Symetra Financial Corp., Bellevue, Wash. (NYSE: SYA), reported third quarter 2011 net income of $11.1 million, or $0.08 per diluted share. This compares with $56.6 million, or $0.41 per diluted share, in third quarter of 2010. Net realized investment losses of $56.8 million (pretax), primarily from mark-to-market accounting of the company’s equity investments, drove the decline in third quarter 2011 net income, the company says.
Adjusted operating income was $47.6 million, or $0.35 per diluted share, in third quarter 2011, compared with $43.8 million, or $0.32 per diluted share, in the same period a year ago.
Symetra President and CEO attributes the reduced earnings compared to the year-ago period to low interest rates in the Symetra’s income annuities business and increased claims in its life insurance business.
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“The fair value of our equity investments also took a substantial hit given overall declines in the stock market,” he adds.