10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2013

or

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to                     

Commission File Number: 1-14925

STANCORP FINANCIAL GROUP, INC.

(Exact name of registrant as specified in its charter)

Oregon	93-1253576
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

1100 SW Sixth Avenue, Portland, Oregon, 97204

(Address of principal executive offices, including zip code)

(971) 321-7000

(Registrant’s telephone number, including area code)

NONE

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act:

Large Accelerated filer   x Accelerated filer   ¨ Non-accelerated filer   ¨ Smaller reporting company   ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  x

APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

As of April 26, 2013, there were 44,269,963 shares of the registrant’s common stock, no par value, outstanding.

TABLE OF CONTENTS

PART I. FINANCIAL INFORMATION
ITEM 1.	FINANCIAL STATEMENTS
	Unaudited Condensed Consolidated Statements of Income for the three months ended March 31, 2013 and 2012	1
	Unaudited Condensed Consolidated Statements of Comprehensive Income for the three months ended March 31, 2013 and 2012	2
	Unaudited Condensed Consolidated Balance Sheets at March 31, 2013 and December 31, 2012	3
	Unaudited Condensed Consolidated Statements of Changes in Shareholders’ Equity for the three months ended March 31, 2013 and the year ended December 31, 2012	4
	Unaudited Condensed Consolidated Statements of Cash Flows for the three months ended March  31, 2013 and 2012	5
	Notes to the Unaudited Condensed Consolidated Financial Statements	6
ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	36
ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	69
ITEM 4.	CONTROLS AND PROCEDURES	69
PART II. OTHER INFORMATION
ITEM 1.	LEGAL PROCEEDINGS	70
ITEM 1A.	RISK FACTORS	70
ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	73
ITEM 3.	DEFAULTS UPON SENIOR SECURITIES	74
ITEM 4.	MINE SAFETY DISCLOSURES	74
ITEM 5.	OTHER INFORMATION	74
ITEM 6.	EXHIBITS	75
SIGNATURES		76

PART I. FINANCIAL INFORMATION

ITEM 1: FINANCIAL STATEMENTS

STANCORP FINANCIAL GROUP, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Dollars in millions—except per share data)

	Three Months Ended March 31,
	2013			2012
Revenues:
Premiums	$	536.2		$	553.3
Administrative fees		28.7			28.6
Net investment income		159.2			159.7
Net capital (losses) gains:
Total other-than-temporary impairment losses on fixed maturity securities—available-for-sale		(0.3	)		(0.8	)
All other net capital (losses) gains		(1.3	)		0.6
Total net capital losses		(1.6	)		(0.2	)
Total revenues		722.5			741.4
Benefits and expenses:
Benefits to policyholders		441.8			450.0
Interest credited		46.6			47.2
Operating expenses		105.1			123.9
Commissions and bonuses		53.8			55.4
Premium taxes		9.5			10.0
Interest expense		8.5			9.7
Net increase in deferred acquisition costs, value of business acquired and other intangible assets		(3.1	)		(2.5	)
Total benefits and expenses		662.2			693.7
Income before income taxes		60.3			47.7
Income taxes		13.5			12.5
Net income	$	46.8		$	35.2
Net income per common share:
Basic	$	1.05		$	0.79
Diluted		1.05			0.79
Weighted-average common shares outstanding:
Basic		44,426,153			44,327,122
Diluted		44,500,049			44,461,841

See Notes to Unaudited Condensed Consolidated Financial Statements.

1

STANCORP FINANCIAL GROUP, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF

COMPREHENSIVE INCOME

(In millions)

	Three Months Ended March 31,
	2013			2012
Net income	$	46.8		$	35.2
Other comprehensive (loss) income, net of tax:
Unrealized (losses) gains on fixed maturity securities—available-for-sale:
Net unrealized capital (losses) gains on fixed maturity securities—available-for-sale(1)	$	(17.2	)	$	1.3
Reclassification adjustment for net capital gains included in net income(2)		(1.2	)		(0.8	)
Employee benefit plans:
Prior service credit and net losses arising during the period, net(3)		—			0.4
Reclassification adjustment for amortization to net periodic pension (credit) cost, net(4)		(4.8	)		1.6
Total other comprehensive (loss) income, net of tax		(23.2	)		2.5
Comprehensive income	$	23.6		$	37.7

(1) Net of tax benefit of $7.5 million and tax expense of $2.3 million for the three months ended March 31, 2013 and 2012, respectively.

(2) Net of tax benefits of $0.8 million and $0.4 million for the three months ended March 31, 2013 and 2012, respectively.

(3) Net of tax expense of $0.2 million for the three months ended March 31, 2012.

(4) Net of tax benefit of $2.6 million and tax expense of $0.9 million for the three months ended March 31, 2013 and 2012, respectively.

See Notes to Unaudited Condensed Consolidated Financial Statements.

2

STANCORP FINANCIAL GROUP, INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in millions)

	March 31, 2013		December 31, 2012
ASSETS
Investments:
Fixed maturity securities—available-for-sale (amortized cost of $6,614.5 and $6,517.7)	$	7,248.7	$	7,190.7
Commercial mortgage loans, net		5,320.4		5,267.4
Real estate, net		94.2		95.5
Other invested assets		206.9		175.5
Total investments		12,870.2		12,729.1
Cash and cash equivalents		143.3		160.7
Premiums and other receivables		121.9		123.0
Accrued investment income		112.8		109.3
Amounts recoverable from reinsurers		979.0		972.4
Deferred acquisition costs, value of business acquired and other intangible assets, net		352.4		346.5
Goodwill		36.0		36.0
Property and equipment, net		86.9		90.7
Other assets		66.9		69.3
Separate account assets		5,600.1		5,154.3
Total assets	$	20,369.5	$	19,791.3
LIABILITIES AND SHARE HOLDERS’ EQUITY
Liabilities:
Future policy benefits and claims	$	5,851.9	$	5,843.2
Other policyholder funds		5,630.8		5,531.1
Deferred tax liabilities, net		147.6		148.1
Short-term debt		1.1		1.0
Long-term debt		551.6		551.4
Other liabilities		398.8		393.2
Separate account liabilities		5,600.1		5,154.3
Total liabilities		18,181.9		17,622.3
Commitments and contingencies (See Note 10)
Shareholders’ equity:
Preferred stock, 100,000,000 shares authorized; none issued		—		—
Common stock, no par, 300,000,000 shares authorized; 44,323,664 and 44,419,448 shares issued and outstanding at March 31, 2013 and December 31, 2012, respectively		84.6		89.6
Accumulated other comprehensive income		286.1		309.3
Retained earnings		1,816.9		1,770.1
Total shareholders’ equity		2,187.6		2,169.0
Total liabilities and shareholders’ equity	$	20,369.5	$	19,791.3

See Notes to Unaudited Condensed Consolidated Financial Statements.

3

STANCORP FINANCIAL GROUP, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF

CHANGES IN SHAREHOLDERS’ EQUITY

(Dollars in millions—except per share data)

	Common Stock						Accumulated Other Comprehensive			Retained			Total Shareholders’
	Shares			Amount			Income (loss)			Earnings			Equity
Balance, January 1, 2012		44,268,859		$	82.4		$	235.1		$	1,672.9		$	1,990.4
Net income		—			—			—			138.5			138.5
Other comprehensive income, net of tax		—			—			74.2			—			74.2
Common stock:
Repurchased		(279,700	)		(10.0	)		—			—			(10.0	)
Issued under share-based compensation plans, net		430,289			17.2			—			—			17.2
Dividends declared on common stock ($0.93 per share)		—			—			—			(41.3	)		(41.3	)
Balance, December 31, 2012		44,419,448			89.6			309.3			1,770.1			2,169.0
Net income		—			—			—			46.8			46.8
Other comprehensive loss, net of tax		—			—			(23.2	)		—			(23.2	)
Common stock:
Repurchased		(249,794	)		(9.9	)		—			—			(9.9	)
Issued under share-based compensation plans, net		154,010			4.9			—			—			4.9
Balance, March 31, 2013		44,323,664		$	84.6		$	286.1		$	1,816.9		$	2,187.6

See Notes to Unaudited Condensed Consolidated Financial Statements.

4

STANCORP FINANCIAL GROUP, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

	Three Months Ended March 31,
	2013			2012
Operating:
Net income	$	46.8		$	35.2
Adjustments to reconcile net income to net cash provided by operating activities:
Net realized capital losses		1.6			0.2
Depreciation and amortization		28.3			31.0
Deferral of acquisition costs, value of business acquired and other intangible assets, net		(20.7	)		(21.5	)
Deferred income taxes		13.3			12.0
Changes in other assets and liabilities:
Receivables and accrued income		(9.0	)		(11.0	)
Future policy benefits and claims		17.7			31.9
Other, net		(5.2	)		50.2
Net cash provided by operating activities		72.8			128.0
Investing:
Proceeds from sale, maturity, or repayment of fixed maturity securities—available-for-sale		283.6			195.1
Proceeds from sale or repayment of commercial mortgage loans		220.6			130.5
Proceeds from sale of real estate		3.5			1.8
Proceeds from sale of other investments, net		0.2			—
Acquisition of fixed maturity securities—available-for-sale		(376.0	)		(285.7	)
Acquisition or origination of commercial mortgage loans		(280.1	)		(216.6	)
Acquisition of real estate		(0.3	)		(0.1	)
Acquisition of other invested assets		(31.6	)		(19.7	)
Acquisition of property and equipment, net		(1.7	)		(3.9	)
Net cash used in investing activities		(181.8	)		(198.6	)
Financing:
Policyholder fund deposits		521.0			476.2
Policyholder fund withdrawals		(421.3	)		(431.8	)
Issuance of common stock		1.5			3.3
Repurchases of common stock		(9.9	)		—
Other, net		0.3			0.5
Net cash provided by financing activities		91.6			48.2
Decrease in cash and cash equivalents		(17.4	)		(22.4	)
Cash and cash equivalents, beginning of period		160.7			138.4
Cash and cash equivalents, end of period	$	143.3		$	116.0
Supplemental disclosure of cash flow information:
Cash paid (received) during the period for:
Interest	$	46.6		$	43.3
Income taxes		10.7			(0.5	)
Non-cash transactions:
Real estate acquired through commercial mortgage loan foreclosure		3.8			6.8
Commercial mortgage loans originated on real estate sold		—			0.2

See Notes to Unaudited Condensed Consolidated Financial Statements.

