SEC Filing | Symetra Financial Corporation

View:

Download DOC

Download PDF

Download XLS

e8vk

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): February 10, 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 February 10, 2010, Symetra Financial Corporation, a Delaware corporation, issued (i) a press release announcing its financial results for the fiscal quarter and full year ended December 31, 2009, a copy of which is attached hereto as Exhibit 99.1, and (ii) a Quarterly Financial Supplement for the quarter ended December 31, 2009, 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 February 10, 2010, announcing fourth quarter and full year 2009 results.
	99.2			Quarterly Financial Supplement for the quarter ended December 31, 2009.

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.


SYMETRA FINANCIAL CORPORATION
By:	/s/ GEORGE C. PAGOS
	Name:	George C. Pagos
	Title:	Senior Vice President, General Counsel and Secretary

Date: February 10, 2010

EXHIBIT INDEX


Exhibit
Number		Description of Exhibit
	99.1	Press Release of Symetra Financial Corporation, dated February 10, 2010, announcing fourth and full year 2009 results.
	99.2	Quarterly Financial Supplement for the quarter ended December 31, 2009.

exv99w1

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 FOURTH QUARTER AND
FULL YEAR RESULTS FOR 2009
Full Year Adjusted Operating Income Increases 20% Over 2008 Levels

BELLEVUE, Wash.—(Feb. 10, 2010)—Symetra Financial Corp. (NYSE: SYA) today reported fourth quarter 2009 net income of $32.1 million, or $0.29 per diluted share. This compares with a net loss of $4.9 million, or a $0.05 loss per share, in fourth quarter 2008. For the full year, Symetra produced net income of $128.3 million, or $1.15 per diluted share, compared with $22.1 million, or $0.20 per diluted share, in 2008. These consolidated full year results reflect solid, balanced earnings across Symetra’s four business segments and improved investment returns over 2008 levels.

Adjusted operating income¹ was $32.7 million, or $0.29 per diluted share, in fourth quarter 2009, compared with $31.1 million, or $0.28 per diluted share, in the prior-year period. For the full year, Symetra generated adjusted operating income of $147.9 million, or $1.32 per diluted share, compared with $122.9 million, or $1.10 per diluted share, in 2008.

Symetra’s return on equity (ROE) for full year 2009 was 15.4%, up from 2.6% in 2008. Operating return on average equity (ROAE)¹ was 10.5% for the full year, compared with 9.2% in 2008.

Total revenues in the fourth quarter of 2009 were $440.5 million, compared with $344.0 million in the prior-year period. For the full year, total revenues increased 18.1% to $1.71 billion, compared with $1.45 billion in 2008.

“We finished 2009 with solid earnings from our diverse lines of business and significant sales increases in annuities and life insurance,” said Symetra President and Chief Executive Officer Randy Talbot. “Symetra’s strong balance sheet and broad distribution network position us well to efficiently deploy the capital raised from our recent initial public offering.”


	Three Months Ended					Twelve Months Ended
Summary Financial Results	December 31					December 31
(In millions, except per share data)	2009		2008			2009			2008

Net Income (Loss)	$	32.1	$	(4.9	)	$	128.3		$	22.1
Per Diluted Share of Common Stock	$	0.29	$	(0.05	)	$	1.15		$	0.20

Adjusted Operating Income	$	32.7	$	31.1		$	147.9		$	122.9
Per Diluted Share of Common Stock	$	0.29	$	0.28		$	1.32		$	1.10

Return on Equity							15.4	%		2.6	%

Operating Return on Average Equity							10.5	%		9.2	%

2009 Highlights

	•		Balanced earnings across all four business segments.

	•		Significant sales growth in Retirement Services, Income Annuities and Individual segments through financial institutions and independent agents.

	•		Disciplined underwriting in Group segment resulted in premium decline.

	•		Marked improvement in equity portfolio performance with returns of 34.0%, outpacing the S&P 500 total return index of 26.5%.

BUSINESS SEGMENTS


	Three Months Ended						Twelve Months Ended
Segment Pretax Adjusted Operating Income	December 31						December 31
(in millions)	2009			2008			2009			2008

Group	$	10.7		$	15.2		$	55.4		$	66.9

Retirement Services		17.3			9.2			58.6			36.6

Income Annuities		9.4			8.5			42.4			36.5

Individual		14.7			16.7			66.3			59.7

Other		(5.7	)		(15.5	)		(11.5	)		(31.6	)


Subtotal	$	46.4		$	34.1		$	211.2		$	168.1

Less: Taxes^*		13.7			3.0			63.3			45.2


Adjusted Operating Income	$	32.7		$	31.1		$	147.9		$	122.9


^*		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

Symetra’s Group segment, which consists primarily of medical stop-loss insurance, posted fourth quarter pretax adjusted operating income of $10.7 million, compared with $15.2 million in the prior-year period. For full year 2009, pretax adjusted operating

income was $55.4 million, compared with $66.9 million in 2008. The decline in fourth quarter and full year operating income was driven by increased claims; in particular, a higher frequency of large claims. Group’s loss ratio was 69.9% for fourth quarter 2009, compared with 66.6% in the prior-year period. The full year 2009 loss ratio was 68.3%, up from 65.8% in 2008.

Total premiums for full year 2009 were $432.2 million, compared with $449.8 million in 2008. The premium decrease was anticipated and a result of lower sales and renewals primarily driven by pricing increases in the medical stop-loss line.

Retirement Services

The Retirement Services segment includes fixed and variable deferred annuities and retirement plans. For fourth quarter 2009, Retirement Services generated $17.3 million in pretax adjusted operating income, up from $9.2 million in the prior-year period. For the full year, pretax adjusted operating income totaled $58.6 million, compared with $36.6 million in 2008. Operating income improved significantly in the fourth quarter and for the full year due to higher interest spreads on increased account values. Total account values hit a record $8.41 billion at year-end, up 32.0% from $6.37 billion at the end of 2008.

Retirement Services sales were $261.9 million for the fourth quarter and $2.23 billion for full year 2009. This compares with sales of $624.1 million in fourth quarter 2008 and $1.77 billion for full year 2008. Fourth quarter 2008 sales reflected market conditions in which many consumers moved their assets to fixed-return annuity products. Symetra capitalized on its broad distribution network both in 2008 and 2009 to drive growth in this segment.

Income Annuities

The Income Annuities segment, which includes single premium immediate annuities (SPIAs) and structured settlements, had pretax adjusted operating income of $9.4 million in fourth quarter 2009, compared with $8.5 million in the prior-year period. For full year 2009, Income Annuities produced $42.4 million in pretax adjusted operating income, up from $36.5 million in 2008. Strong underwriting and expense savings contributed to the improved fourth quarter and full year 2009 results.

Sales for the quarter and the year were strong, with $83.8 million in the fourth quarter and $251.8 million for full year 2009. This represents a significant increase over sales of $34.5 million in fourth quarter 2008 and sales of $140.8 million for full year 2008. New business in fourth quarter 2009 was led by SPIA sales through financial institutions and independent agents. As a result of increased sales during the last half of 2009, the Income Annuities segment grew, reversing the downward trend of the past several years.

Individual

The Individual segment, which includes term and universal life insurance, and bank-owned life insurance (BOLI), reported pretax adjusted operating income of $14.7 million for fourth quarter 2009, compared with $16.7 million in the prior-year period. The decrease in fourth quarter operating income was due primarily to BOLI claims and interest spread. For the full year, the Individual segment produced $66.3 million in pretax adjusted operating income, compared with $59.7 million in 2008. The increase in full year 2009 operating income stemmed from good underwriting results.

In a predominately down market for life industry sales, Individual sales increased quarter-over-quarter and year-over-year. Individual posted sales of $2.7 million for fourth quarter 2009 and $13.0 million for the full year. This compares with sales of $2.4 million in the prior-year period and $10.1 million for full year 2008. Contributing to the improved full year performance were

increased sales of single premium life policies through financial institutions and sales of term life policies through independent agents.

Other Segment

The Other segment, including unallocated corporate income and expenses, interest expense on debt and other income outside of Symetra’s four business segments, had a pretax adjusted operating loss of $5.7 million in the fourth quarter of 2009, compared with a pretax adjusted operating loss of $15.5 million in the prior-year period. For the full year, the Other segment recorded a pretax adjusted operating loss of $11.5 million, compared with a $31.6 million loss in 2008. The improvement in fourth quarter and full year 2009 results was due largely to an increase in the fair value of investments in limited partnerships (primarily private equity funds and hedge funds) as reflected in net investment income.

Investment Portfolio

Net realized investment losses improved to a $0.3 million loss in the fourth quarter of 2009, compared with a $54.7 million loss for the prior-year period. For the full year, net realized investment losses were $29.3 million, compared with net losses of $158.0 million in 2008. Driving this improvement was the performance of Symetra’s equity portfolio, which generated net gains of $5.4 million in fourth quarter 2009, compared with net losses of $29.0 million in fourth quarter 2008. Equity portfolio improvements led to net gains of $34.0 million for full year 2009, compared with net losses of $69.2 million in 2008.

