Moody's: StanCorp view negative

Moody's Investors Service said it affirmed StanCorp Financial Group, Inc.'s senior debt at Baa2 and the A2 insurance financial strength rating of its primary operating subsidiary, Standard Insurance Co.

The outlook was changed to negative from stable.

Moody's said that the 2012 second quarter increases in the company's group benefit ratio could further hurt the company's statutory and GAAP earnings power if the elevated claims experience continues to persist.

Although StanCorp has historically experienced good earnings and stable long-term disability claims, its more recent results demonstrate that its business mix is more vulnerable to risks that can reduce earnings and organic capital generation for an extended period of time, the agency said.

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