S&P lifts StanCorp to stable

Standard & Poor's said it revised the outlook on StanCorp Financial Group Inc. to stable from negative and affirmed its BBB+ long-term counterparty credit rating.

The agency also affirmed the A+ financial strength and counterparty credit ratings on its primary insurance operating subsidiary, Standard Insurance Co., along with the BBB- debt rating on StanCorp Financial's junior subordinated capital obligation notes.

The outlook revision reflects the improvement and stabilization of the company's operating EBIT, excluding realized gains and losses and one-time items, which significantly improved to $242.6 million as of Sept. 30 from $169.7 million a year earlier, said Neal Freedman, an S&P analyst.

"The improvement stemmed primarily from the company's re-pricing of its group long-term disability insurance business, as well as the stabilizing employment levels in the overall U.S. economy," Freedman said.

The company has a strong competitive position based on its top 8 market positions within the group life and disability insurance markets, the agency said.

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