5

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

As used in this Form 10-Q, the terms “StanCorp,” “Company,” “we,” “us” and “our” refer to StanCorp Financial Group, Inc. and its subsidiaries, unless the context otherwise requires.

1. ORGANIZATION, PRINCIPLES OF CONSOLIDATION AND BASIS OF PRESENTATION

StanCorp, headquartered in Portland, Oregon, is a holding company and conducts business through wholly-owned operating subsidiaries throughout the United States. Through its subsidiaries, StanCorp has the authority to underwrite insurance products in all 50 states. StanCorp operates through two segments: Insurance Services and Asset Management and also reports in an Other category. See “Note 5—Segments.”

StanCorp has the following wholly-owned operating subsidiaries: Standard Insurance Company (“Standard”), The Standard Life Insurance Company of New York, Standard Retirement Services, Inc. (“Standard Retirement Services”), StanCorp Equities, Inc. (“StanCorp Equities”), StanCorp Mortgage Investors, LLC (“StanCorp Mortgage Investors”), StanCorp Investment Advisers, Inc. (“StanCorp Investment Advisers”), StanCorp Real Estate, LLC (“StanCorp Real Estate”) and Standard Management, Inc. (“Standard Management”).

Standard, the Company’s largest subsidiary, underwrites group and individual disability insurance and annuity products, group life and accidental death and dismemberment (“AD&D”) insurance, and provides group dental and group vision insurance, absence management services and retirement plan products. Founded in 1906, Standard is domiciled in Oregon, licensed in all states except New York, and licensed in the District of Columbia and the U.S. territories of Guam and the Virgin Islands.

The Standard Life Insurance Company of New York was organized in 2000 and is licensed to provide group long term and short term disability insurance, group life and AD&D insurance, group dental insurance and individual disability insurance in New York.

The Standard is a service mark of StanCorp and its subsidiaries and is used as a brand mark and marketing name by Standard and The Standard Life Insurance Company of New York.

Standard Retirement Services administers and services StanCorp’s retirement plans group annuity contracts and trust products. Retirement plan products are offered in all 50 states through Standard or Standard Retirement Services.

StanCorp Equities is a limited broker-dealer and member of the Financial Industry Regulatory Authority. As a wholesaler, StanCorp Equities activities are limited to soliciting and supporting third-party broker-dealers and investment advisers that offer or advise their retirement plan clients on using an unregistered group annuity contract or a mutual fund trust platform.

StanCorp Mortgage Investors originates and services fixed-rate commercial mortgage loans for the investment portfolios of the Company’s insurance subsidiaries. StanCorp Mortgage Investors also generates additional fee income from the origination and servicing of commercial mortgage loans participated to institutional investors.

StanCorp Investment Advisers, Inc. is a Securities and Exchange Commission (“SEC”) registered investment adviser providing performance analysis, fund selection support, model portfolios and other investment advisory, financial planning, and investment management services to its retirement plan clients, individual investors and subsidiaries of StanCorp.

StanCorp Real Estate is a property management company that owns and manages the Hillsboro, Oregon home office properties and other properties held for investment and held for sale. StanCorp Real Estate also manages the Portland, Oregon home office properties.

Standard Management manages certain real estate properties held for sale from time to time in conjunction with our real estate business.

Standard holds interests in tax-advantaged investments. These interests are accounted for under the equity method of accounting. The total investment in these interests was $204.4 million and $173.0 million at March 31, 2013 and December 31, 2012, respectively.

In February 2013, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. ASU No. 2013-02 requires disclosures for reclassification adjustments including changes in accumulated other comprehensive income (“AOCI”) balances by component and significant items reclassified out of AOCI. Effective January 1, 2013, the Company has adopted this standard.

The accompanying unaudited condensed consolidated financial statements of StanCorp and its subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in conformance with the requirements of Form 10-Q pursuant to the rules and regulations of the SEC. Accordingly, they do not include all of the information and disclosures required by GAAP for complete financial statements. Intercompany balances and transactions have been eliminated on a consolidated basis. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the financial statement date, and the reported amounts of revenues and expenses during the period. Actual results may differ from those estimates. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments, consisting of normal recurring accruals, considered necessary for a fair presentation of the Company’s financial condition at March 31, 2013, and for the results of operations and cash flows for the three months ended March 31, 2013 and 2012. Interim results for the three months ended March 31, 2013 are not necessarily indicative of the results that may be expected for the year ending December 31, 2013. This report should be read in conjunction with the Company’s 2012 annual report on Form 10-K.

6

2. NET INCOME PER COMMON SHARE

Net income per basic common share was calculated by dividing net income by the weighted-average number of common shares outstanding. Net income per diluted common share, as calculated using the treasury stock method, reflects the potential dilutive effects of stock award grants and exercises of dilutive outstanding stock options. The computation of diluted weighted-average earnings per share does not include stock options with an option exercise price greater than the average market price because they are antidilutive and inclusion would increase earnings per share.

The following table sets forth the calculation of net income per basic and diluted weighted-average common shares outstanding:

	Three Months Ended March 31,
	2013		2012
Net income (In millions)	$	46.8	$	35.2
Basic weighted-average common shares outstanding		44,426,153		44,327,122
Stock options		71,621		127,126
Stock awards		2,275		7,593
Diluted weighted-average common shares outstanding		44,500,049		44,461,841
Net income per common share:
Net income per basic common share	$	1.05	$	0.79
Net income per diluted common share		1.05		0.79
Antidilutive shares not included in net income per diluted common share calculation		1,874,311		1,909,874

3. SHARE-BASED COMPENSATION

The Company has two active share-based compensation plans: the 2002 Stock Incentive Plan (“2002 Plan”) and the 1999 Employee Share Purchase Plan (“ESPP”). The 2002 Plan authorizes the Board of Directors to grant incentive or non-statutory stock options and stock awards to eligible employees and certain related parties. Of the 4,800,000 shares of common stock authorized for the 2002 Plan, 595,416 shares or options for shares remain available for grant at March 31, 2013. The Company’s ESPP allows eligible employees to purchase StanCorp common stock at a discount. Of the 3,500,000 shares authorized for the ESPP, 1,460,593 shares remain available for issuance at March 31, 2013.

The following table sets forth the total compensation cost and related income tax benefit under the Company’s share-based compensation plans:

	Three Months Ended March 31,
	2013		2012
	(In millions)
Compensation cost	$	1.4	$	2.3
Related income tax benefit		0.5		0.8

The Company has provided two types of share-based compensation pursuant to the 2002 Plan: option grants and stock award grants.

Option Grants

Options are granted to officers and certain non-officer employees. Options are granted with an exercise price equal to the closing market price of StanCorp common stock on the grant date. Options generally vest in equal installments on the first four anniversaries of the vesting reference date.

The Company granted options to purchase 163,367 and 225,133 shares for the first quarters of 2013 and 2012, respectively, at a weighted-average per share exercise price of $38.56 and $39.58, respectively. The fair value of each option award granted was estimated using the Black-Scholes option pricing model as of the grant date. The weighted-average grant date fair value of options granted for the first quarters of 2013 and 2012 was $13.64 and $14.44 per share, respectively.

The compensation cost of stock options is recognized over the vesting period, which is also the period over which the grantee must provide services to the Company. At March 31, 2013, the total compensation cost related to unvested option awards that had not yet been recognized in the financial statements was $6.9 million. This compensation cost will be recognized over a weighted-average period of 2.7 years.

7

Stock Award Grants

The Company currently grants three types of stock awards: restricted stock unit awards (“RSUs”), performance-based stock awards (“Performance Shares”) and non-employee director stock awards (“Director Stock Grants”). Under the 2002 Plan, the Company had 408,926 shares available for issuance as stock award grants at March 31, 2013.

RSUs

Beginning in the first quarter of 2013, the Company granted annual RSUs to officers and senior officers of the Company. The RSUs cliff vest on the third anniversary of the vesting reference date. The actual number of shares issued is based on continued employment with a portion of shares withheld to cover required tax withholding.

The Company granted 59,823 RSUs for the first quarter of 2013.

The compensation cost of RSUs is recognized over the vesting period, which is also the period over which the grantee must provide services to the Company. At March 31, 2013, the total compensation cost related to unvested RSUs that had not yet been recognized in the financial statements was $2.1 million. This compensation cost will be recognized over a weighted-average period of 2.9 years.

Performance Shares

The Company grants Performance Shares to designated senior officers as long-term incentive compensation. The payout for these awards is based on the Company’s financial performance over a three-year period. Performance Shares represent the maximum number of shares of StanCorp common stock issuable to the designated senior officers. The actual number of shares issued at the end of the performance period is based on continued employment and satisfaction of Company financial performance conditions, with a portion of the shares withheld to cover required tax withholding.

