This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Symetra Financial's CEO Discusses Q2 2012 Results - Earnings Call Transcript

Stocks in this article: SYA

During this call we will discuss GAAP and non-GAAP financial measures, a reconciliation between the two is available in yesterday's earnings press release and in the presentation materials which are posted on Symetra's website.

On the call today, you will hear from President and CEO, Tom Marra; and Executive Vice President and CFO, Margaret Meister. Michael Fry, from the Benefits Division and Dan Guilbert, from the Retirement Division, would join in the Q&A discussion.

Now I'll turn it over to Tom.

Thomas M. Marra

Thank you Jim and good morning everyone, Margaret and I will review the financial results and update our key initiatives. And then, of course we’ll take your questions, so I’ll begin on slide three, where we have a summary of current highlights and challenges.

So this is another strong quarter for our Retirement division, with solid interest spreads earned and by both the Deferred Annuities and the Income Annuities segments. This is especially impressive in the current interest rate environment, which continues to apply pressure to our products margins.

Sales of fixed deferred annuities were lower in the quarter, but sales of our fixed indexed annuity product continue to pick up the pace, and in fact we posted our fourth consecutive quarter of higher sales – sequential sales, over up by product. Immediately, that trend will probably end here as we expect third quarter FIA sales to be down from the second quarter again due to low interest rates.

At 63.5%, our benefits loss ratio for the first half of 2012 remains well within our long term target range of 63% to 65%. The ratio was 65.5% in the second quarter Margaret will have more to say about that in a moment. While clearly the medical stop-loss business is performing in line with our underwriting objectives.

Now turning to challenges; first we continue to deal with the interest rate environment, the impact it has on margins and sales. As you know, we’re maintaining our discipline despite this low rate environment and while this may negatively impact sales in the short-term, we believe the finest discipline is the prudent way to run the business.

2 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,780.33 +2.18 0.01%
S&P 500 2,061.23 +48.34 2.40%
NASDAQ 4,748.3960 +104.0840 2.24%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs