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

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8-K - 8-K - Symetra Financial CORP	sya-201409308k.htm
EX-99.1 - EXHIBIT - Symetra Financial CORP	sya-20140930exhibit991pres.htm

Exhibit 99.2




		October 27, 2014

THIRD QUARTER 2014

Symetra Financial Corporation (SYA)

Financial Supplement

All financial information in this document is unaudited

Symetra Financial Corporation

Financial Supplement

Table of Contents

September 30, 2014




	Page
Financial Highlights	1

Consolidated Results
Consolidated Income Statement Data	2
Consolidated Balance Sheet Data	3
Segment Income Statement Data	4

Segment Results
Benefits Division	5
Retirement Division:
Deferred Annuities	6
Income Annuities	7
Individual Life Division	8
Other	9

Additional Financial Data
Deferred Policy Acquisition Costs (DAC) Roll Forward	10
Deferred Sales Inducements (DSI) Roll Forward	11
Account Values and Reserves Roll Forwards	12
Overview of Liabilities and Associated Unrealized Gains	13
Investments Summary	14
Investments Income Statement Data	15
Sales by Segment and Product	16
Book Value, Adjusted Book Value and Statutory Book Value per Share	17
ROE and Operating ROAE	18

Symetra Financial Corporation

3Q 2014 Financial Supplement

Financial Highlights

(In millions, except per share or percentage data)



		For the Three Months Ended										For the Nine Months Ended
		Sep 30, 2014		Jun 30, 2014		Mar 31, 2014		Dec 31, 2013		Sep 30, 2013		Sep 30, 2014		Sep 30, 2013
Net income		$	36.0	$	71.5	$	79.3	$	64.4	$	45.3	$	186.8	$	156.3
Net income per common share ¹
	Basic	$	0.31	$	0.62	$	0.68	$	0.55	$	0.38	$	1.60	$	1.21
	Diluted	$	0.31	$	0.62	$	0.68	$	0.55	$	0.38	$	1.60	$	1.21
Weighted-average number of common shares outstanding:
	Basic	115.904		115.961		117.460		117.812		117.802		116.436		129.574
	Diluted	115.907		115.964		117.466		117.815		117.804		116.440		129.579
Non-GAAP Financial Measures ²
Adjusted operating income		$	45.5	$	55.3	$	65.7	$	50.0	$	48.8	$	166.5	$	150.9
Adjusted operating income per common share: ¹
	Basic	$	0.39	$	0.48	$	0.56	$	0.42	$	0.41	$	1.43	$	1.16
	Diluted	$	0.39	$	0.48	$	0.56	$	0.42	$	0.41	$	1.43	$	1.16



	As of
	Sep 30, 2014			Jun 30, 2014			Mar 31, 2014			Dec 31, 2013			Sep 30, 2013
Consolidated Balance Sheet Data
Total investments	$	30,274.0		$	29,632.2		$	28,940.0		$	27,901.1		$	27,641.1
Total assets	32,634.5			31,943.6			31,164.3			30,129.5			29,784.6
Notes payable	697.0			449.6			449.6			449.5			449.5
Accumulated other comprehensive income (net of taxes) (AOCI)	911.1			990.6			804.3			593.6			719.0
Total stockholders' equity	3,375.3			3,428.6			3,195.3			2,941.9			3,012.8
U.S. Statutory Financial Information:
Statutory capital and surplus	$	1,951.2		$	1,944.7		$	1,949.4		$	1,869.7		$	1,940.6
Asset valuation reserve (AVR)	315.4			312.3			304.1			307.0			282.5
Statutory book value	$	2,266.6		$	2,257.0		$	2,253.5		$	2,176.7		$	2,223.1
Common shares outstanding, end of period	115.913			115.895			116.619			117.731			117.800
Book value per common share	$	29.12		$	29.58		$	27.40		$	24.99		$	25.58
Debt to capital ratio	17.1		%	11.6		%	12.3		%	13.3		%	13.0		%
Non-GAAP Financial Measures ²
Adjusted book value (stockholders' equity excluding AOCI)	$	2,464.2		$	2,438.0		$	2,391.0		$	2,348.3		$	2,293.8
Adjusted book value per common share ³	21.26			21.04			20.50			19.95			19.47
Statutory book value per common share ⁴	19.55			19.47			19.32			18.49			18.87
Debt to capital ratio, excluding AOCI ⁵	22.0		%	15.6		%	15.8		%	16.1		%	16.4		%



	For the Twelve Months Ended
	Sep 30, 2014		Jun 30, 2014		Mar 31, 2014		Dec 31, 2013		Sep 30, 2013
ROE	7.9	%	8.3	%	7.4	%	6.8	%	5.5	%
Non-GAAP Financial Measure ²
Operating ROAE ⁶	9.1	%	9.4	%	9.4	%	8.8	%	8.1	%



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.
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, 17, and 18, respectively.
3		Adjusted book value per common share is calculated as adjusted book value divided by common shares outstanding.
4		Statutory book value per common share is calculated based on statutory book value divided by common shares outstanding.
5		Debt to capital ratio, excluding AOCI is calculated as notes payable divided by the sum of notes payable and adjusted book value.
6		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 2014 Financial Supplement

Consolidated Income Statement Data

(In millions, except per share data)



			For the Three Months Ended															For the Nine Months Ended
			Sep 30, 2014			Jun 30, 2014			Mar 31, 2014			Dec 31, 2013			Sep 30, 2013			Sep 30, 2014			Sep 30, 2013
Revenues:
	Premiums		$	159.6		$	154.7		$	153.8		$	156.8		$	156.0		$	468.1		$	470.4
	Net investment income		318.5			319.0			324.4			316.3			326.4			961.9			968.7
	Policy fees, contract charges and other		45.7			48.1			46.6			45.0			48.3			140.4			146.7
	Net realized gains (losses):
		Total other-than-temporary impairment losses on securities	(1.6		)	(1.4		)	(1.1		)	(3.8		)	(6.6		)	(4.1		)	(17.0		)
		Less: portion recognized in other comprehensive income	—			—			—			0.9			0.4			—			1.6
		Net impairment losses recognized in earnings	(1.6		)	(1.4		)	(1.1		)	(2.9		)	(6.2		)	(4.1		)	(15.4		)
	Other net realized gains (losses)		(13.2		)	26.7			21.8			27.9			1.6			35.3			26.0
	Total net realized gains (losses)		(14.8		)	25.3			20.7			25.0			(4.6		)	31.2			10.6
Total revenues			509.0			547.1			545.5			543.1			526.1			1,601.6			1,596.4
Benefits and expenses:
	Policyholder benefits and claims		113.9			110.1			101.2			109.7			118.5			325.2			353.2
	Interest credited		237.2			236.3			234.2			235.7			235.3			707.7			696.3
	Other underwriting and operating expenses		92.8			92.6			87.9			90.8			90.6			273.3			274.3
	Interest expense		10.2			8.3			8.2			8.3			8.3			26.7			24.7
	Amortization of deferred policy acquisition costs		17.6			16.6			19.9			16.1			20.2			54.1			56.3
Total benefits and expenses			471.7			463.9			451.4			460.6			472.9			1,387.0			1,404.8
Income from operations before income taxes			37.3			83.2			94.1			82.5			53.2			214.6			191.6
Provision (benefit) for income taxes:
	Current		10.8			17.4			10.1			15.1			11.3			38.3			46.6
	Deferred		(9.5		)	(5.7		)	4.7			3.0			(3.4		)	(10.5		)	(11.3		)
Total provision for income taxes			1.3			11.7			14.8			18.1			7.9			27.8			35.3
Net income			$	36.0		$	71.5		$	79.3		$	64.4		$	45.3		$	186.8		$	156.3
Net income per common share:
	Basic		$	0.31		$	0.62		$	0.68		$	0.55		$	0.38		$	1.60		$	1.21
	Diluted		$	0.31		$	0.62		$	0.68		$	0.55		$	0.38		$	1.60		$	1.21
Weighted-average number of common shares outstanding:
	Basic		115.904			115.961			117.460			117.812			117.802			116.436			129.574
	Diluted		115.907			115.964			117.466			117.815			117.804			116.440			129.579
Cash dividends declared per common share			$	0.10		$	0.10		$	0.10		$	0.09		$	0.09		$	0.30		$	0.25
Non-GAAP Financial Measures:
Adjusted operating income ¹			$	45.5		$	55.3		$	65.7		$	50.0		$	48.8		$	166.5		$	150.9
Adjusted operating income per common share:
	Basic		$	0.39		$	0.48		$	0.56		$	0.42		$	0.41		$	1.43		$	1.16
	Diluted		$	0.39		$	0.48		$	0.56		$	0.42		$	0.41		$	1.43		$	1.16
Reconciliation to net income:
Net income			$	36.0		$	71.5		$	79.3		$	64.4		$	45.3		$	186.8		$	156.3
	Less: Excluded realized gains (losses) (net of taxes)		(9.5		)	16.2			13.6			14.4			(3.5		)	20.3			5.4
Adjusted operating income ¹			$	45.5		$	55.3		$	65.7		$	50.0		$	48.8		$	166.5		$	150.9

Adjusted operating income is calculated as net income, excluding after-tax net realized gains (losses) that are not reflective of the performance of the company’s insurance operations. The company excludes gains (losses) associated with the following: investment sales or disposals, other-than-temporary investment impairments, changes in the fair value of mark-to-market investments and derivative investments (except for certain S&P 500 options), and changes in the fair value of embedded derivatives related to our fixed indexed annuity product.

