Stancorp Financial (SFG) 8-K StanCorp Financial Group, Inc. Reports First Quarter 2003 Results

EXHIBIT 99.2

STANCORP FINANCIAL GROUP, INC.

STATISTICAL SUPPLEMENT

March 31, 2003

(Unaudited)

	Page
Financial Results:
Consolidated Financial Highlights	1
Consolidated Financial Results	2
Results by Segment	3
Employee Benefits-Insurance Segment	4
Individual Insurance Segment	5
Retirement Plans Segment	6
Other	7
Balance Sheets and Investment Statistics:
Consolidated Balance Sheets	8
Invested Asset Statistics	9
Other Investment Statistics	10

This Statistical Supplement has been prepared on an operating income basis. Pre-tax

operating income (loss) is net income (loss) before income taxes,

net capital gains (losses) and certain special items.

Certain prior period amounts have been reclassified to conform to the current period’s presentation.

StanCorp Financial Group, Inc.

1100 SW Sixth Avenue

Portland, Oregon 97204

Investor Inquiries:

Jeff Hallin

Phone: (503)321-6127

Fax: (503)478-5037

Email: jhallin@standard.com

Web site address: http://www.stancorpfinancial.com

STANCORP FINANCIAL GROUP, INC.

Financial Highlights

(Dollars in millions except share data)

CONSOLIDATED

																2003			2002
	1998			1999			2000			2001			2002			1st Qtr			4th Qtr			3rd Qtr			2nd Qtr			1st Qtr
Pre-tax operating income (loss):
Employee Benefits–Insurance	$	82.7		$	104.5		$	116.9		$	133.3		$	158.4		$	44.6		$	46.3		$	36.4		$	39.7		$	36.0
Individual Insurance		17.9			11.9			17.4			27.2			31.7			8.4			3.1			9.9			10.7			8.0
Retirement Plans		(0.4	)		(1.8	)		—			(0.2	)		—			0.7			0.6			(0.8	)		0.2			—
Other		(0.8	)		10.5			10.5			4.2			1.6			(3.1	)		(2.6	)		1.0			1.5			1.7
Total pre-tax operating income		99.4			125.1			144.8			164.5			191.7			50.6			47.4			46.5			52.1			45.7
Income taxes		30.8			41.0			47.7			58.5			68.1			17.7			16.4			16.6			18.7			16.4
Operating income		68.6			84.1			97.1			106.0			123.6			32.9			31.0			29.9			33.4			29.3
Special items, net of tax		(6.1	)		(4.5	)		(1.2	)		—			—			—			—			—			—			—
Net capital gains (losses), net of tax		7.0			0.3			(1.2	)		—			(12.6	)		(0.7	)		2.9			(2.3	)		(13.5	)		0.3
Net income	$	69.5		$	79.9		$	94.7		$	106.0		$	111.0		$	32.2		$	33.9		$	27.6		$	19.9		$	29.6
Basic per common share: *
Operating income		n/a		$	2.50		$	3.05		$	3.47		$	4.20		$	1.14		$	1.06		$	1.01		$	1.13		$	0.99
Special items, net of tax		n/a			(0.14	)		(0.04	)		—			—			—			—			—			—			—
Net capital gains (losses), net of tax		n/a			0.01			(0.04	)		—			(0.43	)		(0.03	)		0.10			(0.07	)		(0.46	)		0.01
Net income		n/a		$	2.37		$	2.97		$	3.47		$	3.77		$	1.11		$	1.16		$	0.94		$	0.67		$	1.00
Diluted per common share: *
Operating income		n/a		$	2.50		$	3.02		$	3.44		$	4.15		$	1.12		$	1.05		$	1.00		$	1.12		$	0.98
Special items, net of tax		n/a			(0.14	)		(0.04	)		—			—			—			—			—			—			—
Net capital gains (losses), net of tax		n/a			0.01			(0.03	)		—			(0.42	)		(0.02	)		0.10			(0.07	)		(0.46	)		0.01
Net income		n/a		$	2.37		$	2.95		$	3.44		$	3.73		$	1.10		$	1.15		$	0.93		$	0.66		$	0.99
Book value per common share (excluding accumulated other comprehensive income)		n/a		$	26.77		$	29.23		$	31.57		$	34.44		$	35.43		$	34.44		$	33.89		$	33.09		$	32.42
Operating return on average equity (excluding accumulated other comprehensive income)		9.3	%		10.2	%		10.8	%		11.4	%		12.7	%		12.9	%		12.4	%		12.1	%		13.7	%		12.3	%
Number of employees		1,849			1,971			2,082			2,255			2,465			2,521			2,465			2,357			2,320			2,287
Share data:
Basic weighted average *		n/a			33,630,692			31,878,834			30,553,049			29,435,920			28,934,602			29,155,199			29,459,324			29,542,304			29,591,379
Diluted weighted average *		n/a			33,674,367			32,125,596			30,835,722			29,772,402			29,222,728			29,487,810			29,767,536			29,878,851			29,924,668
At period end		n/a			32,774,098			31,565,486			29,782,966			29,185,276			29,061,326			29,185,276			29,514,021			29,725,464			29,641,388

* Share data for 1999 is pro forma.

