UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

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

Date of report (Date of earliest event reported): October 27, 2010

SYMETRA FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

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

777 108th Avenue NE, Suite 1200 Bellevue, Washington (Address of principal executive offices)		98004 (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 October 27, 2010, Symetra Financial Corporation, a Delaware corporation, issued (i) a press release announcing its financial results for the fiscal quarter ended September 30, 2010, a copy of which is attached hereto as Exhibit 99.1, and (ii) a Quarterly Financial Supplement for the fiscal quarter ended September 30, 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 October 27, 2010, announcing third quarter 2010 results.
	99.2		Quarterly Financial Supplement for the quarter ended September 30, 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: October 27, 2010

EXHIBIT INDEX

Exhibit
Number		Description of Exhibit
99.1		Press Release of Symetra Financial Corporation, dated October 27, 2010, announcing third quarter 2010 results.
99.2		Quarterly Financial Supplement for the quarter ended September 30, 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 THIRD QUARTER 2010 RESULTS

BELLEVUE, Wash.—(Oct. 27, 2010)—Symetra Financial Corporation (NYSE: SYA) today reported third quarter 2010 net income of $56.6 million, or $0.41 per diluted share. This compares with net income of $44.1 million, or $0.40 per diluted share, in third quarter 2009.

Adjusted operating income¹ was $43.8 million, or $0.32 per diluted share, in third quarter 2010, compared with $37.7 million, or $0.34 per diluted share, in the same quarter a year ago.

	Summary Financial Results		Three Months Ended								Nine Months Ended
	(In millions, except per share data)		September 30								September 30
			2010				2009				2010				2009
	Net Income		$	56.6			$	44.1			$	138.7			$	96.2
	Per Diluted Share of Common Stock		$	0.41			$	0.40			$	1.03			$	0.86
	Adjusted Operating Income		$	43.8			$	37.7			$	127.2			$	115.2
	Per Diluted Share of Common Stock		$	0.32			$	0.34			$	0.94			$	1.03

“Symetra turned in a solid third quarter, demonstrating financial and underwriting discipline to moderate the effects of low interest rates and challenging market conditions,” said Tom Marra, Symetra president and chief executive officer. “Profitability in our Group segment increased over year-ago levels; Retirement Services posted its best-ever quarterly earnings performance; Income Annuities improved its interest margin during the quarter; and our Individual business saw a boost in bank-owned life insurance sales.”

Third Quarter 2010 Summary

	•		Retirement Services generated record-high earnings and total account values; fixed annuity sales were down due to lower interest rates.
	•		Income Annuities interest margin improved, partly the result of commercial mortgage loan originations with more attractive yields.
	•		Group loss ratio improved year-over-year.
	•		Individual BOLI sales topped $7.5 million for the quarter.
	•		Equity portfolio contributed net gains of $15.2 million versus $21.6 million a year ago.
	•		Senior executives recruited to lead new Life and Retirement Divisions, and to drive Life and Retirement sales.

“On Nov. 1, our executive team will be in place with the additions of Jon Curley leading our Life Division; Dan Guilbert running our Retirement Division; and Rich LaVoice heading up our Life and Retirement Sales,” said Marra. “With Michael Fry at the helm of our Group Division and Margaret Meister directing our financial operations, we have an experienced team ready to build an even greater company and drive earnings growth.”

BUSINESS SEGMENT RESULTS

	Segment Pretax Adjusted Operating Income (Loss)		Three Months Ended								Nine Months Ended
	(In millions)		September 30								September 30
			2010				2009				2010				2009
	Group		$	16.7			$	16.0			$	50.6			$	44.7
	Retirement Services			22.5				16.2				60.4				41.3
	Income Annuities			9.5				8.3				22.3				33.0
	Individual			15.3				15.9				57.6				51.6
	Other			(0.5	)			(4.1	)			(9.4	)			(5.8	)
	Subtotal		$	63.5			$	52.3			$	181.5			$	164.8
	Less: Income Taxes*			19.7				14.6				54.3				49.6
	Adjusted Operating Income		$	43.8			$	37.7			$	127.2			$	115.2
	* 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, produced third quarter 2010 pretax adjusted operating income of $16.7 million, compared with $16.0 million in third quarter 2009. The increase in earnings was due to improved profitability in both the stop-loss and limited benefit medical businesses, offset in part by lower profits in Group’s non-insurance entities.

The Group loss ratio for third quarter 2010 was 66.5%, compared with 67.3% in the same quarter a year ago. The better overall loss ratio was largely the result of improved limited benefit medical underwriting results. The loss ratio for the medical stop-loss business was flat compared with third quarter 2009.

Group sales in third quarter 2010 were $18.4 million, compared with $27.1 million in third quarter 2009. While sales of limited benefit medical policies increased year-over-year, stop-loss sales were down due to a focus on pricing discipline to drive loss ratio improvement.

Retirement Services

The Retirement Services segment, which includes fixed and variable deferred annuities, generated $22.5 million in pretax adjusted operating income in third quarter 2010, compared with $16.2 million in third quarter 2009. This result represents record quarterly earnings for the segment. Driving the growth in operating income were interest spreads on increased account

values and lower cash balances. Total account values hit another record high of $9.5 billion at quarter-end, compared with $8.2 billion at the end of third quarter 2009.

Sales in Retirement Services totaled $286.4 million in third quarter 2010, compared with sales of $486.9 million in third quarter 2009. The current low interest rate environment significantly limited fixed annuity sales during the quarter.

Income Annuities

The Income Annuities segment, which includes single premium immediate annuities (SPIAs) and structured settlements, had pretax adjusted operating income of $9.5 million in third quarter 2010, compared with $8.3 million in third quarter 2009. Operating income improved on a higher interest margin due to lower cash balances and the company’s strategy to increase originations of commercial mortgage loans, which offer more attractive yields.

Income Annuities sales totaled $58.0 million in third quarter 2010, compared with sales of $70.7 million during the same quarter of 2009. The sustained low interest rate environment and strong pricing competition in certain markets continued to negatively affect sales of income annuities.

Individual

The Individual segment, which includes term and universal life insurance, and bank-owned life insurance (BOLI), produced pretax adjusted operating income of $15.3 million for third quarter 2010, compared with $15.9 million in third quarter 2009. The operating income decline was due to a decrease in BOLI gross margin, partly from higher claims, as well as an increase in deferred acquisition cost (DAC) amortization.

Individual sales, excluding BOLI, were $2.6 million in third quarter 2010, compared with $2.9 million in third quarter 2009. BOLI sales of $7.5 million contributed to total segment sales of $10.1 million for third quarter 2010. There were no BOLI sales during the same quarter a year ago. Sales of single premium life (SPL) insurance were up compared with third quarter 2009 levels. As previously reported, Symetra is focused on SPL sales through banks, which are expected to grow steadily over the next 12-18 months as the product recently launched on several new bank platforms.

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 $0.5 million in the third quarter of 2010. This compares with an operating loss of $4.1 million in third quarter 2009. The improved 2010 performance stemmed from a $3.6 million increase in net investment income on a higher asset balance and better returns on investments in limited partnerships (primarily private equity and hedge funds). Limited partnership investment income increased to $2.1 million compared with $1.3 million in the same quarter last year.

Investment Portfolio

Symetra had net realized investment gains of $20.0 million in third quarter 2010, up from net gains of $11.3 million in third quarter 2009. Symetra’s equity portfolio posted net gains of $15.2 million in the quarter, compared with third quarter 2009 net gains of $21.6 million. Impairment losses in the bond portfolio were $3.5 million in third quarter 2010, compared with losses of $17.4 million in the same quarter of 2009.

Stockholders’ Equity

Total stockholders’ equity, or book value, as of Sept. 30, 2010 increased to $2,711.3 million, or $19.77 per share, compared with $2,342.8 million, or $17.08 per share, as of June 30, 2010. The increase in book value during third quarter 2010 was driven by continued improvement in the valuation of the bond portfolio.

Adjusted book value per share, as converted,¹ was $15.38 per share as of Sept. 30, 2010, compared with $15.02 per share as of June 30, 2010. The growth in adjusted book value reflected third quarter 2010 net income.

Symetra ended third quarter 2010 with an estimated risk-based capital (RBC) ratio of 501% and statutory capital and surplus, including asset valuation reserve (AVR), of $1,887.1 million.

Additional Financial Information

This press release and the third 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 third quarter 2010 performance with investors and analysts on Thursday, Oct. 28, 2010 at 10 a.m., Eastern Time (7 a.m., Pacific Time). To listen by phone, dial 800-299-7098. For international callers, dial 617-801-9715. The access code is 88091023. 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 Oct. 28, 2010 by dialing 888-286-8010. For international callers, dial 617-801-6888. The access code is 60593018. The replay will be available by phone through Nov. 4, 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 may include 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 for recurring premium products, 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 benefit 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 and a prolonged low interest rate environment;
	•		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;
	•		the effects of implementation of the Dodd-Frank Wall Street Reform and Consumer Protection 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 2010 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								Nine Months Ended
		September 30								September 30
		2010				2009				2010				2009
Revenues
Premiums		$	120.2			$	116.6			$	354.7			$	352.9
Net investment income			304.4				283.6				888.4				829.4
Policy fees, contract charges and other			40.9				40.2				123.2				120.5
Net realized investment gains (losses):
Total other-than-temporary impairment losses on securities			(9.6	)			(44.1	)			(30.2	)			(167.9	)
Less: portion of losses recognized in other comprehensive income			6.1				26.7				15.5				94.2
Net impairment losses recognized in earnings			(3.5	)			(17.4	)			(14.7	)			(73.7	)
Other net realized investment gains			23.5				28.7				31.5				44.7
Total net realized investment gains (losses)			20.0				11.3				16.8				(29.0	)
Total revenues			485.5				451.7				1,383.1				1,273.8
Benefits and expenses
Policyholder benefits and claims			85.4				85.6				254.9				262.1
Interest credited			227.8				220.5				667.8				629.2
Other underwriting and operating expenses			63.1				61.7				186.9				186.7
Interest expense			8.0				7.9				23.9				23.8
Amortization of deferred policy acquisition costs			18.0				13.8				50.4				36.4
Total benefits and expenses			402.3				389.5				1,183.9				1,138.2
Income from operations before income taxes			83.2				62.2				199.2				135.6
Provision (benefit) for income taxes
Current			18.8				(15.7	)			46.1				(4.2	)
Deferred			7.8				33.8				14.4				43.6
Total provision for income taxes			26.6				18.1				60.5				39.4
Net income		$	56.6			$	44.1			$	138.7			$	96.2
Net income per common share
Basic		$	0.41			$	0.40			$	1.03			$	0.86
Diluted		$	0.41			$	0.40			$	1.03			$	0.86
Weighted-average number of common shares outstanding
Basic			137.140				111.622				135.082				111.622
Diluted			137.145				111.624				135.096				111.623
Cash dividends declared per common share		$	0.05			$	—			$	0.10			$	—
Non-GAAP financial measures
Adjusted operating income		$	43.8			$	37.7			$	127.2			$	115.2
Reconciliation to net income
Net income		$	56.6			$	44.1			$	138.7			$	96.2
Less: Net realized investment gains (losses) (net of taxes)*			13.0				7.3				10.9				(18.9	)
Add: Net investment gains (losses) on FIA options (net of taxes)**			0.2				0.9				(0.6	)			0.1
Adjusted operating income		$	43.8			$	37.7			$	127.2			$	115.2

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

		September 30				December 31
		2010				2009
Assets
Total investments		$	23,400.5			$	20,181.0
Other assets			1,075.6				1,414.3
Separate account assets			826.2				840.1
Total assets		$	25,302.3			$	22,435.4
Liabilities and stockholders’ equity
Policyholder liabilities		$	20,753.5			$	19,463.1
Notes payable			449.0				448.9
Other liabilities			562.3				250.0
Separate account liabilities			826.2				840.1
Total liabilities			22,591.0				21,002.1
Common stock and additional paid-in capital			1,450.5				1,166.6
Retained earnings			441.4				316.4
Accumulated other comprehensive income (loss), net of taxes			819.4				(49.7	)
Total stockholders’ equity			2,711.3				1,433.3
Total liabilities and stockholders’ equity		$	25,302.3			$	22,435.4
Book value per share*		$	19.77			$	12.83
Non-GAAP financial measures
Adjusted book value		$	1,891.9			$	1,483.0
Reconciliation to stockholders’ equity
Total stockholders’ equity		$	2,711.3			$	1,433.3
Less: AOCI			819.4				(49.7	)
Adjusted book value			1,891.9				1,483.0
Add: Assumed proceeds from exercise of warrants			218.1				218.1
Adjusted book value, as converted		$	2,110.0			$	1,701.1
Adjusted book value per share, as converted**		$	15.38			$	15.23

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

		Three Months Ended								Nine Months Ended
		September 30								September 30
		2010				2009				2010				2009
Segment pretax adjusted operating income (loss)
Group		$	16.7			$	16.0			$	50.6			$	44.7
Retirement Services			22.5				16.2				60.4				41.3
Income Annuities			9.5				8.3				22.3				33.0
Individual			15.3				15.9				57.6				51.6
Other			(0.5	)			(4.1	)			(9.4	)			(5.8	)
Subtotal			63.5				52.3				181.5				164.8
Add: Net realized investment gains (losses)			20.0				11.3				16.8				(29.0	)
Less: Net investment gains (losses) on FIA options			0.3				1.4				(0.9	)			0.2
Income from operations before income taxes		$	83.2			$	62.2			$	199.2			$	135.6
Reconciliation of revenues to operating revenues
Revenues		$	485.5			$	451.7			$	1,383.1			$	1,273.8
Less: Net realized investment gains (losses)			20.0				11.3				16.8				(29.0	)
Add: Net investment gains (losses) on FIA options			0.3				1.4				(0.9	)			0.2
Operating revenues		$	465.8			$	441.8			$	1,365.4			$	1,303.0
		Twelve Months Ended
		September 30
		2010				2009
ROE			8.6%				13.9%
Average stockholders’ equity*		$	1,987.9			$	658.0
Non-GAAP financial measures
Operating ROAE			9.4%				10.6%
Average adjusted book value**		$	1,695.9			$	1,379.9

^* Average stockholders’ equity is derived by averaging ending stockholders’ equity for the most recent five quarters.

^** Average adjusted book value is derived by averaging ending adjusted book value for the most recent five quarters.

Exhibit 99.2

October 27, 2010

THIRD QUARTER 2010

Symetra Financial Corporation (SYA)
Financial Supplement

 

Symetra Financial Corporation
Financial Supplement
Table of Contents
September 30, 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			5
Retirement Services			6
Income Annuities			7
Individual			8
Other			9
Additional Financial Data
Deferred Policy Acquisition Cost (DAC) Roll Forwards			10
Account Value and Reserve Roll Forwards			11
Overview of Liabilities and Associated Unrealized Gains			12
Investments Summary			13
Sales by Segment and Product			14
Book Value and Adjusted Book Value per Share			15
ROE and Operating ROAE			16

Symetra Financial Corporation
3Q 2010 Financial Supplement
Financial Highlights
(In millions, except per share and metric or percentage data)

			For the Three Months Ended																						For the Nine Months Ended
			Sep. 30,					Jun. 30,				Mar. 31,				Dec. 31,				Sep. 30,					Sep. 30,					Sep. 30,
			2010					2010				2010				2009				2009					2010					2009
Net income			$	56.6				$	35.8			$	46.3			$	32.1			$	44.1				$	138.7				$	96.2
Net income per common share 1
Basic			$	0.41				$	0.26			$	0.35			$	0.29			$	0.40				$	1.03				$	0.86
Diluted			$	0.41				$	0.26			$	0.35			$	0.29			$	0.40				$	1.03				$	0.86
Weighted-average common shares outstanding:
Basic				137.140					137.019				131.018				111.622				111.622					135.082					111.622
Diluted				137.145					137.038				131.038				111.634				111.624					135.096					111.623
Non-GAAP Financial Measures 2
Adjusted operating income			$	43.8				$	41.5			$	41.9			$	32.7			$	37.7				$	127.2				$	115.2
Adjusted operating income per common share 1:
Basic			$	0.32				$	0.30			$	0.32			$	0.29			$	0.34				$	0.94				$	1.03
Diluted			$	0.32				$	0.30			$	0.32			$	0.29			$	0.34				$	0.94				$	1.03
			As of:
			Sep. 30,					Jun. 30,				Mar. 31,				Dec. 31,				Sep. 30,
Consolidated Balance Sheet Data			2010					2010				2010				2009				2009
Total investments			$	23,400.5				$	22,356.4			$	21,072.2			$	20,181.0			$	20,033.2
Total assets				25,302.3					24,349.2				23,361.6				22,435.4				22,224.0
Notes payable				449.0					449.0				448.9				448.9				448.9
Accumulated other comprehensive income (loss) (net of taxes) (AOCI)				819.4					501.1				159.5				(49.7	)			29.8
Total stockholders’ equity				2,711.3					2,342.8				1,971.7				1,433.3				1,480.5
U.S. Statutory Financial Information:
Statutory capital and surplus			$	1,727.3				$	1,707.1			$	1,666.8			$	1,415.4			$	1,331.7
Asset valuation reserve (AVR)				159.8					133.8				135.6				120.5				117.3
Total adjusted capital			$	1,887.1				$	1,840.9			$	1,802.4			$	1,535.9			$	1,449.0
Basic common shares outstanding, end of period (page 15)				118.171					118.175				118.086				92.729				92.729
Book value per common share			$	19.77				$	17.08			$	14.39			$	12.83			$	13.25
Debt to capital ratio				14.2%					16.1%				18.5%				23.8%				23.3	%
Non-GAAP Financial Measures 2
Adjusted book value (stockholders’ equity excluding AOCI)			$	1,891.9				$	1,841.7			$	1,812.2			$	1,483.0			$	1,450.7
Adjusted book value per common share :
Adjusted book value per common share 3			$	16.01				$	15.58			$	15.35			$	15.99			$	15.65
Adjusted book value per common share, as converted 4			$	15.38				$	15.02			$	14.81			$	15.23			$	14.94
Debt to capital ratio, excluding AOCI 5				19.2%					19.6%				19.9%				23.2%				23.6	%
			For the Twelve Months Ended
			Sep. 30,					Jun. 30,				Mar. 31,				Dec. 31,				Sep. 30,
			2010					2010				2010				2009				2009
ROE				8.6%					9.9%				14.5%				15.4%				13.9	%
Non-GAAP Financial Measure 2
Operating ROAE 6				9.4%					9.6%				10.5%				10.5%				10.6	%

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. Quarterly earnings per share amounts may not add to the full year amounts.

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 most directly comparable 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
3Q 2010 Financial Supplement
Consolidated Income Statement Data
(In millions, except per share data)

			For the Three Months Ended																						For the Nine Months Ended
			Sep. 30,					Jun. 30,				Mar. 31,				Dec. 31,				Sep. 30,					Sep. 30,					Sep. 30,
			2010					2010				2010				2009				2009					2010					2009
Revenues:
Premiums 1			$	120.2				$	115.5			$	119.0			$	117.2			$	116.6				$	354.7				$	352.9
Net investment income				304.4					297.1				286.9				284.2				283.6					888.4					829.4
Policy fees, contract charges and other 1				40.9					41.8				40.5				39.4				40.2					123.2					120.5
Net realized investment gains (losses):
Total other-than-temporary impairment losses on securities				(9.6	)				(2.7	)			(17.9	)			(23.3	)			(44.1	)				(30.2	)				(167.9	)
Less: portion of losses recognized in other comprehensive income				6.1					1.2				8.2				10.5				26.7					15.5					94.2
Net impairment losses recognized in earnings				(3.5	)				(1.5	)			(9.7	)			(12.8	)			(17.4	)				(14.7	)				(73.7	)
Other net realized investment gains (losses)				23.5					(8.5	)			16.5				12.5				28.7					31.5					44.7
Total net realized investment gains (losses)				20.0					(10.0	)			6.8				(0.3	)			11.3					16.8					(29.0	)
Total revenues				485.5					444.4				453.2				440.5				451.7					1,383.1					1,273.8
Benefits and expenses:
Policyholder benefits and claims				85.4					83.3				86.2				88.4				85.6					254.9					262.1
Interest credited				227.8					221.5				218.5				217.6				220.5					667.8					629.2
Other underwriting and operating expenses				63.1					64.2				59.6				66.0				61.7					186.9					186.7
Interest expense				8.0					7.9				8.0				8.0				7.9					23.9					23.8
Amortization of deferred policy acquisition costs				18.0					17.0				15.4				15.0				13.8					50.4					36.4
Total benefits and expenses				402.3					393.9				387.7				395.0				389.5					1,183.9					1,138.2
Income from operations before income taxes				83.2					50.5				65.5				45.5				62.2					199.2					135.6
Provision (benefit) for income taxes:
Current				18.8					17.4				9.9				10.9				(15.7	)				46.1					(4.2	)
Deferred				7.8					(2.7	)			9.3				2.5				33.8					14.4					43.6
Total provision for income taxes				26.6					14.7				19.2				13.4				18.1					60.5					39.4
Net income			$	56.6				$	35.8			$	46.3			$	32.1			$	44.1				$	138.7				$	96.2
Net income per common share2:
Basic			$	0.41				$	0.26			$	0.35			$	0.29			$	0.40				$	1.03				$	0.86
Diluted			$	0.41				$	0.26			$	0.35			$	0.29			$	0.40				$	1.03				$	0.86
Weighted-average number of common shares outstanding:
Basic				137.140					137.019				131.018				111.622				111.622					135.082					111.622
Diluted				137.145					137.038				131.038				111.634				111.624					135.096					111.623
Cash dividends declared per common share			$	0.05				$	0.05			$	-			$	-			$	-				$	0.10				$	-
Non-GAAP Financial Measures:
Adjusted operating income			$	43.8				$	41.5			$	41.9			$	32.7			$	37.7				$	127.2				$	115.2
Adjusted operating income per common share2:
Basic			$	0.32				$	0.30			$	0.32			$	0.29			$	0.34				$	0.94				$	1.03
Diluted			$	0.32				$	0.30			$	0.32			$	0.29			$	0.34				$	0.94				$	1.03
Weighted-average number of common shares outstanding:
Basic				137.140					137.019				131.018				111.622				111.622					135.082					111.622
Diluted				137.145					137.038				131.038				111.634				111.624					135.096					111.623
Reconciliation to net income:
Net income			$	56.6				$	35.8			$	46.3			$	32.1			$	44.1				$	138.7				$	96.2
Less: Net realized investment gains (losses) (net of taxes)				13.0					(6.6	)			4.5				(0.2	)			7.3					10.9					(18.9	)
Add: Net investment gains (losses)
on FIA options (net of taxes)				0.2					(0.9	)			0.1				0.4				0.9					(0.6	)				0.1
Adjusted operating income			$	43.8				$	41.5			$	41.9			$	32.7			$	37.7				$	127.2				$	115.2

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 reclassified to conform to this presentation.