Symetra Financial Corporation

3Q 2014 Financial Supplement

Consolidated Balance Sheet Data

(In millions)



			As of
			Sep 30, 2014			Jun 30, 2014			Mar 31, 2014			Dec 31, 2013			Sep 30, 2013
Assets
Investments:
	Available-for-sale securities:
		Fixed maturities, at fair value	$	25,316.6		$	24,849.2		$	24,329.0		$	23,337.7		$	23,306.5
		Marketable equity securities, at fair value	122.7			126.6			126.8			134.3			87.1
	Trading securities:
		Marketable equity securities, at fair value	467.9			483.0			460.3			474.4			509.4
	Mortgage loans, net		3,921.0			3,747.8			3,603.2			3,541.0			3,376.8
	Policy loans		61.0			62.0			62.4			63.3			64.2
	Investments in limited partnerships		307.9			291.8			299.3			296.3			253.1
	Other invested assets		76.9			71.8			59.0			54.1			44.0
Total investments			30,274.0			29,632.2			28,940.0			27,901.1			27,641.1
Cash and cash equivalents			109.2			118.0			108.5			76.0			121.1
Accrued investment income			309.2			298.3			295.0			298.0			293.2
Reinsurance recoverables			324.4			312.9			313.0			310.8			306.1
Deferred policy acquisition costs			364.9			311.2			320.1			322.5			271.7
Receivables and other assets			300.7			276.8			213.9			242.7			229.4
Separate account assets			952.1			994.2			973.8			978.4			922.0
Total assets			$	32,634.5		$	31,943.6		$	31,164.3		$	30,129.5		$	29,784.6
Liabilities and stockholders' equity
	Funds held under deposit contracts		$	26,150.2		$	25,603.3		$	25,140.5		$	24,642.9		$	24,074.7
	Future policy benefits		408.2			405.3			399.8			397.9			394.6
	Policy and contract claims		156.6			156.7			150.1			159.9			165.4
	Other policyholders' funds		121.3			117.6			143.9			128.1			171.9
	Notes payable		697.0			449.6			449.6			449.5			449.5
	Deferred income tax liabilities, net		362.3			414.7			320.1			201.9			266.5
	Other liabilities		411.5			373.6			391.2			229.0			327.2
	Separate account liabilities		952.1			994.2			973.8			978.4			922.0
Total liabilities			29,259.2			28,515.0			27,969.0			27,187.6			26,771.8
Preferred stock			—			—			—			—			—
Common stock			1.2			1.2			1.2			1.2			1.2
Additional paid-in-capital			1,469.9			1,468.0			1,466.3			1,464.6			1,463.9
Treasury stock			(134.6		)	(134.6		)	(119.9		)	(93.4		)	(93.4		)
Retained earnings			1,127.7			1,103.4			1,043.4			975.9			922.1
Accumulated other comprehensive income, net of taxes			911.1			990.6			804.3			593.6			719.0
Total stockholders' equity			3,375.3			3,428.6			3,195.3			2,941.9			3,012.8
Total liabilities and stockholders' equity			$	32,634.5		$	31,943.6		$	31,164.3		$	30,129.5		$	29,784.6

Symetra Financial Corporation

3Q 2014 Financial Supplement

Segment Income Statement Data

(In millions)



			For the Three Months Ended															For the Nine Months Ended
			Sep 30, 2014			Jun 30, 2014			Mar 31, 2014			Dec 31, 2013			Sep 30, 2013			Sep 30, 2014			Sep 30, 2013
Operating revenues:
	Benefits Division		$	160.0		$	155.8		$	153.9		$	156.5		$	156.1		$	469.7		$	469.9
	Retirement Division:
		Deferred Annuities	157.5			152.0			155.8			149.0			151.6			465.3			443.6
		Income Annuities	93.8			96.0			97.2			99.2			98.6			287.0			301.3
	Individual Life Division		113.9			115.6			115.9			113.5			115.3			345.4			339.0
	Other		(1.5		)	2.7			1.8			2.7			9.9			3.0			34.3
Operating revenues ¹			523.7			522.1			524.6			520.9			531.5			1,570.4			1,588.1
	Add: Excluded realized gains (losses)		(14.7		)	25.0			20.9			22.2			(5.4		)	31.2			8.3
Revenues			$	509.0		$	547.1		$	545.5		$	543.1		$	526.1		$	1,601.6		$	1,596.4
Segment pre-tax adjusted operating income (loss):
	Benefits Division		$	20.6		$	19.9		$	27.8		$	19.2		$	15.2		$	68.3		$	45.0
	Retirement Division:
		Deferred Annuities	30.7			27.4			30.2			27.0			23.8			88.3			80.3
		Income Annuities	2.1			3.5			9.4			6.4			7.1			15.0			25.9
	Individual Life Division		10.7			13.6			12.3			13.8			15.8			36.6			41.5
	Other		(12.1		)	(6.2		)	(6.5		)	(6.1		)	(3.3		)	(24.8		)	(9.4		)
Pre-tax adjusted operating income ²			52.0			58.2			73.2			60.3			58.6			183.4			183.3
	Add: Excluded realized gains (losses)		(14.7		)	25.0			20.9			22.2			(5.4		)	31.2			8.3
Income from operations before income taxes			$	37.3		$	83.2		$	94.1		$	82.5		$	53.2		$	214.6		$	191.6



1		Operating revenues is a non-GAAP measure, calculated as total revenues less excluded realized gains (losses). It also represents the cumulative total of segment operating revenue, which at the segment level is a GAAP measure. Total revenues is the most directly comparable measure to operating revenues.
2		Pre-tax adjusted operating income is a non-GAAP measure, calculated as adjusted operating income on a pre-tax basis. It also represents the cumulative total of segment pre-tax adjusted operating income, which at the segment level is a GAAP measure. Income from operations before income taxes is the most directly comparable measure to pre-tax adjusted operating income.

Symetra Financial Corporation

3Q 2014 Financial Supplement

Benefits Division

(In millions, except percentage data)



		For the Three Months Ended															For the Nine Months Ended
		Sep 30, 2014			Jun 30, 2014			Mar 31, 2014			Dec 31, 2013			Sep 30, 2013			Sep 30, 2014			Sep 30, 2013
Operating revenues:
	Premiums	$	150.9		$	146.3		$	145.0		$	147.4		$	147.4		$	442.2		$	444.0
	Net investment income	5.4			5.2			5.0			5.4			5.2			15.6			15.5
	Policy fees, contract charges and other	3.7			4.3			3.9			3.7			3.5			11.9			10.4
Total operating revenues		160.0			155.8			153.9			156.5			156.1			469.7			469.9
Benefits and expenses:
	Policyholder benefits and claims	94.7			91.7			82.8			94.3			99.2			269.2			299.1
	Other underwriting and operating expenses	44.6			44.0			43.2			43.0			41.7			131.8			125.8
	Amortization of deferred policy acquisition costs	0.1			0.2			0.1			—			—			0.4			—
Total benefits and expenses		139.4			135.9			126.1			137.3			140.9			401.4			424.9
Segment pre-tax adjusted operating income		$	20.6		$	19.9		$	27.8		$	19.2		$	15.2		$	68.3		$	45.0
Operating Metrics:
Loss ratio ¹		62.7		%	62.7		%	57.1		%	64.0		%	67.3		%	60.9		%	67.4		%
Expense ratio ²		29.4		%	30.0		%	29.6		%	28.8		%	28.1		%	29.7		%	28.2		%
Combined ratio ³		92.1		%	92.7		%	86.7		%	92.8		%	95.4		%	90.6		%	95.6		%
Medical stop-loss - loss ratio ⁴		63.6		%	60.9		%	55.7		%	63.8		%	67.2		%	60.1		%	67.5		%
Total sales ⁵		$	34.8		$	26.1		$	71.9		$	24.1		$	19.0		$	132.8		$	106.8
Premiums:
	Medical stop-loss	$	124.0		$	122.9		$	121.7		$	127.0		$	127.2		$	368.6		$	385.4
	Limited benefit medical	12.7			12.3			13.3			12.6			13.3			38.3			39.3
	Group life & disability and other	14.2			11.1			10.0			7.8			6.9			35.3			19.3
Total premiums earned		$	150.9		$	146.3		$	145.0		$	147.4		$	147.4		$	442.2		$	444.0



5 Year Historical Loss Ratio: ¹	For the Three Months Ended								For the Year Ended
	1Q		2Q		3Q		4Q
2013	68.5	%	66.2	%	67.3	%	64.0	%	66.5	%
2012	61.6	%	65.5	%	65.5	%	67.7	%	65.1	%
2011	67.6	%	62.4	%	63.6	%	59.6	%	63.1	%
2010	68.9	%	63.8	%	66.5	%	60.5	%	64.9	%
2009	70.1	%	66.1	%	67.3	%	69.9	%	68.3	%



1		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 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 incurred divided by medical stop-loss premiums earned.
5		Total sales represents annualized first-year premiums net of first year policy lapses.