The Company granted 117,172 and 179,818 Performance Shares for the first quarters of 2013 and 2012, respectively.

The Company issued no shares for the first quarter of 2013 and 9,899 shares of StanCorp common stock for the first quarter of and 2012, respectively, to redeem Performance Shares that vested following the 2012 and 2011 performance periods, net of Performance Shares withheld to cover the required taxes.

The fair value of the Performance Shares is determined based on the closing market price of StanCorp common stock on the grant date.

The compensation cost that the Company will ultimately recognize as a result of these stock awards is dependent on the Company’s financial performance. Assuming that the maximum performance is achieved for each performance goal, $17.3 million in additional compensation cost would be recognized through 2015. The target or expected payout is 50% of the maximum Performance Shares for the 2013 and 2015 performance periods. A target payout for these periods would result in $8.7 million of additional compensation cost through 2015. This cost is expected to be recognized over a weighted-average period of 1.7 years.

Director Stock Grants

Each director who is not an employee of the Company receives annual stock grants with a fair value equal to $100,000 based on the closing market price of StanCorp common stock on the day of the annual shareholders meeting. The stock grants generally vest after one year.

Employee Share Purchase Plan

Currently, the Company’s ESPP allows eligible employees to purchase StanCorp common stock at a 5% discount of the lesser of the closing market price of StanCorp common stock on either the commencement date or the final date of each six-month offering period. Under the terms of the plan, each eligible employee may elect to have the lesser of up to 5% of the employee’s gross total cash compensation or $5,000 per offering period to be withheld to purchase StanCorp common stock. No employee may purchase StanCorp common stock having a fair market value in excess of $25,000 in any calendar year.

Purchases prior to February 2, 2013, allowed for a purchase discount of 15% and contributions of up to 10% of the employee’s gross total cash compensation.

The following table sets forth the compensation cost and related income tax benefit under the Company’s ESPP:

	Three Months Ended March 31,
	2013		2012
	(In millions)
Compensation cost	$	0.2	$	0.6
Related income tax benefit		0.1		0.2

8

4. RETIREMENT BENEFITS

Pension Benefits

The Company has two non-contributory defined benefit pension plans: the employee pension plan and the agent pension plan. The employee pension plan is for all eligible employees of the Company, and the agent pension plan is for former field employees and agents. The defined benefit pension plans provide benefits based on years of service and final average pay. The employee pension plan is sponsored by StanCorp and the agent pension plan is sponsored by Standard. Both plans are administered by Standard Retirement Services and are closed to new participants. Participation in the defined benefit pension plans is generally limited to eligible employees whose date of employment began before 2003.

Under the employee pension plan, a participant is entitled to a normal retirement benefit once the participant reaches age 65. A participant can also receive a normal, unreduced retirement benefit once the sum of his or her age plus years of service is at least 90.

The Company recognizes the funded status of the pension plans as an asset or liability on the balance sheet. The funded status is measured as the difference between the fair value of the plan assets and the projected benefit obligation as of the year-end balance sheet date. While the Company is not obligated to make any contributions to its pension plans for 2013, it does evaluate the funding status of these plans annually in the fourth quarter.

The following table sets forth the components of net periodic benefit cost and other changes in plan assets and benefit obligations recognized in other comprehensive income for pension benefits:

	Three Months Ended March 31,
	2013			2012
	(In millions)
Components of net periodic benefit cost:
Service cost	$	2.6		$	2.5
Interest cost		4.1			4.1
Expected return on plan assets		(7.3	)		(6.6	)
Amortization of prior service cost		0.2			0.2
Amortization of net actuarial loss		2.3			2.1
Net periodic benefit cost		1.9			2.3
Other changes in plan assets and benefit obligation recognized in other comprehensive income:
Amortization of prior service cost		(0.2	)		(0.2	)
Amortization of net actuarial loss		(2.3	)		(2.1	)
Total recognized in other comprehensive income		(2.5	)		(2.3	)
Total recognized in net periodic benefit cost and other comprehensive income	$	(0.6	)	$	—

Postretirement Benefits Other Than Pensions

Standard sponsors and administers a postretirement benefit plan that includes medical, prescription drug benefits and group term life insurance. Eligible retirees are required to contribute specified amounts for medical and prescription drug benefits that are determined periodically and are based on retirees’ length of service and age at retirement. Participation in the postretirement benefit plan is limited to employees who had reached the age of 40, or whose combined age and length of service was equal to or greater than 45 years as of January 1, 2006. This plan is closed to new participants. In 2012, the postretirement benefit plan was amended to reduce future benefits to plan participants that are either not eligible to or choose not to retire on or before July 1, 2013, which reduced operating expenses by $10.3 million for the first quarter of 2013. The 2012 amendment will not affect future benefits for employees who are retired as of July 1, 2013. In addition, as of December 31, 2011, the group term life insurance benefit was curtailed for plan participants who were not retired at December 31, 2011.

The Company recognizes the funded status of the postretirement benefit plan as an asset or liability on the balance sheet. The funded status is measured as the difference between the fair value of the plan assets and the accumulated benefit obligation.

9

The following table sets forth the components of net periodic benefit cost and other amounts recognized in other comprehensive income for postretirement benefits:

	Three Months Ended March 31,
	2013			2012
	(In millions)
Components of net periodic benefit (credit) cost:
Service cost	$	—		$	0.2
Interest cost		0.2			0.4
Expected return on plan assets		(0.2	)		(0.2	)
Amortization of prior service cost		(13.2	)		(0.1	)
Amortization of net actuarial loss		2.9			—
Net periodic benefit (credit) cost		(10.3	)		0.3
Other changes in plan assets and benefit obligation recognized in other comprehensive (income) loss:
Net gain		—			(0.7	)
Amortization of prior service cost		13.2			0.1
Amortization of net actuarial loss		(2.9	)		—
Total recognized in other comprehensive (income) loss		10.3			(0.6	)
Total recognized in net periodic benefit cost and other comprehensive (income) loss	$	—		$	(0.3	)

Deferred Compensation Plans

Eligible employees are covered by a qualified deferred compensation plan sponsored by Standard under which a portion of the employee contribution is matched. Employees not eligible for the employee pension plan are eligible for an additional non-elective employer contribution. Contributions to the plan were $3.3 million and $3.1 million for the first quarters of 2013 and 2012, respectively.

Eligible executive officers, directors, agents and group producers may participate in one of several non-qualified deferred compensation plans under which a portion of the deferred compensation for participating executive officers, agents and group producers is matched. The liability for the plans was $10.9 million at March 31, 2013 and $10.5 million at December 31, 2012.

Non-Qualified Supplemental Retirement Plan

Eligible executive officers are covered by a non-qualified supplemental retirement plan (“non-qualified plan”). Under the non-qualified plan, a participant is entitled to a normal retirement benefit once the participant reaches age 65. A participant can also receive a normal, unreduced retirement benefit once the sum of his or her age plus years of service is at least 90. The Company recognizes the unfunded status of the non-qualified plan in other liabilities on the balance sheet. The unfunded status was $27.6 million and $27.5 million at March 31, 2013 and December 31, 2012, respectively. Expenses were $0.8 million and $0.6 million for the first quarters of 2013 and 2012, respectively. The net loss and prior service cost, net of tax, excluded from the net periodic benefit cost and reported as a component of accumulated other comprehensive income was $0.2 million and $4.7 million at March 31, 2013 and December 31, 2012, respectively.

10

5. SEGMENTS

StanCorp operates through two reportable segments: Insurance Services and Asset Management, as well as an Other category. Subsidiaries, or operating segments, have been aggregated to form the Company’s reportable segments. Resources are allocated and performance is evaluated at the segment level. The Insurance Services segment offers group and individual disability insurance, group life and AD&D insurance, group dental and group vision insurance, and absence management services. The Asset Management segment offers full-service 401(k) plans, 403(b) plans, 457 plans, defined benefit plans, money purchase pension plans, profit sharing plans and non-qualified deferred compensation products and services. This segment also offers investment advisory and management services, financial planning services, origination and servicing of fixed-rate commercial mortgage loans, individual fixed-rate annuity products, group annuity contracts and retirement plan trust products. The Other category includes return on capital not allocated to the product segments, holding company expenses, operations of certain unallocated subsidiaries, interest on debt, unallocated expenses, net capital gains and losses related to the impairment or the disposition of the Company’s invested assets and adjustments made in consolidation.

Intersegment revenues are comprised of administrative fee revenues charged by the Asset Management segment to manage the fixed maturity securities—available-for-sale (“fixed maturity securities”) and commercial mortgage loan portfolios for the Company’s insurance subsidiaries.

