This Day On The Street
Continue to site
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

Symetra Reports Fourth Quarter, Full-Year 2012 Results

Symetra Financial Corporation (NYSE:SYA) today reported fourth quarter 2012 net income of $31.0 million, or $0.22 per diluted share, compared with $73.7 million, or $0.54 per diluted share, in fourth quarter 2011. Symetra’s equity investment portfolio generated $35.4 million less in returns than fourth quarter 2011, reflecting lower equity market growth. For full-year 2012, Symetra produced net income of $205.4 million, or $1.49 per diluted share, up from $195.8 million, or $1.42 per diluted share, in 2011.

Adjusted operating income was $32.9 million, or $0.24 per diluted share, in fourth quarter 2012, compared with $51.1 million, or $0.37 per diluted share, in the same period a year ago. For full-year 2012, Symetra generated adjusted operating income of $185.3 million, or $1.34 per diluted share, compared with $190.2 million, or $1.38 per diluted share, in 2011.

Symetra posted a 6.1% return on equity (ROE) for 2012, compared with 7.2% in 2011. Operating return on average equity (ROAE) 1 for 2012 was 8.5%, compared with 9.5% in 2011.
Summary Financial Results     Three Months Ended         Twelve Months Ended
(In millions, except per share data) December 31 December 31
      2012 2011*         2012   2011*
Net Income $ 31.0 $ 73.7 $ 205.4 $ 195.8
Per Diluted Share of Common Stock $ 0.22 $ 0.54 $ 1.49 $ 1.42
Adjusted Operating Income $ 32.9 $ 51.1 $ 185.3 $ 190.2
Per Diluted Share of Common Stock $ 0.24 $ 0.37 $ 1.34 $ 1.38
Return on Equity 6.1 % 7.2 %
Operating Return on Average Equity                   8.5 %   9.5 %

* Historical financial information has been restated to reflect retrospective adoption of a new accounting standard for deferred policy acquisition costs on Jan. 1, 2012.

Fourth quarter 2012 results included the following pretax items of note, which decreased overall adjusted operating income by $2.2 million pretax, and $6.1 million after tax:
  • Investment income of $10.8 million, related to investment prepayments (primarily bond make-whole payments in the Deferred Annuities segment), offset by related increased amortization of $2.5 million.
  • Operating expense charges of $4.6 million, including expenses related to the exploration of an acquisition opportunity that did not come to fruition.
  • Reserve increase and higher claims, resulting in a $3.8 million decline in Benefits earnings related to the limited benefit medical business.
  • Reserve increases of $2.1 million, resulting in a charge against earnings of $1.1 million in Income Annuities, and a charge of $1.0 million in the Individual Life segment.
  • A deferred tax asset adjustment, resulting in a $4.7 million increase in income tax expense.

“It was a challenging fourth quarter, with lower earnings in three of our four business segments. The key drivers of our results included less favorable claims experience in the Benefits and Individual Life segments, and higher operating expenses from continued investments in our Grow & Diversify initiatives as well as M&A exploration. While we maintained our risk management discipline, expense growth outpaced revenue growth,” said Tom Marra, Symetra president and CEO.

1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 16,776.43 +304.06 1.85%
S&P 500 1,987.05 +35.69 1.83%
NASDAQ 4,781.2640 +73.4890 1.56%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs