
Funds held under deposit contracts	$	22,223.4	$	21,909.0	$	21,553.4	$	20,953.3	$	20,107.9
Future policy benefits		398.9		399.6		399.3		398.4		397.6
Policy and contract claims		170.4		126.4		108.2		116.6		126.1
Unearned premiums		12.5		12.6		12.5		12.2		12.8
Other policyholders’ funds		113.8		109.5		112.9		111.0		109.1
Notes payable		449.2		449.1		449.1		449.0		449.0
Current income tax payable		1.0		—		1.0		—		2.9
Deferred income tax liabilities, net		386.9		192.2		110.2		99.0		291.1
Other liabilities		254.3		209.8		343.2		235.1		268.3
Separate account liabilities		746.3		887.3		901.5		881.7		826.2

Total liabilities		24,756.7		24,295.5		23,991.3		23,256.3		22,591.0
Preferred stock		—		—		—		—		—
Common stock		1.2		1.2		1.2		1.2		1.2
Additional paid-in-capital		1,453.6		1,452.3		1,451.1		1,450.2		1,449.3
Retained earnings		598.7		595.9		544.7		496.7		441.4
Accumulated other comprehensive income, net of taxes		1,006.5		597.9		434.0		432.5		819.4

Total stockholders’ equity		3,060.0		2,647.3		2,431.0		2,380.6		2,711.3

Total liabilities and stockholders’ equity	$	27,816.7	$	26,942.8	$	26,422.3	$	25,636.9	$	25,302.3

Symetra Financial Corporation

3Q 2011 Financial Supplement

Segment Income Statement Data

(In millions)


	For the Three Months Ended										For the Nine Months Ended
	Sep. 30,		Jun. 30,		Mar. 31,		Dec. 31,		Sep. 30,		Sep. 30,		Sep. 30,
	2011		2011		2011		2010		2010		2011		2010
Operating revenues:
Group Division	$	149.2	$	117.9	$	117.5	$	116.4	$	117.3	$	384.6	$	347.2
Retirement Division:
Deferred Annuities		137.2		133.1		128.7		127.0		124.0		399.0		355.5
Income Annuities		102.5		102.7		105.2		108.7		105.7		310.4		314.8
Life Division		110.9		111.6		112.8		108.8		107.4		335.3		320.6
Other		11.1		11.6		11.9		12.7		11.4		34.6		27.3

Total	$	510.9	$	476.9	$	476.1	$	473.6	$	465.8	$	1,463.9	$	1,365.4
Segment pre-tax adjusted operating income (loss):
Group Division	$	22.0	$	19.0	$	13.8	$	21.0	$	16.7	$	54.8	$	50.6
Retirement Division:
Deferred Annuities		28.0		23.0		23.2		20.9		22.5		74.2		60.4
Income Annuities		7.1		12.6		8.9		10.9		9.5		28.6		22.3
Life Division		12.4		17.4		16.9		17.3		15.3		46.7		57.6
Other		(1.7)		(2.4)		(1.4)		(2.0)		(0.5)		(5.5)		(9.4)

Total	$	67.8	$	69.6	$	61.4	$	68.1	$	63.5	$	198.8	$	181.5

Symetra Financial Corporation

3Q 2011 Financial Supplement

Group Division

(In millions)

		0000000000		0000000000		0000000000		0000000000		0000000000		0000000000		0000000000
	For the Three Months Ended										For the Nine Months Ended
	Sep. 30,		Jun. 30,		Mar. 31,		Dec. 31,		Sep. 30,		Sep. 30,		Sep. 30,
	2011 ⁷		2011		2011		2010		2010		2011 ⁷		2010
Operating revenues:
Premiums	$	140.8	$	109.8	$	110.0	$	108.7	$	109.9	$	360.6	$	324.5
Net investment income		4.6		4.4		4.2		4.6		4.7		13.2		14.1
Policy fees, contract charges and other		3.8		3.7		3.3		3.1		2.7		10.8		8.6

Total operating revenues		149.2		117.9		117.5		116.4		117.3		384.6		347.2

Benefits and expenses:
Policyholder benefits and claims		89.6		68.5		74.3		65.8		73.1		232.4		215.5
Other underwriting and operating expenses		35.6		28.3		27.3		27.5		25.4		91.2		75.1
Amortization of deferred policy acquisition costs		2.0		2.1		2.1		2.1		2.1		6.2		6.0

Total benefits and expenses		127.2		98.9		103.7		95.4		100.6		329.8		296.6

Segment pre-tax adjusted operating income	$	22.0	$	19.0	$	13.8	$	21.0	$	16.7	$	54.8	$	50.6


Operating Metrics:
Group loss ratio ^{1, 6}		63.6%		62.4%		67.6%		60.5%		66.5%		64.4%		66.4%
Expense ratio ²		25.9%		26.9%		25.9%		26.5%		24.0%		26.2%		24.2%

Combined ratio ³		89.5%		89.3%		93.5%		87.0%		90.5%		90.6%		90.6%

Medical stop-loss — loss ratio ^{4, 6}		65.4%		63.6%		69.3%		62.3%		68.7%		66.0%		68.1%
Total sales ⁵	$	20.1	$	23.4	$	48.7	$	15.1	$	18.4	$	92.2	$	80.4

Premiums:
Medical stop-loss	$	126.4	$	96.6	$	96.7	$	96.8	$	98.1	$	319.7	$	290.3
Limited benefit medical		11.5		10.5		10.7		9.5		9.1		32.7		25.6
Other		2.9		2.7		2.6		2.4		2.7		8.2		8.6

Total premiums earned	$	140.8	$	109.8	$	110.0	$	108.7	$	109.9	$	360.6	$	324.5

5 Year Historical Group Loss Ratio ¹:

	0000000000		0000000000			0000000000			0000000000			0000000000			0000000000
		For the Three Months Ended												For the Year 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%.

⁷ Includes impact of medical stop-loss business assumed from AUL.