Impairment losses were $12.8 million in fourth quarter 2009, compared with losses of $24.7 million in the prior-year period. For full year 2009, impairment losses were $86.5 million, compared with losses of $86.4 million in 2008, as the recession and economic downturn affected Symetra’s fixed maturity portfolio.

Stockholders’ Equity

Book value as of Dec. 31, 2009 increased to $1,433.3 million, or $12.83 per share, compared with $286.2 million, or $2.56 per share, as of Dec. 31, 2008. The increase in book value was driven by recovery in unrealized losses in the investment portfolio. Adjusted book value per share, as converted,¹ increased to $15.23 per share as of Dec. 31, 2009, compared with $13.95 per share as of Dec. 31, 2008. Symetra ended 2009 with a risk-based capital (RBC) ratio of approximately 400%. This ratio does not include new capital contributions from the initial public offering.

Initial Public Offering

On Jan. 22, 2010, Symetra common stock began trading on the New York Stock Exchange under the ticker symbol “SYA.” The offering, which closed Jan. 27, 2010, consisted of 25,259,510 primary shares sold by Symetra, and 9,700,490 secondary shares sold by existing stockholders at a share price of $12.00. Symetra received net primary proceeds in the offering of approximately $282.5 million. After the offering, Symetra had 117,988,965 total shares of common stock outstanding.

2010 Outlook

Symetra’s 2010 guidance will consist of a full year estimate of adjusted operating income per diluted share. Based on current information, the company expects 2010 adjusted operating income per diluted share to be between $1.40 and $1.55.

Additional Financial Information

This press release and the fourth quarter 2009 financial supplement are posted on the company’s Web site at http://investors.symetra.com. Investors are encouraged to review all of these materials.

Quiet Period

Symetra is currently observing an initial public offering quiet period and will not be hosting a conference call or webcast to discuss the fourth quarter and full year 2009 results.

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 about Symetra, visit www.symetra.com.

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 measure are included in the tables at the end of this press release. These measures are not a substitute for GAAP financial measures. For more information about these non-GAAP measures, including discussions of the material limitations of these measures, please see the company’s Registration Statement on Form S-1.

This press release includes non-GAAP financial measures entitled “adjusted operating income (loss),” “adjusted operating income (loss) per diluted share,” “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 (loss) as net income (loss) excluding after-tax net investment gains (losses) and including after-tax net realized and unrealized investment gains (losses) on fixed index annuity (FIA) options. Adjusted operating income (loss) per diluted share is defined as adjusted operating income (loss) divided by diluted common shares outstanding. 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 divided by premiums earned.

Sales — 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 BOLI sales measured as 10% of new BOLI deposits.

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 the issuer’s subsidiaries to pay dividends to the issuer; and

	•		the risks that are described from time to time in Symetra’s filings with the Securities and Exchange Commission, including those in Symetra’s Registration Statement on Form S-1.

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						Twelve Months Ended
	December 31						December 31
	2009			2008			2009			2008
Revenues:
Premiums and other considerations	$	143.5		$	144.4		$	573.6		$	584.8
Net investment income		284.2			238.5			1,113.6			956.5
Other revenues		13.1			15.8			56.4			67.8
Net realized investment gains (losses):
Total other-than -temporary impairment losses on securities		(23.3	)		(24.7	)		(191.2	)		(86.4	)
Less portion of loss recognized in other comprehensive income		10.5			—			104.7			—

Net impairment losses recognized in earnings		(12.8	)		(24.7	)		(86.5	)		(86.4	)
Other net realized investment gains (losses)		12.5			(30.0	)		57.2			(71.6	)

Total net realized investment losses		(0.3	)		(54.7	)		(29.3	)		(158.0	)

Total revenues		440.5			344.0			1,714.3			1,451.1


Benefits and expenses:
Policyholder benefits and claims		88.4			88.4			350.5			348.5
Interest credited		217.6			197.0			846.8			766.1
Other underwriting and operating expenses		66.0			63.9			252.7			265.8
Interest expense		8.0			7.9			31.8			31.9
Amortization of deferred policy acquisition costs		15.0			8.1			51.4			25.8

Total benefits and expenses		395.0			365.3			1,533.2			1,438.1


Income (loss) from operations before income taxes		45.5			(21.3	)		181.1			13.0

Provision (benefit) for income taxes:
Current		10.9			(10.3	)		6.7			23.8
Deferred		2.5			(6.1	)		46.1			(32.9	)

Total provision (benefit) for income taxes		13.4			(16.4	)		52.8			(9.1	)


Net income (loss)	$	32.1		$	(4.9	)	$	128.3		$	22.1


Net income (loss) per common share:
Basic	$	0.29		$	(0.05	)	$	1.15		$	0.20
Diluted	$	0.29		$	(0.05	)	$	1.15		$	0.20

Weighted average number of common shares outstanding:
Basic		111.622			92.646			111.622			111.622
Diluted		111.634			92.646			111.626			111.622

Cash dividends declared per share	$	—		$	—		$	—		$	—

Non-GAAP financial measures:
Adjusted operating income	$	32.7		$	31.1		$	147.9		$	122.9


Reconciliation to net income (loss):
Net income (loss)	$	32.1		$	(4.9	)	$	128.3		$	22.1
Less: Net realized investment losses (net of taxes)¹		(0.2	)		(35.5	)		(19.1	)		(102.7	)
Add: Net realized and unrealized investment gains (losses) on FIA options (net of taxes)²		0.4			0.5			0.5			(1.9	)

Adjusted operating income	$	32.7		$	31.1		$	147.9		$	122.9


¹		Net realized investment losses are reported net of taxes of $(0.1) and $(19.2) for the three months ended, and $(10.2) and $(55.3) for the twelve months ended December 31, 2009 and 2008, respectively.

²		Net realized and unrealized investment gains (losses) on FIA options are reported net of taxes of $0.2 and $0.2 for the three months ended, and $0.3 and $(1.0) for the twelve months ended December 31, 2009 and 2008, respectively.

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


	December 31			December 31
	2009			2008
Assets
Total investments	$	20,183.1		$	16,252.5
Other assets		1,414.3			2,260.9
Separate account assets		840.1			716.2

Total assets	$	22,437.5		$	19,229.6


Liabilities and stockholders’ equity
Policyholder liabilities	$	19,463.1		$	17,464.8
Notes payable		448.9			448.8
Other liabilities		252.1			313.6
Separate account liabilities		840.1			716.2

Total liabilities		21,004.2			18,943.4

Common stock and additional paid-in-capital		1,166.6			1,166.4
Retained earnings		316.4			172.4
Accumulated other comprehensive loss, net of taxes		(49.7	)		(1,052.6	)

Total stockholders’ equity		1,433.3			286.2


Total liabilities and stockholders’ equity	$	22,437.5		$	19,229.6


Book value per share¹	$	12.83		$	2.56


Non-GAAP financial measures:
Adjusted book value	$	1,483.0		$	1,338.8


Reconciliation to stock holders’ equity :
Total stockholders’ equity	$	1,433.3		$	286.2
Less: AOCI		(49.7	)		(1,052.6	)

Adjusted book value		1,483.0			1,338.8
Add: Assumed proceeds from exercise of warrants		218.1			218.1

Adjusted book value, as converted	$	1,701.1		$	1,556.9

Adjusted book value per share, as converted²	$	15.23		$	13.95


¹		Book value per share is calculated based on stockholders’ equity divided by outstanding common shares and shares subject to outstanding warrants, totaling 111,705,199 and 111,622,039 as of December 31, 2009 and 2008, respectively.

²		Adjusted book value per share, as converted, is calculated based on adjusted book value, as converted, divided by outstanding common shares and shares subject to outstanding warrants, totaling 111,705,199 and 111,622,039 as of December 31, 2009 and 2008, respectively.

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


	Three Months Ended						Twelve Months Ended
	December 31						December 31
	2009			2008			2009			2008
Segment pretax adjusted operating income (loss)
Group	$	10.7		$	15.2		$	55.4		$	66.9
Retirement Services		17.3			9.2			58.6			36.6
Income Annuities		9.4			8.5			42.4			36.5
Individual		14.7			16.7			66.3			59.7
Other		(5.7	)		(15.5	)		(11.5	)		(31.6	)

Subtotal		46.4			34.1			211.2			168.1

Add: Net realized investment losses		(0.3	)		(54.7	)		(29.3	)		(158.0	)
Less: Net realized and unrealized investment gains (losses) on FIA options		0.6			0.7			0.8			(2.9	)


Income (loss) from operations before income taxes	$	45.5		$	(21.3	)	$	181.1		$	13.0


	Twelve Months Ended
	December 31
	2009			2008
Reconciliation of ROE to Operating ROAE:
ROE		15.4	%		2.6	%
Average stockholders’ equity¹	$	832.4		$	861.8
Non-GAAP financial measures:
Operating ROAE		10.5	%		9.2	%
Average adjusted book value²	$	1,407.7		$	1,329.8


¹		Average stockholders’ equity is derived by averaging ending stockholders’ equity for the most recent five quarters.

