NU Online News Service, Oct. 23, 2003, 5:22 p.m. EDT – StanCorp Financial Group Inc., Portland, Ore., says solid renewal revenue from group products, rising individual sales and a modest increase in the yield on disability reserve investments helped it increase its third quarter earnings 54%.
StanCorp, the parent company of Standard Insurance, is reporting $42 million in net income for the latest quarter on $525 million in revenue, up from $28 million in net income on $425 million in revenue for the third quarter of 2002.
Operating revenue increased at the employee benefits unit, the individual insurance unit and the retirement unit, and total net investment income increased 19%, to $113 million.
At the group benefits unit, StanCorp was able to increase the interest rate used to discount new long term disability reserves to 4.90%, from 4.75%, the company says.
At the individual insurance unit, disability insurance sales were up and the ratio of claims to premiums was down, StanCorp says.