Washington, D.C. 20549

FORM 8-K

Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934

Date of report (Date of earliest event reported): April 28, 2010

SYMETRA FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

Delaware		001-33808		20-0978027
(State or other jurisdiction of incorporation)		(Commission File Number)		(IRS Employer Identification Number)

777 108th Avenue NE, Suite 1200
Bellevue, Washington		98004
(Address of principal executive offices)		(zip code)

Registrant’s telephone number, including area code: (425) 256-8000

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o		Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o		Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o		Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o		Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

Item 2.02.     Results of Operations and Financial Condition.

          On April 28, 2010, Symetra Financial Corporation, a Delaware corporation, issued (i) a press release announcing its financial results for the fiscal quarter ended March 31, 2010, a copy of which is attached hereto as Exhibit 99.1, and (ii) a Quarterly Financial Supplement for the quarter ended March 31, 2010, a copy of which is attached hereto as Exhibit 99.2 and is incorporated herein by reference. The information in this report, including Exhibits 99.1 and 99.2, have been “furnished” and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to liability under that section. The information in this report shall not be incorporated by reference into any filing or other document pursuant to the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing or document.

Item 9.01.     Financial Statements and Exhibits.

(d) Exhibits

	99.1		Press Release of Symetra Financial Corporation, dated April 28, 2010, announcing first quarter 2010 results.
	99.2		Quarterly Financial Supplement for the quarter ended March 31, 2010.

SIGNATURE

          Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: April 28, 2010

EXHIBIT INDEX

Exhibit
Number		Description of Exhibit
99.1		Press Release of Symetra Financial Corporation, dated April 28, 2010, announcing first quarter 2010 results.
99.2		Quarterly Financial Supplement for the quarter ended March 31, 2010.

Exhibit 99.1

Investor Relations Contact:
Jim Pirak
(425) 256-8284
jim.pirak@symetra.com

Media Relations Contact:
Laurie Johnson
(425) 256-5049
laurie.johnson@symetra.com

SYMETRA FINANCIAL REPORTS FIRST QUARTER 2010 RESULTS
Strong Net Income Growth; 30% Increase in Adjusted Operating Income over
First Quarter 2009

BELLEVUE, Wash.—(April 28, 2010)—Symetra Financial Corp. (NYSE: SYA) today reported first quarter 2010 net income of $46.3 million, or $0.35 per diluted share. This compares with net income of $5.1 million, or $0.05 per diluted share, in first quarter 2009.

Adjusted operating income¹ was $41.9 million, or $0.32 per diluted share, in first quarter 2010, compared with $32.2 million, or $0.29 per diluted share, in the same quarter a year ago.

	Summary Financial Results		Three Months Ended
	(In millions, except per share data)		March 31
			2010				2009
	Net Income		$	46.3			$	5.1
	Per Diluted Share of Common Stock			$ 0.35				$ 0.05
	Adjusted Operating Income		$	41.9			$	32.2
	Per Diluted Share of Common Stock			$ 0.32				$ 0.29

“Symetra delivered strong earnings growth in the first quarter, reflecting our underwriting discipline and focus on operating fundamentals,” said Randy Talbot, Symetra Financial president and chief executive officer. “Our balanced mix of businesses produced a 30% increase in adjusted operating income over first quarter 2009, despite the headwinds of a low interest rate environment.”

First Quarter Summary

	•		Improved loss ratio in the Group segment.
	•		Continued expansion of interest spreads on record-level fixed account values in the Retirement Services segment.
	•		Constrained earnings growth from high daily average cash balances.
	•		Pretax increase of $7.4 million in the Individual segment related to a credited rate reduction.
	•		Significant improvement in net income and total revenues led by equity portfolio gains and reduced investment impairments.

Total revenues and operating revenues¹ benefited from improved net investment income, which was driven by an increase in invested assets. Total revenues in the first quarter of 2010 were $453.2 million, compared with $378.8 million in first quarter 2009. Operating revenues were $446.5 million in the first quarter, compared with $420.4 million in the same quarter of 2009.

“Sales across all distribution channels were good,” said Talbot. “After a dip in fourth quarter 2009, total sales increased in first quarter 2010, supported by the primary capital raised in our initial public offering.”

