StanCorp Financial Group Inc. Reports Operating Results (10-K)

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Feb 25, 2011
StanCorp Financial Group Inc. (SFG, Financial) filed Annual Report for the period ended 2010-12-31.

Stancorp Financial Group has a market cap of $2.08 billion; its shares were traded at around $45.17 with a P/E ratio of 9.6 and P/S ratio of 0.8. The dividend yield of Stancorp Financial Group stocks is 1.9%. Stancorp Financial Group had an annual average earning growth of 11.5% over the past 10 years. GuruFocus rated Stancorp Financial Group the business predictability rank of 3-star.Mutual Fund and Other Gurus that owns SFG: RS Investment Management, Chuck Royce of Royce& Associates, NWQ Managers of NWQ Investment Management Co, Jeremy Grantham of GMO LLC.

Highlight of Business Operations:

The aggregate market value of the voting and non-voting common equity held by non-affiliates of the registrant as of June 30, 2010, was $1,891,667,021 based upon the closing price of $40.54 on June 30, 2010. For this purpose, directors and executive officers of the registrant are assumed to be affiliates.

Of our total $2.77 billion in revenues for 2010, revenues of $2.41 billion were from our Insurance Services segment, revenues of $414.0 million were from our Asset Management segment and losses of $53.6 million were from our Other category. Revenues from the Other category included net capital losses of $51.6 million. See Part II, Item 7, Managements Discussion and Analysis of Financial Condition and Results of OperationsConsolidated Results of OperationsRevenues and Item 8, Financial Statements and Supplementary DataNotes to Consolidated Financial StatementsNote 5Segments for segment information regarding revenues, expenses and total assets for the years 2010, 2009 and 2008.

Our target market for retirement plans is primarily businesses with $1 million to $10 million in plan assets. Our retirement plans products and services are sold primarily through registered investment advisors, brokers, employee benefit consultants and other distributors served by our sales representatives throughout the United States. These distributors are usually compensated based on a percentage of the deposits or assets under administration. Compensation is disclosed to the customer by either Standard or Standard Retirement Services. Most of our retirement plan customers receive financial, record keeping and administrative services, although the option is available to receive only financial and record keeping services or financial services only through the group annuity product.

The Standard earned a total of three Best in Class awards in PlanSponsor Magazines 2010 Defined Contribution Survey. All of the Best in Class awards were in the $5 million to $50 million in plan assets category.

Our commercial mortgage loans subsidiary, StanCorp Mortgage Investors, underwrites, originates and services fixed-rate commercial mortgage loans, generally between $250,000 and $5 million per loan for the investment portfolios of our insurance subsidiaries. It also generates additional fee income from the origination and servicing of commercial mortgage loans participated to institutional investors. The target market for commercial mortgage loans is small retail, office, and industrial properties located throughout the continental United States.

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