Symetra Financial Corporation

3Q 2011 Financial Supplement

Retirement Division — Deferred Annuities

(In millions)


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

Operating revenues:
Net investment income	$	132.9	$	128.2	$	123.1	$	120.8	$	119.0	$	384.2	$	342.1
Policy fees, contract charges and other		4.9		5.5		5.1		5.0		4.7		15.5		14.3
Net investment gains (losses) on FIA options		(0.6)		(0.6)		0.5		1.2		0.3		(0.7)		(0.9)

Total operating revenues		137.2		133.1		128.7		127.0		124.0		399.0		355.5
Benefits and expenses:
Policyholder benefits and claims		0.6		—		(0.1)		(0.1)		(0.5)		0.5		0.2
Interest credited		80.7		79.9		77.6		79.0		75.7		238.2		214.6
Other underwriting and operating expenses		14.1		14.2		12.4		14.9		13.0		40.7		40.2
Amortization of deferred policy acquisition costs		13.8		16.0		15.6		12.3		13.3		45.4		40.1

Total benefits and expenses		109.2		110.1		105.5		106.1		101.5		324.8		295.1

Segment pre-tax adjusted operating income	$	28.0	$	23.0	$	23.2	$	20.9	$	22.5	$	74.2	$	60.4


Operating Metrics:
Account values — fixed annuities	$	10,422.4	$	10,127.3	$	9,793.9	$	9,243.7	$	8,805.6	$	10,422.4	$	8,805.6
Account values — variable annuities		670.9		796.9		809.2		791.1		742.6		670.9		742.6
Interest spread on average account values ¹		1.92%		1.81%		1.82%		1.81%		1.85%		1.86%		1.89%
Total sales ²	$	393.6	$	446.5	$	618.4	$	522.9	$	286.4	$	1,458.5	$	1,287.8

¹ Interest 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.

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

Fixed Annuity Account Values by Contract Minimum Interest Guarantees as of September 30, 2011:


	Contract Minimum Interest Guarantee ²
			<= 3.5%
	> 3.5% ¹		> 2.5%		<= 2.5%

Account values — fixed annuities	$	1,151.6	$	1,110.0	$	8,115.7

¹ The maximum interest is 4.5% on a $142.0 block of business.

² Excludes standard non-forfeiture impacts.

Symetra Financial Corporation

3Q 2011 Financial Supplement

Retirement Division — Income Annuities

(In millions)


	For the Three Months Ended										For the Nine Months Ended
	Sep. 30,		Jun. 30,		Mar. 31,		Dec. 31,		Sep. 30,		Sep. 30,		Sep. 30,
	2011		2011		2011		2010		2010		2011		2010
Operating revenues:
Net investment income	$	101.9	$	102.3	$	105.0	$	108.4	$	105.6	$	309.2	$	314.3
Policy fees, contract charges and other		0.6		0.4		0.2		0.3		0.1		1.2		0.5

Total operating revenues		102.5		102.7		105.2		108.7		105.7		310.4		314.8

Benefits and expenses:
Interest credited		88.1		83.6		89.7		91.3		90.1		261.4		275.0
Other underwriting and operating expenses		6.7		5.9		5.9		6.0		5.5		18.5		16.0
Amortization of deferred policy acquisition costs		0.6		0.6		0.7		0.5		0.6		1.9		1.5

Total benefits and expenses		95.4		90.1		96.3		97.8		96.2		281.8		292.5

Segment pre-tax adjusted operating income	$	7.1	$	12.6	$	8.9	$	10.9	$	9.5	$	28.6	$	22.3


Operating Metrics:
Reserves ¹	$	6,618.9	$	6,646.6	$	6,681.4	$	6,676.8	$	6,676.8	$	6,618.9	$	6,676.8
Interest spread on reserves ²		0.53%		0.48%		0.58%		0.79%		0.59%		0.53%		0.50%
Base interest spread on reserves ³		0.54%		0.52%		0.47%		0.61%		0.59%		0.52%		0.50%
MBS prepayment speed adjustment ⁴	$	(0.2)	$	(0.7)	$	1.8	$	3.2	$	0.1	$	0.9	$	(0.2)
Mortality gains (losses) ⁵		(1.4)		4.9		0.7		(0.6)		(0.1)		4.2		(2.0)
Total sales ⁶		64.6		38.7		64.5		67.9		58.0		167.8		192.1

5 Year Historical Mortality Gains (Losses): ⁵


	For the Three Months Ended												For the Year 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

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.

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 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 3Q 2011 Financial Supplement Life Division (In millions)
	For the Three Months Ended										For the Nine Months Ended
	Sep. 30,		Jun. 30,		Mar. 31,		Dec. 31,		Sep. 30,		Sep. 30,		Sep. 30,
	2011		2011		2011		2010		2010		2011		2010
Operating revenues:
Premiums	$	9.7	$	9.6	$	10.9	$	9.6	$	10.3	$	30.2	$	30.2
Net investment income		70.3		71.1		71.2		69.4		67.5		212.6		201.9
Policy fees, contract charges and other		30.9		30.9		30.7		29.8		29.6		92.5		88.5

Total operating revenues		110.9		111.6		112.8		108.8		107.4		335.3		320.6

Benefits and expenses:
Policyholder benefits and claims		19.2		15.2		18.1		14.5		12.8		52.5		39.2
Interest credited		61.1		62.2		61.7		62.0		63.1		185.0		180.7
Other underwriting and operating expenses		15.6		15.5		14.4		14.1		14.2		45.5		40.3
Amortization of deferred policy acquisition costs		2.6		1.3		1.7		0.9		2.0		5.6		2.8

Total benefits and expenses		98.5		94.2		95.9		91.5		92.1		288.6		263.0

Segment pre-tax adjusted operating income	$	12.4	$	17.4	$	16.9	$	17.3	$	15.3	$	46.7	$	57.6


Operating Metrics:
Individual insurance:
Individual insurance in force ¹	$	37,200.5	$	37,439.7	$	37,689.0	$	38,011.5	$	38,289.1	$	37,200.5	$	38,289.1
Individual claims ²		13.0		12.1		15.7		11.3		12.0		40.8		39.4
Annualized mortality rate ³		0.14%		0.13%		0.17%		0.12%		0.13%		0.15%		0.14%
UL account value ⁴	$	659.1	$	635.5	$	617.3	$	607.0	$	596.9	$	659.1	$	596.9
UL interest spread ⁵		1.14%		1.24%		1.59%		1.54%		1.57%		1.32%		1.49%
Individual sales ⁶	$	3.3	$	2.9	$	2.4	$	2.4	$	2.6	$	8.6	$	7.8
BOLI:
BOLI insurance in force ¹	$	12,678.2	$	12,681.6	$	12,681.3	$	12,667.5	$	11,503.8	$	12,678.2	$	11,503.8
BOLI account value ⁴		4,474.2		4,442.0		4,403.0		4,365.4		3,969.7		4,474.2		3,969.7
BOLI PGAAP reserve balance ⁷		21.5		23.6		25.8		27.9		30.0		21.5		30.0
BOLI ROA ⁸		0.82%		0.98%		1.14%		0.92%		0.92%		0.97%		1.09%
BOLI sales ⁹	$	—	$	—	$	—-	$	35.9	$	7.5	$	—	$	10.2


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 adjustment for reinsurance.