The following table sets forth intersegment revenues:

	Three Months Ended March 31,
	2013		2012
	(In millions)
Intersegment administrative fee revenues	$	4.7	$	4.4

11

The following table sets forth premiums, administrative fee revenues and net investment income by major product line or category within each of the Company’s segments:

	Three Months Ended March 31,
	2013			2012
	(In millions)
Premiums:
Insurance Services:
Group life and AD&D	$	215.4		$	224.9
Group long term disability		200.3			204.2
Group short term disability		55.9			53.8
Group other		19.1			19.9
Experience rated refunds		(4.5	)		4.1
Total group insurance		486.2			506.9
Individual disability insurance		47.0			44.2
Total Insurance Services premiums		533.2			551.1
Asset Management:
Retirement plans		1.2			0.8
Individual annuities		1.8			1.4
Total Asset Management premiums		3.0			2.2
Total premiums	$	536.2		$	553.3
Administrative fees:
Insurance Services:
Group insurance	$	3.5		$	3.0
Individual disability insurance		—			0.1
Total Insurance Services administrative fees		3.5			3.1
Asset Management:
Retirement plans		22.2			22.2
Other financial services businesses		7.7			7.7
Total Asset Management administrative fees		29.9			29.9
Other		(4.7	)		(4.4	)
Total administrative fees	$	28.7		$	28.6
Net investment income:
Insurance Services:
Group insurance	$	68.6		$	71.3
Individual disability insurance		13.4			13.3
Total Insurance Services net investment income		82.0			84.6
Asset Management:
Retirement plans		24.2			23.4
Individual annuities		46.2			46.9
Other financial services businesses		2.9			2.8
Total Asset Management net investment income		73.3			73.1
Other		3.9			2.0
Total net investment income	$	159.2		$	159.7

12

The following table sets forth income before income taxes and assets by major product line or category within certain of the Company’s segments:

	Three Months Ended
	March 31,
	2013			2012
	(In millions)
Income (loss) before income taxes:
Insurance Services:
Group insurance	$	34.0		$	28.5
Individual disability insurance		14.8			17.6
Total Insurance Services income before income taxes		48.8			46.1
Asset Management		17.2			15.0
Other		(5.7	)		(13.4	)
Total income before income taxes	$	60.3		$	47.7
Assets:
Insurance Services:
Group insurance	$	6,027.8		$	5,954.5
Individual disability insurance		2,283.3			2,208.4
Total Insurance Services assets		8,311.1			8,162.9
Asset Management		11,592.0			10,632.6
Other		466.4			303.6
Total assets	$	20,369.5		$	19,099.1

13

The following tables set forth select segment information:

	Insurance			Asset
	Services			Management		Other			Total
	(In millions)
Three Months Ended March 31, 2013
Revenues:
Premiums	$	533.2		$	3.0	$	—		$	536.2
Administrative fees		3.5			29.9		(4.7	)		28.7
Net investment income		82.0			73.3		3.9			159.2
Net capital losses		—			—		(1.6	)		(1.6	)
Total revenues		618.7			106.2		(2.4	)		722.5
Benefits and expenses:
Benefits to policyholders		436.0			5.8		—			441.8
Interest credited		0.9			45.7		—			46.6
Operating expenses		82.1			28.2		(5.2	)		105.1
Commissions and bonuses		45.9			7.9		—			53.8
Premium taxes		9.5			—		—			9.5
Interest expense		—			—		8.5			8.5
Net (increase) decrease in deferred acquisition costs, value of business acquired and other intangible assets		(4.5	)		1.4		—			(3.1	)
Total benefits and expenses		569.9			89.0		3.3			662.2
Income (loss) before income taxes	$	48.8		$	17.2	$	(5.7	)	$	60.3
Total assets	$	8,311.1		$	11,592.0	$	466.4		$	20,369.5

	Insurance			Asset
	Services			Management		Other			Total
	(In millions)
Three Months Ended March 31, 2012
Revenues:
Premiums	$	551.1		$	2.2	$	—		$	553.3
Administrative fees		3.1			29.9		(4.4	)		28.6
Net investment income		84.6			73.1		2.0			159.7
Net capital losses		—			—		(0.2	)		(0.2	)
Total revenues		638.8			105.2		(2.6	)		741.4
Benefits and expenses:
Benefits to policyholders		444.7			5.3		—			450.0
Interest credited		1.6			45.6		—			47.2
Operating expenses		92.6			30.2		1.1			123.9
Commissions and bonuses		48.7			6.7		—			55.4
Premium taxes		10.0			—		—			10.0
Interest expense		—			—		9.7			9.7
Net (increase) decrease in deferred acquisition costs, value of business acquired and other intangible assets		(4.9	)		2.4		—			(2.5	)
Total benefits and expenses		592.7			90.2		10.8			693.7
Income (loss) before income taxes	$	46.1		$	15.0	$	(13.4	)	$	47.7
Total assets	$	8,162.9		$	10,632.6	$	303.6		$	19,099.1

14

6. FAIR VALUE

Assets and liabilities recorded at fair value are disclosed using a three-level hierarchy. The classification of assets and liabilities within the hierarchy is based on whether the inputs to the valuation methodology used for measurement are observable or unobservable. Observable inputs reflect market-derived or market-based information obtained from independent sources while unobservable inputs reflect the Company’s estimates about market data.

The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels: Level 1 inputs are based upon quoted prices in active markets for identical assets or liabilities that the Company can access at the measurement date. Level 2 inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. Level 3 inputs are generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect the Company’s estimates of assumptions that market participants would use in pricing the asset or liability.

There are three types of valuation techniques used to measure assets and liabilities recorded at fair value:

• The market approach uses prices or other relevant information generated by market transactions involving identical or comparable assets or liabilities.

• The income approach uses the present value of cash flows or earnings.

• The cost approach, which uses replacement costs more readily adaptable for valuing physical assets.

The Company uses both the market and income approach in its fair value measurements. These measurements are discussed in more detail below.

The following tables set forth the estimated fair value and the carrying value of each financial instrument:

	March 31, 2013
	Carrying   Value		Fair   Value		Level 1		Level 2		Level 3
	(In millions)
Assets:
Fixed maturity securities:
Corporate bonds	$	6,596.4	$	6,596.4	$	—	$	6,520.1	$	76.3
U.S. government and agency bonds		397.8		397.8		—		396.7		1.1
U.S. state and political subdivision bonds		167.9		167.9		—		166.2		1.7
Foreign government bonds		71.3		71.3		—		71.3		—
S&P 500 Index options		15.3		15.3		—		—		15.3
Total fixed maturity securities	$	7,248.7	$	7,248.7	$	—	$	7,154.3	$	94.4
Commercial mortgage loans, net	$	5,320.4	$	5,962.5	$	—	$	—	$	5,962.5
Policy loans		2.5		2.5		—		—		2.5
Separate account assets		5,600.1		5,600.1		5,455.9		144.2		—
Liabilities:
Total other policyholder funds, investment type contracts	$	5,013.3	$	5,386.7	$	—	$	—	$	5,386.7
Index-based interest guarantees		63.6		63.6		—		—		63.6
Short-term debt		1.1		1.3		—		1.3		—
Long-term debt		551.6		580.7		—		580.7		—

15

	December 31, 2012
	Carrying   Value		Fair   Value		Level 1		Level 2		Level 3
	(In millions)
Assets:
Fixed maturity securities:
Corporate bonds	$	6,525.9	$	6,525.9	$	—	$	6,445.5	$	80.4
U.S. government and agency bonds		413.0		413.0		—		411.9		1.1
U.S. state and political subdivision bonds		168.4		168.4		—		166.7		1.7
Foreign government bonds		72.1		72.1		—		72.1		—
S&P 500 Index options		11.3		11.3		—		—		11.3
Total fixed maturity securities	$	7,190.7	$	7,190.7	$	—	$	7,096.2	$	94.5
Commercial mortgage loans, net	$	5,267.4	$	5,946.3	$	—	$	—	$	5,946.3
Policy loans		2.5		2.5		—		—		2.5
Separate account assets		5,154.3		5,154.3		5,007.5		146.8		—
Liabilities:
Total other policyholder funds, investment type contracts	$	4,916.7	$	5,331.3	$	—	$	—	$	5,331.3
Index-based interest guarantees		57.4		57.4		—		—		57.4
Short-term debt		1.0		1.2		—		1.2		—
Long-term debt		551.4		567.4		—		567.4		—

Financial Instruments Not Recorded at Fair Value

The Company did not elect to measure and record commercial mortgage loans, policy loans, other policyholders funds that are investment-type contracts, short-term debt, or long-term debt at fair value on the consolidated balance sheets.

For disclosure purposes, the fair values of commercial mortgage loans were estimated using an option-adjusted discounted cash flow valuation. The valuation includes both observable market inputs and estimated model parameters.

Significant observable inputs to the valuation include:

• Indicative quarter-end pricing for a package of loans similar to those originated by the Company near quarter-end.

• U.S. Government treasury yields.

• Indicative yields from industrial bond issues.

• The contractual terms of nearly every mortgage subject to valuation.

Significant estimated parameters include:

• A liquidity premium that is estimated from historical loan sales and is applied over and above base yields.

• Adjustments in interest rate spread based on an aggregate portfolio loan-to-value ratio, estimated from historical differential yields with respect to loan-to-value ratios.

• Projected prepayment activity.

For policy loans, the carrying value represents historical cost but approximates fair value. While potentially financial instruments, policy loans are an integral component of the insurance contract and have no maturity date.

The fair value of other policyholder funds that are investment-type contracts was calculated using the income approach in conjunction with the cost of capital method. The parameters used for discounting in the calculation were estimated using the perspective of the principal market for the contracts under consideration. The principal market consists of other insurance carriers with similar contracts on their books.

The fair value for long-term debt was predominantly based on quoted market prices as of March 31, 2013 and December 31, 2012, and trades occurring close to March 31, 2013 and December 31, 2012.

Financial Instruments Measured and Recorded at Fair Value

Fixed maturity securities, Standard & Poor’s (“S&P”) 500 Index call options (“S&P 500 Index options”) and index-based interest guarantees embedded in indexed annuities (“index-based interest guarantees”) are recorded at fair value on a recurring basis. In the Company’s consolidated statements of income and comprehensive income, unrealized gains and losses are reported in other comprehensive income for fixed maturity securities, in net investment income for S&P 500 Index options and in interest credited for index-based interest guarantees.

