Zacks Investment Research downgraded shares of StanCorp Financial Group Inc. (SFG) from OUTPERFORM to NEUTRAL on March 15, 2013, with a target price of $44.00.
We are downgrading the recommendation on StanCorp to Neutral from Outperform due to higher group insurance benefit ratio and lower premiums. Benefit ratio of group insurance for both fourth quarter and full year 2012 exceeded the company's guidance. While persistency level declined, delinquency increased. Nevertheless, StanCorp.'s fourth-quarter earnings outperformed the Zacks Consensus Estimate as well as year-ago results on the back of higher earnings from Asset Management and lower group insurance commissions and bonuses. Conservative underwriting practices and a strong capital position are among positives. It also remains focused on enhancing shareholders' value. The company continues to work on pricing actions to mitigate the higher group long-term disability claims incidence and a continued low interest rate environment.
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