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

³Annualized mortality rate is defined as annualized individual 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 third 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 third quarter interest spread would be 2.83%. The UL interest spread is decreasing as the SPL product becomes a larger portion of the total UL account value. The SPL product’s cost of insurance and mortality and expense fee revenue is not reflected in the interest spread.

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

3Q 2011 Financial Supplement

Other

(In millions)


	For the Three Months Ended										For the Nine Months Ended
	Sep. 30,		Jun. 30,		Mar. 31,		Dec. 31,		Sep. 30,		Sep. 30,		Sep. 30,
	2011		2011		2011		2010		2010		2011		2010
Operating revenues:
Net investment income	$	5.8	$	6.2	$	6.5	$	7.8	$	7.6	$	18.5	$	16.0
Policy fees, contract charges and other		5.3		5.4		5.4		4.9		3.8		16.1		11.3

Total operating revenues		11.1		11.6		11.9		12.7		11.4		34.6		27.3

Benefits and expenses:
Interest credited		(0.6)		(0.6)		(0.7)		(0.6)		(1.1)		(1.9)		(2.5)
Other underwriting and operating expenses		5.4		6.6		6.0		7.3		5.0		18.0		15.3
Interest expense		8.0		8.0		8.0		8.0		8.0		24.0		23.9

Total benefits and expenses		12.8		14.0		13.3		14.7		11.9		40.1		36.7

Segment pre-tax adjusted operating loss	$	(1.7)	$	(2.4)	$	(1.4)	$	(2.0)	$	(0.5)	$	(5.5)	$	(9.4)

Symetra Financial Corporation

3Q 2011 Financial Supplement

Deferred Policy Acquisition Cost (DAC) Roll Forwards

(In millions)


	For the Three Months Ended										For the Nine Months Ended
	Sep. 30,		Jun. 30,		Mar. 31,		Dec. 31,		Sep. 30,		Sep. 30,		Sep. 30,
	2011		2011		2011		2010		2010		2011		2010
Summary — Total Company
Unamortized balance, beginning of period	$	411.4	$	403.6	$	387.4	$	369.7	$	360.8	$	387.4	$	325.7
Deferral of acquisition costs:
Commissions		18.7		20.4		28.8		21.4		18.1		67.9		70.2
Other acquisition expenses		8.3		8.0		8.2		12.8		9.4		24.5		27.0

Total deferral of acquisition costs		27.0		28.4		37.0		34.2		27.5		92.4		97.2
Adjustments related to investment gains		(1.8)		(0.6)		(0.7)		(0.7)		(0.6)		(3.1)		(2.8)
Amortization		(20.3)		(20.0)		(20.1)		(15.8)		(17.6)		(60.4)		(51.7)
Unlocking		1.3		—		—		—		(0.4)		1.3		1.3

Total amortization		(19.0)		(20.0)		(20.1)		(15.8)		(18.0)		(59.1)		(50.4)

Unamortized balance, end of period		417.6		411.4		403.6		387.4		369.7		417.6		369.7
Accum effect of net unrealized gains		(215.5)		(172.9)		(141.1)		(137.4)		(208.8)		(215.5)		(208.8)

DAC balance, end of period	$	202.1	$	238.5	$	262.5	$	250.0	$	160.9	$	202.1	$	160.9

Group Division
Unamortized balance, beginning of period	$	3.4	$	3.4	$	3.6	$	3.8	$	3.5	$	3.6	$	3.2
Deferral of acquisition costs:
Other acquisition expenses		2.1		2.1		1.9		1.9		2.4		6.1		6.6

Total deferral of acquisition costs		2.1		2.1		1.9		1.9		2.4		6.1		6.6
Amortization		(2.0)		(2.1)		(2.1)		(2.1)		(2.1)		(6.2)		(6.0)

Unamortized balance, end of period		3.5		3.4		3.4		3.6		3.8		3.5		3.8

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

Retirement Division — Deferred Annuities
Unamortized balance, beginning of period	$	301.1	$	296.2	$	283.2	$	274.6	$	271.6	$	283.2	$	249.1
Deferral of acquisition costs:
Commissions		14.3		16.8		24.4		16.9		12.8		55.5		54.7
Other acquisition expenses		4.5		4.5		4.9		4.8		4.1		13.9		13.6

Total deferral of acquisition costs		18.8		21.3		29.3		21.7		16.9		69.4		68.3
Adjustments related to investment gains		(1.9)		(0.4)		(0.7)		(0.8)		(0.6)		(3.0)		(2.7)
Amortization		(16.3)		(16.0)		(15.6)		(12.3)		(13.3)		(47.9)		(40.1)
Unlocking		2.5		—		—		—		—		2.5		—

Total amortization		(13.8)		(16.0)		(15.6)		(12.3)		(13.3)		(45.4)		(40.1)

Unamortized balance, end of period		304.2		301.1		296.2		283.2		274.6		304.2		274.6
Accum effect of net unrealized gains		(203.6)		(165.6)		(136.2)		(132.4)		(201.7)		(203.6)		(201.7)

DAC balance, end of period	$	100.6	$	135.5	$	160.0	$	150.8	$	72.9	$	100.6	$	72.9

Retirement Division — Income Annuities
Unamortized balance, beginning of period	$	34.3	$	33.1	$	31.2	$	28.9	$	27.0	$	31.2	$	22.4
Deferral of acquisition costs:
Commissions		2.1		1.5		2.3		2.5		2.1		5.9		6.8
Other acquisition expenses		0.4		0.3		0.3		0.3		0.4		1.0		1.2

Total deferral of acquisition costs		2.5		1.8		2.6		2.8		2.5		6.9		8.0
Amortization		(0.6)		(0.6)		(0.7)		(0.5)		(0.6)		(1.9)		(1.5)

Unamortized balance, end of period		36.2		34.3		33.1		31.2		28.9		36.2		28.9

DAC balance, end of period	$	36.2	$	34.3	$	33.1	$	31.2	$	28.9	$	36.2	$	28.9

Life Division
Unamortized balance, beginning of period	$	72.6	$	70.9	$	69.4	$	62.4	$	58.7	$	69.4	$	51.0
Deferral of acquisition costs:
Commissions		2.3		2.1		2.1		2.0		3.2		6.5		8.7
Other acquisition expenses		1.3		1.1		1.1		5.8		2.5		3.5		5.6

Total deferral of acquisition costs		3.6		3.2		3.2		7.8		5.7		10.0		14.3
Adjustments related to inv (gains) losses		0.1		(0.2)		—		0.1		—		(0.1)		(0.1)
Amortization		(1.4)		(1.3)		(1.7)		(0.9)		(1.6)		(4.4)		(4.1)
Unlocking		(1.2)		—		—		—		(0.4)		(1.2)		1.3