Separate account assets represent segregated funds held for the exclusive benefit of contract holders. The activities of the account primarily relate to participant-directed 401(k) contracts. Separate account assets are recorded at fair value on a recurring basis, with changes in fair value recorded in separate account liabilities. Separate account assets consist of mutual funds. The mutual funds’ fair value is determined through Level 1 and Level 2 inputs. The majority of the separate account assets are valued using quoted prices in an active market with the remainder of the assets valued using quoted prices from an independent pricing service. The Company reviews the values obtained from the pricing service for reasonableness through analytical procedures and performance reviews.

16

Fixed maturity securities are comprised of the following classes:

• Corporate bonds.

• U.S. government and agency bonds.

• U.S. state and political subdivision bonds.

• Foreign government bonds.

• S&P 500 Index options.

The fixed maturity securities are diversified across industries, issuers and maturities. The Company calculates fair values for all classes of fixed maturity securities using valuation techniques described below. They are placed into three levels depending on the valuation technique used to determine the fair value of the securities.

The Company uses an independent pricing service to assist management in determining the fair value of these assets. The pricing service incorporates a variety of information observable in the market in its valuation techniques, including:

• Reported trading prices.

• Benchmark yields.

• Broker-dealer quotes.

• Benchmark securities.

• Bids and offers.

• Credit ratings.

• Relative credit information.

• Other reference data.

The pricing service also takes into account perceived market movements and sector news, as well as a bond’s terms and conditions, including any features specific to that issue that may influence risk, and thus marketability. Depending on the security, the priority of the use of observable market inputs may change as some observable market inputs may not be relevant or additional inputs may be necessary. The Company generally obtains one value from its primary external pricing service. On a case-by-case basis, the Company may obtain further quotes or prices from additional parties as needed.

The pricing service provides quoted market prices when available. Quoted prices are not always available due to bond market inactivity. The pricing service obtains a broker quote when sufficient information, such as security structure or other market information, is not available to produce a valuation. Valuations and quotes obtained from third party commercial pricing services are non-binding and do not represent quotes on which one may execute the disposition of the assets.

The significant unobservable inputs used in the fair value measurement of the reporting entity’s bonds are valuations and quotes received from secondary pricing service, analytical reviews and broker quotes. Significant increases or decreases in any of those inputs in isolation would result in a significantly lower or higher fair value measurement. Generally, a change in the assumption used for the pricing evaluation is accompanied by a directionally similar change in the assumption used for the methodologies.

The Company performs control procedures over the external valuations at least quarterly through a combination of procedures that include an evaluation of methodologies used by the pricing service, analytical reviews and performance analysis of the prices against statistics and trends, back testing of sales activity and maintenance of a securities watch list. As necessary, the Company compares prices received from the pricing service to prices independently estimated by the Company utilizing discounted cash flow models or through performing independent valuations of inputs and assumptions similar to those used by the pricing service in order to ensure prices represent a reasonable estimate of fair value. Although the Company does identify differences from time to time as a result of these validation procedures, the Company did not make any significant adjustments as of March 31, 2013 or December 31, 2012.

S&P 500 Index options and certain fixed maturity securities were valued using Level 3 inputs. The Level 3 fixed maturity securities were valued using matrix pricing, independent broker quotes and other standard market valuation methodologies. The fair value was determined using inputs that were not observable or could not be derived principally from, or corroborated by, observable market data. These inputs included assumptions regarding liquidity, estimated future cash flows and discount rates. Unobservable inputs to these valuations are based on management’s judgment or estimation obtained from the best sources available. The Company’s valuations maximize the use of observable inputs, which include an analysis of securities in similar sectors with comparable maturity dates and bond ratings. Broker quotes are validated by management for reasonableness in conjunction with information obtained from matrix pricing and other sources.

The Company calculates the fair value for its S&P 500 Index options using the Black-Scholes option pricing model and parameters derived from market sources. The Company’s valuations maximize the use of observable inputs, which include direct price quotes from the Chicago Board Options Exchange (“CBOE”) and values for on-the-run treasury securities and London Interbank Offered Rate (“LIBOR”) as reported by Bloomberg. Unobservable inputs are estimated from the best sources available to the Company. These include estimates of future gross dividends to be paid on the stocks underlying the S&P 500 Index, estimates of bid-ask spreads, and estimates of implied volatilities on options. Valuation parameters are calibrated to replicate the actual end-of-day market quotes for options trading on the CBOE. The Company performs additional validation procedures such as the daily observation of market activity and conditions and the tracking and analyzing of actual quotes provided by banking counterparties each time the Company purchases options from them. Additionally, in order to help validate the values derived through the procedures noted above, the Company obtains indicators of value from representative investment banks.

17

The Company uses the income approach valuation technique to determine the fair value of index-based interest guarantees. The liability is the present value of future cash flows attributable to the projected index growth in excess of cash flows driven by fixed interest rate guarantees for the indexed annuity product. Level 3 assumptions for policyholder behavior and future index interest rate declarations significantly influence the calculation. Index-based interest guarantees are included in the other policyholder funds line on the Company’s consolidated balance sheet.

While valuations for the S&P 500 Index options are sensitive to a number of variables, valuations for S&P 500 Index options purchased are most sensitive to changes in the estimates of bid ask spreads, or the S&P 500 Index value, and the implied volatilities of this index. Significant fluctuations in any of those inputs in isolation would result in a significantly lower or higher fair value measurement. Generally, an increase or decrease used in the assumption for the implied volatilities and in the S&P 500 Index value would result in a directionally similar change in the fair value of the asset.

Valuations for the index-based interest guarantees are sensitive to a number of variables, but are most sensitive to the S&P 500 Index value, the implied volatilities of this index, and LIBOR as reported by Bloomberg. Generally, a significant increase or decrease used in the assumption for the implied volatilities and in the S&P 500 Index value would result in a directionally similar change, while an increase or decrease in LIBOR would result in a directionally opposite change in the fair value of the liability.

Valuations for commercial mortgage loans measured at fair value on a nonrecurring basis using significant unobservable Level 3 inputs are sensitive to a number of variables, but are most sensitive to net operating income and the applied capitalization rate. Generally, an increase or decrease resulting from a change in the stabilized net operating income from the collateralized property would result in a directionally similar change in the fair value of the asset. An increase or decrease in the assumption for the capitalization rate would result in a directionally opposite change in the fair value of the asset.

Valuations for real estate acquired in satisfaction of debt through foreclosure or acceptance of deeds in lieu of foreclosure on commercial mortgage loans (“Real Estate Owned”) measured at fair value on a nonrecurring basis using significant unobservable Level 3 inputs are sensitive to a number of variables, but are most sensitive to the reductions taken on appraisals obtained, which may result in a fair value and carrying value below the appraised value. Generally, an increase in the reductions taken on appraisals obtained would result in a reduction in the fair value of the asset.

Quantitative information regarding significant unobservable inputs used in Level 3 valuation of assets and liabilities measured and recorded at fair value is as follows:

	March 31, 2013
	Fair Value		Valuation Technique	Unobservable Input	Range of inputs
	(Dollars in millions)
S&P 500 Index options	$	15.3	Black-Scholes option pricing model	Various assumptions	(a)
Index-based interest guarantees		63.6	Discounted cash flow	Expected future option purchase	1%-5%
				Various assumptions	(b)
			Black-Scholes option pricing model	Various assumptions	(a)
Commercial mortgage loans		54.0	Appraisals	Reduction on appraisal	0%-25%
			Cash flows	Capitalization rate (c)	7%-16%
Real Estate Owned		14.9	Appraisals	Reduction on appraisal	0%-53%

(a) Represents various assumptions derived from market data, which include estimates of bid ask spreads and the implied volatilities for the S&P 500 Index.

(b) Represents various actuarial assumptions which include combined lapse, mortality and withdrawal decrement rates which generally have a range of inputs from 5%-36%.

(c) Capitalization rates are used as an internal analysis in converting the underlying property’s income to an estimated property value.

18

The following tables set forth the reconciliation for all assets and liabilities measured at fair value on a recurring basis using significant unobservable Level 3 inputs:

	Three Months Ended March 31, 2013
	Assets													Liabilities
	U.S.   Government   and Agency Bonds		U.S. State   and Political   Subdivision Bonds		Corporate   Bonds			S&P 500   Index Options			Total     Assets			Index- Based Interest   Guarantees
	(In millions)
Beginning balance	$	1.1	$	1.7	$	80.4		$	11.3		$	94.5		$	57.4
Total realized/unrealized gains (losses):
Included in net income		—		—		—			6.0			6.0			6.2
Included in other comprehensive income (loss)		—		—		(4.1	)		—			(4.1	)		—
Purchases, issuances, sales and settlements:
Purchases		—		—		—			1.9			1.9			—
Issuances		—		—		—			—			—			1.1
Sales		—		—		—			—			—			—
Settlements		—		—		—			(3.9	)		(3.9	)		(1.1	)
Transfers into level 3		—		—		—			—			—			—
Transfers out of level 3		—		—		—			—			—			—
Ending balance	$	1.1	$	1.7	$	76.3		$	15.3		$	94.4		$	63.6

	Three Months Ended March 31, 2012
	Assets														Liabilities
	U.S.   Government   and Agency Bonds			U.S. State   and Political   Subdivision Bonds		Corporate   Bonds			S&P 500   Index Options			Total     Assets			Index- Based Interest   Guarantees
	(In millions)
Beginning balance	$	0.5		$	1.4	$	64.0		$	7.2		$	73.1		$	49.5
Total realized/unrealized gains (losses):
Included in net income		—			—		—			6.7			6.7			6.4
Included in other comprehensive income (loss)		—			—		(1.4	)		—			(1.4	)		—
Purchases, issuances, sales and settlements:
Purchases		—			—		—			2.0			2.0			—
Issuances		—			—		—			—			—			0.1
Sales		—			—		—			—			—			—
Settlements		—			—		—			(1.6	)		(1.6	)		(0.7	)
Transfers into level 3		—			0.4		—			—			0.4			—
Transfers out of level 3		(0.5	)		—		(9.5	)		—			(10.0	)		—
Ending balance	$	—		$	1.8	$	53.1		$	14.3		$	69.2		$	55.3

For all periods disclosed above, fixed maturity securities transferred into Level 3 from Level 2 are the result of the Company being unable to obtain observable assumptions for these investments in the market. Fixed maturity securities transferred out of Level 3 into Level 2 are the result of the Company being able to obtain observable assumptions for these investments in the market. There were no transfers between Level 1 and Level 2 for the first quarter of 2013 and 2012.