²		Average adjusted book value is derived by averaging ending adjusted book value for the most recent five quarters.

exv99w2

Exhibit 99.2

February 10, 2010

FOURTH QUARTER 2009

Symetra Financial Corporation (SYA)
Financial Supplement
All financial information in this document is unaudited



Reach for great things:

Symetra Financial Corporation
Financial Supplement
Table of Contents
December 31, 2009


	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
Account Value and Reserve Roll Forward		10
Overview of Liabilities and Associated Unrealized Gain (Loss)		11
Investments Summary		12
Sales by Segment and Product		13
Book Value and Adjusted Book Value per Share		14
ROE and Operating ROAE		15

Symetra Financial Corporation
4Q 2009 Financial Supplement
Financial Highlights
(In millions, except per share and metric or percentage data)


	For the Three Months Ended											For the Twelve Months Ended
	Dec. 31,		Sep. 30,		Jun. 30,		Mar. 31,		Dec. 31,				Dec. 31,		Dec. 31,
	2009		2009		2009		2009		2008				2009		2008
Net income (loss)	$	32.1	$	44.1	$	47.0	$	5.1	$	(4.9	)		$	128.3	$	22.1

Net income (loss) per common share ¹
Basic	$	0.29	$	0.40	$	0.42	$	0.05	$	(0.05	)		$	1.15	$	0.20
Diluted	$	0.29	$	0.40	$	0.42	$	0.05	$	(0.05	)		$	1.15	$	0.20

Weighted average common shares outstanding:
Basic		111.622		111.622		111.622		111.622		92.646				111.622		111.622
Diluted		111.634		111.624		111.622		111.622		92.646				111.626		111.622

Non-GAAP Financial Measures ²
Adjusted operating income	$	32.7	$	37.7	$	45.3	$	32.2	$	31.1			$	147.9	$	122.9

Adjusted operating income per common share ¹:
Basic	$	0.29	$	0.34	$	0.40	$	0.29	$	0.28			$	1.32	$	1.10
Diluted	$	0.29	$	0.34	$	0.40	$	0.29	$	0.28			$	1.32	$	1.10

Weighted average common shares outstanding:
Basic		111.622		111.622		111.622		111.622		111.622				111.622		111.622
Diluted		111.634		111.624		111.622		111.622		111.622				111.626		111.622


	As of:
Consolidated Balance Sheet Data	Dec. 31,			Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,
Consolidated Balance Sheet Data	2009			2009			2009			2009			2008
Total investments	$	20,183.1		$	20,035.2		$	18,357.0		$	17,084.8		$	16,252.5
Total assets		22,437.5			22,226.0			21,113.4			19,948.7			19,229.6
Notes payable		448.9			448.9			448.8			448.8			448.8
Accumulated other comprehensive income (loss) (net of taxes) (AOCI)		(49.7	)		29.8			(642.9	)		(1,161.1	)		(1,052.6	)
Total stockholders’ equity		1,433.3			1,480.5			763.7			198.5			286.2
U.S. Statutory Financial Information:
Statutory capital and surplus	$	1,415.4		$	1,331.7		$	1,289.5		$	1,155.8		$	1,179.0
Asset valuation reserve (AVR)		120.5			117.3			117.1			99.8			113.7

Statutory capital and surplus and AVR	$	1,535.9		$	1,449.0		$	1,406.6		$	1,255.6		$	1,292.7


Book value per common share	$	12.83		$	13.25		$	6.84		$	1.78		$	2.56
Debt to capital ratio		23.8	%		23.3	%		37.0	%		69.3	%		61.1	%
Non-GAAP Financial Measures ²
Adjusted book value (stockholders’ equity excluding AOCI)	$	1,483.0		$	1,450.7		$	1,406.6		$	1,359.6		$	1,338.8
Adjusted book value per common share :
Adjusted book value per common share ³	$	15.99		$	15.65		$	15.18		$	14.68		$	14.45
Adjusted book value per common share, as converted ⁴	$	15.23		$	14.94		$	14.56		$	14.13		$	13.95

Debt to capital ratio, excluding AOCI ⁵		23.2	%		23.6	%		24.2	%		24.8	%		25.1	%


	For the Twelve Months Ended
	Dec. 31,			Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,
	2009			2009			2009			2009			2008
ROE		15.4	%		13.9	%		7.5	%		3.7	%		2.6	%
Non-GAAP Financial Measure ²
Operating ROAE ⁶		10.5	%		10.6	%		10.7	%		9.9	%		9.2	%


¹		Basic net income (loss) and adjusted operating income per common share assumes that all participating securities including warrants have been outstanding since the beginning of the period using the two-class method. Quarterly average earnings per share amounts may not add to the full year amounts as holders of outstanding warrants do not participate in losses. Diluted net income (loss) 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 14, 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 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
4Q 2009 Financial Supplement
Consolidated Income Statement Data
(In millions, except per share data)


	For the Three Months Ended															For the Twelve Months Ended
	Dec. 31,			Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,			Dec. 31,			Dec. 31,
	2009			2009			2009			2009			2008			2009			2008
Revenues:
Premiums and other considerations	$	143.5		$	142.1		$	142.6		$	145.5		$	144.4		$	573.6		$	584.8
Net investment income		284.2			283.6			283.1			262.7			238.5			1,113.6			956.5
Other revenues		13.1			14.7			14.9			13.6			15.8			56.4			67.8
Net realized investment gains (losses):
Total other-than-temporary impairment losses on securities		(23.3	)		(44.1	)		(72.2	)		(51.6	)		(24.7	)		(191.2	)		(86.4	)
Less: portion of losses recognized in other comprehensive income		10.5			26.7			43.7			23.8			—			104.7			—

Net impairment losses recognized in earnings		(12.8	)		(17.4	)		(28.5	)		(27.8	)		(24.7	)		(86.5	)		(86.4	)
Other net realized investment gains (losses)		12.5			28.7			31.2			(15.2	)		(30.0	)		57.2			(71.6	)

Total net realized investment gains (losses)		(0.3	)		11.3			2.7			(43.0	)		(54.7	)		(29.3	)		(158.0	)

Total revenues		440.5			451.7			443.3			378.8			344.0			1,714.3			1,451.1

Benefits and expenses:
Policyholder benefits and claims		88.4			85.6			82.1			94.4			88.4			350.5			348.5
Interest credited		217.6			220.5			213.1			195.6			197.0			846.8			766.1
Other underwriting and operating expenses		66.0			61.7			62.0			63.0			63.9			252.7			265.8
Interest expense		8.0			7.9			8.0			7.9			7.9			31.8			31.9
Amortization of deferred policy acquisition costs		15.0			13.8			11.9			10.7			8.1			51.4			25.8

Total benefits and expenses		395.0			389.5			377.1			371.6			365.3			1,533.2			1,438.1


Income (loss) from operations before income taxes		45.5			62.2			66.2			7.2			(21.3	)		181.1			13.0
Provision (benefit) for income taxes:
Current		10.9			(15.7	)		9.6			1.9			(10.3	)		6.7			23.8
Deferred		2.5			33.8			9.6			0.2			(6.1	)		46.1			(32.9	)

Total provision (benefit) for income taxes		13.4			18.1			19.2			2.1			(16.4	)		52.8			(9.1	)

Net income (loss)	$	32.1		$	44.1		$	47.0		$	5.1		$	(4.9	)	$	128.3		$	22.1


Net income (loss) per common share¹:
Basic	$	0.29		$	0.40		$	0.42		$	0.05		$	(0.05	)	$	1.15		$	0.20
Diluted	$	0.29		$	0.40		$	0.42		$	0.05		$	(0.05	)	$	1.15		$	0.20

Weighted average number of common shares outstanding:
Basic		111.622			111.622			111.622			111.622			92.646			111.622			111.622
Diluted		111.634			111.624			111.622			111.622			92.646			111.626			111.622

Cash dividends declared per common share	$	—		$	—		$	—		$	—		$	—		$	—		$	—

Non-GAAP Financial Measures:
Adjusted operating income	$	32.7		$	37.7		$	45.3		$	32.2		$	31.1		$	147.9		$	122.9

Adjusted operating income per common share¹:
Basic	$	0.29		$	0.34		$	0.40		$	0.29		$	0.28		$	1.32		$	1.10
Diluted	$	0.29		$	0.34		$	0.40		$	0.29		$	0.28		$	1.32		$	1.10