Total amortization		(2.6)		(1.3)		(1.7)		(0.9)		(2.0)		(5.6)		(2.8)

Unamortized balance, end of period		73.7		72.6		70.9		69.4		62.4		73.7		62.4
Accum effect of net unrealized gains		(11.9)		(7.3)		(4.9)		(5.0)		(7.1)		(11.9)		(7.1)

DAC balance, end of period	$	61.8	$	65.3	$	66.0	$	64.4	$	55.3	$	61.8	$	55.3

Symetra Financial Corporation

3Q 2011 Financial Supplement

Account Value and Reserve Roll Forwards

(In millions)


	For the Three Months Ended										For the Nine Months Ended
	Sep. 30,		Jun. 30,		Mar. 31,		Dec. 31,		Sep. 30,		Sep. 30,		Sep. 30,
	2011		2011		2011		2010		2010		2011		2010
Retirement Division:
Deferred Annuities:
Fixed Account Values
Account value, beginning of period	$	10,127.3	$	9,793.9	$	9,243.7	$	8,805.6	$	8,574.0	$	9,243.7	$	7,655.7
Deposits		458.1		498.5		659.2		560.3		321.1		1,615.8		1,411.5
Interest credited		90.9		90.5		88.2		88.8		84.9		269.6		242.5
Withdrawals and transfers		(269.7)		(252.2)		(203.4)		(207.5)		(177.3)		(725.3)		(520.8)
Other		15.8		(3.4)		6.2		(3.5)		2.9		18.6		16.7

Account value, end of period	$	10,422.4	$	10,127.3	$	9,793.9	$	9,243.7	$	8,805.6	$	10,422.4	$	8,805.6
Income Annuities:
Reserves
Reserves, beginning of period	$	6,646.6	$	6,681.4	$	6,676.8	$	6,676.8	$	6,716.8	$	6,676.8	$	6,726.3
Deposits		58.8		37.7		65.3		67.1		56.7		161.8		187.1
Interest credited		95.2		95.5		96.2		96.2		96.3		286.9		290.1
Benefit payments		(175.8)		(160.7)		(146.2)		(161.9)		(186.1)		(482.7)		(501.2)
Other		(5.9)		(7.3)		(10.7)		(1.4)		(6.9)		(23.9)		(25.5)

Reserves, end of period	$	6,618.9	$	6,646.6	$	6,681.4	$	6,676.8	$	6,676.8	$	6,618.9	$	6,676.8
Life Division:
BOLI Account Values
Account value, beginning of period	$	4,442.0	$	4,403.0	$	4,365.4	$	3,969.7	$	3,886.0	$	4,365.4	$	3,789.1
Deposits		—		—		—		358.2		74.5		—		102.1
Interest credited		53.3		54.9		54.1		54.6		55.7		162.3		159.7
Surrenders/claims		—		—		—		—		(32.2)		—		(32.5)
Administrative charges and other		(21.1)		(15.9)		(16.5)		(17.1)		(14.3)		(53.5)		(48.7)

Account value, end of period	$	4,474.2	$	4,442.0	$	4,403.0	$	4,365.4	$	3,969.7	$	4,474.2	$	3,969.7
UL Account Values
Account value, beginning of period	$	635.5	$	617.3	$	607.0	$	596.9	$	588.9	$	607.0	$	583.8
Deposits		37.8		33.2		28.3		25.0		22.2		99.3		63.8
Interest credited		7.3		6.8		6.4		6.3		6.4		20.5		12.9
Surrenders/claims		(5.9)		(7.3)		(13.3)		(6.6)		(5.9)		(26.5)		(20.5)
Administrative charges and other		(15.6)		(14.5)		(11.1)		(14.6)		(14.7)		(41.2)		(43.1)

Account value, end of period	$	659.1	$	635.5	$	617.3	$	607.0	$	596.9	$	659.1	$	596.9

Symetra Financial Corporation

3Q 2011 Financial Supplement

Overview of Liabilities and Associated Unrealized Gains

(In millions)


	As of Sep. 30, 2011
	Policyholder Liability		% of Total		Unrealized gains⁸
Illiquid Liabilities
Structured settlements & other SPIAs ¹	$	6,621.7			$	594.3
Deferred annuities with 5 year payout provision or MVA ²		373.9				25.0
Traditional insurance (net of reinsurance) ³		183.8				15.2
Group health & life (net of reinsurance) ³		146.1				1.6

Total illiquid liabilities		7,325.5		32.5%		636.1

Somewhat Liquid Liabilities
Bank-owned life insurance (BOLI) ⁴		4,555.4				356.8
Deferred annuities with surrender charges of 5% or higher		6,926.3				463.3
Universal life with surrender charges of 5% or higher		235.1				15.8

Total somewhat liquid liabilities		11,716.8		51.9%		835.9

Fully Liquid Liabilities
Deferred annuities with surrender charges of:
3% up to 5%		631.9				42.3
Less than 3%		155.9				10.4
No surrender charges ⁵		2,267.1				151.7
Universal life with surrender charges less than 5%		438.5				29.3
BOLI ⁶		3.9				0.3
Traditional insurance (net of reinsurance) ⁶		3.8				0.3
Group health & life (net of reinsurance) ⁶		11.3				0.1

Total fully liquid liabilities		3,512.4		15.6%		234.4

Assets supporting surplus portfolio						147.2

Total ⁷	$	22,554.7		100.0%	$	1,853.6


Reconciliation of unrealized gains to AOCI:
Unrealized gains from above					$	1,853.6
Tax on unrealized gains and losses on available for sale securities						(648.8)
Adjustment for deferred policy acquisition costs and deferred sales inducements valuation allowance, net of tax						(196.6)
Other						(1.7)

AOCI					$	1,006.5

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.

³The 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 sum of funds held under deposit contracts, future policy benefits and policy and contract claims on the consolidated balance sheets, excluding other policyholder related liabilities and reinsurance recoverables of $238.0.

⁸ Represents the pre-tax unrealized gains of the investment portfolio supporting the related policyholder liability.

