July 22 (Bloomberg) -- StanCorp Financial Group Inc., the Portland, Oregon-based disability insurer, fell the most since 2009 as profit plunged, missing analysts’ estimates.
The insurer dropped $4.22, or 10 percent, to $37 at 9:42 a.m. in New York Stock Exchange composite trading. The company had slipped 8.7 percent this year before today.
Second-quarter net income dropped 54 percent to $18.8 million, or 42 cents a share, from $41.1 million, or 87 cents, as the cost of benefits increased, the company said in a statement late yesterday. Operating earnings, which exclude some investment results, were 61 cents a share, missing the average $1.03 estimate of 11 analysts surveyed by Bloomberg.
“Higher-than-expected claims incidence in the company’s group long-term disability insurance business” are weighing on results, Standard & Poor’s said today as it lowered the counterparty credit rating to BBB+ from A- for the firm.
The insurer has raised prices to “address the higher claims in the current economic environment,” StanCorp Chief Executive Officer Greg Ness said in the statement.
--Editors: Dan Kraut, Steve Dickson
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