Weighted average number of common shares outstanding:
Basic		111.622			111.622			111.622			111.622			111.622			111.622			111.622
Diluted		111.634			111.624			111.622			111.622			111.622			111.626			111.622

Reconciliation to net income (loss):
Net income (loss)	$	32.1		$	44.1		$	47.0		$	5.1		$	(4.9	)	$	128.3		$	22.1
Less: Net realized investment gains (losses) (net of taxes)		(0.2	)		7.3			1.8			(28.0	)		(35.5	)		(19.1	)		(102.7	)
Add: Net realized and unrealized investment gains (losses) on FIA options (net of taxes)		0.4			0.9			0.1			(0.9	)		0.5			0.5			(1.9	)

Adjusted operating income	$	32.7		$	37.7		$	45.3		$	32.2		$	31.1		$	147.9		$	122.9


¹		Net income (loss) and adjusted operating income per common share (basic and diluted) assumes that all participating securities, including warrants, have been outstanding since the beginning of the period, using the two-class method. Quarterly average earnings per share amounts may not add to the full year amounts as holders of outstanding warrants do not participate in losses. Diluted net income (loss) 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
4Q 2009 Financial Supplement
Consolidated Balance Sheet Data
(In millions)


	Dec. 31,			Sep. 30,		Jun. 30,			Mar. 31,			Dec. 31,
	2009			2009		2009			2009			2008
Assets
Investments:
Available-for-sale securities:
Fixed maturities, at fair value	$	18,594.3		$	18,542.3	$	16,933.9		$	15,726.6		$	14,887.6
Marketable equity securities, at fair value		36.7			35.4		33.6			22.7			38.1
Trading securities:
Marketable equity securities, at fair value		154.1			140.6		116.1			96.7			106.3
Mortgage loans, net		1,201.7			1,095.2		1,038.2			1,010.4			988.7
Policy loans		73.9			73.9		74.1			74.9			75.2
Short-term investments		2.1			2.5		2.6			6.6			9.4
Investments in limited partnerships		110.2			133.4		151.4			139.8			138.3
Other invested assets		10.1			11.9		7.1			7.1			8.9

Total investments		20,183.1			20,035.2		18,357.0			17,084.8			16,252.5

Cash and cash equivalents		257.8			241.7		435.0			320.6			468.0
Accrued investment income		237.2			243.0		230.4			224.0			206.3
Accounts receivable and other receivables		70.1			66.1		72.9			53.2			61.7
Reinsurance recoverables		276.6			269.9		266.4			262.3			264.2
Deferred policy acquisition costs		250.4			240.8		307.4			301.9			247.5
Goodwill		26.3			25.8		25.3			24.8			24.3
Current income tax recoverable		20.2			25.1		2.4			18.9			21.1
Deferred income tax assets, net		191.2			150.9		546.8			835.5			785.8
Property, equipment and leasehold improvements, net		14.9			16.2		17.2			17.9			18.9
Other assets		69.6			61.3		72.5			65.1			57.4
Securities lending collateral		—			31.4		44.4			93.6			105.7
Separate account assets		840.1			818.6		735.7			646.1			716.2

Total assets	$	22,437.5		$	22,226.0	$	21,113.4		$	19,948.7		$	19,229.6


Liabilities and stockholders’ equity
Funds held under deposit contracts	$	18,816.7		$	18,586.1	$	18,139.8		$	17,671.0		$	16,810.4
Future policy benefits		394.9			394.7		394.3			392.0			392.1
Policy and contract claims		125.6			134.6		132.3			124.5			133.1
Unearned premiums		12.1			13.0		12.8			12.9			11.9
Other policyholders’ funds		113.8			90.8		138.6			154.7			117.3
Notes payable		448.9			448.9		448.8			448.8			448.8
Other liabilities		252.1			227.4		303.0			206.6			207.9
Securities lending payable		—			31.4		44.4			93.6			105.7
Separate account liabilities		840.1			818.6		735.7			646.1			716.2

Total liabilities		21,004.2			20,745.5		20,349.7			19,750.2			18,943.4

Preferred stock		—			—		—			—			—
Common stock		0.9			0.9		0.9			0.9			0.9
Additional paid-in-capital		1,165.7			1,165.5		1,165.5			1,165.5			1,165.5
Retained earnings		316.4			284.3		240.2			193.2			172.4
Accumulated other comprehensive income (loss), net of taxes		(49.7	)		29.8		(642.9	)		(1,161.1	)		(1,052.6	)

Total stockholders’ equity		1,433.3			1,480.5		763.7			198.5			286.2

Total liabilities and stockholders’ equity	$	22,437.5		$	22,226.0	$	21,113.4		$	19,948.7		$	19,229.6

Symetra Financial Corporation
4Q 2009 Financial Supplement
Segment Income Statement Data
(In millions)


	For the Three Months Ended															For the Twelve Months Ended
	Dec. 31,			Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,			Dec. 31,			Dec. 31,
	2009			2009			2009			2009			2008			2009			2008
Operating revenues:
Group:
Total revenues	$	113.9		$	113.7		$	115.3		$	118.2		$	120.1		$	461.1		$	486.5
Less: Net realized investment losses		(0.9	)		(1.5	)		(1.3	)		(0.1	)		—			(3.8	)		(0.1	)

Operating revenues	$	114.8		$	115.2		$	116.6		$	118.3		$	120.1		$	464.9		$	486.6

Retirement Services:
Total revenues	$	107.6		$	109.0		$	94.4		$	73.3		$	73.2		$	384.3		$	260.6
Less: Net realized investment gains (losses)		(3.0	)		0.9			(4.9	)		(13.5	)		(3.8	)		(20.5	)		(20.8	)
Add: Net realized and unrealized investment gains (losses) on FIA options		0.6			1.4			0.2			(1.4	)		0.7			0.8			(2.9	)

Operating revenues	$	111.2		$	109.5		$	99.5		$	85.4		$	77.7		$	405.6		$	278.5

Income Annuities:
Total revenues	$	116.8		$	123.7		$	120.0		$	82.5		$	61.2		$	443.0		$	324.7
Less: Net realized investment gains (losses)		12.4			18.9			12.8			(24.0	)		(45.6	)		20.1			(99.6	)

Operating revenues	$	104.4		$	104.8		$	107.2		$	106.5		$	106.8		$	422.9		$	424.3

Individual:
Total revenues	$	99.7		$	102.0		$	105.7		$	98.3		$	97.6		$	405.7		$	388.7
Less: Net realized investment gains (losses)		(6.2	)		(3.5	)		0.4			(4.8	)		(3.6	)		(14.1	)		(16.8	)

Operating revenues	$	105.9		$	105.5		$	105.3		$	103.1		$	101.2		$	419.8		$	405.5

Other:
Total revenues	$	2.5		$	3.3		$	7.9		$	6.5		$	(8.1	)	$	20.2		$	(9.4	)
Less: Net realized investment losses		(2.6	)		(3.5	)		(4.3	)		(0.6	)		(1.7	)		(11.0	)		(20.7	)

Operating revenues	$	5.1		$	6.8		$	12.2		$	7.1		$	(6.4	)	$	31.2		$	11.3

Segment pre-tax adjusted operating income (loss):
Group	$	10.7		$	16.0		$	17.2		$	11.5		$	15.2		$	55.4		$	66.9
Retirement Services		17.3			16.2			16.1			9.0			9.2			58.6			36.6
Income Annuities		9.4			8.3			10.3			14.4			8.5			42.4			36.5
Individual		14.7			15.9			18.5			17.2			16.7			66.3			59.7
Other		(5.7	)		(4.1	)		1.6			(3.3	)		(15.5	)		(11.5	)		(31.6	)

Total	$	46.4		$	52.3		$	63.7		$	48.8		$	34.1		$	211.2		$	168.1

Symetra Financial Corporation
4Q 2009 Financial Supplement
Group Segment
(In millions)


	For the Three Months Ended															For the Twelve Months Ended
	Dec. 31,			Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,			Dec. 31,			Dec. 31,
	2009			2009			2009			2009			2008			2009			2008
Revenues:
Premiums and other considerations	$	108.1		$	106.5		$	107.9		$	109.7		$	111.0		$	432.2		$	449.8
Net investment income		4.5			4.5			4.3			4.5			4.4			17.8			17.8
Other revenues		2.2			4.2			4.4			4.1			4.7			14.9			19.0
Net realized investment losses:
Total other-than-temporary impairment losses on securities		(2.7	)		(3.4	)		(4.6	)		(0.5	)		—			(11.2	)		(0.1	)
Less portion of losses recognized in other comprehensive income		1.8			2.7			3.2			0.4			—			8.1			—

Net impairment losses recognized in earnings		(0.9	)		(0.7	)		(1.4	)		(0.1	)		—			(3.1	)		(0.1	)
Other net realized investment gains (losses)		—			(0.8	)		0.1			—			—			(0.7	)		—