19

The following table sets forth the changes in unrealized gains (losses) included in net income relating to positions that the Company continued to hold:

	Three Months Ended March 31,
	2013			2012
	(In millions)
Assets:
S&P 500 Index options	$	4.9		$	5.7
Liabilities:
Index-based interest guarantees	$	(6.5	)	$	(6.8	)

Changes to the fair value of fixed maturity securities, excluding S&P 500 Index options, were recorded in other comprehensive income. Changes to the fair value of the S&P 500 Index options were recorded to net investment income. Changes to the fair value of the index-based interest guarantees were recorded to interest credited.

Certain assets and liabilities are measured at fair value on a nonrecurring basis, such as impaired commercial mortgage loans with specific allowances for losses and Real Estate Owned. The impaired commercial mortgage loans and Real Estate Owned are valued using Level 3 measurements. These Level 3 inputs are reviewed for reasonableness by management and evaluated on a quarterly basis. The commercial mortgage loan measurements include valuation of the market value of the asset using general underwriting procedures and appraisals. Real Estate Owned is initially recorded at net realizable value, which includes an estimate for disposal costs. These amounts may be adjusted in a subsequent period as additional information is received.

The following table sets forth the assets measured at fair value on a nonrecurring basis as of March 31, 2013 that the Company continued to hold:

	March 31, 2013
	Total		Level 1		Level 2		Level 3
	(In millions)
Commercial mortgage loans	$	54.0	$	—	$	—	$	54.0
Real Estate Owned		14.9		—		—		14.9
Total assets measured at fair value on a nonrecurring basis	$	68.9	$	—	$	—	$	68.9

Commercial mortgage loans measured on a nonrecurring basis with a carrying amount of $71.4 million were written down to their fair value of $54.0 million, less selling costs, at March 31, 2013. The specific commercial mortgage loan loss allowance related to these commercial mortgage loans was $22.8 million at March 31, 2013. The Real Estate Owned measured on a nonrecurring basis as of March 31, 2013, and still held at March 31, 2013 had net capital losses totaling $0.6 million for the first quarter of 2013. Real Estate Owned measured on a nonrecurring basis represents newly acquired properties or properties with a value that has been adjusted based on pending sale or other market information.

The following table sets forth the assets measured at fair value on a nonrecurring basis as of December 31, 2012 that the Company continued to hold:

	December 31, 2012
	Total		Level 1		Level 2		Level 3
	(In millions)
Commercial mortgage loans	$	53.9	$	—	$	—	$	53.9
Real Estate Owned		48.2		—		—		48.2
Total assets measured at fair value on a nonrecurring basis	$	102.1	$	—	$	—	$	102.1

Commercial mortgage loans measured on a nonrecurring basis with a carrying amount of $74.1 million were written down to their fair value of $53.9 million, less selling costs, at December 31, 2012. The specific commercial mortgage loan loss allowance related to these commercial mortgage loans was $25.6 million at December 31, 2012. The Real Estate Owned measured on a nonrecurring basis as of December 31, 2012, and still held at December 31, 2012 had capital losses totaling $2.1 million for 2012. See “Note 7—Investments—Commercial Mortgage Loans” for further disclosures regarding the commercial mortgage loan loss allowance.

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7. INVESTMENTS

Fixed Maturity Securities

The following tables set forth amortized costs, gross unrealized gains and losses and fair values of the Company’s fixed maturity securities:

	March 31, 2013
	Amortized       Cost		Unrealized       Gains		Unrealized       Losses			Fair       Value
	(In millions)
Corporate bonds	$	6,045.7	$	557.6	$	(6.9	)	$	6,596.4
U.S. government and agency bonds		340.9		56.9		—			397.8
U.S. state and political subdivision bonds		151.4		16.5		—			167.9
Foreign government bonds		61.2		10.1		—			71.3
S&P 500 Index options		15.3		—		—			15.3
Total fixed maturity securities	$	6,614.5	$	641.1	$	(6.9	)	$	7,248.7

	December 31, 2012
	Amortized       Cost		Unrealized       Gains		Unrealized       Losses			Fair       Value
	(In millions)
Corporate bonds	$	5,942.0	$	587.7	$	(3.8	)	$	6,525.9
U.S. government and agency bonds		351.5		61.5		—			413.0
U.S. state and political subdivision bonds		151.6		16.8		—			168.4
Foreign government bonds		61.3		10.8		—			72.1
S&P 500 Index options		11.3		—		—			11.3
Total fixed maturity securities	$	6,517.7	$	676.8	$	(3.8	)	$	7,190.7

The following table sets forth the amortized costs and fair values of the Company’s fixed maturity securities by contractual maturity:

	March 31, 2013				December 31, 2012
	Amortized       Cost		Fair             Value		Amortized            Cost		Fair       Value
	(In millions)
Due in one year or less	$	680.6	$	694.9	$	699.2	$	712.9
Due after one year through five years		2,746.6		2,975.2		2,779.9		3,009.1
Due after five years through ten years		2,365.0		2,579.7		2,184.7		2,422.6
Due after ten years		822.3		998.9		853.9		1,046.1
Total fixed maturity securities	$	6,614.5	$	7,248.7	$	6,517.7	$	7,190.7

Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations. Callable bonds, excluding bonds with make-whole provisions and bonds with provisions that allow the borrower to prepay near maturity, represented 4.2%, or $305.5 million, of the Company’s fixed maturity securities portfolio at March 31, 2013. At March 31, 2013, the Company did not have any direct exposure to sub-prime or Alt-A mortgages in its fixed maturity securities portfolio. At March 31, 2013, the Company did not have any direct exposure to euro zone government issued debt or debt issued by investment and commercial banks headquartered in Portugal, Ireland, Italy, Greece or Spain. At March 31, 2013, fixed maturity securities issued by investment and commercial banks headquartered in other euro zone countries represented 0.8%, or $57.3 million, of the Company’s fixed maturity security portfolio. There were no impairments on fixed maturity securities related to euro zone exposure during the first three months of 2013 or 2012.

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Gross Unrealized Losses

The following tables set forth the gross unrealized losses and fair value of investments, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position:

	March 31, 2013
	Total				Less than 12 months				12 or more months
	Number		Amount		Number		Amount		Number		Amount
	(Dollars in millions)
Unrealized losses:
Corporate bonds		291	$	6.9		282	$	6.7		9	$	0.2
Fair market value of securities with unrealized losses:
Corporate bonds		291	$	515.3		282	$	508.4		9	$	6.9

	December 31, 2012
	Total				Less than 12 months				12 or more months
	Number		Amount		Number		Amount		Number		Amount
	(Dollars in millions)
Unrealized losses:
Corporate bonds		198	$	3.8		188	$	3.6		10	$	0.2
Fair market value of securities with unrealized losses:
Corporate bonds		198	$	342.5		188	$	335.5		10	$	7.0

The unrealized losses on the investment securities set forth above were partly due to increases in market interest rates, subsequent to their purchase by the Company and have also been affected by overall economic factors. The Company expects the fair value of these investment securities to recover as the investment securities approach their maturity dates or sooner if market yields for such investment securities decline. The Company does not believe that any of the investment securities are impaired due to credit quality or due to any company or industry specific event. Based on management’s evaluation of the securities and the Company’s intent to hold the securities, and as it is unlikely that the Company will be required to sell the securities, none of the unrealized losses summarized in this table are considered other-than-temporary.

Commercial Mortgage Loans

The Company underwrites mortgage loans on commercial property throughout the United States. In addition to real estate collateral, the Company requires either partial or full recourse on most loans. At March 31, 2013, the Company did not have any direct exposure to sub-prime or Alt-A mortgages in its commercial mortgage loan portfolio.