Symetra Financial Corporation

3Q 2011 Financial Supplement

Investments Summary

(In millions)


	As of
	Sep. 30, 2011			%			Jun. 30, 2011			%			Mar. 31, 2011			%			Dec. 31, 2010			%			Sep. 30, 2010			%
Portfolio Composition:
Available-for-sale securities:
Fixed maturities, at fair value	$	22,881.6			88.5	%	$	22,146.5			88.8	%	$	21,785.4			90.0	%	$	21,281.8			90.6	%	$	21,450.1			91.7	%
Marketable equity securities, at fair value		50.3			0.2	%		51.2			0.2	%		46.4			0.2	%		45.1			0.2	%		45.4			0.2	%
Trading securities:
Marketable equity securities, at fair value		338.1			1.3	%		380.9			1.5	%		224.7			0.9	%		189.3			0.8	%		158.8			0.7	%
Mortgage loans, net		2,277.3			8.8	%		2,085.0			8.4	%		1,862.0			7.7	%		1,713.0			7.3	%		1,493.4			6.4	%
Policy loans		69.5			0.3	%		69.6			0.3	%		70.4			0.3	%		71.5			0.3	%		71.7			0.3	%
Short-term investments		2.5			0.0	%		2.7			0.0	%		2.4			0.0	%		2.5			0.0	%		2.7			0.0	%
Investment in limited partnerships		214.6			0.8	%		193.8			0.8	%		198.8			0.8	%		186.9			0.8	%		169.1			0.7	%
Other invested assets		18.3			0.1	%		11.8			0.0	%		10.4			0.1	%		10.1			0.0	%		9.3			0.0	%
Total investments		25,852.2			100.0	%		24,941.5			100.0	%		24,200.5			100.0	%		23,500.2			100.0	%		23,400.5			100.0	%
Cash and cash equivalents		182.8						87.4						307.9						274.6						197.2
Total investments, cash and cash equivalents	$	26,035.0					$	25,028.9					$	24,508.4					$	23,774.8					$	23,597.7
Fixed Maturities Securities by Credit Quality: ¹
1: AAA, AA, A	$	14,151.4			61.8	%	$	13,391.0			60.5	%	$	13,141.0			60.3	%	$	13,042.4			61.3	%	$	12,798.7			59.7	%
2: BBB		7,343.9			32.1	%		7,274.2			32.8	%		7,306.9			33.6	%		6,981.9			32.8	%		7,681.7			35.8	%
Total investment grade		21,495.3			93.9	%		20,665.2			93.3	%		20,447.9			93.9	%		20,024.3			94.1	%		20,480.4			95.5	%

3: BB		791.6			3.5	%		853.6			3.9	%		719.5			3.3	%		679.0			3.2	%		570.4			2.7	%
4: B		491.6			2.2	%		480.3			2.2	%		462.7			2.1	%		393.8			1.8	%		268.1			1.2	%
5: CCC & lower		95.7			0.4	%		139.4			0.6	%		146.6			0.7	%		164.8			0.8	%		111.0			0.5	%
6: In or near default		7.4			0.0	%		8.0			0.0	%		8.7			0.0	%		19.9			0.1	%		20.2			0.1	%
Total below investment grade		1,386.3			6.1	%		1,481.3			6.7	%		1,337.5			6.1	%		1,257.5			5.9	%		969.7			4.5	%
Total fixed maturities	$	22,881.6			100.0	%	$	22,146.5			100.0	%	$	21,785.4			100.0	%	$	21,281.8			100.0	%	$	21,450.1			100.0	%
Fixed Maturities by Issuer Type:
U.S. government and agencies	$	35.0			0.2	%	$	43.1			0.2	%	$	156.7			0.7	%	$	33.1			0.2	%	$	96.0			0.5	%
State and political subdivisions		540.2			2.4	%		523.6			2.4	%		462.8			2.1	%		452.8			2.1	%		473.3			2.2	%
Foreign governments		21.1			0.1	%		21.9			0.1	%		21.7			0.1	%		23.6			0.1	%		24.9			0.1	%
Corporate securities		16,166.5			70.6	%		15,544.2			70.2	%		14,996.9			68.8	%		14,541.4			68.3	%		14,779.3			68.9	%
Residential mortgage-backed securities		3,708.4			16.2	%		3,631.4			16.4	%		3,815.3			17.5	%		3,801.6			17.9	%		3,840.0			17.9	%
Commercial mortgage-baced securities		1,837.6			8.0	%		1,816.9			8.2	%		1,802.9			8.3	%		1,887.3			8.9	%		1,911.0			8.9	%
Other debt obligations		572.8			2.5	%		565.4			2.5	%		529.1			2.5	%		542.0			2.5	%		325.6			1.5	%
Total fixed maturities	$	22,881.6			100.0	%	$	22,146.5			100.0	%	$	21,785.4			100.0	%	$	21,281.8			100.0	%	$	21,450.1			100.0	%
Effective Duration		5.7						5.7						5.6						5.5						5.4
Average Investment Yield		5.26	%					5.28	%					5.32	%					5.49	%					5.51	%


	For the Three Months Ended
	Sep. 30, 2011			%			Jun. 30, 2011			%			Mar. 31, 2011			%			Dec. 31, 2010			%			Sep. 30, 2010			%
Average Daily Cash and Cash Equivalent Balances:
Group Division	$	11.6			4.7	%	$	11.4			4.8	%	$	5.7			2.3	%	$	8.8			2.8	%	$	10.5			4.7	%
Retirement Division:
Deferred Annuities		97.0			39.2	%		44.6			18.9	%		113.2			46.4	%		150.6			47.5	%		54.4			24.3	%
Income Annuities		26.2			10.6	%		107.3			45.4	%		25.8			10.6	%		11.4			3.6	%		21.6			9.6	%
Life Division		79.2			32.1	%		69.7			29.5	%		85.6			35.1	%		124.9			39.4	%		112.9			50.3	%
Other		33.2			13.4	%		3.4			1.4	%		13.8			5.6	%		21.1			6.7	%		24.8			11.1	%
Total	$	247.2			100.0	%	$	236.4			100.0	%	$	244.1			100.0	%	$	316.8			100.0	%	$	224.2			100.0	%


	For the Three Months Ended															For the Nine Months Ended
	Sep. 30, 2011			Jun. 30, 2011			Mar. 31, 2011			Dec. 31, 2010			Sep. 30, 2010			Sep. 30, 2011			Sep. 30, 2010
MBS Prepayment Speed Adjustment: ²
Group Division	$	—		$	(0.1	)	$	—		$	—		$	—		$	(0.1	)	$	0.1
Retirement Division:
Deferred Annuities		(0.2	)		(0.4	)		0.2			0.2			0.1			(0.4	)		0.2
Income Annuities		(0.2	)		(0.7	)		1.8			3.2			0.1			0.9			(0.2	)
Life Division		(0.5	)		(0.5	)		0.8			1.1			—			(0.2	)		0.1
Other		(0.4	)		0.2			0.3			0.1			0.1			0.1			—
Total	$	(1.3	)	$	(1.5	)	$	3.1		$	4.6		$	0.3		$	0.3		$	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

3Q 2011 Financial Supplement

Sales by Segment and Product

(In millions)