Net realized investment losses		(0.9	)		(1.5	)		(1.3	)		(0.1	)		—			(3.8	)		(0.1	)

Total revenues		113.9			113.7			115.3			118.2			120.1			461.1			486.5

Benefits and expenses:
Policyholder benefits and claims		75.5			71.7			71.3			76.9			73.9			295.4			295.9
Other underwriting and operating expenses		26.5			25.6			26.2			27.9			29.0			106.2			115.7
Amortization of deferred policy acquisition costs		2.1			1.9			1.9			2.0			2.0			7.9			8.1

Total benefits and expenses		104.1			99.2			99.4			106.8			104.9			409.5			419.7

Segment pre-tax income		9.8			14.5			15.9			11.4			15.2			51.6			66.8
Less: Net realized investment losses		(0.9	)		(1.5	)		(1.3	)		(0.1	)		—			(3.8	)		(0.1	)

Segment pre-tax adjusted operating income	$	10.7		$	16.0		$	17.2		$	11.5		$	15.2		$	55.4		$	66.9


Operating Metrics:
Group loss ratio ¹		69.9	%		67.3	%		66.1	%		70.1	%		66.6	%		68.3	%		65.8	%
Expense ratio ²		25.6	%		23.9	%		23.9	%		24.6	%		24.9	%		24.5	%		24.8	%

Combined ratio ³		95.5	%		91.2	%		90.0	%		94.7	%		91.5	%		92.8	%		90.6	%

Medical stop-loss — loss ratio ⁴		71.3	%		68.7	%		67.7	%		71.6	%		71.4	%		69.8	%		67.9	%
Total sales ⁵	$	13.4		$	27.1		$	14.0		$	36.8		$	9.0		$	91.3		$	112.6

Premiums:
Medical stop-loss	$	97.9		$	96.3		$	97.7		$	99.5		$	100.3		$	391.4		$	406.8
Limited medical benefits		7.7			7.7			7.6			7.5			8.1			30.5			33.1
Other		2.5			2.5			2.6			2.7			2.6			10.3			9.9

Total premiums earned	$	108.1		$	106.5		$	107.9		$	109.7		$	111.0		$	432.2		$	449.8


¹		Group loss ratio represents policyholder benefits and claims divided by premiums earned.

²		Expense ratio is equal to other underwriting and operating expenses of our insurance operations and amortization of DAC divided by premiums earned.

³		Combined ratio is equal to the sum of the loss ratio and the expense ratio.

⁴		Medical stop-loss loss ratio represents medical stop-loss policyholder benefits and claims divided by medical stop-loss premiums earned.

⁵		Total sales represents annualized first-year premiums.

Symetra Financial Corporation
4Q 2009 Financial Supplement
Retirement Services Segment
(In millions)


	For the Three Months Ended															For the Twelve Months Ended
	Dec. 31,			Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,			Dec. 31,			Dec. 31,
	2009			2009			2009			2009			2008			2009			2008
Revenues:
Premiums and other considerations	$	—		$	—		$	—		$	—		$	—		$	—		$	0.1
Net investment income		106.2			103.5			95.3			83.0			72.7			388.0			261.1
Other revenues		4.4			4.6			4.0			3.8			4.3			16.8			20.2
Net realized investment gains (losses):
Total other-than-temporary impairment losses on securities		(3.8	)		(6.3	)		(25.4	)		(21.4	)		(7.8	)		(56.9	)		(20.7	)
Less portion of losses recognized in other comprehensive income		—			1.9			14.0			7.5			—			23.4			—

Net impairment losses recognized in earnings		(3.8	)		(4.4	)		(11.4	)		(13.9	)		(7.8	)		(33.5	)		(20.7	)
Other net realized investment gains (losses)		0.8			5.3			6.5			0.4			4.0			13.0			(0.1	)

Net realized investment gains (losses)		(3.0	)		0.9			(4.9	)		(13.5	)		(3.8	)		(20.5	)		(20.8	)

Total revenues		107.6			109.0			94.4			73.3			73.2			384.3			260.6

Benefits and expenses:
Policyholder benefits and claims		—			(1.3	)		(0.4	)		(0.5	)		(0.1	)		(2.2	)		(6.8	)
Interest credited		69.7			70.5			61.1			55.6			49.2			256.9			176.4
Other underwriting and operating expenses		14.6			13.6			14.2			13.5			12.9			55.9			57.4
Amortization of deferred policy acquisition costs		9.6			10.5			8.5			7.8			6.5			36.4			14.9

Total benefits and expenses		93.9			93.3			83.4			76.4			68.5			347.0			241.9

Segment pre-tax income		13.7			15.7			11.0			(3.1	)		4.7			37.3			18.7
Less: Net realized investment losses		(3.0	)		0.9			(4.9	)		(13.5	)		(3.8	)		(20.5	)		(20.8	)
Add: Net realized and unrealized investment gains (losses) on FIA options		0.6			1.4			0.2			(1.4	)		0.7			0.8			(2.9	)

Segment pre-tax adjusted operating income	$	17.3		$	16.2		$	16.1		$	9.0		$	9.2		$	58.6		$	36.6


Operating Metrics:
Account Values — Fixed annuities	$	7,655.7		$	7,464.1		$	7,025.6		$	6,588.5		$	5,724.9		$	7,655.7		$	5,724.9
Account Values — Variable annuities		755.7			736.9			664.1			583.1			645.7			755.7			645.7
Interest spread on average account values¹		1.83	%		1.90	%		1.82	%		1.63	%		1.57	%		1.81	%		1.67	%
Total sales²	$	261.9		$	486.9		$	568.5		$	911.1		$	624.1		$	2,228.4		$	1,766.5


¹		Interest spread is the difference between net investment yield earned and the credited interest rate to policyholders. The investment yield is the approximate yield on invested assets in the general account attributed to the segment. The credited interest rate is the approximate rate credited on policyholder fixed account values within the segment. Interest credited is subject to contractual terms, including minimum guarantees. Interest spread tends to move gradually over time to reflect market interest rate movements and may reflect actions by management to respond to competitive pressures and profit targets.

²		Total sales represent deposits for new policies.

Symetra Financial Corporation
4Q 2009 Financial Supplement
Income Annuities Segment
(In millions)


	For the Three Months Ended															For the Twelve Months Ended
	Dec. 31,			Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,			Dec. 31,			Dec. 31,
	2009			2009			2009			2009			2008			2009			2008
Revenues:
Net investment income	$	104.3		$	104.7		$	107.1		$	106.3		$	106.5		$	422.4		$	423.4
Other revenues		0.1			0.1			0.1			0.2			0.3			0.5			0.9
Net realized investment gains (losses):
Total other-than-temporary impairment losses on securities		(9.8	)		(24.4	)		(32.1	)		(20.1	)		(12.8	)		(86.4	)		(35.4	)
Less portion of losses recognized in other comprehensive income		8.3			14.9			22.6			12.0			—			57.8			—

Net impairment losses recognized in earnings		(1.5	)		(9.5	)		(9.5	)		(8.1	)		(12.8	)		(28.6	)		(35.4	)
Other net realized investment gains (losses)		13.9			28.4			22.3			(15.9	)		(32.8	)		48.7			(64.2	)

Net realized investment gains (losses)		12.4			18.9			12.8			(24.0	)		(45.6	)		20.1			(99.6	)

Total revenues		116.8			123.7			120.0			82.5			61.2			443.0			324.7

Benefits and expenses:
Interest credited		89.2			90.7			91.3			86.7			92.1			357.9			364.5
Other underwriting and operating expenses		5.4			5.4			5.2			5.0			5.8			21.0			21.9
Amortization of deferred policy acquisition costs		0.4			0.4			0.4			0.4			0.4			1.6			1.4

Total benefits and expenses		95.0			96.5			96.9			92.1			98.3			380.5			387.8

Segment pre-tax income (loss)		21.8			27.2			23.1			(9.6	)		(37.1	)		62.5			(63.1	)
Less: Net realized investment gains (losses)		12.4			18.9			12.8			(24.0	)		(45.6	)		20.1			(99.6	)

Segment pre-tax adjusted operating income	$	9.4		$	8.3		$	10.3		$	14.4		$	8.5		$	42.4		$	36.5


Operating Metrics:
Reserves ¹	$	6,726.3		$	6,722.7		$	6,722.6		$	6,742.7		$	6,761.2		$	6,726.3		$	6,761.2
Interest spread on reserves ²		0.43	%		0.48	%		0.62	%		0.59	%		0.61	%		0.53	%		0.59	%
Mortality gains (losses) ³	$	1.3		$	—		$	(0.5	)	$	4.3		$	(1.4	)	$	5.1		$	2.1
Total sales ⁴		83.8			70.7			56.9			40.4			34.5			251.8			140.8


¹		Reserves represent the present value of future income annuity benefits and assumed expenses, discounted by the assumed interest rate. This metric represents the amount of our in-force book of business.