Symetra Financial Corporation

3Q 2014 Financial Supplement

Retirement Division — Deferred Annuities

(In millions, except percentage data)



		For the Three Months Ended															For the Nine Months Ended
		Sep 30, 2014			Jun 30, 2014			Mar 31, 2014			Dec 31, 2013			Sep 30, 2013			Sep 30, 2014			Sep 30, 2013
Operating revenues:
	Net investment income	$	152.0		$	145.8		$	150.1		$	140.9		$	145.0		$	447.9		$	424.4
	Policy fees, contract charges and other	5.6			5.9			5.9			5.3			5.8			17.4			16.9
	Certain realized gains (losses)	(0.1		)	0.3			(0.2		)	2.8			0.8			—			2.3
Total operating revenues		157.5			152.0			155.8			149.0			151.6			465.3			443.6
Benefits and expenses:
	Policyholder benefits and claims	—			0.1			0.1			(0.2		)	0.2			0.2			0.4
	Interest credited	87.6			86.9			87.5			87.4			86.6			262.0			250.3
	Other underwriting and operating expenses	23.6			22.9			21.1			22.0			23.3			67.6			64.6
	Amortization of deferred policy acquisition costs	15.6			14.7			16.9			12.8			17.7			47.2			48.0
Total benefits and expenses		126.8			124.6			125.6			122.0			127.8			377.0			363.3
Segment pre-tax adjusted operating income		$	30.7		$	27.4		$	30.2		$	27.0		$	23.8		$	88.3		$	80.3
Operating Metrics:
Fixed account values, excluding FIA - General account		$	11,074.0		$	10,992.8		$	10,951.2		$	10,874.7		$	10,790.0		$	11,074.0		$	10,790.0
	Interest spread ¹	1.91		%	1.81		%	1.98		%	1.83		%	2.05		%	1.91		%	2.08		%
	Base earned yield ²	4.43		%	4.44		%	4.50		%	4.59		%	4.60		%	4.47		%	4.65		%
	Base credited rate ²	2.70		%	2.73		%	2.75		%	2.85		%	2.88		%	2.73		%	2.87		%
	Base interest spread ²	1.73		%	1.71		%	1.75		%	1.74		%	1.72		%	1.74		%	1.78		%
Fixed account values, FIA - General account		$	2,907.2		$	2,463.3		$	2,084.4		$	1,712.0		$	1,321.8		$	2,907.2		$	1,321.8
	FIA interest spread ³	1.21		%	1.24		%	1.23%			*			*			1.22		%	*
	FIA base earned yield ⁴	3.39		%	3.33		%	3.29%			*			*			3.34		%	*
	FIA base credited rate ⁴	2.14		%	2.09		%	2.05%			*			*			2.10		%	*
	FIA base interest spread ⁴	1.25		%	1.24		%	1.24%			*			*			1.24		%	*
Variable account values - Separate account		$	805.3		$	843.7		$	831.3		$	836.2		$	792.3		$	805.3		$	792.3
Total sales ⁵		759.3			650.3			627.5			732.9			747.1			2,037.1			1,510.6



1		Interest spread excludes FIA and is the difference between the net investment yield and the credited rate to policyholders. The net investment yield is the approximate yield on invested assets. The credited rate is the approximate rate credited on policyholder fixed account values. Interest credited is subject to contractual terms, including minimum guarantees. Interest is credited on a daily basis and therefore quarters with more/less days of interest reduces/increases interest spread and base interest spread.
2		Base interest spread excludes FIA and is the interest spread adjusted to exclude items that can vary significantly from period to period due to a number of factors and, therefore, may contribute to results that are not indicative of the underlying trends. This is primarily the impact of asset prepayments, such as bond make-whole premiums net of related deferred sales inducement amortization and the MBS prepayment speed adjustment. Interest is credited on a daily basis and therefore quarters with more/less days of interest reduces/increases interest spread and base interest spread.
3		FIA interest spread is the difference between the net investment yield and the credited rate to policyholders. The net investment yield is the approximate yield on invested assets, excluding derivative assets. The credited rate represents amounts recorded in interest credited related to FIA contracts.
4		FIA base interest spread is the FIA interest spread adjusted to exclude items that can vary significantly from period to period due to a number of factors and, therefore, may contribute to results that are not indicative of the underlying trends. This is primarily the impact of asset prepayments, such as bond make-whole premiums, the MBS prepayment speed adjustment, and the impact of reserve adjustments on interest credited.
5		Total sales represents deposits for new policies net of first year policy lapses and/or surrenders.
*		Not meaningful.

Fixed Account Values - General Account by Contract Minimum Interest Guarantees as of September 30, 2014:

Contract Minimum Interest Guarantee ²

<= 3.5%

> 3.5% ¹

> 1.5%

<= 1.5%

Fixed account values - General account (including FIA)

1,065.7

923.0

11,930.0



¹	The maximum interest is 4.5% on a $118.4 block of business.
²	Excludes standard non-forfeiture impacts.

Symetra Financial Corporation

3Q 2014 Financial Supplement

Retirement Division—Income Annuities

(In millions, except percentage data)



		For the Three Months Ended															For the Nine Months Ended
		Sep 30, 2014			Jun 30, 2014			Mar 31, 2014			Dec 31, 2013			Sep 30, 2013			Sep 30, 2014			Sep 30, 2013
Operating revenues:
	Net investment income	$	93.4		$	95.8		$	97.0		$	98.9		$	98.4		$	286.2		$	299.0
	Policy fees, contract charges and other	0.4			0.2			0.2			0.3			0.2			0.8			2.3
Total operating revenues		93.8			96.0			97.2			99.2			98.6			287.0			301.3
Benefits and expenses:
	Interest credited	85.3			85.9			82.0			86.1			85.7			253.2			256.9
	Other underwriting and operating expenses	5.1			5.5			4.8			5.6			4.9			15.4			15.7
	Amortization of deferred policy acquisition costs	1.3			1.1			1.0			1.1			0.9			3.4			2.8
Total benefits and expenses		91.7			92.5			87.8			92.8			91.5			272.0			275.4
Segment pre-tax adjusted operating income		$	2.1		$	3.5		$	9.4		$	6.4		$	7.1		$	15.0		$	25.9
Operating Metrics:
Reserves ¹		$	6,494.8		$	6,516.6		$	6,509.9		$	6,489.9		$	6,484.6		$	6,494.8		$	6,484.6
Interest spread ²		0.46		%	0.48		%	0.52		%	0.63		%	0.61		%	0.48		%	0.62		%
Base earned yield ³		5.89		%	5.89		%	5.89		%	6.02		%	6.02		%	5.89		%	6.03		%
Base credited rate ³		5.36		%	5.44		%	5.48		%	5.50		%	5.49		%	5.43		%	5.51		%
Base interest spread ³		0.53		%	0.45		%	0.41		%	0.52		%	0.53		%	0.46		%	0.52		%
Mortality gains (losses) ⁴		$	0.2		$	0.8		$	5.3		$	1.5		$	1.1		$	6.3		$	6.6
Total sales ⁵		62.3			89.0			87.5			85.4			38.9			238.8			125.1



5 Year Historical Mortality Gains (Losses): ⁴	For the Three Months Ended												For the Year Ended
	1Q			2Q			3Q			4Q
2013	$	1.0		$	4.5		$	1.1		$	1.5		$	8.1
2012	5.4			6.4			2.0			(0.9		)	12.9
2011	0.7			4.9			(1.4		)	(3.9		)	0.3
2010	(0.1		)	(1.8		)	(0.1		)	(0.6		)	(2.6		)
2009	4.3			(0.5		)	—			1.3			5.1



1		Reserves represents the present value of future income annuity benefits and assumed expenses, discounted by the assumed interest rate. This metric represents the amount of our in-force book of business.
2		Interest spread is the difference between the net investment yield and the credited rate to policyholders. The net investment yield is the approximate yield on invested assets, excluding equities, attributed to the segment. The credited rate is the approximate rate credited on policyholder reserves.
3		Base interest spread is the interest spread adjusted to exclude items that can vary significantly from period to period due to a number of factors and, therefore, may contribute to yields that are not indicative of the underlying trends. This is primarily the impact of asset prepayments, such as bond make-whole premiums and the MBS prepayment speed adjustment.
4		Mortality gains (losses) represents the difference between actual and expected reserves released on our life contingent annuities.
5		Total sales represents deposits for new policies net of first year policy lapses and/or surrenders.

Symetra Financial Corporation

3Q 2014 Financial Supplement

Individual Life Division

(In millions, except percentage data)



		For the Three Months Ended															For the Nine Months Ended
		Sep 30, 2014			Jun 30, 2014			Mar 31, 2014			Dec 31, 2013			Sep 30, 2013			Sep 30, 2014			Sep 30, 2013
Operating revenues:
	Premiums	$	8.7		$	8.4		$	8.8		$	9.4		$	8.6		$	25.9		$	26.4
	Net investment income	69.6			70.1			70.9			68.9			72.6			210.6			211.5
	Policy fees, contract charges and other	35.6			37.1			36.2			35.2			34.1			108.9			101.1
Total operating revenues		113.9			115.6			115.9			113.5			115.3			345.4			339.0
Benefits and expenses:
	Policyholder benefits and claims	19.2			18.3			18.3			15.6			19.1			55.8			53.7
	Interest credited	64.6			63.9			65.2			62.6			63.4			193.7			190.4
	Other underwriting and operating expenses	18.8			19.2			18.2			19.3			15.4			56.2			47.9
	Amortization of deferred policy acquisition costs	0.6			0.6			1.9			2.2			1.6			3.1			5.5
Total benefits and expenses		103.2			102.0			103.6			99.7			99.5			308.8			297.5
Segment pre-tax adjusted operating income		$	10.7		$	13.6		$	12.3		$	13.8		$	15.8		$	36.6		$	41.5
Operating Metrics:
Individual Insurance:
	Insurance in force ¹	$	35,168.0		$	35,125.5		$	35,001.0		$	34,935.1		$	35,070.4		$	35,168.0		$	35,070.4
	Claims ²	14.3			12.7			14.8			11.3			14.0			41.7			43.4
	Annualized mortality rate ³	0.16		%	0.14		%	0.17		%	0.13		%	0.16		%	0.16		%	0.17		%
	UL account values ⁴	$	753.4		$	741.5		$	734.1		$	726.2		$	717.6		$	753.4		$	717.6
	UL interest spread ⁵	1.36		%	1.35		%	1.51		%	1.22		%	2.44		%	1.40		%	2.11		%
	UL base interest spread ⁶	1.17		%	1.25		%	1.29		%	1.24		%	1.41		%	1.23		%	1.43		%
	Individual sales ⁷	$	8.3		$	9.1		$	7.9		$	9.4		$	3.9		$	25.3		$	9.2
Institutional Markets:
	Insurance in force ¹	$	12,842.6		$	12,844.8		$	12,926.1		$	12,926.2		$	12,799.8		$	12,842.6		$	12,799.8
	BOLI account values ⁴	4,868.1			4,834.2			4,834.6			4,798.1			4,764.8			4,868.1			4,764.8
	BOLI ROA ⁸	0.96		%	1.10		%	0.97		%	0.87		%	0.78		%	1.01		%	0.84		%
	BOLI base ROA ⁹	0.92		%	0.79		%	0.90		%	0.87		%	0.64		%	0.87		%	0.77		%
	COLI sales ¹⁰	$	—		$	—		$	—		$	8.0		$	10.2		$	—		$	37.0



5 Year Historical Individual Claims:²	For the Three Months Ended				For the Year Ended
	1Q	2Q	3Q	4Q
2013	15.7	13.7	14.0	11.3	54.7
2012	15.7	15.1	13.9	16.3	61.0
2011	15.7	12.1	13.0	13.5	54.3
2010	13.9	13.5	12.0	11.3	50.7
2009	14.7	13.4	12.8	12.6	53.5



1		Insurance in force represents dollar face amounts of policies without adjustment for reinsurance.
2		Individual claims represents incurred claims, net of reinsurance, on our term and universal life policies.
3		Annualized mortality rate is defined as annualized individual claims divided by insurance in force.
4		UL account values and BOLI account values represent our liabilities to our policyholders.
5		UL interest spread excludes SPL and is the difference between the net investment yield and the credited rate to policyholders. The net investment yield is the approximate yield on invested assets in the general account attributed to UL policies. The credited rate is the approximate rate credited on UL policyholder account values. Interest credited is subject to contractual terms, including minimum guarantees.
6		UL base interest spread excludes SPL and is UL interest spread adjusted to exclude items that can vary significantly from period to period due to a number of factors and, therefore, may contribute to results that are not indicative of the underlying trends. This is primarily the impact of asset prepayments, such as bond make-whole premiums net of related bonus interest amortization, the MBS prepayment speed adjustment, and reserve adjustments.
7		Individual sales represents annualized first year premiums for recurring premium products and 10% of new single premium deposits, net of first year policy lapses and/or surrenders.
8		BOLI ROA is a measure of the gross margin on our BOLI book of business. This metric is calculated as the difference between our BOLI revenue earnings rate and our BOLI policy benefits rate. The revenue earnings rate is calculated as revenues divided by average invested assets. The policy benefits rate is calculated as total policy benefits divided by average account values. The policy benefits used in this metric do not include expenses.
9		BOLI base ROA is BOLI ROA adjusted to exclude items that can vary significantly from period to period due to a number of factors and, therefore, may contribute to yields that are not indicative of the underlying trends. This is primarily the impact of asset prepayments, such as bond make-whole premiums, the MBS prepayment speed adjustment, and reserve adjustments.
10		COLI sales represents deposits for new policies.

Symetra Financial Corporation

3Q 2014 Financial Supplement

Other

(In millions)



		For the Three Months Ended															For the Nine Months Ended
		Sep 30, 2014			Jun 30, 2014			Mar 31, 2014			Dec 31, 2013			Sep 30, 2013			Sep 30, 2014			Sep 30, 2013
Operating revenues:
	Net investment income (loss) ¹	$	(1.9	)	$	2.1		$	1.4		$	2.2		$	5.2		$	1.6		$	18.3
	Policy fees, contract charges and other	0.4			0.6			0.4			0.5			4.7			1.4			16.0
Total operating revenues		(1.5		)	2.7			1.8			2.7			9.9			3.0			34.3
Benefits and expenses:
	Interest credited	(0.3		)	(0.4		)	(0.5		)	(0.4		)	(0.4		)	(1.2		)	(1.3		)
	Other underwriting and operating expenses	0.7			1.0			0.6			0.9			5.3			2.3			20.3
	Interest expense	10.2			8.3			8.2			8.3			8.3			26.7			24.7
Total benefits and expenses		10.6			8.9			8.3			8.8			13.2			27.8			43.7
Segment pre-tax adjusted operating loss		$	(12.1	)	$	(6.2	)	$	(6.5	)	$	(6.1	)	$	(3.3	)	$	(24.8	)	$	(9.4	)



		For the Three Months Ended															For the Nine Months Ended
		Sep 30, 2014			Jun 30, 2014			Mar 31, 2014			Dec 31, 2013			Sep 30, 2013			Sep 30, 2014			Sep 30, 2013
1	Detail of net investment income (loss)
	Amortization of tax credit investments	$	(8.1	)	$	(6.3	)	$	(6.7	)	$	(5.8	)	$	(5.1	)	$	(21.1	)	$	(14.7	)
	Alternative investments (private equity/hedge funds)	(2.5		)	(0.3		)	—			(0.9		)	0.8			(2.8		)	4.9
	Investment income on fixed maturities and other investments	8.7			8.7			8.1			8.9			9.5			25.5			28.1
	Net investment income (loss)	$	(1.9	)	$	2.1		$	1.4		$	2.2		$	5.2		$	1.6		$	18.3

Symetra Financial Corporation

3Q 2014 Financial Supplement

Deferred Policy Acquisition Costs (DAC) Roll Forward

(In millions)



				For the Three Months Ended															For the Nine Months Ended
				Sep 30, 2014			Jun 30, 2014			Mar 31, 2014			Dec 31, 2013			Sep 30, 2013			Sep 30, 2014			Sep 30, 2013
				Sep 30, 2014			Jun 30, 2014			Mar 31, 2014			Dec 31, 2013			Sep 30, 2013			Sep 30, 2014			Sep 30, 2013
Summary -- Total Company
	Unamortized balance, beginning of period			$	464.2		$	441.3		$	419.9		$	390.1		$	373.1		$	419.9		$	367.9
		Deferral of acquisition costs:
			Commissions and premium-based taxes and fees	37.9			37.4			34.8			40.4			33.2			110.1			70.2
			Other acquisition expenses	5.6			3.1			5.4			4.5			3.2			14.1			7.2
		Total deferral of acquisition costs		43.5			40.5			40.2			44.9			36.4			124.2			77.4
		Adjustments related to realized (gains) losses		(3.0		)	(1.0		)	1.1			1.0			0.8			(2.9		)	1.1
			Amortization	(16.3		)	(15.9		)	(15.5		)	(15.6		)	(14.9		)	(47.7		)	(46.0		)
			Amortization related to prepayments	(1.1		)	(0.7		)	(4.4		)	(0.5		)	(2.7		)	(6.2		)	(7.7		)
			Unlocking	(0.2		)	—			—			—			(2.6		)	(0.2		)	(2.6		)
		Total amortization		(17.6		)	(16.6		)	(19.9		)	(16.1		)	(20.2		)	(54.1		)	(56.3		)
		Unamortized balance, end of period		487.1			464.2			441.3			419.9			390.1			487.1			390.1
		Accum effect of net unrealized gains		(122.2		)	(153.0		)	(121.2		)	(97.4		)	(118.4		)	(122.2		)	(118.4		)
	DAC balance, end of period			$	364.9		$	311.2		$	320.1		$	322.5		$	271.7		$	364.9		$	271.7

Benefits Division
	Unamortized balance, beginning of period			$	1.3		$	1.5		$	—		$	—		$	—		$	—		$	—
		Deferral of acquisition costs:
			Other acquisition expenses	0.5			—			1.6			—			—			2.1			—
		Total deferral of acquisition costs		0.5			—			1.6			—			—			2.1			—
		Amortization		(0.1		)	(0.2		)	(0.1		)	—			—			(0.4		)	—
		Unamortized balance, end of period		1.7			1.3			1.5			—			—			1.7			—
	DAC balance, end of period			$	1.7		$	1.3		$	1.5		$	—		$	—		$	1.7		$	—

Retirement Division - Deferred Annuities
	Unamortized balance, beginning of period			$	305.8		$	295.5		$	285.9		$	268.8		$	256.9		$	285.9		$	256.7
		Deferral of acquisition costs:
			Commissions and premium-based taxes and fees	26.3			23.8			23.2			25.9			26.7			73.3			54.4
			Other acquisition expenses	2.5			1.6			2.2			3.0			2.1			6.3			4.6
		Total deferral of acquisition costs		28.8			25.4			25.4			28.9			28.8			79.6			59.0
		Adjustments related to realized (gains) losses		(3.0		)	(0.4		)	1.1			1.0			0.8			(2.3		)	1.1
			Amortization	(14.0		)	(14.0		)	(12.6		)	(12.3		)	(12.3		)	(40.6		)	(37.7		)
			Amortization related to prepayments	(1.0		)	(0.7		)	(4.3		)	(0.5		)	(2.5		)	(6.0		)	(7.4		)
			Unlocking	(0.6		)	—			—			—			(2.9		)	(0.6		)	(2.9		)
		Total amortization		(15.6		)	(14.7		)	(16.9		)	(12.8		)	(17.7		)	(47.2		)	(48.0		)
		Unamortized balance, end of period		316.0			305.8			295.5			285.9			268.8			316.0			268.8
		Accum effect of net unrealized gains		(112.8		)	(143.0		)	(112.9		)	(91.4		)	(110.6		)	(112.8		)	(110.6		)
	DAC balance, end of period			$	203.2		$	162.8		$	182.6		$	194.5		$	158.2		$	203.2		$	158.2

Retirement Division - Income Annuities
	Unamortized balance, beginning of period			$	54.6		$	52.1		$	49.2		$	47.0		$	46.3		$	49.2		$	45.0
		Deferral of acquisition costs:
			Commissions and premium-based taxes and fees	2.4			3.5			3.7			3.2			1.5			9.6			4.4
			Other acquisition expenses	0.3			0.1			0.2			0.1			0.1			0.6			0.4
		Total deferral of acquisition costs		2.7			3.6			3.9			3.3			1.6			10.2			4.8
		Amortization		(1.3		)	(1.1		)	(1.0		)	(1.1		)	(0.9		)	(3.4		)	(2.8		)
		Unamortized balance, end of period		56.0			54.6			52.1			49.2			47.0			56.0			47.0
	DAC balance, end of period			$	56.0		$	54.6		$	52.1		$	49.2		$	47.0		$	56.0		$	47.0

Individual Life Division
	Unamortized balance, beginning of period			$	102.5		$	92.2		$	84.8		$	74.3		$	69.9		$	84.8		$	66.2
		Deferral of acquisition costs:
			Commissions and premium-based taxes and fees	9.2			10.1			7.9			11.3			5.0			27.2			11.4
			Other acquisition expenses	2.3			1.4			1.4			1.4			1.0			5.1			2.2
		Total deferral of acquisition costs		11.5			11.5			9.3			12.7			6.0			32.3			13.6
		Adjustments related to realized (gains) losses		—			(0.6		)	—			—			—			(0.6		)	—
			Amortization	(0.9		)	(0.6		)	(1.8		)	(2.2		)	(1.7		)	(3.3		)	(5.5		)
			Amortization related to prepayments	(0.1		)	—			(0.1		)	—			(0.2		)	(0.2		)	(0.3		)
			Unlocking	0.4			—			—			—			0.3			0.4			0.3
		Total amortization		(0.6		)	(0.6		)	(1.9		)	(2.2		)	(1.6		)	(3.1		)	(5.5		)
		Unamortized balance, end of period		113.4			102.5			92.2			84.8			74.3			113.4			74.3
		Accum effect of net unrealized gains		(9.4		)	(10.0		)	(8.3		)	(6.0		)	(7.8		)	(9.4		)	(7.8		)
	DAC balance, end of period			$	104.0		$	92.5		$	83.9		$	78.8		$	66.5		$	104.0		$	66.5

Symetra Financial Corporation

3Q 2014 Financial Supplement

Deferred Sales Inducements (DSI) Roll Forward

(In millions)



				For the Three Months Ended															For the Nine Months Ended
				Sep 30, 2014			Jun 30, 2014			Mar 31, 2014			Dec 31, 2013			Sep 30, 2013			Sep 30, 2014			Sep 30, 2013
				Sep 30, 2014			Jun 30, 2014			Mar 31, 2014			Dec 31, 2013			Sep 30, 2013			Sep 30, 2014			Sep 30, 2013
Total Company
	Unamortized balance, beginning of period			$	146.5		$	150.3		$	154.8		$	154.0		$	155.1		$	154.8		$	153.4
		Capitalizations		7.2			7.6			9.6			11.9			12.1			24.4			37.6
		Adjustments related to realized (gains) losses		0.2			(0.2		)	0.3			—			0.3			0.3			0.6
			Amortization	(10.0		)	(10.5		)	(10.6		)	(10.7		)	(10.1		)	(31.1		)	(30.5		)
			Amortization related to prepayments	(0.9		)	(0.7		)	(3.8		)	(0.4		)	(2.7		)	(5.4		)	(6.4		)
			Unlocking	1.0			—			—			—			(0.7		)	1.0			(0.7		)
		Total amortization		(9.9		)	(11.2		)	(14.4		)	(11.1		)	(13.5		)	(35.5		)	(37.6		)
		Unamortized balance, end of period		144.0			146.5			150.3			154.8			154.0			144.0			154.0
		Accum effect of net unrealized gains		(85.4		)	(99.9		)	(86.5		)	(76.7		)	(84.1		)	(85.4		)	(84.1		)
	DSI balance, end of period ¹			$	58.6		$	46.6		$	63.8		$	78.1		$	69.9		$	58.6		$	69.9

DSI balance is included in receivables and other assets on the consolidated balance sheet.