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The following table sets forth the commercial mortgage loan portfolio by property type, by geographic region within the U.S. and by U.S. state:

	March 31, 2013				December 31, 2012
	Amount		Percent		Amount		Percent
	(Dollars in millions)
Property type:
Retail	$	2,571.8		48.3%	$	2,560.7		48.6%
Industrial		1,020.4		19.2		995.8		18.9
Office		967.0		18.1		960.8		18.2
Hotel/motel		280.0		5.3		280.8		5.3
Commercial		215.9		4.1		205.3		4.0
Apartment and other		265.3		5.0		264.0		5.0
Total commercial mortgage loans, net	$	5,320.4		100.0%	$	5,267.4		100.0%
Geographic region*:
Pacific	$	1,869.7		35.1%	$	1,844.1		35.0%
South Atlantic		1,084.2		20.4		1,069.2		20.2
West South Central		644.2		12.2		634.8		12.1
Mountain		614.4		11.5		612.7		11.6
East North Central		446.8		8.4		443.9		8.4
Middle Atlantic		240.4		4.5		240.3		4.6
West North Central		181.5		3.4		183.0		3.5
East South Central		152.7		2.9		150.5		2.9
New England		86.5		1.6		88.9		1.7
Total commercial mortgage loans, net	$	5,320.4		100.0%	$	5,267.4		100.0%
U.S. state:
California	$	1,455.0		27.3%	$	1,436.3		27.3%
Texas		590.9		11.1		587.0		11.1
Florida		336.1		6.3		331.9		6.3
Georgia		309.3		5.8		311.5		5.9
Other states		2,629.1		49.5		2,600.7		49.4
Total commercial mortgage loans, net	$	5,320.4		100.0%	$	5,267.4		100.0%

* Geographic regions obtained from the American Council of Life Insurers Mortgage Loan Portfolio Profile.

Due to the concentration of commercial mortgage loans in California, the Company could be exposed to potential losses as a result of an economic downturn in California as well as certain catastrophes. See Part II, Item 1A, “Risk Factors.”

The carrying value of commercial mortgage loans represents the outstanding principal balance less a loan loss allowance for probable uncollectible amounts. The commercial mortgage loan loss allowance is estimated based on evaluating known and inherent risks in the loan portfolio and consists of a general and a specific loan loss allowance.

Impairment Evaluation

The Company monitors its commercial mortgage loan portfolio for potential impairment by evaluating the portfolio and individual loans. Key factors that are monitored are as follows:

• Loan loss experience.

• Delinquency history.

• Debt coverage ratio.

• Loan to value ratio.

• Refinancing and restructuring history.

• Request for forbearance history.

23

If the analysis above indicates a loan might be impaired, it is further analyzed through the consideration of the following additional factors:

• Delinquency status.

• Foreclosure status.

• Restructuring status.

• Borrower history.

If it is determined a loan is impaired, a specific allowance is recorded.

General Loan Loss Allowance

The general loan loss allowance is based on the Company’s analysis of factors including changes in the size and composition of the loan portfolio, debt coverage ratios, loan to value ratios, actual loan loss experience and individual loan analysis.

Specific Loan Loss Allowance

An impaired commercial mortgage loan is a loan where the Company does not expect to receive contractual principal and interest in accordance with the terms of the loan agreement. A specific allowance for losses is recorded when a loan is considered to be impaired and it is probable that all amounts due will not be collected based on the terms of the original note. The Company also holds specific loan loss allowances on certain performing commercial mortgage loans that it continues to monitor and evaluate. Impaired commercial mortgage loans without specific allowances for losses are those for which the Company has determined that it remains probable that all amounts due will be collected although the timing or nature may be outside the original contractual terms. In addition, for impaired commercial mortgage loans, the Company evaluates the cost to dispose of the underlying collateral, any significant out of pocket expenses the loan may incur and other quantitative information management has concerning the loan. Portions of loans that are deemed uncollectible are written off against the allowance, and recoveries, if any, are credited to the allowance.

The following table sets forth changes in the commercial mortgage loan loss allowance:

	Three Months Ended
	March 31,
	2013			2012
	(In millions)
Commercial mortgage loan loss allowance:
Beginning balance	$	46.6		$	48.1
Provision		3.1			1.3
Charge-offs, net		(6.9	)		(3.8	)
Ending balance	$	42.8		$	45.6
Specific loan loss allowance	$	22.8		$	25.5
General loan loss allowance		20.0			20.1
Total commercial mortgage loan loss allowance	$	42.8		$	45.6

The decrease in commercial mortgage loan loss allowance as of March 31, 2013 compared to March 31, 2012 was primarily due to the decrease in the specific loan loss allowance as of March 31, 2013 compared to March 31, 2012. The increase in the provision and charge-offs for the first quarter of 2013 compared to the same period of 2012 were primarily related to losses associated with foreclosures, accepted deeds in lieu of foreclosure on commercial mortgage loans and other related charges associated with commercial mortgage loans leaving the portfolio during the first quarter of 2013.

24

The following table sets forth the recorded investment in commercial mortgage loans:

	March 31, 2013			December 31, 2012
	(In millions)
Commercial mortgage loans collectively evaluated for impairment	$	5,265.0		$	5,214.2
Commercial mortgage loans individually evaluated for impairment		98.2			99.8
Commercial mortgage loan loss allowance		(42.8	)		(46.6	)
Total commercial mortgage loans	$	5,320.4		$	5,267.4

The Company assesses the credit quality of its commercial mortgage loan portfolio quarterly by reviewing the performance of its portfolio, which includes evaluating its performing and nonperforming commercial mortgage loans. Nonperforming commercial mortgage loans include all commercial mortgage loans that are 60 days or more past due and commercial mortgage loans that are not 60 days past due but are not substantially performing to other original contractual terms.

The following tables set forth performing and nonperforming commercial mortgage loans by property type:

	March 31, 2013
							Hotel/				Apartment
	Retail		Office		Industrial		Motel		Commercial		and Other		Total
	(In millions)
Performing commercial mortgage loans	$	2,564.2	$	965.3	$	1,016.7	$	280.0	$	215.2	$	264.7	$	5,306.1
Nonperforming commercial mortgage loans		7.6		1.7		3.7		—		0.7		0.6		14.3
Total commercial mortgage loans	$	2,571.8	$	967.0	$	1,020.4	$	280.0	$	215.9	$	265.3	$	5,320.4

	December 31, 2012
							Hotel/				Apartment
	Retail		Office		Industrial		Motel		Commercial		and Other		Total
	(In millions)
Performing commercial mortgage loans	$	2,552.5	$	955.8	$	993.0	$	280.8	$	204.7	$	263.5	$	5,250.3
Nonperforming commercial mortgage loans		8.2		5.0		2.8		—		0.6		0.5		17.1
Total commercial mortgage loans	$	2,560.7	$	960.8	$	995.8	$	280.8	$	205.3	$	264.0	$	5,267.4

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The following tables set forth impaired commercial mortgage loans identified in management’s specific review of probable loan losses and the related allowance:

	March 31, 2013
	Recorded     Investment		Unpaid     Principal     Balance		Related     Allowance		Amount on     Nonaccrual     Status
	(In millions)
Impaired commercial mortgage loans:
Without specific loan loss allowances:
Retail	$	16.6	$	16.6	$	—	$	4.1
Office		4.1		4.1		—		2.9
Industrial		4.2		4.2		—		1.4
Apartment and other		1.9		1.9		—		—
Total impaired commercial mortgage loans without specific loan loss allowances		26.8		26.8		—		8.4
With specific loan loss allowances:
Retail		37.7		37.7		11.4		7.3
Office		9.9		9.9		2.4		0.7
Industrial		10.8		10.8		3.1		3.0
Commercial		10.0		10.0		5.8		3.1
Apartment and other		3.0		3.0		0.1		—
Total impaired commercial mortgage loans with specific loan loss allowances		71.4		71.4		22.8		14.1
Total impaired commercial mortgage loans	$	98.2	$	98.2	$	22.8	$	22.5

	December 31, 2012
	Recorded     Investment		Unpaid     Principal     Balance		Related     Allowance		Amount on     Nonaccrual     Status
	(In millions)
Impaired commercial mortgage loans:
Without specific loan loss allowances:
Retail	$	15.3	$	15.3	$	—	$	2.2
Office		5.2		5.2		—		4.1
Industrial		3.3		3.3		—		0.2
Apartment and other		1.9		1.9		—		—
Total impaired commercial mortgage loans without specific loan loss allowances		25.7		25.7		—		6.5
With specific loan loss allowances:
Retail		37.9		37.9		13.2		9.3
Office		10.3		10.3		2.5		1.3
Industrial		11.4		11.4		3.6		2.0
Commercial		11.4		11.4		6.2		2.7
Apartment and other		3.1		3.1		0.1		—
Total impaired commercial mortgage loans with specific loan loss allowances		74.1		74.1		25.6		15.3
Total impaired commercial mortgage loans	$	99.8	$	99.8	$	25.6	$	21.8

The decrease in impaired commercial mortgage loans at March 31, 2013 compared to December 31, 2012 was primarily due to loan repayments and foreclosures during the first three months of 2013. As of March 31, 2013 and December 31, 2012, the Company did not have any commercial mortgage loans greater than 90 days delinquent that were accruing interest.

26

A modification is considered to be a troubled debt restructuring when the debtor is experiencing financial difficulties and the restructured terms constitute a concession. The Company evaluates all restructured commercial mortgage loans for indications of troubled debt restructurings and the potential losses related to these restructurings. If a loan is considered a troubled debt restructuring, the Company impairs the loan and records a specific allowance for estimated losses. In some cases, the recorded investment in the loan may increase post-restructuring. As a result of adopting the amendments in ASU No. 2011-02, A Creditor’s Determination of Whether a Restructuring Is a Troubled Debt Restructuring, the Company assessed all restructurings that occurred during the period to determine if they were troubled debt restructurings. The Company did not identify any troubled debt restructurings that were not already considered impaired.

The following table sets forth information related to the troubled debt restructurings of financing receivables:

	Three Months Ended March 31, 2013
	Number     of Loans		Pre-     Restructuring     Recorded Investment		Post-     Restructuring     Recorded Investment
	(Dollars in millions)
Troubled debt restructurings:
Retail		3	$	1.9	$	4.9

There were no troubled debt restructurings identified in the previous 12 months that subsequently defaulted during the first three months of 2013.