²		Interest spread is the difference between net investment yield earned and the credited interest rate on policyholder reserves. The investment yield is the approximate yield on invested assets, excluding equities, in the general account attributed to the segment. The credited interest rate is the approximate rate credited on policyholder reserves within the segment and excludes the gains and losses from funding services and mortality.

³		Mortality gains (losses) represents the difference between actual and expected reserves released on death of a life contingent annuity.

⁴		Total sales represent deposits for new policies.

Symetra Financial Corporation
4Q 2009 Financial Supplement
Individual Segment
(In millions)


	For the Three Months Ended															For the Twelve Months Ended
	Dec. 31,			Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,			Dec. 31,			Dec. 31,
	2009			2009			2009			2009			2008			2009			2008
Revenues:
Premiums and other considerations	$	35.4		$	35.5		$	34.7		$	35.8		$	33.4		$	141.4		$	134.9
Net investment income		67.2			66.9			67.0			64.1			64.0			265.2			254.6
Other revenues		3.3			3.1			3.6			3.2			3.8			13.2			16.0
Net realized investment gains (losses):
Total other-than-temporary impairment losses on securities		(6.6	)		(3.9	)		(5.6	)		(8.2	)		(3.1	)		(24.3	)		(15.9	)
Less portion of losses recognized in other comprehensive income		1.5			2.5			3.5			3.1			—			10.6			—

Net impairment losses recognized in earnings		(5.1	)		(1.4	)		(2.1	)		(5.1	)		(3.1	)		(13.7	)		(15.9	)
Other net realized investment gains (losses)		(1.1	)		(2.1	)		2.5			0.3			(0.5	)		(0.4	)		(0.9	)

Net realized investment gains (losses)		(6.2	)		(3.5	)		0.4			(4.8	)		(3.6	)		(14.1	)		(16.8	)

Total revenues		99.7			102.0			105.7			98.3			97.6			405.7			388.7

Benefits and expenses:
Policyholder benefits and claims		12.9			15.2			11.2			18.0			14.6			57.3			59.4
Interest credited		59.6			60.0			61.8			53.9			56.4			235.3			227.7
Other underwriting and operating expenses		15.8			13.4			12.7			13.5			14.3			55.4			57.3
Amortization of deferred policy acquisition costs		2.9			1.0			1.1			0.5			(0.8	)		5.5			1.4

Total benefits and expenses		91.2			89.6			86.8			85.9			84.5			353.5			345.8

Segment pre-tax income		8.5			12.4			18.9			12.4			13.1			52.2			42.9
Less: Net realized investment gains (losses)		(6.2	)		(3.5	)		0.4			(4.8	)		(3.6	)		(14.1	)		(16.8	)

Segment pre-tax adjusted operating income	$	14.7		$	15.9		$	18.5		$	17.2		$	16.7		$	66.3		$	59.7


Operating Metrics:
Insurance in force (direct)¹	$	50,030.3		$	50,215.6		$	50,475.8		$	50,884.8		$	51,313.5		$	50,030.3		$	51,313.5
Mortality ratio²		67.5	%		72.7	%		79.0	%		82.3	%		68.9	%		75.3	%		79.2	%
BOLI account value³	$	3,789.1		$	3,754.9		$	3,741.2		$	3,759.8		$	3,700.4		$	3,789.1		$	3,700.4
UL account value³		583.8			584.8			580.0			579.3			580.3			583.8			580.3
PGAAP reserve balance⁴		36.7			38.9			42.2			46.4			49.2			36.7			49.2
BOLI ROA⁵		0.65	%		1.09	%		1.24	%		1.34	%		0.93	%		1.08	%		1.13	%
UL interest spread⁶		1.11	%		1.27	%		1.26	%		1.20	%		1.06	%		1.20	%		1.14	%
Total sales, excluding BOLI⁷	$	2.7		$	2.9		$	2.4		$	2.5		$	2.4		$	10.5		$	7.2
BOLI sales⁸		—			—			—			2.5			—			2.5			2.9


¹		Insurance in force represents dollar face amounts of policies.

²		Mortality ratio represents actual mortality experience as a percentage of an industry mortality benchmark. This benchmark is an expected level of claims that is derived by applying our current in force business to the Society of Actuaries 1990-95 Basic Select and Ultimate Mortality Table.

³		BOLI account value and UL account value represent our liability to our policyholders.

⁴		Purchase accounting reserve, or PGAAP reserve, represents impact of purchase accounting on policyholder liabilities. This PGAAP reserve is amortized as a reduction to policyholder benefits according to the pattern of profitability of the book of business of policies in force at the purchase accounting date, August 2, 2004.

⁵		The BOLI ROA is a measure of the gross margin on our BOLI book of business. This metric is calculated as the difference between our BOLI revenue earnings rate and our BOLI policy benefits rate. The revenue earnings rate is calculated as revenues divided by average invested assets. The policy benefits rate is calculated as total policy benefits divided by average account value. The policy benefits used in this metric do not include expenses.

⁶		UL interest spread is the difference between the investment yield earned and the credited interest rate to policyholders. The investment yield is the approximate yield on invested assets in the general account attributed to the UL policies. The credited interest rate is the approximate rate credited on UL policyholder fixed account values. Interest credited to UL policyholders’ account values is subject to contractual terms, including minimum guarantees. Interest credited tends to move gradually over time to reflect market interest rate movements and may reflect actions by management to respond to competitive pressures and profit targets. The 2009 fourth quarter and year-to-date credited rate to policyholders has been adjusted to exclude a reserve adjustment related to a system conversion. Without this adjustment the fourth quarter and year-to-date UL interest spread would be 4.83 and 2.13, respectively.

⁷		Total sales, excluding BOLI represent annualized first year premiums, and deposits for new policies excluding BOLI sales.

⁸		BOLI sales represent 10% of new BOLI total deposits.

Symetra Financial Corporation
4Q 2009 Financial Supplement
Other Segment
(In millions)


	For the Three Months Ended															For the Twelve Months Ended
	Dec. 31,			Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,			Dec. 31,			Dec. 31,
	2009			2009			2009			2009			2008			2009			2008
Revenues:
Net investment income (loss)	$	2.0		$	4.0		$	9.4		$	4.8		$	(9.1	)	$	20.2		$	(0.4	)
Other revenues		3.1			2.8			2.8			2.3			2.7			11.0			11.7
Net realized investment losses:
Total other-than-temporary impairment losses on securities		(0.4	)		(6.1	)		(4.5	)		(1.4	)		(1.0	)		(12.4	)		(14.3	)
Less portion of losses recognized in other comprehensive income		(1.1	)		4.7			0.4			0.8			—			4.8			—

Net impairment losses recognized in earnings		(1.5	)		(1.4	)		(4.1	)		(0.6	)		(1.0	)		(7.6	)		(14.3	)
Other net realized investment losses		(1.1	)		(2.1	)		(0.2	)		—			(0.7	)		(3.4	)		(6.4	)

Net realized investment losses		(2.6	)		(3.5	)		(4.3	)		(0.6	)		(1.7	)		(11.0	)		(20.7	)

Total revenues		2.5			3.3			7.9			6.5			(8.1	)		20.2			(9.4	)

Benefits and expenses:
Interest credited		(0.9	)		(0.7	)		(1.1	)		(0.6	)		(0.7	)		(3.3	)		(2.5	)
Other underwriting and operating expenses		3.7			3.7			3.7			3.1			1.9			14.2			13.5
Interest expense		8.0			7.9			8.0			7.9			7.9			31.8			31.9

Total benefits and expenses		10.8			10.9			10.6			10.4			9.1			42.7			42.9

Segment pre-tax loss		(8.3	)		(7.6	)		(2.7	)		(3.9	)		(17.2	)		(22.5	)		(52.3	)
Less: Net realized investment losses		(2.6	)		(3.5	)		(4.3	)		(0.6	)		(1.7	)		(11.0	)		(20.7	)

Segment pre-tax adjusted operating income (loss)	$	(5.7	)	$	(4.1	)	$	1.6		$	(3.3	)	$	(15.5	)	$	(11.5	)	$	(31.6	)

Symetra Financial Corporation
4Q 2009 Financial Supplement
Account Value and Reserve Roll Forwards
(In millions)


	For the Three Months Ended															For the Twelve Months Ended
	Dec. 31,			Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,			Dec. 31,			Dec. 31,
	2009			2009			2009			2009			2008			2009			2008
Retirement Services:
Fixed Account Values
Account value, beginning of period	$	7,464.1		$	7,025.6		$	6,588.5		$	5,724.9		$	5,202.9		$	5,724.9		$	4,445.4
Deposits		307.8			514.1			597.6			936.0			638.8			2,355.5			1,787.1
Interest credited		78.3			78.7			69.5			61.8			54.5			288.3			191.0
Withdrawals and transfers		(191.3	)		(148.8	)		(158.0	)		(166.9	)		(206.7	)		(665.0	)		(750.0	)
Other		(3.2	)		(5.5	)		(72.0	)		32.7			35.4			(48.0	)		51.4