Symetra Financial Corporation

3Q 2014 Financial Supplement

Account Values and Reserves Roll Forwards

(In millions)



						For the Three Months Ended															For the Nine Months Ended
						Sep 30, 2014			Jun 30, 2014			Mar 31, 2014			Dec 31, 2013			Sep 30, 2013			Sep 30, 2014			Sep 30, 2013
Retirement Division:
	Deferred Annuities:
		Fixed Account Values, excluding FIA
			Account values, beginning of period			$	10,992.8		$	10,951.2		$	10,874.7		$	10,790.0		$	10,631.1		$	10,874.7		$	10,688.5
				Deposits		313.2			287.9			280.6			346.7			307.7			881.7			626.1
				Withdrawals		(306.4		)	(306.7		)	(286.1		)	(320.5		)	(247.4		)	(899.2		)	(794.4		)
				Net transfers		0.9			1.9			(1.6		)	—			(0.2		)	1.2			1.6
					Net flows	7.7			(16.9		)	(7.1		)	26.2			60.1			(16.3		)	(166.7		)
				Interest credited		71.0			71.2			73.4			77.8			78.2			215.6			235.4
				Other		2.5			(12.7		)	10.2			(19.3		)	20.6			—			32.8
			Account values, end of period			$	11,074.0		$	10,992.8		$	10,951.2		$	10,874.7		$	10,790.0		$	11,074.0		$	10,790.0
		Fixed Account Values, FIA
			Account values, beginning of period			$	2,463.3		$	2,084.4		$	1,712.0		$	1,321.8		$	852.0		$	1,712.0		$	374.9
				Deposits		452.4			375.7			359.6			392.6			449.1			1,187.7			908.1
				Withdrawals		(19.3		)	(15.7		)	(10.8		)	(9.2		)	(5.7		)	(45.8		)	(14.5		)
				Net transfers		0.5			0.4			1.2			0.8			0.6			2.1			2.1
					Net flows	433.6			360.4			350.0			384.2			444.0			1,144.0			895.7
				Interest credited		21.5			14.1			9.2			12.4			3.9			44.8			9.4
				Other		(11.2		)	4.4			13.2			(6.4		)	21.9			6.4			41.8
			Account values, end of period			$	2,907.2		$	2,463.3		$	2,084.4		$	1,712.0		$	1,321.8		$	2,907.2		$	1,321.8
	Income Annuities:
		Reserves
			Reserves, beginning of period			$	6,516.6		$	6,509.9		$	6,489.9		$	6,484.6		$	6,512.7		$	6,489.9		$	6,566.5
				Deposits		58.8			88.2			82.2			82.2			37.8			229.2			123.2
				Benefit payments		(173.0		)	(162.0		)	(145.3		)	(157.9		)	(165.3		)	(480.3		)	(467.5		)
					Net flows	(114.2		)	(73.8		)	(63.1		)	(75.7		)	(127.5		)	(251.1		)	(344.3		)
				Interest credited		91.1			91.6			91.9			91.9			92.0			274.6			277.8
				Other		1.3			(11.1		)	(8.8		)	(10.9		)	7.4			(18.6		)	(15.4		)
			Reserves, end of period			$	6,494.8		$	6,516.6		$	6,509.9		$	6,489.9		$	6,484.6		$	6,494.8		$	6,484.6
	Individual Life Division:
		BOLI Account Values
			Account values, beginning of period			$	4,834.2		$	4,834.6		$	4,798.1		$	4,764.8		$	4,732.8		$	4,798.1		$	4,659.8
				Deposits		—			—			—			—			—			—			—
				Surrenders/claims		(5.5		)	(38.8		)	(3.7		)	(5.1		)	(7.0		)	(48.0		)	(12.9		)
					Net flows	(5.5		)	(38.8		)	(3.7		)	(5.1		)	(7.0		)	(48.0		)	(12.9		)
				Interest credited		55.8			55.3			56.4			53.8			54.6			167.5			164.9
				Administrative charges and other		(16.4		)	(16.9		)	(16.2		)	(15.4		)	(15.6		)	(49.5		)	(47.0		)
			Account values, end of period			$	4,868.1		$	4,834.2		$	4,834.6		$	4,798.1		$	4,764.8		$	4,868.1		$	4,764.8
		UL Account Values
			Account values, beginning of period			$	741.5		$	734.1		$	726.2		$	717.6		$	714.5		$	726.2		$	716.0
				Deposits		32.8			28.4			24.3			27.9			19.6			85.5			52.8
				Surrenders/claims		(7.2		)	(10.5		)	(7.6		)	(9.5		)	(8.5		)	(25.3		)	(28.0		)
					Net flows	25.6			17.9			16.7			18.4			11.1			60.2			24.8
				Interest credited		8.2			7.8			7.8			7.8			7.5			23.8			22.8
				Administrative charges and other		(21.9		)	(18.3		)	(16.6		)	(17.6		)	(15.5		)	(56.8		)	(46.0		)
			Account values, end of period			$	753.4		$	741.5		$	734.1		$	726.2		$	717.6		$	753.4		$	717.6

Symetra Financial Corporation

3Q 2014 Financial Supplement

Overview of Liabilities and Associated Unrealized Gains

(In millions, except percentage data)



		As of Sep 30, 2014
		Policyholder Liability		% of Total		Unrealized gains ⁸
Illiquid: cannot be surrendered
Structured settlements & other single premium immediate annuities ¹		$	6,527.2	24.7	%	$	716.6

Somewhat Liquid: can be surrendered with adjustments or charges of 3% or more
Deferred Annuities:
	Surrender charges of 5% or higher	5,822.5				209.6
	Surrender charges of 3 to 5%	1,443.2				52.0
	MVA and surrender charges of 5% or higher²	2,622.7				94.4
	5 year payout provision or MVA³	286.9				10.3
BOLI⁴		4,965.9				260.0
Universal life		315.4				15.5
	Total somewhat liquid	15,456.6		58.4	%	641.8

Liquid: can be surrendered with no adjustment or charges of less than 3%
Deferred Annuities:
	No surrender charges⁵	3,052.1				109.9
	Surrender charges less than 3%	658.1				23.7
Universal life		456.3				22.1
	Total liquid	4,166.5		15.7	%	155.7

Other
	Other (net of reinsurance)⁶	319.4		1.2	%	14.3

Assets supporting surplus portfolio						$	97.1

Total⁷		$	26,469.7	100.0	%	$	1,625.5

Reconciliation of unrealized gains to AOCI:
Unrealized gains from above						$	1,625.5
Taxes on unrealized gains and losses on available-for-sale securities						(568.9		)
Adjustment for DAC and DSI valuation allowance, net of taxes						(137.2		)
Other						(8.3		)
AOCI						$	911.1



The liabilities presented above have been aggregated based on contractual surrender charge schedules without adjustment for free partial withdrawals and guaranteed return of premium provisions, if applicable. The following footnotes may also be useful in evaluating the withdrawal characteristics of our liabilities:
1		The benefits are specified in the contracts as fixed amounts, primarily to be paid over the next several decades. Certain single premium immediate annuity contracts contain a liquidity feature that permits contract owners to make partial withdrawals once every 36 months within the life expectancy period. The withdrawals are based on prevailing market rates which limits our exposure to liquidity and interest rate risk.
2		The market value adjustment (MVA) adjusts the value of the contract at surrender based on current interest rates, subject to a guaranteed minimum account value specified in the contract.
3		The MVA adjusts the value of the contract at surrender based on current interest rates, subject to a guaranteed minimum account value specified in the contract. 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.
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 does not qualify for this tax-free treatment due to the employment status of the original covered employees, and charges may be applicable.
5		Given the current interest rate environment, we do not expect significant changes in the persistency of this business.
6		Other represents the sum of the following: (a) our term life insurance policyholder liabilities, net of reinsurance recoverables. There is no surrender value related to these contracts; (b) incurred but not reported claim liabilities mainly related to our medical stop-loss business. The precise timing and amount of payment is unknown; and (c) reported claim liabilities for BOLI, term life insurance, medical stop-loss and group life policies.
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 $245.3 as of September 30, 2014.
8		Represents the pre-tax unrealized gains of the investment portfolio supporting the related policyholder liability.

Symetra Financial Corporation

3Q 2014 Financial Supplement

Investments Summary

(In millions, except percentage data)