Page 1

STANCORP FINANCIAL GROUP, INC.

Financial Results

(in millions)

CONSOLIDATED

																	2003			2002
	1998			1999				2000			2001			2002			1st Qtr			4th Qtr			3rd Qtr			2nd Qtr			1st Qtr
Revenues:
Premiums	$	892.8		$	959.2			$	1,102.0		$	1,231.7		$	1,383.3		$	401.3		$	382.6		$	332.1		$	336.3		$	332.3
Net investment income		322.9			336.7				358.4			348.6			380.8			106.0			103.8			94.9			91.6			90.5
Other		3.3			3.0				4.1			5.1			5.9			1.4			1.6			1.3			1.5			1.5
Total operating revenues		1,219.0			1,298.9				1,464.5			1,585.4			1,770.0			508.7			488.0			428.3			429.4			424.3
Benefits and expenses:
Benefits to policyholders		787.6			821.3				929.5			1,017.0			1,117.1			324.2			309.1			268.8			267.9			271.3
Interest credited		91.5			88.8				90.4			78.7			72.9			18.6			18.5			18.4			18.3			17.7
Operating expenses		155.0			165.8				185.3			201.0			243.5			69.9			70.7			59.3			57.5			56.0
Commissions and bonuses		73.4			83.3				102.7			118.3			132.6			35.5			33.3			33.2			31.7			34.4
Premium taxes		16.4			13.9				17.9			22.1			23.0			6.7			6.2			6.0			5.4			5.4
Interest expense		0.1			0.9				1.0			0.1			5.0			4.4			4.4			0.5			0.1			—
Deferral of acquisition costs		(17.8	)		(17.5	)			(26.7	)		(35.7	)		(39.1	)		(9.7	)		(9.6	)		(9.8	)		(8.9	)		(10.8	)
Amortization of deferred acquisition costs and value of business acquired		13.4			17.3				19.6			19.4			23.3			8.5			8.0			5.4			5.3			4.6
Total operating benefits and expenses		1,119.6			1,173.8				1,319.7			1,420.9			1,578.3			458.1			440.6			381.8			377.3			378.6
Pre-tax operating income		99.4			125.1				144.8			164.5			191.7			50.6			47.4			46.5			52.1			45.7
Income taxes		30.8			41.0		��		47.7			58.5			68.1			17.7			16.4			16.6			18.7			16.4
Operating income		68.6			84.1				97.1			106.0			123.6			32.9			31.0			29.9			33.4			29.3
Special items, net of tax		(6.1	)		(4.5	)			(1.2	)		—			—						—			—			—			—
Net capital gains (losses), net of tax		7.0			0.3				(1.2	)		—			(12.6	)		(0.7	)		2.9			(2.3	)		(13.5	)		0.3
Net income	$	69.5		$	79.9			$	94.7		$	106.0		$	111.0		$	32.2		$	33.9		$	27.6		$	19.9		$	29.6
Statutory data – Insurance Subsidiaries:
Net gain (loss) from operations before income taxes	$	99.2		$	133.0			$	148.4		$	118.0		$	111.9		$	41.5		$	(31.2	)	$	60.5		$	41.2		$	41.4
Net gain (loss) from operations after income taxes and before realized capital gains/losses		93.9			115.7				43.0			126.8			33.1			23.4			(49.0	)		33.0			22.8			26.3
Capital and surplus		392.9			506.7				517.7			641.9			817.6			766.4			817.6			869.5			617.6			613.1
Asset valuation reserve		39.9			41.1				39.8			44.4			35.8			37.4			35.8			37.9			41.8			45.0

Page 2

STANCORP FINANCIAL GROUP, INC.

Financial Results

(In millions)

RESULTS BY SEGMENT

																2003			2002
	1998			1999			2000			2001			2002			1st Qtr			4th Qtr			3rd Qtr			2nd Qtr			1st Qtr
Revenues:
Premiums:
Employee Benefits – Insurance	$	784.5		$	855.6		$	973.5		$	1,129.5		$	1,284.3		$	375.9		$	358.2		$	308.9		$	310.4		$	306.8
Individual Insurance		94.3			87.0			104.8			81.2			80.0			20.3			20.1			18.8			20.7			20.4
Retirement Plans		14.0			16.6			23.7			21.0			19.0			5.1			4.3			4.4			5.2			5.1
Total premiums		892.8			959.2			1,102.0			1,231.7			1,383.3			401.3			382.6			332.1			336.3			332.3
Net investment income:
Employee Benefits – Insurance		143.7			151.8			165.2			187.3			207.0			61.7			59.0			51.1			48.6			48.3
Individual Insurance		124.0			121.5			128.0			98.9			107.0			27.2			27.7			27.1			26.3			25.9
Retirement Plans		54.0			50.6			50.7			52.1			52.9			14.2			13.5			13.4			13.2			12.8
Other		1.2			12.8			14.5			10.3			13.9			2.9			3.6			3.3			3.5			3.5
Total net investment income		322.9			336.7			358.4			348.6			380.8			106.0			103.8			94.9			91.6			90.5
Other revenues:
Employee Benefits – Insurance		2.4			2.9			4.2			4.3			5.5			1.4			1.5			1.3			1.4			1.3
Individual Insurance		0.9			—			(0.1	)		0.8			0.4			—			0.1			—			0.1			0.2
Other		—			0.1			—			—			—			—			—			—			—			—
Total other revenues		3.3			3.0			4.1			5.1			5.9			1.4			1.6			1.3			1.5			1.5
Total operating revenues		1,219.0			1,298.9			1,464.5			1,585.4			1,770.0			508.7			488.0			428.3			429.4			424.3
Benefits and expenses:
Employee Benefits – Insurance		847.9			905.8			1,026.0			1,187.8			1,338.4			394.4			372.4			324.9			320.7			320.4
Individual Insurance		201.3			196.6			215.3			153.7			155.7			39.1			44.8			36.0			36.4			38.5
Retirement Plans		68.4			69.0			74.4			73.3			71.9			18.6			17.2			18.6			18.2			17.9
Other		2.0			2.4			4.0			6.1			12.3			6.0			6.2			2.3			2.0			1.8
Total operating benefits and expenses		1,119.6			1,173.8			1,319.7			1,420.9			1,578.3			458.1			440.6			381.8			377.3			378.6
Pre-tax operating income (loss):
Employee Benefits – Insurance		82.7			104.5			116.9			133.3			158.4			44.6			46.3			36.4			39.7			36.0
Individual Insurance		17.9			11.9			17.4			27.2			31.7			8.4			3.1			9.9			10.7			8.0
Retirement Plans		(0.4	)		(1.8	)		—			(0.2	)		—			0.7			0.6			(0.8	)		0.2			—
Other		(0.8	)		10.5			10.5			4.2			1.6			(3.1	)		(2.6	)		1.0			1.5			1.7
Total pre-tax operating income		99.4			125.1			144.8			164.5			191.7			50.6			47.4			46.5			52.1			45.7
Income taxes		30.8			41.0			47.7			58.5			68.1			17.7			16.4			16.6			18.7			16.4
Operating income		68.6			84.1			97.1			106.0			123.6			32.9			31.0			29.9			33.4			29.3
Special items, net of tax		(6.1	)		(4.5	)		(1.2	)		—			—			—			—			—			—			—
Net capital gains (losses), net of tax		7.0			0.3			(1.2	)		—			(12.6	)		(0.7	)		2.9			(2.3	)		(13.5	)		0.3
Net income	$	69.5		$	79.9		$	94.7		$	106.0		$	111.0		$	32.2		$	33.9		$	27.6		$	19.9		$	29.6

Page 3

STANCORP FINANCIAL GROUP, INC.

Financial Results

(Dollars in millions)