BUSINESS SEGMENT RESULTS

	Segment Pretax Adjusted Operating Income (Loss)		Three Months Ended
	(In millions)		March 31
			2010				2009
	Group		$	15.7			$	11.5
	Retirement Services			17.3				9.0
	Income Annuities			6.4				14.4
	Individual			23.3				17.2
	Other			(3.9	)			(3.3	)
	Subtotal		$	58.8			$	48.8
	Less: Income Taxes*			16.9				16.6
	Adjusted Operating Income		$	41.9			$	32.2
	* Represents the total provision for income taxes adjusted for the tax effect on net realized investment gains (losses) and on net realized and unrealized investment gains (losses) on fixed index annuity (FIA) options at the U.S. federal income tax rate of 35%.

Group
The Group segment, which consists primarily of medical stop-loss insurance, posted first quarter 2010 pretax adjusted operating income of $15.7 million, compared with $11.5 million in first quarter 2009. The increase in adjusted operating income stemmed from an improved loss ratio and lower commission-related expenses. The first quarter 2010 loss ratio was 68.9%, compared with 70.1% during the same quarter a year ago. A combination of fewer, less severe stop-loss claims and price increases on renewals contributed to the loss ratio improvement.

Sales for first quarter 2010 were $41.4 million, up from $36.8 million in first quarter 2009 as a result of focused work with select Group distributors and an improved pricing environment. Although rate increases on stop-loss policies led to higher lapses during the quarter, premiums remained relatively flat at $108.8 million, compared with $109.7 million in first quarter 2009.

During the first quarter of 2010, the Patient Protection and Affordable Care Act was signed into law. Based on the company’s review of the Act, Symetra believes there is continued growth potential in its flagship medical stop-loss product following implementation of the healthcare legislation.

Retirement Services

The Retirement Services segment, which includes fixed and variable deferred annuities and retirement plans, produced $17.3 million in pretax adjusted operating income in first quarter 2010, up from $9.0 million in first quarter 2009. The marked growth in operating income was due to higher interest spreads on increased account values. Significant sales of fixed deferred annuities led to record-level total account values of $8.8 billion at quarter-end — a 22% increase over $7.2 billion at the end of first quarter 2009.

Retirement Services sales were $377.5 million for the first quarter of 2010. This compares with sales of $911.1 million in first quarter 2009 when uncertain market conditions prompted many consumers to shift their assets to safer, fixed annuities, driving record-high sales. First quarter 2010 sales were generated largely by a broad group of financial institutions, including some recently added bank partners.

Income Annuities

The Income Annuities segment, which includes single premium immediate annuities (SPIAs) and structured settlements, reported pretax adjusted operating income of $6.4 million in first quarter 2010, compared with $14.4 million in the same quarter a year ago. Mortality losses in first quarter 2010 were $0.1 million, compared with higher-than-normal mortality gains of $4.3 million in first quarter 2009. A lower interest spread from reduced investment yields also contributed to the decline in adjusted operating income.

Sales for the quarter totaled $66.3 million, a 64% increase over sales of $40.4 million in first quarter 2009. Income annuity products continued to gain favor with consumers seeking a low-risk investment vehicle that provides income for life. Sales of structured settlement annuities also accounted for growth in this segment.

Individual

The Individual segment, which includes term and universal life insurance, and bank-owned life insurance (BOLI), had pretax adjusted operating income of $23.3 million for first quarter 2010, compared with $17.2 million in first quarter 2009. Because of continuing low investment yields, the credited interest rate on one of the company’s universal life products is being adjusted downward to the guaranteed minimum. This change resulted in a $7.4 million increase to adjusted operating income due to the release of interest reserves and decreased amortization of deferred acquisition costs. A decrease in BOLI margins resulting from lower investment returns partially offset the impact from the universal life crediting rate change.

Individual sales grew 10% to $5.5 million for first quarter 2010, compared with sales of $5.0 million in the same quarter of 2009. Key drivers of sales in the quarter were term life policies sold through independent agents and BOLI.

Other Segment

The Other segment, which includes unallocated corporate income and expenses, interest expense on debt and other income outside of Symetra’s four business segments, reported a pretax adjusted operating loss of $3.9 million in the first quarter of 2010, compared with a loss of $3.3 million in first quarter 2009.

Investment Portfolio

Symetra posted net realized investment gains of $6.8 million in first quarter 2010, compared with net losses of $43.0 million in first quarter 2009. Symetra’s equity portfolio produced net gains of $7.6 million in the quarter, rebounding from net losses of $15.3 million in first quarter

2009. As a result of the improving economic climate, impairment losses were $9.7 million in first quarter 2010, compared with impairment losses of $27.8 million in the same quarter of 2009.

Symetra had average daily cash balances of $368.3 million in first quarter 2010, higher than its historical average. Retirement Services sales and net primary proceeds from the company’s initial public offering (IPO) contributed to the increased cash balances.