			As of
			Sep 30, 2014			%		Jun 30, 2014			%		Mar 31, 2014			%		Dec 31, 2013			%		Sep 30, 2013			%
Portfolio Composition:
Available-for-sale securities:
	Fixed maturities, at fair value		$	25,316.6		83.6	%	$	24,849.2		83.9	%	$	24,329.0		84.1	%	$	23,337.7		83.6	%	$	23,306.5		84.3	%
	Marketable equity securities, at fair value		122.7			0.4	%	126.6			0.4	%	126.8			0.4	%	134.3			0.5	%	87.1			0.3	%
Trading securities:
	Marketable equity securities, at fair value		467.9			1.5	%	483.0			1.6	%	460.3			1.6	%	474.4			1.7	%	509.4			1.9	%
Mortgage loans, net			3,921.0			13.0	%	3,747.8			12.6	%	3,603.2			12.5	%	3,541.0			12.7	%	3,376.8			12.2	%
Policy loans			61.0			0.2	%	62.0			0.2	%	62.4			0.2	%	63.3			0.2	%	64.2			0.2	%
Investments in limited partnerships			307.9			1.0	%	291.8			1.0	%	299.3			1.0	%	296.3			1.1	%	253.1			0.9	%
Other invested assets			76.9			0.3	%	71.8			0.3	%	59.0			0.2	%	54.1			0.2	%	44.0			0.2	%
		Total investments	30,274.0			100.0	%	29,632.2			100.0	%	28,940.0			100.0	%	27,901.1			100.0	%	27,641.1			100.0	%
Cash and cash equivalents			109.2					118.0					108.5					76.0					121.1
		Total investments, cash and cash equivalents	$	30,383.2				$	29,750.2				$	29,048.5				$	27,977.1				$	27,762.2
Fixed Maturities Securities by Credit Quality: ¹
1: AAA, AA, A			$	14,561.2		57.6	%	$	14,208.9		57.2	%	$	14,153.5		58.2	%	$	13,403.1		57.4	%	$	13,594.4		58.3	%
2: BBB			9,527.0			37.6	%	9,389.2			37.8	%	8,957.9			36.8	%	8,667.1			37.1	%	8,494.1			36.5	%
	Total investment grade		24,088.2			95.2	%	23,598.1			95.0	%	23,111.4			95.0	%	22,070.2			94.5	%	22,088.5			94.8	%
3: BB			626.4			2.5	%	643.2			2.6	%	611.3			2.5	%	666.6			2.9	%	637.3			2.7	%
4: B			517.2			2.0	%	514.4			2.1	%	515.2			2.1	%	515.8			2.2	%	491.7			2.1	%
5: CCC & lower			79.9			0.3	%	91.4			0.3	%	88.8			0.4	%	78.3			0.4	%	87.9			0.4	%
6: In or near default			4.9			0.0	%	2.1			0.0	%	2.3			0.0	%	6.8			0.0	%	1.1			0.0	%
	Total below investment grade		1,228.4			4.8	%	1,251.1			5.0	%	1,217.6			5.0	%	1,267.5			5.5	%	1,218.0			5.2	%
		Total fixed maturities	$	25,316.6		100.0	%	$	24,849.2		100.0	%	$	24,329.0		100.0	%	$	23,337.7		100.0	%	$	23,306.5		100.0	%
Fixed Maturities by Issuer Type:
U.S. government and agencies			$	450.3		1.8	%	$	372.0		1.5	%	$	812.9		3.3	%	$	344.4		1.5	%	$	510.7		2.2	%
State and political subdivisions			786.4			3.1	%	775.6			3.1	%	751.2			3.1	%	751.5			3.2	%	754.5			3.2	%
Foreign governments			96.0			0.4	%	98.5			0.4	%	99.0			0.4	%	99.7			0.4	%	15.9			0.0	%
Corporate securities			18,995.5			75.0	%	18,764.1			75.5	%	17,853.7			73.4	%	17,352.4			74.4	%	17,165.7			73.7	%
Residential mortgage-backed securities			2,857.8			11.3	%	2,857.9			11.5	%	2,789.1			11.5	%	2,756.0			11.8	%	2,796.5			12.0	%
Commercial mortgage-backed securities			1,401.7			5.6	%	1,484.5			6.0	%	1,514.5			6.2	%	1,518.4			6.5	%	1,536.1			6.6	%
Other debt obligations			728.9			2.8	%	496.6			2.0	%	508.6			2.1	%	515.3			2.2	%	527.1			2.3	%
		Total fixed maturities	$	25,316.6		100.0	%	$	24,849.2		100.0	%	$	24,329.0		100.0	%	$	23,337.7		100.0	%	$	23,306.5		100.0	%
Effective Duration			5.5					5.5					5.5					5.5					5.5
Weighted-average Investment Yield			4.60		%			4.67		%			4.75		%			4.94		%			5.01		%

			For the Three Months Ended
			Sep 30, 2014			%		Jun 30, 2014			%		Mar 31, 2014			%		Dec 31, 2013			%		Sep 30, 2013			%
Average Daily Cash and Cash Equivalent Balances:
Benefits Division			$	4.4		1.8	%	$	5.1		4.3	%	$	2.7		2.2	%	$	4.1		4.4	%	$	4.6		2.4	%
Retirement Division:
	Deferred Annuities		58.0			23.2	%	82.5			69.3	%	126.9			101.8	%	119.6			128.8	%	134.0			70.7	%
	Income Annuities		7.1			2.9	%	97.7			82.0	%	41.9			33.6	%	7.4			8.0	%	2.6			1.4	%
Individual Life Division			11.0			4.4	%	24.8			20.8	%	21.4			17.2	%	8.3			8.9	%	26.3			13.9	%
Other			169.0			67.7	%	(91.0		)	(76.4	)%	(68.3		)	(54.8	)%	(46.5		)	(50.1	)%	22.0			11.6	%
		Total	$	249.5		100.0	%	$	119.1		100.0	%	$	124.6		100.0	%	$	92.9		100.0	%	$	189.5		100.0	%

Credit quality is based on NAIC (National Association of Insurance Commissioners) designation with presentation of the S&P equivalent credit ratings.

Symetra Financial Corporation

3Q 2014 Financial Supplement

Investments Income Statement Data

(In millions)



			For the Three Months Ended															For the Nine Months Ended
			Sep 30, 2014			Jun 30, 2014			Mar 31, 2014			Dec 31, 2013			Sep 30, 2013			Sep 30, 2014			Sep 30, 2013

Prepayment-related income: ¹
	Retirement Division - Deferred Annuities		$	5.5		$	3.3		$	10.2		$	2.8		$	12.6		$	19.0		$	31.9
	Retirement Division - Income Annuities		0.8			0.7			1.6			1.7			1.2			3.1			4.9
	Individual Life Division		0.9			1.3			1.9			—			3.6			4.1			6.3
	Other		(0.1		)	0.4			(0.2		)	0.6			1.2			0.1			1.8
Total			$	7.1		$	5.7		$	13.5		$	5.1		$	18.6		$	26.3		$	44.9
Prepayment-related income, net of DAC and DSI amortization:
	Retirement Division - Deferred Annuities		$	3.6		$	1.9		$	2.1		$	1.9		$	7.4		$	7.6		$	18.1
	Retirement Division - Income Annuities		0.8			0.7			1.6			1.7			1.2			3.1			4.9
	Individual Life Division		0.8			1.3			1.8			—			3.4			3.9			6.0
	Other		(0.1		)	0.4			(0.2		)	0.6			1.2			0.1			1.8
Total			$	5.1		$	4.3		$	5.3		$	4.2		$	13.2		$	14.7		$	30.8


			For the Three Months Ended															For the Nine Months Ended
			Sep 30, 2014			Jun 30, 2014			Mar 31, 2014			Dec 31, 2013			Sep 30, 2013			Sep 30, 2014			Sep 30, 2013
Net Realized Gains (Losses):
	Fixed maturities:
		Gross gains on sales	$	1.5		$	10.8		$	8.7		$	3.7		$	2.4		$	21.0		$	8.0
		Gross losses on sales	(3.3		)	(0.6		)	(1.8		)	(2.5		)	(7.4		)	(5.7		)	(17.4		)
		Other-than-temporary impairments	(1.6		)	(1.4		)	(1.1		)	(2.9		)	(6.2		)	(4.1		)	(15.4		)
		Other ²	1.4			(1.2		)	(1.2		)	1.4			0.5			(1.0		)	(3.9		)
	Total fixed maturities		(2.0		)	7.6			4.6			(0.3		)	(10.7		)	10.2			(28.7		)
		Marketable equity securities, trading ³	(12.0		)	21.6			19.7			22.7			12.0			29.3			43.3
	Other ⁴		2.1			(2.7		)	(5.0		)	1.6			(7.0		)	(5.6		)	(5.7		)
	DAC/DSI adjustment		(2.9		)	(1.2		)	1.4			1.0			1.1			(2.7		)	1.7
	Net realized gains (losses)		$	(14.8	)	$	25.3		$	20.7		$	25.0		$	(4.6	)	$	31.2		$	10.6


			For the Three Months Ended															For the Nine Months Ended
			Sep 30, 2014			Jun 30, 2014			Mar 31, 2014			Dec 31, 2013			Sep 30, 2013			Sep 30, 2014			Sep 30, 2013
Tax Credit Investments Impact on Income
	Historical and estimated future impact
		Amortization related to tax credit investments, net of taxes	$	(5.2	)	$	(4.2	)	$	(4.3	)	$	(3.7	)	$	(3.3	)	$	(13.7	)	$	(9.6	)
		Realized losses related to tax credit investments, net of taxes	(3.0		)	(2.0		)	(2.3		)	(1.3		)	(2.1		)	(7.3		)	(3.1		)
		Tax credits	14.2			13.9			13.9			10.4			11.8			42.0			30.8
		Impact to net income	$	6.0		$	7.7		$	7.3		$	5.4		$	6.4		$	21.0		$	18.1

		Carrying value of invested asset	$	244.6		$	249.8		$	257.8		$	265.1		$	217.2		$	244.6		$	217.2

		Future estimated impact to net income:													2014						$	9.1
															2015						25.7
															2016 & beyond						40.9
																					$	75.7



Historical information	For the Years Ended
	2013			2012			2011			2010			2009
Amortization related to tax credit investments, net of taxes	$	(13.3	)	$	(13.9	)	$	(9.2	)	$	(6.3	)	$	(5.9	)
Realized losses related to tax credit investments, net of taxes	(4.4		)	(2.6		)	(2.0		)	—			—
Tax credits	41.2			33.5			17.4			10.9			9.6
Impact to net income	$	23.5		$	17.0		$	6.2		$	4.6		$	3.7



1		Prepayment-related income includes make-whole premiums and consent fees on early calls or tenders of fixed maturities, prepayment speed adjustments on structured securities, and prepayment fees on our commercial mortgage loans.
2		Includes net gains (losses) on calls and redemptions, and changes in the fair value of convertible fixed maturities.
3		Marketable equity securities, trading includes net gains (losses) on changes in fair value.
4		Includes net gains (losses) on derivatives not designated for hedge accounting and other instruments.

Symetra Financial Corporation

3Q 2014 Financial Supplement

Sales by Segment and Product

(In millions)



		For the Three Months Ended										For the Nine Months Ended
		Sep 30, 2014		Jun 30, 2014		Mar 31, 2014		Dec 31, 2013		Sep 30, 2013		Sep 30, 2014		Sep 30, 2013
Benefits Division ¹
	Medical stop-loss	$	27.7	$	19.7	$	45.6	$	14.4	$	12.0	$	93.0	$	80.6
	Limited benefit medical	1.7		1.9		11.1		3.3		2.2		14.7		4.9
	Group life & disability income	5.4		4.5		15.2		6.4		4.8		25.1		21.3
Total Benefits Division		$	34.8	$	26.1	$	71.9	$	24.1	$	19.0	$	132.8	$	106.8

Retirement Division - Deferred Annuities ²
	Fixed annuities	$	299.7	$	271.9	$	264.3	$	328.5	$	292.1	$	835.9	$	574.6
	Fixed indexed annuities	455.2		373.4		357.9		391.3		448.2		1,186.5		906.7
	Variable annuities	4.4		5.0		5.3		13.1		6.8		14.7		29.3
Total		$	759.3	$	650.3	$	627.5	$	732.9	$	747.1	$	2,037.1	$	1,510.6
Retirement Division - Income Annuities ²
	SPIA	$	62.3	$	89.0	$	87.5	$	85.4	$	37.1	$	238.8	$	117.6
	Structured settlements	—		—		—		—		1.8		—		7.5
Total		$	62.3	$	89.0	$	87.5	$	85.4	$	38.9	$	238.8	$	125.1

Total Retirement Division		$	821.6	$	739.3	$	715.0	$	818.3	$	786.0	$	2,275.9	$	1,635.7

Individual Life Division
	Term life ¹	$	0.6	$	1.0	$	0.9	$	1.0	$	0.5	$	2.5	$	1.7
	Universal life ¹	7.0		7.6		6.8		8.1		3.3		21.4		7.1
	Single premium life ³	0.7		0.5		0.2		0.3		0.1		1.4		0.4
Individual sales		8.3		9.1		7.9		9.4		3.9		25.3		9.2
	COLI ⁴	—		—		—		8.0		10.2		—		37.0
Institutional markets		$	—	$	—	$	—	$	8.0	$	10.2	$	—	$	37.0



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 deposits for new policies.

Symetra Financial Corporation

3Q 2014 Financial Supplement

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

(In millions, except per share amounts)



		As of
		Sep 30, 2014			Jun 30, 2014			Mar 31, 2014			Dec 31, 2013			Sep 30, 2013
Book value per common share ¹		$	29.12		$	29.58		$	27.40		$	24.99		$	25.58

Non-GAAP Financial Measures:
	Adjusted book value per common share ²	$	21.26		$	21.04		$	20.50		$	19.95		$	19.47
	Statutory book value per common share ³	$	19.55		$	19.47		$	19.32		$	18.49		$	18.87

Numerator:
Total stockholders' equity		$	3,375.3		$	3,428.6		$	3,195.3		$	2,941.9		$	3,012.8
AOCI		911.1			990.6			804.3			593.6			719.0
Adjusted book value		$	2,464.2		$	2,438.0		$	2,391.0		$	2,348.3		$	2,293.8

Total stockholders' equity		$	3,375.3		$	3,428.6		$	3,195.3		$	2,941.9		$	3,012.8
Stockholders' equity of non-insurance entities		(609.1		)	(360.0		)	(344.4		)	(381.4		)	(319.4		)
Statutory and other adjustments		(815.0		)	(1,123.9		)	(901.5		)	(690.8		)	(752.8		)
Asset valuation reserve (AVR)		315.4			312.3			304.1			307.0			282.5
Statutory book value		$	2,266.6		$	2,257.0		$	2,253.5		$	2,176.7		$	2,223.1

Denominator:
Common shares outstanding		115.913			115.895			116.619			117.731			117.800



		For the Three Months Ended
		Sep 30, 2014		Jun 30, 2014		Mar 31, 2014		Dec 31, 2013		Sep 30, 2013
Share repurchases:
	Shares purchased as part of publicly announced plans or programs ⁴	—		0.749		1.352		—		—
	Other shares repurchased ⁵	—		0.001		0.002		—		—
	Total shares repurchased	—		0.750		1.354		—		—
	Average price paid per share	$	—	$	19.66	$	19.56	$	—	$	—
	Total cost of share repurchases	$	—	$	14.7	$	26.5	$	—	$	—



				As of
				Sep 30, 2014		Jun 30, 2014		Mar 31, 2014		Dec 31, 2013		Sep 30, 2013
Tangible book value:
	Total stockholders' equity			$	3,375.3	$	3,428.6	$	3,195.3	$	2,941.9	$	3,012.8
		Less:
			Deferred policy acquisition costs	364.9		311.2		320.1		322.5		271.7
			Goodwill and other	111.2		99.4		117.7		131.5		125.8
	Tangible book value ⁶			$	2,899.2	$	3,018.0	$	2,757.5	$	2,487.9	$	2,615.3



1		Book value per common share is calculated as stockholders’ equity divided by common shares outstanding.
2		Adjusted book value per common share is calculated as adjusted book value divided by common shares outstanding.
3		Statutory book value per common share is calculated based on statutory book value divided by common shares outstanding.
4		As of September 30, 2014, 6.947 shares remained available under the current repurchase authorization.
5		Shares repurchased to satisfy employee income tax withholding.
6		Tangible book value is a non-GAAP financial measure calculated as stockholders’ equity excluding deferred policy acquisition costs, goodwill, intangible assets and certain other non-tangible assets. Stockholders’ equity is the most directly comparable GAAP measure to tangible book value.

Symetra Financial Corporation

3Q 2014 Financial Supplement

ROE and Operating ROAE

(In millions, except percentage data)



	Twelve Months Ended
	Sep 30, 2014			Jun 30, 2014			Mar 31, 2014			Dec 31, 2013			Sep 30, 2013
ROE:
Net income for the twelve months ended ¹	$	251.2		$	260.5		$	234.0		$	220.7		$	187.3
Average stockholders' equity ²	3,190.8			3,123.7			3,158.9			3,245.8			3,385.7
ROE	7.9		%	8.3		%	7.4		%	6.8		%	5.5		%

Operating ROAE:
Adjusted operating income for the twelve months ended ¹	$	216.5		$	219.8		$	217.2		$	200.9		$	183.8
Average adjusted book value ³	2,387.1			2,345.7			2,320.3			2,293.9			2,271.6
Operating ROAE	9.1		%	9.4		%	9.4		%	8.8		%	8.1		%

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
		2014		2013		2012
Stockholders' Equity
	Dec. 31	$	—	$	2,941.9	$	3,630.1
	Sep. 30	3,375.3		3,012.8		3,641.2
	Jun. 30	3,428.6		3,040.1		3,378.4
	Mar. 31	3,195.3		3,604.2		3,154.7
AOCI
	Dec. 31	$	—	$	593.6	$	1,371.2
	Sep. 30	911.1		719.0		1,404.3
	Jun. 30	990.6		782.6		1,188.0
	Mar. 31	804.3		1,293.1		1,000.1

Reconciliation of adjusted operating income:

The following data together with other data found throughout the supplement can be used to recalculate adjusted operating income for the twelve months ended March 31, 2014, December 31, 2013 and September 30, 2013.



		Three Months Ended
		Jun. 30, 2013			Mar. 31, 2013		Dec. 31, 2012
Net income		$	45.0		$	66.0	$	31.0
	Less: Excluded realized gains (losses) (net of taxes)	(7.7		)	16.6		(1.9		)
Adjusted operating income		$	52.7		$	49.4	$	32.9



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.

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