EMPLOYEE BENEFITS – INSURANCE SEGMENT

																2003			2002
	1998			1999			2000			2001			2002			1st Qtr			4th Qtr			3rd Qtr			2nd Qtr			1st Qtr
Revenues:
Premiums:
Life and AD&D	$	285.7		$	314.2		$	362.5		$	428.4		$	498.0		$	150.0		$	137.1		$	122.9		$	121.0		$	117.0
LTD		353.6			398.8			456.2			514.0			583.4			175.0			164.8			140.2			140.5			137.9
STD		77.0			81.5			100.5			123.7			145.2			40.6			36.9			36.8			36.6			34.9
Other		73.9			78.1			77.2			79.4			71.2			16.5			18.3			16.7			17.4			18.8
Experience rated refunds		(5.7	)		(17.0	)		(22.9	)		(16.0	)		(13.5	)		(6.2	)		1.1			(7.7	)		(5.1	)		(1.8	)
Total premiums		784.5			855.6			973.5			1,129.5			1,284.3			375.9			358.2			308.9			310.4			306.8
Net investment income		143.7			151.8			165.2			187.3			207.0			61.7			59.0			51.1			48.6			48.3
Other		2.4			2.9			4.2			4.3			5.5			1.4			1.5			1.3			1.4			1.3
Total operating revenues		930.6			1,010.3			1,142.9			1,321.1			1,496.8			439.0			418.7			361.3			360.4			356.4
Benefits and expenses:
Benefits to policyholders *		664.1			705.5			792.1			921.6			1,029.4			304.3			283.6			249.3			248.4			248.1
Interest credited		6.2			6.7			7.5			10.3			4.7			1.2			0.9			1.3			1.1			1.4
Operating expenses		107.0			115.4			132.5			148.9			185.8			55.1			56.1			44.8			43.2			41.7
Commissions and bonuses		57.0			67.4			82.5			90.1			98.8			25.5			24.5			24.6			23.7			26.0
Premium taxes		15.1			13.8			17.3			20.5			22.4			6.5			6.0			5.8			5.3			5.3
Deferral of acquisition costs		(8.2	)		(10.6	)		(15.2	)		(15.0	)		(17.8	)		(4.4	)		(4.0	)		(4.2	)		(4.1	)		(5.5	)
Amortization of deferred acquisition costs and value of business acquired		6.7			7.6			9.3			11.4			15.1			6.2			5.3			3.3			3.1			3.4
Total operating benefits and expenses		847.9			905.8			1,026.0			1,187.8			1,338.4			394.4			372.4			324.9			320.7			320.4
Pre-tax operating income		82.7			104.5			116.9			133.3			158.4			44.6			46.3			36.4			39.7			36.0
Net capital gains (losses)		2.5			(3.3	)		(0.7	)		(1.8	)		(8.6	)		(1.5	)		3.2			(2.9	)		(9.6	)		0.7
Income before income taxes	$	85.2		$	101.2		$	116.2		$	131.5		$	149.8		$	43.1		$	49.5		$	33.5		$	30.1		$	36.7
Operating statistics (% of total premiums):
Benefit ratio (including interest credited) *		85.4	%		83.3	%		82.1	%		82.1	%		80.5	%		81.3	%		79.4	%		81.1	%		80.4	%		81.3	%
Operating expenses		13.6			13.5			13.6			13.2			14.5			14.7			15.7			14.5			13.9			13.6
Pre-tax operating income		10.5			12.2			12.0			11.8			12.3			11.9			12.9			11.8			12.8			11.7
Sales (annualized new premiums):
Life and AD&D	$	51.2		$	70.0		$	114.5		$	115.6		$	133.8		$	16.1		$	64.6		$	24.7		$	18.3		$	26.2
LTD		51.3			86.8			94.7			98.6			97.1			16.9			43.6			18.1			15.8			19.6
STD		21.6			17.2			35.1			37.0			48.8			9.4			17.9			8.6			6.9			15.4
Other		17.5			15.0			16.5			14.1			23.4			4.5			11.2			5.3			2.9			4.0
Total	$	141.6		$	189.0		$	260.8		$	265.3		$	303.1		$	46.9		$	137.3		$	56.7		$	43.9		$	65.2
Persistency (% of premiums):
Life		87.4	%		89.4	%		85.2	%		88.5	%		88.0	%
LTD		84.8			87.9			88.3			89.3			88.1
Dental		78.3			76.2			65.9			79.6			75.6
Other A&H		85.3			84.7			82.9			87.0			85.1
Total		84.8	%		86.0	%		82.7	%		87.6	%		86.9	%

* 2001 benefits to policyholders included $4.3 million in pre-tax charges related to the terrorist events of September 11, 2001. The $4.3 million in pre-tax charges were excluded from the benefit ratio. Including the charges related to the terrorist events of September 11, 2001, the benefit ratio would have been 82.5%.

Page 4

STANCORP FINANCIAL GROUP, INC.

Financial Results

(Dollars in millions)

INDIVIDUAL INSURANCE SEGMENT

																2003			2002
	1998			1999			2000			2001			2002			1st Qtr			4th Qtr			3rd Qtr			2nd Qtr			1st Qtr
Revenues:
Premiums:
Life	$	82.0		$	72.3		$	70.0		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Annuities		3.5			3.4			6.5			2.7			4.6			0.1			1.9			0.9			0.9			0.9
Disability		8.8			11.3			28.3			78.5			75.4			20.2			18.2			17.9			19.8			19.5
Total premiums		94.3			87.0			104.8			81.2			80.0			20.3			20.1			18.8			20.7			20.4
Net investment income		124.0			121.5			128.0			98.9			107.0			27.2			27.7			27.1			26.3			25.9
Other		0.9			—			(0.1	)		0.8			0.4			—			0.1			—			0.1			0.2
Total operating revenues		219.2			208.5			232.7			180.9			187.4			47.5			47.9			45.9			47.1			46.5
Benefits and expenses:
Benefits to policyholders *		113.0			106.3			125.6			85.6			79.8			17.8			24.1			17.1			17.2			21.4
Interest credited		49.3			48.6			48.7			32.8			35.1			9.1			9.2			8.9			8.9			8.1
Operating expenses		26.6			25.7			25.9			22.9			24.0			6.4			6.2			6.1			5.9			5.8
Commissions and bonuses		13.9			12.2			14.7			22.6			27.3			7.5			7.1			7.2			6.7			6.3
Premium taxes		1.4			1.0			1.6			1.6			0.6			0.2			0.2			0.2			0.1			0.1
Deferral of acquisition costs		(9.6)			(6.9	)		(11.5	)		(19.8	)		(19.0	)		(4.1	)		(4.8	)		(5.3	)		(4.5	)		(4.4	)
Amortization of deferred acquisition costs and value of business acquired		6.7			9.7			10.3			8.0			7.9			2.2			2.8			1.8			2.1			1.2
Total operating benefits and expenses		201.3			196.6			215.3			153.7			155.7			39.1			44.8			36.0			36.4			38.5
Pre-tax operating income		17.9			11.9			17.4			27.2			31.7			8.4			3.1			9.9			10.7			8.0
Special items **		—			—			(1.9	)		—			—			—			—			—			—			—
Net capital gains (losses)		1.6			0.5			(4.1	)		0.6			(6.0	)		1.1			(1.5	)		0.5			(4.9	)		(0.1	)
Income before income taxes	$	19.5		$	12.4		$	11.4		$	27.8		$	25.7		$	9.5		$	1.6		$	10.4		$	5.8		$	7.9
Annuity assets under management	$	667.6		$	698.4		$	652.9		$	702.1		$	797.7		$	823.8		$	797.7		$	771.8		$	734.0		$	713.9
Benefit ratio (% of total premiums) *		n/a			n/a			n/a			104.5	%		99.8	%		87.7	%		119.9	%		91.0	%		83.1	%		104.9	%
Operating statistics (% of operating revenue):
Operating expenses		12.2	%		12.3	%		11.1	%		12.6	%		12.8	%		13.5	%		12.9	%		13.3	%		12.5	%		12.5	%
Pre-tax operating income		8.2			5.7			7.5			15.0			16.9			17.7			6.5			21.6			22.7			17.2
Sales:
Life premiums	$	7.4		$	4.4		$	4.0		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Annuity deposits		12.4			6.7			15.1			62.6			109.1			29.8			26.5			44.0			21.9			16.7
Disability premiums		2.4			3.4			3.5			9.6			11.5			2.9			3.2			3.0			2.8			2.5
Total	$	22.2		$	14.5		$	22.6		$	72.2		$	120.6		$	32.7		$	29.7		$	47.0		$	24.7		$	19.2
Disability persistency (% of premiums)		92.3	%		91.4	%		90.3	%		92.1	%		94.3	%

* 2001 benefits to policyholders included $0.7 million in pre-tax charges related to the terrorist events of September 11, 2001. The $0.7 million in pre-tax charges were excluded from the benefit ratio. Including the charges related to the terrorist events of September 11, 2001, the benefit ratio would have been 105.4%.

** Special items consisted of severance costs associated with disposition of the individual life product line.

Page 5

STANCORP FINANCIAL GROUP, INC.

Financial Results

(Dollars in millions)

RETIREMENT PLANS SEGMENT

																2003			2002
	1998			1999			2000			2001			2002			1st Qtr			4th Qtr			3rd Qtr			2nd Qtr			1st Qtr
Revenues:
Premiums	$	14.0		$	16.6		$	23.7		$	21.0		$	19.0		$	5.1		$	4.3		$	4.4		$	5.2		$	5.1
Net investment income		54.0			50.6			50.7			52.1			52.9			14.2			13.5			13.4			13.2			12.8
Total operating revenues		68.0			67.2			74.4			73.1			71.9			19.3			17.8			17.8			18.4			17.9
Benefits and expenses:
Benefits to policyholders		10.5			9.5			11.8			9.8			7.9			2.1			1.4			2.4			2.3			1.8
Interest credited		36.1			33.5			34.2			35.2			32.5			8.3			8.3			8.0			8.1			8.1
Operating expenses		19.3			22.3			22.9			23.6			27.0			6.8			6.7			6.8			6.7			6.8
Commissions and bonuses		2.5			3.7			5.5			5.6			6.5			2.5			1.7			1.4			1.3			2.1
Deferral of acquisition costs		—			—			—			(0.9	)		(2.3	)		(1.2	)		(0.8	)		(0.3	)		(0.3	)		(0.9	)
Amortization of deferred acquisition costs		—			—			—			—			0.3			0.1			(0.1	)		0.3			0.1			—
Total operating benefits and expenses		68.4			69.0			74.4			73.3			71.9			18.6			17.2			18.6			18.2			17.9
Pre-tax operating income (loss)		(0.4	)		(1.8	)		—			(0.2	)		—			0.7			0.6			(0.8	)		0.2			—
Net capital gains (losses)		1.1			(0.7	)		(0.4	)		0.1			(5.6	)		(1.1	)		2.4			(1.2	)		(6.7	)		(0.1	)
Income (loss) before income taxes	$	0.7		$	(2.5	)	$	(0.4	)	$	(0.1	)	$	(5.6	)	$	(0.4	)	$	3.0		$	(2.0	)	$	(6.5	)	$	(0.1	)
General account	$	631.3		$	655.4		$	662.4		$	751.6		$	784.7		$	827.6		$	784.7		$	754.5		$	713.0		$	698.3
Separate account		668.5			992.3			1,092.7			1,019.2			1,018.6			1,064.6			1,018.6			919.1			1,056.9			1,128.2
Assets under management	$	1,299.8		$	1,647.7		$	1,755.1		$	1,770.8		$	1,803.3		$	1,892.2		$	1,803.3		$	1,673.6		$	1,769.9		$	1,826.5
Operating statistics:
Interest credited (% of investment income)		66.7	%		66.2	%		67.5	%		67.5	%		61.4	%		58.5	%		61.5	%		59.7	%		61.4	%		63.3	%
Annualized operating expenses (% of average assets under management)		1.6			1.5			1.3			1.3			1.5			1.5			1.5			1.6			1.5			1.5

Page 6

STANCORP FINANCIAL GROUP, INC

Financial Results

(In millions)

OTHER

													2003			2002
	1998			1999			2000		2001		2002		1st Qtr			4th Qtr			3rd Qtr		2nd Qtr		1st Qtr
Revenues:
Net investment income	$	1.2		$	12.8		$	14.5	$	10.3	$	13.9	$	2.9		$	3.6		$	3.3	$	3.5	$	3.5
Other		—			0.1			—		—		—		—			—			—		—		—
Total operating revenues		1.2			12.9			14.5		10.3		13.9		2.9			3.6			3.3		3.5		3.5
Benefits and expenses:
Operating expenses and other		1.9			1.5			3.0		6.0		7.3		1.6			1.8			1.8		1.9		1.8
Interest expense		0.1			0.9			1.0		0.1		5.0		4.4			4.4			0.5		0.1		—
Total operating benefits and expenses		2.0			2.4			4.0		6.1		12.3		6.0			6.2			2.3		2.0		1.8
Pre-tax operating income (loss)		(0.8	)		10.5			10.5		4.2		1.6		(3.1	)		(2.6	)		1.0		1.5		1.7
Special items *		(6.1	)		(4.5	)		—		—		—		—			—			—		—		—
Net capital gains (losses)		6.1			3.9			3.4		1.1		0.5		0.4			0.5			—		—		—
Income (loss) before income taxes	$	(0.8	)	$	9.9		$	13.9	$	5.3	$	2.1	$	(2.7	)	$	(2.1	)	$	1.0	$	1.5	$	1.7

* Special items consisted of demutualization expenses for 1999 and 1998.

Page 7

STANCORP FINANCIAL GROUP, INC.

Consolidated Balance Sheets

(In millions)

CONSOLIDATED

												2003		2002
	1998		1999			2000		2001		2002		1st Qtr		4th Qtr		3rd Qtr		2nd Qtr		1st Qtr
ASSETS
Investments:
Fixed maturity securities:
Available for sale	$	2,188.5	$	2,235.8		$	2,485.3	$	2,700.6	$	4,134.4	$	4,417.2	$	4,134.4	$	3,556.7	$	3,177.5	$	2,866.4
Trading		25.4		49.2			54.0		—		—		—		—		—		—		—
Equity securities		0.3		—			—		—		—		—		—		—		—		—
Commercial mortgage loans		1,708.1		1,926.2			2,061.1		2,003.0		1,989.1		2,043.5		1,989.1		2,058.3		2,078.6		2,041.2
Real estate, net		93.0		98.5			65.9		72.0		64.6		62.9		64.6		66.7		67.4		70.8
Policy loans		111.0		110.8			106.9		5.4		5.3		5.2		5.3		5.3		5.2		5.2
Collateral loans		71.2		68.1			63.5		—		—		—		—		—		—		—
Total investments		4,197.5		4,488.6			4,836.7		4,781.0		6,193.4		6,528.8		6,193.4		5,687.0		5,328.7		4,983.6
Cash and cash equivalents		60.4		40.7			473.7		212.3		206.8		69.0		206.8		179.2		22.9		55.0
Premiums and other receivables		41.5		48.7			74.0		73.7		79.6		73.6		79.6		62.0		62.9		67.2
Accrued investment income		53.5		56.2			61.5		59.4		77.1		83.9		77.1		68.4		67.0		64.7
Amounts recoverable from reinsurers		31.7		29.9			35.3		867.5		873.9		877.3		873.9		856.5		867.1		871.3
Deferred acquisition costs and value of     business acquired		114.9		120.2			186.8		115.1		190.9		190.0		190.9		127.2		124.2		121.7
Property and equipment, net		65.9		69.0			71.7		76.8		74.7		72.9		74.7		75.3		76.6		76.2
Other assets		45.0		11.5			27.2		72.0		31.5		23.9		31.5		31.0		22.7		44.2
Separate account assets		668.5		992.3			1,092.7		1,019.2		1,018.6		1,064.6		1,018.6		919.1		1,056.9		1,128.2
Total	$	5,278.9	$	5,857.1		$	6,859.6	$	7,277.0	$	8,746.5	$	8,984.0	$	8,746.5	$	8,005.7	$	7,629.0	$	7,412.1
LIABILITIES AND EQUITY
Liabilities:
Future policy benefits and claims	$	2,099.5	$	2,268.3		$	2,969.5	$	3,198.5	$	4,114.9	$	4,161.0	$	4,114.9	$	3,340.0	$	3,303.3	$	3,260.4
Other policyholder funds		1,455.5		1,538.0			1,533.6		1,679.8		1,809.3		1,876.8		1,809.3		1,740.6		1,664.0		1,638.0
Dividends and experience refunds		23.7		33.7			32.0		49.1		55.2		58.4		55.2		51.1		45.2		46.3
Deferred tax liabilities		106.0		84.3			34.0		115.3		164.7		174.2		164.7		157.8		117.0		99.5
Short-term debt		0.1		0.2			65.2		81.5		0.2		0.2		0.2		0.2		81.7		0.2
Long-term debt		2.3		9.6			9.4		9.1		259.0		258.9		259.0		259.0		9.0		9.1
Other liabilities		84.0		90.8			198.8		150.8		172.0		192.3		172.0		409.9		315.8		262.7
Separate account liabilities		668.5		992.3			1,092.7		1,019.2		1,018.6		1,064.6		1,018.6		919.1		1,056.9		1,128.2
Total liabilities		4,439.6		5,017.2			5,935.2		6,303.3		7,593.9		7,786.4		7,593.9		6,877.7		6,592.9		6,444.4
Equity:
Common stock		—		819.7			778.7		699.8		665.3		657.6		665.3		682.4		693.6		690.9
Accumulated other comprehensive     income (loss)		74.2		(37.6	)		1.9		33.3		147.4		167.9		147.4		127.9		52.4		6.6
Retained earnings		765.1		57.8			143.8		240.6		339.9		372.1		339.9		317.7		290.1		270.2
Total equity		839.3		839.9			924.4		973.7		1,152.6		1,197.6		1,152.6		1,128.0		1,036.1		967.7
Total	$	5,278.9	$	5,857.1		$	6,859.6	$	7,277.0	$	8,746.5	$	8,984.0	$	8,746.5	$	8,005.7	$	7,629.0	$	7,412.1

Page 8

STANCORP FINANCIAL GROUP INC,

Invested Asset Statistics

(Dollars in millions)

CONSOLIDATED (except as indicated)

																2003			2002
	1998			1999			2000			2001			2002			1st Qtr			4th Qtr			3rd Qtr			2nd Qtr			1st Qtr
Investments:
Total fixed maturity securities:	$	2,213.9		$	2,285.0		$	2,539.3		$	2,700.6		$	4,134.4		$	4,417.2		$	4,134.4		$	3,556.7		$	3,177.5		$	2,866.4
Public		2,039.3			2,084.9			2,323.1			2,454.0			3,701.0			3,940.4			3,701.0			3,240.1			2,884.9			2,599.6
Private		174.6			200.1			216.2			246.6			433.4			476.8			433.4			316.6			292.6			266.8
Equity securities		0.3			—			—			—			—			—			—			—			—			—
Commercial mortgage loans		1,708.1			1,926.2			2,061.1			2,003.0			1,989.1			2,043.5			1,989.1			2,058.3			2,078.6			2,041.2
Real estate, net		93.0			98.5			65.9			72.0			64.6			62.9			64.6			66.7			67.4			70.8
Policy loans		111.0			110.8			106.9			5.4			5.3			5.2			5.3			5.3			5.2			5.2
Collateral loans		71.2			68.1			63.5			—			—			—			—			—			—			—
Total investments	$	4,197.5		$	4,488.6		$	4,836.7		$	4,781.0		$	6,193.4		$	6,528.8		$	6,193.4		$	5,687.0		$	5,328.7		$	4,983.6
Percent of investments:
Fixed maturity securities		52.7	%		50.9	%		52.5	%		56.5	%		66.8	%		67.6	%		66.8	%		62.5	%		59.6	%		57.5	%
Equity securities		—			—			—			—			—			—			—			—			—			—
Commercial mortgage loans		40.7			42.9			42.6			41.9			32.1			31.3			32.1			36.2			39.0			41.0
Real estate		2.2			2.2			1.4			1.5			1.0			1.0			1.0			1.2			1.3			1.4
Other		4.4			4.0			3.5			0.1			0.1			0.1			0.1			0.1			0.1			0.1
Fixed maturity securities available for sale:
Market value as a % of amortized cost		105.7	%		97.4	%		100.1	%		102.0	%		105.9	%		106.4	%		105.9	%		106.0	%		102.9	%		100.4	%
Reserve balances:
Commercial mortgage loans	$	4.3		$	4.1		$	4.4		$	3.6		$	4.0		$	4.2		$	4.0		$	3.9		$	3.6		$	3.6
StanCorp Mortgage Investors, LLC
Commercial mortgage loans under     management:
StanCorp and subsidiaries	$	1,708.1		$	1,926.2		$	2,061.1		$	2,003.0		$	1,989.1		$	2,043.5		$	1,989.1		$	2,058.3		$	2,078.6		$	2,041.2
Other investors		250.5			253.8			314.7			534.9			672.9			698.5			672.9			558.6			506.5			521.7
Total	$	1,958.6		$	2,180.0		$	2,375.8		$	2,537.9		$	2,662.0		$	2,742.0		$	2,662.0		$	2,616.9		$	2,585.1		$	2,562.9
Commercial mortgage loans originated	$	440.9		$	519.1		$	432.8		$	430.1		$	570.8		$	207.2		$	189.8		$	124.2		$	132.9		$	123.9
Net income		4.6			5.5			5.9			6.6			7.7			2.5			3.2			1.5			1.6			1.4

Page 9

STANCORP FINANCIAL GROUP, INC.

Other Investment Statistics

(Dollars in millions)

CONSOLIDATED (except as indicated)

																2003			2002
	1998			1999			2000			2001			2002			1st Qtr			4th Qtr			3rd Qtr			2nd Qtr			1st Qtr
Portfolio yield:
Fixed maturity securities (excluding convertibles)		7.05	%		6.94	%		7.01	%		6.79	%		6.22	%		6.09	%		6.22	%		6.62	%		6.65	%		6.71	%
Commercial mortgage loans		8.70			8.37			8.34			8.22			7.94			7.82			7.94			8.06			8.12			8.17
Fixed maturity securities:
Quality rating (as % of fixed maturities):
A or higher		85.1	%		81.0	%		79.5	%		69.0	%		75.3	%		76.4	%		75.3	%		72.7	%		69.1	%		69.3	%
BBB/Baa		14.4			18.3			19.4			28.0			21.2			20.4			21.2			23.6			27.2			27.8
BB/Ba		0.5			0.7			0.9			2.4			2.1			1.7			2.1			2.3			2.9			2.2
B or lower		—			—			0.2			0.6			1.4			1.5			1.4			1.4			0.8			0.7
Commercial mortgage loans –   statutory:
Sixty day delinquencies:
Book value	$	1.7		$	—		$	—		$	—		$	—		$	—		$	—		$	0.5		$	0.5		$	0.5
Rates – overall %		0.10	%		—	%		—	%		—	%		—	%		—	%		—	%		0.02	%		0.02	%		0.03	%
Foreclosed during period	$	0.8		$	2.2		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
In process of foreclosure		1.7			—			—			0.5			—			1.5			—			0.5			0.5			0.5
Included in 60 day delinquencies		1.7			—			—			—			—			—			—			0.5			0.5			0.5
Net balance of restructured loans		7.7			5.5			6.1			5.9			4.6			3.4			4.6			4.1			5.2			5.8

Page 10