Account value, end of period	$	7,655.7		$	7,464.1		$	7,025.6		$	6,588.5		$	5,724.9		$	7,655.7		$	5,724.9

Income Annuities:
Reserves
Reserves, beginning of period	$	6,722.7		$	6,722.6		$	6,742.7		$	6,761.2		$	6,796.3		$	6,761.2		$	6,895.4
Deposits		80.5			66.9			56.0			38.8			33.1			242.2			136.6
Interest credited		96.8			96.9			96.9			97.1			97.5			387.7			391.6
Benefit payments		(170.3	)		(174.0	)		(167.1	)		(148.5	)		(166.2	)		(659.9	)		(643.9	)
Other		(3.4	)		10.3			(5.9	)		(5.9	)		0.5			(4.9	)		(18.5	)

Reserves, end of period	$	6,726.3		$	6,722.7		$	6,722.6		$	6,742.7		$	6,761.2		$	6,726.3		$	6,761.2

Individual:
BOLI Account Values
Account value, beginning of period	$	3,754.9		$	3,741.2		$	3,759.8		$	3,700.4		$	3,663.9		$	3,700.4		$	3,527.2
Deposits		—			—			—			25.0			—			25.0			28.9
Interest credited		50.7			52.5			55.2			49.7			50.8			208.1			202.8
Surrenders		—			(24.9	)		(59.0	)		—			(12.0	)		(83.9	)		(47.4	)
Administrative charges and other		(16.5	)		(13.9	)		(14.8	)		(15.3	)		(2.3	)		(60.5	)		(11.1	)

Account value, end of period	$	3,789.1		$	3,754.9		$	3,741.2		$	3,759.8		$	3,700.4		$	3,789.1		$	3,700.4

UL Account Values
Account value, beginning of period	$	584.8		$	580.0		$	579.3		$	580.3		$	578.0		$	580.3		$	573.6
Deposits		18.9			19.4			15.2			15.5			16.4			69.0			63.1
Interest credited		1.1			6.5			6.5			6.5			6.6			20.6			25.2
Surrenders		(7.0	)		(7.2	)		(6.7	)		(9.3	)		(12.7	)		(30.2	)		(50.6	)
Administrative charges and other		(14.0	)		(13.9	)		(14.3	)		(13.7	)		(8.0	)		(55.9	)		(31.0	)

Account value, end of period	$	583.8		$	584.8		$	580.0		$	579.3		$	580.3		$	583.8		$	580.3

Symetra Financial Corporation
4Q 2009 Financial Supplement
Overview of Liabilities and Associated Unrealized Gain (Loss)
(In millions)


	Policyholder					Unrealized
	Liability		% of Total			gain (loss)⁶
Illiquid Liabilities
Structured settlements & other SPIAs ¹	$	6,704.2				$	(221.6	)
Deferred annuities with 5 year payout provision or MVA²		381.0					12.0
Traditional insurance (net of reinsurance)³		184.9					0.4
Group health & life³		66.8					—

Total illiquid liabilities		7,336.9		38.5	%		(209.2	)

Somewhat Liquid Liabilities
Bank-owned life insurance (BOLI)⁴		3,864.1					16.5
Deferred annuities with surrender charges > 5%		4,788.2					150.3
Universal life with surrender charges > 5%		151.8					(0.4	)

Total somewhat liquid liabilities		8,804.1		46.3	%		166.4

Fully Liquid Liabilities
Deferred annuities with surrender charges of:
3-5%		412.4					12.9
0-3%		87.6					2.7
No surrender charges⁵		1,955.7					61.4
Universal life and whole life with surrender charges < 5%		437.9					(1.0	)

Total fully liquid liabilities		2,893.6		15.2	%		76.0

Assets supporting surplus portfolio							(13.2	)


Total book value of liabilities from above	$	19,034.6		100.0	%	$	20.0


Reconciliation of unrealized gain (loss) to AOCI:
Adjustment for deferred policy acquisition costs and deferred sales inducements valuation allowance, net of tax							(60.9	)
Tax on unrealized gains and losses on available for sale securities							(7.0	)
Other							(1.8	)

AOCI						$	(49.7	)


¹		These contracts cannot be surrendered. The benefits are specified in the contracts as fixed amounts to be paid over the next several decades.

²		In a liquidity crisis situation, we could invoke the five-year payout provision so that the contract value with interest is paid out ratably over five years.

³		The surrender value on these contracts is generally zero.

⁴		The biggest deterrent to surrender is the taxation on the gain within these contracts, which includes a 10% non-deductible penalty tax. Banks can exchange certain of these contracts with other carriers, tax-free. However, a significant portion of this business may not qualify for this tax-free treatment due to the employment status of the original covered employees.

⁵		Approximately half of this business has been with the Company for over a decade, contains lifetime minimum interest guarantees of 4.0% to 4.5% and has been free of surrender charges for many years. This business has experienced high persistency given the high lifetime guarantees that have not been available in the market on new issues for many years.

⁶		Represents the pre-tax unrealized gain (loss) of the investment portfolio supporting the related policyholder liability.

Symetra Financial Corporation
4Q 2009 Financial Supplement
Investments Summary
(In millions)


	Dec. 31,						Sep. 30,						Jun. 30,						Mar. 31,						Dec. 31,
	2009			%			2009			%			2009			%			2009			%			2008			%

Portfolio Composition:
Available-for-sale securities:
Fixed maturities, at fair value	$	18,594.3			92.0	%	$	18,542.3			92.5	%	$	16,933.9			92.3	%	$	15,726.6			92.1	%	$	14,887.6			91.6	%
Marketable equity securities, at fair value		36.7			0.2	%		35.4			0.2	%		33.6			0.2	%		22.7			0.1	%		38.1			0.2	%
Trading securities:
Marketable equity securities, at fair value		154.1			0.8	%		140.6			0.7	%		116.1			0.6	%		96.7			0.6	%		106.3			0.6	%
Mortgage loans, net		1,201.7			6.0	%		1,095.2			5.5	%		1,038.2			5.7	%		1,010.4			5.9	%		988.7			6.1	%
Policy loans		73.9			0.4	%		73.9			0.4	%		74.1			0.4	%		74.9			0.5	%		75.2			0.4	%
Short-term investments		2.1			0.0	%		2.5			0.0	%		2.6			0.0	%		6.6			0.0	%		9.4			0.1	%
Investment in limited partnerships		110.2			0.5	%		133.4			0.6	%		151.4			0.8	%		139.8			0.8	%		138.3			0.9	%
Other invested assets		10.1			0.1	%		11.9			0.1	%		7.1			0.0	%		7.1			0.0	%		8.9			0.1	%

Total investments	$	20,183.1			100.0	%	$	20,035.2			100.0	%	$	18,357.0			100.0	%	$	17,084.8			100.0	%	$	16,252.5			100.0	%

Fixed Maturities Securities by Credit Quality¹:
1: AAA, AA, A	$	11,031.3			59.3	%	$	10,817.9			58.4	%	$	9,998.9			59.0	%	$	9,244.8			58.8	%	$	8,566.3			57.5	%
2: BBB		6,530.9			35.1	%		6,454.5			34.8	%		5,788.8			34.2	%		5,580.5			35.5	%		5,553.8			37.3	%

Total investment grade		17,562.2			94.4	%		17,272.4			93.2	%		15,787.7			93.2	%		14,825.3			94.3	%		14,120.1			94.8	%

3: BB		641.3			3.5	%		709.6			3.8	%		673.6			4.0	%		542.0			3.4	%		475.6			3.2	%
4: B		219.2			1.2	%		292.8			1.6	%		314.9			1.9	%		265.5			1.7	%		216.1			1.5	%
5: CCC & lower		113.5			0.6	%		206.8			1.1	%		123.3			0.7	%		68.1			0.4	%		73.1			0.5	%
6: In or near default		58.1			0.3	%		60.7			0.3	%		34.4			0.2	%		25.7			0.2	%		2.7			0.0	%

Total below investment grade		1,032.1			5.6	%		1,269.9			6.8	%		1,146.2			6.8	%		901.3			5.7	%		767.5			5.2	%

Total fixed maturities	$	18,594.3			100.0	%	$	18,542.3			100.0	%	$	16,933.9			100.0	%	$	15,726.6			100.0	%	$	14,887.6			100.0	%