	For the Three Months Ended										For the Nine Months Ended
	Sep. 30,		Jun. 30,		Mar. 31,		Dec. 31,		Sep. 30,		Sep. 30,		Sep. 30,
	2011		2011		2011		2010		2010		2011		2010
Group Division ¹
Medical stop-loss	$	16.3	$	18.1	$	41.9	$	11.7	$	15.1	$	76.3	$	67.4
Limited benefit medical		1.9		4.7		6.0		2.9		2.8		12.6		10.4
Group life & disability		1.9		0.6		0.8		0.5		0.5		3.3		2.6
Total	$	20.1	$	23.4	$	48.7	$	15.1	$	18.4	$	92.2	$	80.4

Retirement Division — Deferred Annuities ²
Fixed annuities	$	369.7	$	437.4	$	609.0	$	514.0	$	276.5	$	1,416.1	$	1,262.8
Fixed indexed annuity		16.4		3.1		—		—		—		19.5		—
Variable annuities		6.2		5.1		6.0		4.4		5.4		17.3		14.1
Retirement plans		1.3		0.9		3.4		4.5		4.5		5.6		10.9
Total	$	393.6	$	446.5	$	618.4	$	522.9	$	286.4	$	1,458.5	$	1,287.8
Retirement Division — Income Annuities ²
SPIA	$	32.1	$	25.1	$	33.1	$	31.9	$	31.4	$	90.3	$	121.7
Structured settlements		32.5		13.6		31.4		36.0		26.6		77.5		70.4
Total	$	64.6	$	38.7	$	64.5	$	67.9	$	58.0	$	167.8	$	192.1

Life Division
Term life ¹	$	0.5	$	0.6	$	0.4	$	0.4	$	1.1	$	1.5	$	3.7
Universal life ³		0.2		0.2		0.4		0.7		0.5		0.8		1.4
Single premium life ³		2.6		2.1		1.6		1.3		1.0		6.3		2.7
Individual sales		3.3		2.9		2.4		2.4		2.6		8.6		7.8
BOLI ⁴		—		—		—		35.9		7.5		—		10.2
Total	$	3.3	$	2.9	$	2.4	$	38.3	$	10.1	$	8.6	$	18.0

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

3Q 2011 Financial Supplement

Book Value, Adjusted Book Value and Statutory Book Value per Share

(In millions, except per share amounts)


	As of
	Sep. 30, 2011			Jun. 30, 2011			Mar. 31, 2011			Dec. 31, 2010			Sep. 30, 2010
Book value per common share ¹	$	22.24		$	19.25		$	17.68		$	17.35		$	19.77
Non-GAAP Financial Measures:
Adjusted book value per common share ²	$	17.32		$	17.28		$	16.85		$	16.48		$	16.01
Adjusted book value per common share, as converted ³	$	16.51		$	16.49		$	16.11		$	15.79		$	15.38
Statutory book value per common share ⁴	$	16.84		$	17.21		$	16.76		$	16.39		$	15.97
Numerator:
Total stockholders’ equity	$	3,060.0		$	2,647.3		$	2,431.0		$	2,380.6		$	2,711.3
AOCI ⁵		1,006.5			597.9			434.0			432.5			819.4
Adjusted book value	$	2,053.5		$	2,049.4		$	1,997.0		$	1,948.1		$	1,891.9
Assumed proceeds from exercise of warrants		218.1			218.1			218.1			218.1			218.1
Adjusted book value, as converted	$	2,271.6		$	2,267.5		$	2,215.1		$	2,166.2		$	2,110.0

Total stockholders’ equity	$	3,060.0		$	2,647.3		$	2,431.0		$	2,380.6		$	2,711.3
Stockholders’ equity of non-insurance entities		(255.8	)		(245.5	)		(250.8	)		(238.6	)		(227.0	)
Statutory adjustments		(997.3	)		(574.0	)		(400.0	)		(389.7	)		(757.0	)
Asset valuation reserve (AVR)		189.8			212.9			206.1			185.1			159.8
Statutory book value	$	1,996.7		$	2,040.7		$	1,986.3		$	1,937.4		$	1,887.1
Denominator: ⁶
Common shares outstanding		118.595			118.571			118.535			118.216			118.171
Total outstanding common shares and shares subject to warrants		137.571			137.547			137.511			137.192			137.147

¹	Book value per common share is calculated based on stockholders’ equity divided by outstanding common shares and shares subject to outstanding warrants.

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

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

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


	As of
	Sep. 30, 2011			Jun. 30, 2011			Mar. 31, 2011			Dec. 31, 2010			Sep. 30, 2010
⁶Reconciliation of outstanding shares:
Common shares outstanding, beginning of period		118.571			118.535			118.216			118.171			118.175
Employee stock purchase plan shares issued		0.028			0.029			0.024			0.033			—
Restricted shares issued		0.008			0.009			0.297			0.030			0.010
Restricted shares forfeited		(0.012	)		(0.002	)		(0.002	)		(0.018	)		(0.014	)


Common shares outstanding, end of period		118.595			118.571			118.535			118.216			118.171
Outstanding warrants		18.976			18.976			18.976			18.976			18.976

Total outstanding common shares and shares subject to outstanding warrants, end of period		137.571			137.547			137.511			137.192			137.147

Symetra Financial Corporation

3Q 2011 Financial Supplement

ROE and Operating ROAE

(In millions)

		0000000000		0000000000		0000000000		0000000000		0000000000
	Twelve Months Ended
	Sep. 30,		Jun. 30,		Mar. 31,		Dec. 31,		Sep. 30,
	2011		2011		2011		2010		2010
ROE:
Net income for the twelve months ended ¹	$	187.6	$	233.1	$	209.5	$	200.9	$	170.8
Average stockholders’ equity ²	$	2,646.0	$	2,502.6	$	2,367.5	$	2,167.9	$	1,987.9

ROE		7.1%		9.3%		8.8%		9.3%		8.6%

Operating ROAE:
Adjusted operating income for the twelve months ended ¹	$	190.5	$	186.7	$	178.4	$	175.2	$	159.9
Average adjusted book value³	$	1,988.0	$	1,945.6	$	1,898.2	$	1,795.4	$	1,695.9

Operating ROAE		9.6%		9.6%		9.4%		9.8%		9.4%

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.

	00000000		00000000		00000000		00000000
		As of
		2011		2010		2009
Stockholders’ Equity
	Dec. 31			$	2,380.6	$	1,433.3
	Sep. 30		3,060.0		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		1,006.5		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 March 31, 2011, December 31, 2010, and September 30, 2010.