² 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. Quarterly earnings per share amounts may not add to the full year amounts.

Symetra Financial Corporation
3Q 2010 Financial Supplement
Consolidated Balance Sheet Data
(In millions)

			Sep. 30,					Jun. 30,				Mar. 31,				Dec. 31,				Sep. 30,
			2010					2010				2010				2009				2009
Assets
Investments:
Available-for-sale securities:
Fixed maturities, at fair value			$	21,450.1				$	20,612.2			$	19,390.6			$	18,594.3			$	18,542.3
Marketable equity securities, at fair value				45.4					43.9				37.6				36.7				35.4
Trading securities:
Marketable equity securities, at fair value				158.8					141.0				151.0				154.1				140.6
Mortgage loans, net 1				1,493.4					1,338.1				1,225.9				1,199.6				1,093.2
Policy loans				71.7					72.3				73.4				73.9				73.9
Short-term investments				2.7					2.7				54.0				2.1				2.5
Investments in limited partnerships				169.1					136.9				130.6				110.2				133.4
Other invested assets				9.3					9.3				9.1				10.1				11.9
Total investments				23,400.5					22,356.4				21,072.2				20,181.0				20,033.2
Cash and cash equivalents				197.2					322.7				389.3				257.8				241.7
Accrued investment income				257.5					251.6				247.5				237.2				243.0
Accounts receivable and other receivables				89.0					81.9				97.1				70.1				66.1
Reinsurance recoverables				284.8					277.3				277.9				276.6				269.9
Deferred policy acquisition costs				160.9					199.0				227.5				250.4				240.8
Goodwill				27.8					27.3				26.8				26.3				25.8
Current income tax recoverable				—					—				19.6				20.2				25.1
Deferred income tax assets, net				—					—				69.1				191.2				150.9
Other assets				58.4					74.0				80.5				84.5				77.5
Securities lending collateral				—					—				—				—				31.4
Separate account assets				826.2					759.0				854.1				840.1				818.6
Total assets			$	25,302.3				$	24,349.2			$	23,361.6			$	22,435.4			$	22,224.0
Liabilities and stockholders’ equity
Funds held under deposit contracts			$	20,107.9				$	19,825.7			$	19,222.9			$	18,816.7			$	18,586.1
Future policy benefits				397.6					397.0				395.8				394.9				394.7
Policy and contract claims				126.1					120.7				120.6				125.6				134.6
Unearned premiums				12.8					14.0				14.5				12.1				13.0
Other policyholders’ funds				109.1					99.5				108.6				113.8				90.8
Notes payable				449.0					449.0				448.9				448.9				448.9
Current income tax payable				2.9					2.1				—				—				—
Deferred income tax liabilities, net				291.1					112.0				—				—				—
Other liabilities 1				268.3					227.4				224.5				250.0				225.4
Securities lending payable				—					—				—				—				31.4
Separate account liabilities				826.2					759.0				854.1				840.1				818.6
Total liabilities				22,591.0					22,006.4				21,389.9				21,002.1				20,743.5
Preferred stock				—					—				—				—				—
Common stock				1.2					1.2				1.2				0.9				0.9
Additional paid-in-capital				1,449.3					1,449.5				1,448.3				1,165.7				1,165.5
Retained earnings				441.4					391.6				362.7				316.4				284.3
Treasury stock				—					(0.6	)			—				—				—
Accumulated other comprehensive income (loss), net of taxes				819.4					501.1				159.5				(49.7	)			29.8
Total stockholders’ equity				2,711.3					2,342.8				1,971.7				1,433.3				1,480.5
Total liabilities and stockholders’ equity			$	25,302.3				$	24,349.2			$	23,361.6			$	22,435.4			$	22,224.0