Fixed Maturities by Issuer Type:
U.S. government and agencies	$	43.9			0.2	%	$	45.7			0.2	%	$	153.9			0.9	%	$	153.1			1.0	%	$	156.8			1.1	%
State and political subdivisions		483.0			2.6	%		484.9			2.6	%		449.2			2.6	%		439.9			2.8	%		424.9			2.9	%
Foreign governments		27.4			0.2	%		28.2			0.2	%		28.7			0.2	%		31.8			0.2	%		34.6			0.2	%
Corporate securities		12,548.6			67.5	%		12,414.0			66.9	%		11,216.4			66.2	%		10,007.1			63.6	%		9,306.5			62.4	%
Residential mortgage-backed securities		3,536.4			19.0	%		3,536.6			19.1	%		3,162.4			18.7	%		3,221.4			20.5	%		3,126.3			21.0	%
Commercial mortgage-baced securities		1,789.4			9.6	%		1,873.4			10.1	%		1,790.2			10.6	%		1,744.1			11.1	%		1,675.0			11.3	%
Other debt obligations		165.6			0.9	%		159.5			0.9	%		133.1			0.8	%		129.2			0.8	%		163.5			1.1	%

Total fixed maturities	$	18,594.3			100.0	%	$	18,542.3			100.0	%	$	16,933.9			100.0	%	$	15,726.6			100.0	%	$	14,887.6			100.0	%

Effective Duration		5.4						5.6						5.5						5.4						5.6

Average Investment Yield		5.6	%					5.6	%					5.6	%					5.5	%					5.4	%


¹		Credit quality is by NAIC (National Association of Insurance Commissioners) designation and S&P equivalent credit ratings.

Symetra Financial Corporation
4Q 2009 Financial Supplement
Sales by Segment and Product
(In millions)


	For the Three Months Ended										For the Twelve Months Ended
	Dec. 31,		Sep. 30,		Jun. 30,		Mar. 31,		Dec. 31,		Dec. 31,		Dec. 31,
	2009		2009		2009		2009		2008		2009		2008
Group
Medical stop-loss	$	10.2	$	24.3	$	10.0	$	33.2	$	6.6	$	77.7	$	104.2
Limited medical benefits		2.0		2.4		3.3		2.8		1.5		10.5		5.8
Group Life & Disability		1.2		0.4		0.7		0.8		0.9		3.1		2.6

Total	$	13.4	$	27.1	$	14.0	$	36.8	$	9.0	$	91.3	$	112.6

Retirement Services
Fixed Annuities	$	249.9	$	470.2	$	547.8	$	884.1	$	593.1	$	2,152.0	$	1,621.4
Individual Variable Annuities		6.7		5.0		5.5		3.0		5.4		20.2		29.6
Retirement Plans¹		5.3		11.7		15.2		24.0		25.6		56.2		115.5

Total	$	261.9	$	486.9	$	568.5	$	911.1	$	624.1	$	2,228.4	$	1,766.5

Income Annuities
SPIA	$	62.1	$	50.1	$	46.1	$	31.2	$	34.0	$	189.5	$	125.6
Structured Settlements		21.7		20.6		10.8		9.2		0.5		62.3		15.2

Total	$	83.8	$	70.7	$	56.9	$	40.4	$	34.5	$	251.8	$	140.8

Individual
Term Life Insurance	$	1.5	$	1.6	$	1.3	$	0.7	$	0.8	$	5.1	$	3.2
Permanent Life Insurance		1.2		1.3		1.1		1.8		1.6		5.4		4.0
Bank Owned Life Insurance		—		—		—		2.5		—		2.5		2.9

Total	$	2.7	$	2.9	$	2.4	$	5.0	$	2.4	$	13.0	$	10.1


¹		Includes Symetra’s sales of third party mutual funds which were discontinued in 2009. Symetra recognizes fee-based income and does not include sales of this product in account value figures.

Symetra Financial Corporation
4Q 2009 Financial Supplement
Book Value and Adjusted Book Value per Share
(In millions, except per share amounts)


	Dec. 31,			Sep. 30,		Jun. 30,			Mar. 31,			Dec. 31,
	2009			2009		2009			2009			2008
Book value per common share ¹	$	12.83		$	13.25	$	6.84		$	1.78		$	2.56

Non-GAAP Financial Measures:
Adjusted book value per common share ²	$	15.99		$	15.65	$	15.18		$	14.68		$	14.45
Adjusted book value per common share, as converted ³	$	15.23		$	14.94	$	14.56		$	14.13		$	13.95

Numerator: ⁵
Total stockholders’ equity	$	1,433.3		$	1,480.5	$	763.7		$	198.5		$	286.2
AOCI ⁴		(49.7	)		29.8		(642.9	)		(1,161.1	)		(1,052.6	)

Adjusted book value	$	1,483.0		$	1,450.7	$	1,406.6		$	1,359.6		$	1,338.8

Assumed proceeds from exercise of warrants		218.1			218.1		218.1			218.1			218.1

Adjusted book value, as converted	$	1,701.1		$	1,668.8	$	1,624.7		$	1,577.7		$	1,556.9

Denominator: ⁵
Basic common shares outstanding		92.729			92.729		92.646			92.646			92.646
Diluted common shares outstanding		111.705			111.705		111.622			111.622			111.622


¹		Book value per common share is calculated based on stockholders’ equity divided by outstanding common shares and shares subject to outstanding warrants, totaling 111,705,199 for the period ending December 31 and September 30, 2009 and totaling 111,622,039 for all other periods.

²		Adjusted book value per common share is calculated based on stockholders’ equity less AOCI, divided by outstanding common shares, totaling 92,729,455 for the period ending December 31 and September 30, 2009, and totaling 92,646,295 for all other periods.

³		Adjusted book value per common share, as converted gives effect to the exercise of the outstanding warrants and is calculated based on stockholders’ equity less AOCI plus the assumed proceeds from the warrants, divided by the sum of outstanding common shares and shares subject to outstanding warrants, totaling 111,705,199 for the period ending December 31 and September 30, 2009 and 111,622,039 for all other periods.

⁴		Accumulated other comprehensive income (loss) (net of taxes)

⁵		On January 27, 2010, Symetra closed its initial public offering. A total of 25,259,510 primary shares were issued for net primary proceeds of $282.5 million. Shares outstanding on January 27, 2010, after the close of the offering were as follows:


As of January 27, 2010:
Basic shares outstanding			92.729
Primary shares issued			25.260

Subtotal shares outstanding			117.989
Outstanding warrants			18.976

Total shares outstanding			136.965

Symetra Financial Corporation
4Q 2009 Financial Supplement
ROE and Operating ROAE
(In millions)


	Twelve Months Ended
	Dec. 31,			Sep. 30,			Jun. 30,			Mar. 31,			Dec. 31,
	2009			2009			2009			2009			2008
ROE:
Net income for the twelve months ended¹	$	128.3		$	91.3		$	42.4		$	23.9		$	22.1
Average stockholders’ equity ²	$	832.4		$	658.0		$	561.6		$	644.5		$	861.8

ROE		15.4	%		13.9	%		7.5	%		3.7	%		2.6	%

Operating ROAE:
Adjusted operating income for the twelve months ended¹	$	147.9		$	146.3		$	145.6		$	132.6		$	122.9
Average adjusted book value³	$	1,407.7		$	1,379.9		$	1,359.4		$	1,342.1		$	1,329.8

Operating ROAE		10.5	%		10.6	%		10.7	%		9.9	%		9.2	%


¹		The twelve months ended information is derived by adding the four most recent quarters of net income or adjusted operating income.

²		Average stockholders’ equity is derived by averaging ending stockholders’ equity for the most recent five quarters.

³		Average adjusted book value is derived by averaging ending stockholders’ equity less AOCI, for the most recent five quarters.

Calculation of average stockholders’ equity:

The following data can be used to recalculate the average stockholders’ equity and average adjusted book value amounts used in the calculation of ROE and operating ROAE.


		As of
		2009			2008			2007
Stockholders’ Equity
	Dec. 31,	$	1,433.3		$	286.2		$	1,285.1
	Sep. 30,		1,480.5			560.9			—
	Jun. 30,		763.7			998.8			—
	Mar. 31,		198.5			1,178.1			—

AOCI
	Dec. 31,	$	(49.7	)	$	(1,052.6	)	$	(12.5	)
	Sep. 30,		29.8			(782.8	)		—
	Jun. 30,		(642.9	)		(349.7	)		—
	Mar. 31,		(1,161.1	)		(141.9	)		—

Reconciliation of adjusted operating income:

The following data in connection with other data found throughout the supplement can be used to recalculate adjusted operating income for the twelve months ended June 30, 2009 and March 31, 2009.


	Three Months Ended
	Sep. 30,			Jun. 30,
	2008			2008
Net income	$	(4.8	)	$	28.5
Less: Net realized investment losses (net of taxes)		(41.8	)		(4.2	)
Add: Net realized and unrealized investment losses on FIA options (net of taxes)		—			(0.4	)

Adjusted operating income	$	37.0		$	32.3