		00000000		00000000		00000000
	Three Months Ended
	Jun. 30,		Mar. 31,		Dec. 31,
	2010		2010		2009
Net income	$	35.8	$	46.3	$	32.1
Less: Net realized investment gains (losses) (net of taxes)		(6.6)		4.5		(0.2)
Add: Net investment gains (losses) on FIA options (net of taxes)		(0.9)		0.1		0.4

Adjusted operating income	$	41.5	$	41.9	$	32.7

Symetra Financial Corporation

3Q 2011 Financial Supplement

Addendum

RMBS Prepayment Exposure

(In millions)


																Sep. 30, 2011				Prepayment Speed
																Trailing 12 Month				Adjustment ²
Vintage ¹	Amortized Cost		Unrealized Gain/(Loss)		Fair Value		Gross Discount		Gross Premium		Average Mortgage Loan Rate			Q3 2011 Average Prepayment Speed		Average Prepayment speed		Max Prepayment speed		Q3 2011		YTD 2011
Agency:
CMO
2011	$	147.5	$	14.4	$	161.9	$	11.3	$	(1.2)		3.8	%		172.4		175.8		190.1	$	—	$	—
2010		571.7		53.2		624.9		15.8		(13.4)		5.0	%		273.8		398.2		531.1		(0.3)		0.2
2009		213.5		23.6		237.1		2.2		(3.0)		4.8	%		163.8		254.1		322.7		(0.1)		—
2008		6.3		0.2		6.5		—		—		5.9	%		249.6		344.5		449.3		—		—
2007		32.4		2.3		34.7		1.1		—		6.6	%		201.2		242.5		274.7		—		—
2006		65.2		2.7		67.9		0.1		—		6.6	%		364.7		415.3		453.6		—		—
2005		61.7		7.2		68.9		0.5		—		6.2	%		200.9		254.5		296.6		—		—
2004 & Prior		633.9		81.7		715.6		16.9		(6.6)		6.2	%		228.8		290.7		364.6		0.2		1.0

Agency CMO	$	1,732.2	$	185.3	$	1,917.5	$	47.9	$	(24.2)		5.3	%		234.5		314.6		399.1	$	(0.2)	$	1.2


Passthrough
2011	$	22.2	$	0.9	$	23.1	$	0.1	$	(0.6)		4.3	%		6.1		5.7		6.1	$	—	$	—
2010		296.9		10.7		307.6		0.1		(9.9)		4.7	%		5.3		6.0		8.3		—		—
2009		817.7		39.2		856.9		—		(30.7)		5.7	%		10.1		14.2		18.8		(0.2)		(0.1)
2008		54.2		4.4		58.6		—		(1.1)		6.3	%		14.3		18.7		27.8		—		—
2007		36.8		3.1		39.9		0.2		(0.8)		6.4	%		22.0		25.6		30.2		—		—
2006		12.8		1.3		14.1		0.1		—		6.6	%		28.4		28.7		31.6		—		—
2005		14.2		1.6		15.8		0.7		(0.1)		5.2	%		8.8		17.4		28.6		—		—
2004 & Prior		81.5		7.8		89.3		1.3		(0.6)		5.8	%		18.7		23.8		29.5		—		—

Agency Passthrough		1,336.3		69.0		1,405.3		2.5		(43.8)		5.5	%		10.2		13.5		17.8		(0.2)		(0.1)

Total RMBS Agency	$	3,068.5	$	254.3	$	3,322.8	$	50.4	$	(68.0)		5.4	%		—		—		—	$	(0.4)	$	1.1

Non-Agency
2008 - 2011	$	—	$	—	$	—	$	—	$	—		—			—		—		—	$	—	$	—
2007		25.1		(0.4)		24.7		3.9		—		6.1	%		262.8		278.5		312.3		—		—
2006		99.7		0.4		100.1		13.2		—		6.1	%		290.4		302.0		340.0		(0.3)		—
2005		107.1		(7.2)		99.9		2.8		—		5.8	%		223.0		280.8		345.7		(0.1)		—
2004 & Prior		156.2		4.7		160.9		3.8		(0.2)		5.9	%		286.1		392.0		509.5		(0.3)		(0.2)

Non-Agency CMO		388.1		(2.5)		385.6		23.7		(0.2)		5.9	%		268.3		330.8		408.0		(0.7)		(0.2)

Total RMBS Non-Agency	$	388.1	$	(2.5)	$	385.6	$	23.7	$	(0.2)		5.9	%		268.3		330.8		408.0	$	(0.7)	$	(0.2)



Total RMBS	$	3,456.6	$	251.8	$	3,708.4	$	74.1	$	(68.2)		5.5	%		—		—		—	$	(1.1)	$	0.9

Top 10 RMBS


																			Sep. 30, 2011				Prepayment Speed
																			Trailing 12 Month				Adjustment ²
Name	Vintage		Amortized Cost		Unrealized Gain/ (Loss)		Fair Value		Gross Discount		Gross Premium			Average Mortgage Loan Rate			Q3 2011 Average Prepayment Speed		Average Prepayment speed		Max Prepayment speed		Q3 2011		YTD 2011
Fannie Mae		2009	$	103.4	$	5.4	$	108.8	$	—	$	(2.3	)		5.5	%		16.5		24.1		29.8	$	—	$	—
GNMA		2009		90.9		2.8		93.7		—		(5.3	)		6.2	%		7.1		3.4		7.1		—		0.1
GNMA		2009		83.3		2.9		86.2		—		(4.7	)		6.2	%		3.2		1.9		4.2		—		—
Fannie Mae		2009		64.4		2.5		66.9		—		(2.3	)		5.4	%		7.2		12.2		15.2		—		—
GNMA		2009		58.2		3.0		61.2		—		(1.8	)		6.2	%		—		—		—		—		—
GNMA		2010		56.1		1.5		57.6		—		(2.3	)		4.5	%		1.5		1.0		1.5		—		—
GNMA		2009		53.2		3.4		56.6		—		(2.1	)		5.5	%		5.6		4.9		5.6		—		—
GNMA		2009		47.1		2.7		49.8		—		(1.8	)		5.5	%		15.6		19.6		23.9		—		—
Fannie Mae		2009		42.5		1.3		43.8		—		(1.8	)		5.4	%		9.3		13.6		16.8		—		—
Fannie Mae		2010		38.6		1.5		40.1		—		(1.4	)		5.3	%		9.6		13.9		18.1		—		—


Total			$	637.7	$	27.0	$	664.7	$	—	$	(25.8	)		—			—		—		—	$	—	$	0.1

¹ Vintage indicates year of origination.

² The CMO securities prepayment speed adjustment is estimated using the Public Securities Association prepayment model. The passthrough securities prepayment speed adjustment is estimated using the Conditional Prepayment Rate model.