IPO Proceeds

On Jan. 22, 2010, Symetra common stock began trading on the New York Stock Exchange under the ticker symbol “SYA.” Of the $282.5 million in net primary proceeds raised in the IPO, the company contributed $236.6 million to its subsidiaries to fund growth.

Stockholders’ Equity

Total stockholders’ equity, or book value, as of March 31, 2010 was $1,971.7 million, or $14.39 per share, up from $1,433.3 million, or $12.83 per share, as of Dec. 31, 2009. The substantial increase in total book value included the $282.5 million in net IPO proceeds as well as appreciation in the investment portfolio. Book value per share was affected by the issuance of new shares of Symetra common stock.

Adjusted book value per share, as converted,¹ was $14.81 per share as of March 31, 2010, compared with $15.23 per share as of Dec. 31, 2009. The decrease in adjusted book value per share, as converted, stemmed from the issuance of new shares of Symetra common stock.

Symetra ended first quarter 2010 with an estimated risk-based capital (RBC) ratio of 484%, positioning the company well to pursue additional growth.

Additional Financial Information

This press release and the first quarter 2010 financial supplement are posted on the company’s website at http://investors.symetra.com. Investors are encouraged to review all of these materials.

Management to Review Results on Conference Call and Webcast

Symetra’s senior management team will discuss the company’s first quarter 2010 performance with investors and analysts on Thursday, April 29, 2010 at 10 a.m., Eastern Time (7 a.m., Pacific Time). To listen by phone, dial 866-730-5763. For international callers, dial 857-350-1587. The access code is 62327855. The conference call will be broadcast live on the Internet at http://investors.symetra.com and archived later in the day for replay. Those who wish to listen to the call by phone or via the Internet should dial in or go to Symetra’s website at least 15 minutes before the call to register and/or test the compatibility of their computer.

A replay of the call can be accessed by phone at approximately 1 p.m., Eastern Time (10 a.m., Pacific Time) on April 29, 2010 by dialing 888-286-8010. For international callers, dial 617-801-6888. The access code is 30922964. The phone replay will be available through May 5, 2010.

Use of Non-GAAP Measures

¹ Symetra uses both U.S. generally accepted accounting principles (GAAP) and non-GAAP financial measures to track the performance of its operations and financial condition. Definitions of each non-GAAP measure are provided below, and reconciliations to the most directly comparable GAAP measures are included in the tables at the end of this press release. These measures are not substitutes for GAAP financial measures. For more information about these non-GAAP measures, please see the company’s 2009 Annual Report on Form 10-K.

This press release includes non-GAAP financial measures entitled “adjusted operating income,” “adjusted operating income per diluted share,” “operating revenues,” “adjusted book value,” “adjusted book value, as converted,” “adjusted book value per share, as converted” and “operating return on average equity.” The company defines adjusted operating income as net income, excluding after-tax net investment gains (losses) and including after-tax net investment gains (losses) on fixed index annuity (FIA) options. Adjusted operating income per diluted share is defined as adjusted operating income divided by diluted common shares outstanding. Operating revenues is defined as total revenues, excluding net realized investment gains (losses) and including net investment gains (losses) on FIA options. Adjusted book value is defined as stockholders’ equity, less accumulated other comprehensive income (loss), or AOCI. Adjusted book value, as converted, is defined as stockholders’ equity, less AOCI plus the assumed proceeds from the outstanding warrants. Adjusted book value per share, as converted, is calculated as adjusted book value, as converted, divided by the sum of outstanding common shares and shares subject to outstanding warrants. Operating return on average equity consists of adjusted operating income for the most recent four quarters, divided by average ending adjusted book value for the most recent five quarters.

Definition of Selected Operating Performance Measures

The company reports selected operating performance measures, which are commonly used in the insurance industry as measures of operating performance and financial condition. These measures are described here:

Loss ratio – Represents policyholder benefits and claims incurred divided by premiums earned.

Sales – For the Group segment, sales represent annualized first-year premiums for new policies. For the Retirement Services and Income Annuities segments, sales represent deposits for new policies. For the Individual segment, sales represent annualized first-year premiums, deposits for new policies, and 10% of new deposits for BOLI and other single-premium products.

About Symetra Financial

Symetra Financial Corporation (NYSE: SYA) is a diversified financial services company based in Bellevue, Wash. In business since 1957, Symetra provides employee benefits, annuities and life insurance through a national network of benefits consultants, financial institutions, and independent agents and advisors. For more information, visit www.symetra.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

This press release may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of current or historical facts included or referenced in this release that address activities, events or developments that we expect or anticipate will or may occur in the future, are forward-looking statements. The words “will,” “believe,” “intend,” “plan,” “expect,” “anticipate,” “project,” “estimate,” “predict” and similar expressions also are intended to identify forward-looking statements. These forward-looking statements include, among others, statements with respect to Symetra’s:

	•		estimates or projections of revenues, net income (loss), net income (loss) per share, adjusted operating income (loss), adjusted operating income (loss) per share, market share or other financial forecasts;
	•		trends in operations, financial performance and financial condition;
	•		financial and operating targets or plans; and
	•		business and growth strategy.

These statements are based on certain assumptions and analyses made by Symetra in light of its experience and perception of historical trends, current conditions and expected future developments, as well as other factors believed to be appropriate under the circumstances. Whether actual results and developments will conform to Symetra’s expectations and predictions is subject to a number of risks, uncertainties and contingencies that could cause actual results to differ materially from expectations, including, among others:

	•		general economic, market or business conditions, including further economic downturns or other adverse conditions in the global and domestic capital and credit markets;
	•		the availability of capital and financing;
	•		potential investment losses;
	•		the effects of fluctuations in interest rates;
	•		recorded reserves for future policy benefits and claims subsequently proving to be inadequate or inaccurate;
	•		deviations from assumptions used in setting prices for insurance and annuity products;
	•		market pricing and competitive trends related to insurance products and services;
	•		changes in amortization of deferred policy acquisition costs;
	•		financial strength or credit ratings downgrades;
	•		the continued availability and cost of reinsurance coverage;
	•		changes in laws or regulations, or their interpretation, including those that could increase Symetra’s business costs and required capital levels;
	•		the ability of subsidiaries to pay dividends to Symetra;
	•		the effects of implementation of the Patient Protection and Affordable Care Act; and
	•		the risks that are described from time to time in Symetra’s filings with the U.S. Securities and Exchange Commission, including those in Symetra’s 2009 Annual Report on Form 10-K and quarterly reports on Form 10-Q.

Consequently, all of the forward-looking statements made in this press release are qualified by these cautionary statements, and there can be no assurance that the actual results or developments anticipated by Symetra will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, Symetra or its business or operations. Symetra assumes no obligation to update publicly any such forward-looking statements, whether as a result of new information, future events or otherwise.

Symetra Financial Corporation
Consolidated Income Statement Data
(in millions, except per share data)

(unaudited)

		Three Months Ended
		March 31
		2010				2009
Revenues:
Premiums		$	119.0			$	119.5
Net investment income			286.9				262.7
Policy fees, contract charges and other			40.5				39.6
Net realized investment gains (losses):
Total other-than-temporary impairment losses on securities			(17.9	)			(51.6	)
Less: portion of losses recognized in other comprehensive income			8.2				23.8
Net impairment losses recognized in earnings			(9.7	)			(27.8	)
Other net realized investment gains (losses)			16.5				(15.2	)
Total net realized investment gains (losses)			6.8				(43.0	)
Total revenues			453.2				378.8
Benefits and expenses:
Policyholder benefits and claims			86.2				94.4
Interest credited			218.5				195.6
Other underwriting and operating expenses			59.6				63.0
Interest expense			8.0				7.9
Amortization of deferred policy acquisition costs			15.4				10.7
Total benefits and expenses			387.7				371.6
Income from operations before income taxes			65.5				7.2
Provision for income taxes:
Current			9.9				1.9
Deferred			9.3				0.2
Total provision for income taxes			19.2				2.1
Net income		$	46.3			$	5.1
Net income per common share:
Basic		$	0.35			$	0.05
Diluted		$	0.35			$	0.05
Weighted-average number of common shares outstanding:
Basic			131.018				111.622
Diluted			131.038				111.622
Non-GAAP financial measures:
Adjusted operating income		$	41.9			$	32.2
Reconciliation to net income:
Net income		$	46.3			$	5.1
Less: Net realized investment gains (losses) (net of taxes)*			4.5				(28.0	)
Add: Net investment gains (losses) on FIA options (net of taxes)**			0.1				(0.9	)
Adjusted operating income		$	41.9			$	32.2

Symetra Financial Corporation
Consolidated Balance Sheet Data
(in millions, except per share data)
(unaudited)

		March 31				December 31
		2010				2009
Assets
Total investments		$	21,074.3			$	20,183.1
Other assets			1,435.3				1,414.3
Separate account assets			854.1				840.1
Total assets		$	23,363.7			$	22,437.5
Liabilities and stockholders’ equity
Policyholder liabilities		$	19,862.4			$	19,463.1
Notes payable			448.9				448.9
Other liabilities			226.6				252.1
Separate account liabilities			854.1				840.1
Total liabilities			21,392.0				21,004.2
Common stock and additional paid-in capital			1,449.5				1,166.6
Retained earnings			362.7				316.4
Accumulated other comprehensive income (loss), net of taxes			159.5				(49.7	)
Total stockholders’ equity			1,971.7				1,433.3
Total liabilities and stockholders’ equity		$	23,363.7			$	22,437.5
Book value per share*		$	14.39			$	12.83
Non-GAAP financial measures:
Adjusted book value		$	1,812.2			$	1,483.0
Reconciliation to stockholders’ equity:
Total stockholders’ equity		$	1,971.7			$	1,433.3
Less: AOCI			159.5				(49.7	)
Adjusted book value			1,812.2				1,483.0
Add: Assumed proceeds from exercise of warrants			218.1				218.1
Adjusted book value, as converted		$	2,030.3			$	1,701.1
Adjusted book value per share, as converted**		$	14.81			$	15.23

Symetra Financial Corporation
Reconciliation of Segment Pretax Adjusted Operating Income, Operating Revenues and Operating ROAE
(in millions)
(unaudited)

		Three Months Ended
		March 31
		2010				2009
Segment pretax adjusted operating income (loss)
Group		$	15.7			$	11.5
Retirement Services			17.3				9.0
Income Annuities			6.4				14.4
Individual			23.3				17.2
Other			(3.9	)			(3.3	)
Subtotal			58.8				48.8
Add: Net realized investment gains (losses)			6.8				(43.0	)
Less: Net investment gains (losses) on FIA options			0.1				(1.4	)
Income from operations before income taxes		$	65.5			$	7.2
Reconciliation of revenues to operating revenues:
Revenues		$	453.2			$	378.8
Less: Net realized investment gains (losses)			6.8				(43.0	)
Add: Net investment gains (losses) on FIA options			0.1				(1.4	)
Operating Revenues		$	446.5			$	420.4

		Twelve Months Ended
		March 31
		2010				2009
Reconciliation of ROE to operating ROAE:
ROE			14.5%				3.7%
Average stockholders’ equity*		$	1,169.5			$	644.5
Non-GAAP financial measures:
Operating ROAE			10.5%				9.9
Average adjusted book value**		$	1,502.4			$	1,342.1

Exhibit 99.2

April 28, 2010

FIRST QUARTER 2010

Symetra Financial Corporation (SYA)
Financial Supplement

All financial information in this document is unaudited

 

Symetra Financial Corporation
Financial Supplement
Table of Contents
March 31, 2010

		Page
Financial Highlights		1
Consolidated Results
Consolidated Income Statement Data		2
Consolidated Balance Sheet Data		3
Segment Income Statement Data		4
Segment Results
Group (including new addition of historical loss ratios)		5
Retirement Services		6
Income Annuities (including new addition of mortality gains/losses)		7
Individual		8
Other		9
Additional Financial Data
Deferred Policy Acquisition Cost (DAC) Roll Forwards (new addition)		10
Account Value and Reserve Roll Forwards		11
Overview of Liabilities and Associated Unrealized Gains (Losses)		12
Investments Summary		13
(including new addition of average daily cash balances and MBS prepayment speed adjustments)
Sales by Segment and Product		14
Book Value and Adjusted Book Value per Share (including share count reconciliation)		15
ROE and Operating ROAE		16

Symetra Financial Corporation
1Q 2010 Financial Supplement
Financial Highlights
(In millions, except per share and metric or percentage data)

				For the Three Months Ended
				Mar. 31,					Dec. 31,				Sep. 30,				Jun. 30,				Mar. 31,
				2010					2009				2009				2009				2009
	Net income			$	46.3				$	32.1			$	44.1			$	47.0			$	5.1
	Net income per common share 1
	Basic			$	0.35				$	0.29			$	0.40			$	0.42			$	0.05
	Diluted			$	0.35				$	0.29			$	0.40			$	0.42			$	0.05
	Weighted-average common shares outstanding:
	Basic				131.018					111.622				111.622				111.622				111.622
	Diluted				131.038					111.634				111.624				111.622				111.622
	Non-GAAP Financial Measures 2
	Adjusted operating income			$	41.9				$	32.7			$	37.7			$	45.3			$	32.2
	Adjusted operating income per common share 1:
	Basic			$	0.32				$	0.29			$	0.34			$	0.40			$	0.29
	Diluted			$	0.32				$	0.29			$	0.34			$	0.40			$	0.29
				As of:
				Mar. 31,					Dec. 31,				Sep. 30,				Jun. 30,				Mar. 31,
	Consolidated Balance Sheet Data			2010					2009				2009				2009				2009
	Total investments			$	21,074.3				$	20,183.1			$	20,035.2			$	18,357.0			$	17,084.8
	Total assets				23,363.7					22,437.5				22,226.0				21,113.4				19,948.7
	Notes payable				448.9					448.9				448.9				448.8				448.8
	Accumulated other comprehensive income (loss) (net of taxes) (AOCI)				159.5					(49.7	)			29.8				(642.9	)			(1,161.1	)
	Total stockholders’ equity				1,971.7					1,433.3				1,480.5				763.7				198.5
	U.S. Statutory Financial Information:
	Statutory capital and surplus			$	1,666.8				$	1,415.4			$	1,331.7			$	1,289.5			$	1,155.8
	Asset valuation reserve (AVR)				135.6					120.5				117.3				117.1				99.8
	Statutory capital and surplus and AVR			$	1,802.4				$	1,535.9			$	1,449.0			$	1,406.6			$	1,255.6
	Book value per common share			$	14.39				$	12.83			$	13.25			$	6.84			$	1.78
	Debt to capital ratio				18.5%					23.8%				23.3%				37.0%				69.3%
	Non-GAAP Financial Measures 2
	Adjusted book value (stockholders’ equity excluding AOCI)			$	1,812.2				$	1,483.0			$	1,450.7			$	1,406.6			$	1,359.6
	Adjusted book value per common share :
	Adjusted book value per common share 3			$	15.35				$	15.99			$	15.65			$	15.18			$	14.68
	Adjusted book value per common share, as converted 4			$	14.81				$	15.23			$	14.94			$	14.56			$	14.13
	Debt to capital ratio, excluding AOCI 5				19.9%					23.2%				23.6%				24.2%				24.8%
				For the Twelve Months Ended
				Mar. 31,					Dec. 31,				Sep. 30,				Jun. 30,				Mar. 31,
				2010					2009				2009				2009				2009
	ROE				14.5%					15.4%				13.9%				7.5%				3.7%
	Non-GAAP Financial Measure 2
	Operating ROAE 6				10.5%					10.5%				10.6%				10.7%				9.9%

¹ Basic net income and adjusted operating income per common share assumes that all participating securities including warrants and certain unvested restricted stock awards have been outstanding since the beginning of the period using the two-class method. Quarterly earnings per share amounts may not add to the full year amounts. Diluted net income and adjusted operating income per common share includes the dilutive impact of non-participating, unvested restricted stock awards, based on the application of the treasury stock method, weighted for the portion of the period they were outstanding.

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, and operating ROAE have been reconciled to their nearest 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 outstanding common shares.

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, plus shares subject to outstanding warrants.

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
1Q 2010 Financial Supplement
Consolidated Income Statement Data
(In millions, except per share data)

			For the Three Months Ended
			Mar. 31					Dec. 31,				Sep. 30,				Jun. 30,				Mar. 31,
			2010					2009				2009				2009				2009
Revenues:
Premiums 1			$	119.0				$	117.2			$	116.6			$	116.8			$	119.5
Net investment income				286.9					284.2				283.6				283.1				262.7
Policy fees, contract charges and other 1				40.5					39.4				40.2				40.7				39.6
Net realized investment gains (losses):
Total other-than-temporary impairment losses on securities				(17.9	)				(23.3	)			(44.1	)			(72.2	)			(51.6	)
Less: portion of losses recognized in other comprehensive income				8.2					10.5				26.7				43.7				23.8
Net impairment losses recognized in earnings				(9.7	)				(12.8	)			(17.4	)			(28.5	)			(27.8	)
Other net realized investment gains (losses)				16.5					12.5				28.7				31.2				(15.2	)
Total net realized investment gains (losses)				6.8					(0.3	)			11.3				2.7				(43.0	)
Total revenues				453.2					440.5				451.7				443.3				378.8
Benefits and expenses:
Policyholder benefits and claims				86.2					88.4				85.6				82.1				94.4
Interest credited				218.5					217.6				220.5				213.1				195.6
Other underwriting and operating expenses				59.6					66.0				61.7				62.0				63.0
Interest expense				8.0					8.0				7.9				8.0				7.9
Amortization of deferred policy acquisition costs				15.4					15.0				13.8				11.9				10.7
Total benefits and expenses				387.7					395.0				389.5				377.1				371.6
Income from operations before income taxes				65.5					45.5				62.2				66.2				7.2
Provision (benefit) for income taxes:
Current				9.9					10.9				(15.7	)			9.6				1.9
Deferred				9.3					2.5				33.8				9.6				0.2
Total provision for income taxes				19.2					13.4				18.1				19.2				2.1
Net income			$	46.3				$	32.1			$	44.1			$	47.0			$	5.1
Net income per common share2:
Basic			$	0.35				$	0.29			$	0.40			$	0.42			$	0.05
Diluted			$	0.35				$	0.29			$	0.40			$	0.42			$	0.05
Weighted-average number of common shares outstanding:
Basic				131.018					111.622				111.622				111.622				111.622
Diluted				131.038					111.634				111.624				111.622				111.622
Cash dividends declared per common share			$	-				$	-			$	-			$	-			$	-
Non-GAAP Financial Measures:
Adjusted operating income			$	41.9				$	32.7			$	37.7			$	45.3			$	32.2
Adjusted operating income per common share2:
Basic			$	0.32				$	0.29			$	0.34			$	0.40			$	0.29
Diluted			$	0.32				$	0.29			$	0.34			$	0.40			$	0.29
Weighted-average number of common shares outstanding:
Basic				131.018					111.622				111.622				111.622				111.622
Diluted				131.038					111.634				111.624				111.622				111.622
Reconciliation to net income:
Net income			$	46.3				$	32.1			$	44.1			$	47.0			$	5.1
Less: Net realized investment gains (losses) (net of taxes)				4.5					(0.2	)			7.3				1.8				(28.0	)
Add: Net investment gains (losses) on FIA options (net of taxes)				0.1					0.4				0.9				0.1				(0.9	)
Adjusted operating income			$	41.9				$	32.7			$	37.7			$	45.3			$	32.2

¹ Effective January 1, 2010, cost of insurance charges are reported in policy fees, contract charges and other instead of premiums with no impact to total revenues. All prior periods have been reclassed to conform to this presentation.

² Net income and adjusted operating income per common share (basic and diluted) assumes that all participating securities, including warrants and unvested restricted stock awards, have been outstanding since the beginning of the period, using the two-class method. Quarterly earnings per share amounts may not add to the full year amounts. Diluted net income and adjusted operating income per common share include the dilutive impact of non-participating, unvested restricted stock awards, based on the application of the treasury stock method, weighted for the portion of the period they were outstanding.

Symetra Financial Corporation
1Q 2010 Financial Supplement
Consolidated Balance Sheet Data
(In millions)

			Mar. 31,					Dec. 31,				Sep. 30,				Jun. 30,				Mar. 31,
			2010					2009				2009				2009				2009
Assets
Investments:
Available-for-sale securities:
Fixed maturities, at fair value			$	19,390.6				$	18,594.3			$	18,542.3			$	16,933.9			$	15,726.6
Marketable equity securities, at fair value				37.6					36.7				35.4				33.6				22.7
Trading securities:
Marketable equity securities, at fair value				151.0					154.1				140.6				116.1				96.7
Mortgage loans, net				1,228.0					1,201.7				1,095.2				1,038.2				1,010.4
Policy loans				73.4					73.9				73.9				74.1				74.9
Short-term investments				54.0					2.1				2.5				2.6				6.6
Investments in limited partnerships				130.6					110.2				133.4				151.4				139.8
Other invested assets				9.1					10.1				11.9				7.1				7.1
Total investments				21,074.3					20,183.1				20,035.2				18,357.0				17,084.8
Cash and cash equivalents				389.3					257.8				241.7				435.0				320.6
Accrued investment income				247.5					237.2				243.0				230.4				224.0
Accounts receivable and other receivables				97.1					70.1				66.1				72.9				53.2
Reinsurance recoverables				277.9					276.6				269.9				266.4				262.3
Deferred policy acquisition costs				227.5					250.4				240.8				307.4				301.9
Goodwill				26.8					26.3				25.8				25.3				24.8
Current income tax recoverable				19.6					20.2				25.1				2.4				18.9
Deferred income tax assets, net				69.1					191.2				150.9				546.8				835.5
Property, equipment and leasehold improvements, net				14.0					14.9				16.2				17.2				17.9
Other assets				66.5					69.6				61.3				72.5				65.1
Securities lending collateral				-					-				31.4				44.4				93.6
Separate account assets				854.1					840.1				818.6				735.7				646.1
Total assets			$	23,363.7				$	22,437.5			$	22,226.0			$	21,113.4			$	19,948.7
Liabilities and stockholders’ equity
Funds held under deposit contracts			$	19,222.9				$	18,816.7			$	18,586.1			$	18,139.8			$	17,671.0
Future policy benefits				395.8					394.9				394.7				394.3				392.0
Policy and contract claims				120.6					125.6				134.6				132.3				124.5
Unearned premiums				14.5					12.1				13.0				12.8				12.9
Other policyholders’ funds				108.6					113.8				90.8				138.6				154.7
Notes payable				448.9					448.9				448.9				448.8				448.8
Other liabilities				226.6					252.1				227.4				303.0				206.6
Securities lending payable				-					-				31.4				44.4				93.6
Separate account liabilities				854.1					840.1				818.6				735.7				646.1
Total liabilities				21,392.0					21,004.2				20,745.5				20,349.7				19,750.2
Preferred stock				-					-				-				-				-
Common stock				1.2					0.9				0.9				0.9				0.9
Additional paid-in-capital				1,448.3					1,165.7				1,165.5				1,165.5				1,165.5
Retained earnings				362.7					316.4				284.3				240.2				193.2
Accumulated other comprehensive income (loss), net of taxes				159.5					(49.7	)			29.8				(642.9	)			(1,161.1	)
Total stockholders’ equity				1,971.7					1,433.3				1,480.5				763.7				198.5
Total liabilities and stockholders’ equity			$	23,363.7				$	22,437.5			$	22,226.0			$	21,113.4			$	19,948.7

Symetra Financial Corporation
1Q 2010 Financial Supplement
Segment Income Statement Data
(In millions)

			For the Three Months Ended
			Mar. 31					Dec. 31,				Sep. 30,				Jun. 30,				Mar. 31,
			2010					2009				2009				2009				2009
Operating revenues:
Group			$	116.3				$	114.8			$	115.2			$	116.6			$	118.3
Retirement Services				112.7					111.2				109.5				99.5				85.4
Income Annuities				104.2					104.4				104.8				107.2				106.5
Individual				105.4					105.9				105.5				105.3				103.1
Other				7.9					5.1				6.8				12.2				7.1
Total			$	446.5				$	441.4			$	441.8			$	440.8			$	420.4
Segment pre-tax adjusted operating income (loss):
Group			$	15.7				$	10.7			$	16.0			$	17.2			$	11.5
Retirement Services				17.3					17.3				16.2				16.1				9.0
Income Annuities				6.4					9.4				8.3				10.3				14.4
Individual				23.3					14.7				15.9				18.5				17.2
Other				(3.9	)				(5.7	)			(4.1	)			1.6				(3.3	)
Total			$	58.8				$	46.4			$	52.3			$	63.7			$	48.8

Symetra Financial Corporation
1Q 2010 Financial Supplement
Group Segment
(In millions)

			For the Three Months Ended
			Mar. 31					Dec. 31,				Sep. 30,				Jun. 30,				Mar. 31,
			2010					2009				2009				2009				2009
Operating revenues:
Premiums			$	108.8				$	108.1			$	106.5			$	107.9			$	109.7
Net investment income				4.6					4.5				4.5				4.3				4.5
Policy fees, contract charges and other				2.9					2.2				4.2				4.4				4.1
Total operating revenues				116.3					114.8				115.2				116.6				118.3
Benefits and expenses:
Policyholder benefits and claims				75.0					75.5				71.7				71.3				76.9
Other underwriting and operating expenses				23.7					26.5				25.6				26.2				27.9
Amortization of deferred policy acquisition costs				1.9					2.1				1.9				1.9				2.0
Total benefits and expenses				100.6					104.1				99.2				99.4				106.8
Segment pre-tax adjusted operating income			$	15.7				$	10.7			$	16.0			$	17.2			$	11.5
Operating Metrics:
Group loss ratio 1				68.9%					69.9%				67.3%				66.1%				70.1%
Expense ratio 2				23.1%					25.6%				23.9%				23.9%				24.6%
Combined ratio 3				92.0%					95.5%				91.2%				90.0%				94.7%
Medical stop-loss - loss ratio 4				70.1%					71.3%				68.7%				67.7%				71.6%
Total sales 5			$	41.4				$	13.4			$	27.1			$	14.0			$	36.8
Premiums:
Medical stop-loss			$	97.6				$	97.9			$	96.3			$	97.7			$	99.5
Limited benefit medical				8.0					7.7				7.7				7.6				7.5
Other				3.2					2.5				2.5				2.6				2.7
Total premiums earned			$	108.8				$	108.1			$	106.5			$	107.9			$	109.7