Fitch drops StanCorp

Fitch Ratings said it downgraded the ratings for StanCorp Financial Group and its subsidiaries.

The outlook is stable.

The agency said that the downgrades follow the implementation of Prism, Fitch's new economic capital model, into the rating analysis, reflecting Fitch's view that the statutory capital level of StanCorp's insurance companies are below rating expectations.

A key expectation factored into Fitch's prior ratings on StanCorp and its insurance subsidiaries was that the insurance companies should be somewhat overcapitalized relative to the assigned insurer financial strength rating due to concerns over StanCorp's limited operating and liquidity profile.

Fitch said its specific concerns result from the company's operational concentration in the group long-term disability business and investment concentration in commercial mortgage loans, respectively.

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