Symetra Financial Corporation

3Q 2011 Financial Supplement

Addendum

CMBS Prepayment Exposure

(In millions)


																Prepayment Speed Adjustment ²
Vintage ¹	Amortized Cost		Unrealized Gain/ (Loss)			Fair Value		Gross Discount		Gross Premium			Average Mortgage Loan Rate			Q3 2011			YTD 2011
Agency :
CMO
2011	$	11.5	$	0.7		$	12.2	$	—	$	(0.5	)		5.1	%	$	—		$	—
2010		21.8		1.5			23.3		—		(1.9	)		5.0	%		—			(0.1	)
2009		10.0		1.5			11.5		—		—			6.5	%		—			—
2008		44.3		0.6			44.9		—		(1.9	)		5.0	%		—			—
2007		56.2		1.9			58.1		—		(3.6	)		5.9	%		(0.1	)		—
2006		63.8		1.5			65.3		—		(4.2	)		5.7	%		(0.1	)		(0.2	)
2005		33.4		1.6			35.0		—		(1.8	)		5.8	%		—			—
2004 & Prior		154.8		13.6			168.4		—		(5.8	)		6.8	%		—			(0.7	)

Agency CMO	$	395.8	$	22.9		$	418.7	$	—	$	(19.7	)		6.1	%	$	(0.2	)	$	(1.0	)

Passthrough
2005 - 2011	$	—	$	—		$	—	$	—	$	—			0.0	%	$	—		$	—
2004 & Prior		98.0		5.7			103.7		0.3		(3.3	)		7.5	%		—			—

Agency Passthrough		98.0		5.7			103.7		0.3		(3.3	)		7.5	%		—			—

Total CMBS Agency	$	493.8	$	28.6		$	522.4	$	0.3	$	(23.0	)		6.3	%	$	(0.2	)	$	(1.0	)

Non-Agency
2011	$	100.2	$	(0.5	)	$	99.7	$	—	$	(0.9	)		5.5	%	$	—		$	—
2010		1.2		—			1.2		—		—			4.0	%		—			—
2009		—		—			—		—		—			0.0	%		—			—
2008		69.6		5.3			74.9		1.6		(0.2	)		6.1	%		—			—
2007		434.0		40.5			474.5		17.5		(1.0	)		5.8	%		—			0.1
2006		169.7		16.8			186.5		8.4		(1.0	)		5.9	%		—			0.2
2005		267.6		28.2			295.8		8.8		(0.1	)		5.4	%		—			—
2004 & Prior		179.4		3.2			182.6		1.3		(2.0	)		6.5	%		—			—

Non-Agency CMO		1,221.7		93.5			1,315.2		37.6		(5.2	)		5.8	%		—			0.3

Total CMBS Non-Agency	$	1,221.7	$	93.5		$	1,315.2	$	37.6	$	(5.2	)		5.8	%	$	—		$	0.3



Total CMBS	$	1,715.5	$	122.1		$	1,837.6	$	37.9	$	(28.2	)		6.0	%	$	(0.2	)	$	(0.7	)

Top 10 CMBS


																	Prepayment Speed Adjustment ²
Name	Vintage		Amortized Cost		Unrealized Gain/ (Loss)		Fair Value		Gross Discount		Gross Premium			Average Mortgage Loan Rate			Q3 2011			YTD 2011
Commercial Mtg Pass-Through		2003	$	49.6	$	1.7	$	51.3	$	0.4	$	—			5.6	%	$	—		$	—
Bear Stearns Commercial Mortgage		2006		48.2		5.8		54.0		1.8		—			5.9	%		—			—
Bear Stearns Commercial Mortgage		2007		47.5		4.1		51.6		2.5		—			5.2	%		—			0.1
GS Mtg Sec Corp II		2005		44.7		7.3		52.0		0.3		—			5.6	%		—			—
Wachovia Bank Commercial Mortgage		2006		39.2		3.3		42.5		0.8		—			6.0	%		—			—
Citigroup Commercial Mortgage		2008		37.9		2.6		40.5		0.1		—			6.2	%		—			—
GNMA		2007		37.7		1.2		38.9		—		(2.7	)		5.8	%		(0.1	)		—
Bear Stearns Commercial Mortgage		2007		35.6		3.4		39.0		1.0		—			5.9	%		0.1			0.1
JP Morgan Chase Commercial Mortgage		2007		34.2		1.4		35.6		0.1		—			5.7	%		—			—
Greenwich Cap Fund		2005		32.5		0.8		33.3		0.1		—			5.5	%		—			—


Total			$	407.1	$	31.6	$	438.7	$	7.1	$	(2.7	)		—		$	—		$	0.2

1 Vintage indicates year of origination.

Symetra Financial Corporation

3Q 2011 Financial Supplement

Addendum

European Exposure

(In millions)


								Sector
Country	Amortized Cost		Fair Value		% of Exposure			Sovereign Debt		Financial Industry		Other Corporate
United Kingdom	$	473.3	$	521.5		38.2	%	$	—	$	29.6	$	491.9
Netherlands		334.1		361.1		26.5	%		—		—		361.1
Luxembourg		110.3		116.0		8.5	%		—		—		116.0
Switzerland		102.9		104.0		7.6	%		—		103.2		0.8
France		101.7		102.2		7.5	%		—		17.3		84.9
Sweden		43.0		49.8		3.6	%		—		—		49.8
Germany		27.3		21.3		1.5	%		—		11.5		9.8
Austria		19.7		19.9		1.5	%		—		—		19.9
Italy		17.7		19.1		1.4	%		—		—		19.1
Spain		19.9		18.6		1.4	%		—		—		18.6
Finland		10.2		9.0		0.7	%		—		—		9.0
Norway		7.8		8.7		0.6	%		—		0.8		7.9
Belgium		7.1		7.9		0.6	%		—		—		7.9
Greece		4.0		4.5		0.3	%		—		—		4.5
Portugal		1.1		0.7		0.1	%		0.7		—		—


Total	$	1,280.1	$	1,364.3		100.0	%	$	0.7	$	162.4	$	1,201.2

Note: The table above includes $10.4 million in marketable equity securities.

Top 10 European Exposures


Name	Amortized Cost		Fair Value		Moody’s	S&P
Shell International Fin	$	100.9	$	112.6	Aa1	AA
Tesco PLC-ADR		75.7		92.1	A3	A-
Vodafone Group PLC		76.8		88.1	A3	A-
Philips Electronics NV		72.3		81.4	A3	A-
Diageo Capital PLC		72.7		79.2	A3	A-
SABMiller PLC		65.7		77.2	Baa1	BBB+
TYCO Int’l		68.0		75.5	A3	A-
Deutsche Telekom Int Fin		72.2		74.2	Baa1	BBB+
Electricite de France		61.4		62.2	Aa3	AA-
BP Capital PLC		49.9		55.2	A2	A


Total	$	715.6	$	797.7

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