The following table sets forth the average recorded investment in impaired commercial mortgage loans before specific allowances for losses:

	Three Months Ended       March 31,
	2013		2012
	(In millions)
Average recorded investment	$	99.0	$	104.4

Interest Income

The Company records interest income in net investment income and continues to recognize interest income on delinquent commercial mortgage loans, until the loans are more than 90 days delinquent. Interest income and accrued interest receivable are reversed when a loan is put on non-accrual status. For loans that are less than 90 days delinquent, management may reverse interest income and the accrued interest receivable if there is a question on the collectability of the interest. Interest income on loans in the 90-day delinquent category is recognized in the period the cash is collected. The Company resumes the recognition of interest income when the loan becomes less than 90 days delinquent and management determines it is probable that the loan will remain performing.

The amount of interest income recognized on impaired commercial mortgage loans was $1.0 million and $1.1 million for the first quarters of 2013 and 2012, respectively. The cash received by the Company in payment of interest on impaired commercial mortgage loans was $0.9 million and $1.1 million for the first quarters of 2013 and 2012, respectively.

The following tables set forth the aging of commercial mortgage loans by property type:

	March 31, 2013
	30 Days  Past Due		60 Days  Past Due		Greater Than  90 Days Past Due		Total  Past Due		Allowance Related  to  Past Due			Current,  net		Total  Commercial  Mortgage Loans
	(In millions)
Commercial mortgage loans:
Retail	$	27.0	$	0.7	$	8.2	$	35.9	$	(1.3	)	$	2,537.2	$	2,571.8
Office		1.5		0.4		1.6		3.5		(0.3	)		963.8		967.0
Industrial		1.6		—		4.7		6.3		(1.0	)		1,015.1		1,020.4
Hotel/motel		—		—		—		—		—			280.0		280.0
Commercial		—		—		2.9		2.9		(2.3	)		215.3		215.9
Apartment and other		—		—		0.6		0.6		—			264.7		265.3
Total commercial mortgage loans	$	30.1	$	1.1	$	18.0	$	49.2	$	(4.9	)	$	5,276.1	$	5,320.4

27

	December 31, 2012
	30 Days   Past Due		60 Days   Past Due		Greater Than   90 Days Past Due		Total   Past Due		Allowance Related  to Past Due			Current,   net		Total  Commercial  Mortgage Loans
	(In millions)
Commercial mortgage loans:
Retail	$	17.2	$	4.9	$	4.7	$	26.8	$	(1.4	)	$	2,535.3	$	2,560.7
Office		4.1		—		5.6		9.7		(0.6	)		951.7		960.8
Industrial		1.6		0.5		3.6		5.7		(1.4	)		991.5		995.8
Hotel/motel		—		—		—		—		—			280.8		280.8
Commercial		2.7		—		1.4		4.1		(0.8	)		202.0		205.3
Apartment and other		—		0.6		—		0.6		—			263.4		264.0
Total commercial mortgage loans	$	25.6	$	6.0	$	15.3	$	46.9	$	(4.2	)	$	5,224.7	$	5,267.4

The Company closely monitors all past due commercial mortgage loans. Additional attention is given to those loans at least 60 days past due. Commercial mortgage loans that were at least 60 days past due totaled $19.1 million and $21.3 million at March 31, 2013 and December 31, 2012, respectively. Overall, commercial mortgage loans at least 60 days past due were 0.35% and 0.40% of the commercial mortgage loan portfolio at March 31, 2013 and December 31, 2012.

Net Investment Income

The following table sets forth net investment income summarized by investment type:

	Three Months Ended
	March 31,
	2013			2012
	(In millions)
Bonds	$	76.4		$	79.2
S&P 500 Index options		6.0			6.7
Total fixed maturity securities		82.4			85.9
Commercial mortgage loans		83.4			79.5
Real estate		(0.3	)		0.1
Other		2.4			2.0
Gross investment income		167.9			167.5
Investment expenses		(5.6	)		(5.7	)
Tax-advantaged investment operating losses		(3.1	)		(2.1	)
Net investment income	$	159.2		$	159.7

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Realized Gross Capital Gains and Losses

The following table sets forth gross capital gains and losses by investment type:

	Three Months Ended
	March 31,
	2013			2012
	(In millions)
Gains:
Fixed maturity securities	$	2.6		$	2.5
Commercial mortgage loans		0.5			0.2
Real Estate Owned		0.1			0.1
Other		0.2			0.1
Gross capital gains		3.4			2.9
Losses:
Fixed maturity securities		(0.6	)		(1.3	)
Provision for commercial mortgage loan losses		(3.1	)		(1.3	)
Real Estate Owned		(1.0	)		(0.5	)
Other		(0.3	)		—
Gross capital losses		(5.0	)		(3.1	)
Net capital losses	$	(1.6	)	$	(0.2	)

Securities Deposited as Collateral

Securities deposited for the benefit of policyholders in various states, in accordance with state regulations, amounted to $7.8 million and $7.9 million at March 31, 2013 and December 31, 2012, respectively.

8. DERIVATIVE FINANCIAL INSTRUMENTS

The Company sells indexed annuities, which permit the holder to elect a fixed interest rate return or an indexed return, where interest credited to the contracts is based on the performance of the S&P 500 Index, subject to an upper limit or cap and minimum guarantees. Policyholders may elect to rebalance between interest crediting options at renewal dates annually. At each renewal date, the Company has the opportunity to re-price the indexed component by changing the cap, subject to minimum guarantees. The Company estimates the fair value of the index-based interest guarantees for the current period and for all future reset periods until contract maturity. Changes in the fair value of the index-based interest guarantees are recorded as interest credited. The liability represents an estimate of the cost of the options to be purchased in the future to manage the risk related to the index-based interest guarantees. The liability for index-based interest guarantees is the present value of future cash flows attributable to the projected index growth that is in excess of cash flows attributable to fixed interest rates guarantees. The excess cash flows are discounted back to the date of the balance sheet using current market indicators for future interest rates and option costs. Cash flows depend on actuarial estimates for policyholder lapse behavior and management’s discretion in setting renewal index-based interest guarantees.

The Company purchases S&P 500 Index options for its interest crediting strategy used in its indexed annuity product. The S&P 500 Index options are purchased from investment banks and are selected in a manner that supports the amount of interest that is expected to be credited in the current year to annuity policyholder accounts that are dependent on the performance of the S&P 500 Index. The purchase of S&P 500 Index options is a pivotal part of the Company’s risk management strategy for indexed annuity products. The S&P 500 Index options are exclusively used for risk management. While valuations of the S&P 500 Index options are sensitive to a number of variables, valuations for S&P 500 Index options purchased are most sensitive to changes in the S&P 500 Index value and the implied volatilities of this index. The Company generally purchases one S&P 500 Index option contract per month, which has an expiry date of one year from the date of purchase.

The notional amount of the Company’s S&P 500 Index options at March 31, 2013 and December 31, 2012 was $319.1 million and $315.2 million, respectively. Option premiums paid for the Company’s S&P 500 Index options were $1.9 million and $2.0 million for the first quarters of 2013 and 2012, respectively. The Company received $3.9 million and $1.6 million for options exercised for the first quarters of 2013 and 2012, respectively.

The Company recognizes all derivative investments as assets or liabilities on the balance sheet at fair value. The Company currently does not designate its derivatives as hedging instruments and thus does not use hedge accounting. As such, any change in the fair value of the derivative assets and derivative liabilities is recognized as income or loss in the period of change. See “Note 6—Fair Value” for additional information regarding the fair value of the Company’s derivative assets and liabilities.

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The following table sets forth the fair value of the Company’s derivative assets and liabilities:

	March 31,		December 31,
Derivatives Not Designated as Hedging Instruments	2013		2012
	(In millions)
Assets:
Fixed maturity securities:
S&P 500 Index options	$	15.3	$	11.3
Liabilities:
Other policyholder funds:
Index-based interest guarantees	$	63.6	$	57.4

The following table sets forth the amount of gain or loss recognized in earnings from the change in fair value of the Company’s derivative assets and liabilities:

	Three Months Ended
	March 31,
Derivatives Not Designated as Hedging Instruments	2013			2012
	(In millions)
Net investment income:
S&P 500 Index options	$	6.0		$	6.7
Interest credited:
Index-based interest guarantees		(6.2	)		(6.4	)
Net (loss) gain	$	(0.2	)	$	0.3

Fluctuations in the fair value of the S&P 500 Index options related to the volatility of the S&P 500 Index increased net investment income for the first quarters of 2013 and 2012. Fluctuations in the fair value of the index-based interest guarantees related to the volatility of the S&P 500 Index increased interest credited for the first quarters of 2013 and 2012. The combined changes in fair value of the S&P 500 Index options and the index-based interest guarantees resulted in a net loss for the first quarter of 2013 and a net gain for the first quarter of 2012.

The Company does not bear derivative-related risk that would require it to post collateral with another institution, and its index option contracts do not contain counterparty credit-risk-related contingent features. The Company is exposed to the credit worthiness of the institutions from which it purchases its S&P 500 Index options and these institutions’ continued abilities to perform according to the terms of the contracts. The current values for the credit exposure have been affected by fluctuations in the S&P 500 Index. The Company’s maximum credit exposure would require an increase of 5.2% in the value of the S&P 500 Index. The maximum credit risk is calculated using the cap strike price of the Company’s S&P 500 Index options less the floor price, multiplied by the notional amount of the S&P 500 Index options.

The following table sets forth the fair value of the Company’s derivative assets and its maximum credit risk exposure related to its derivatives:

	March 31, 2013
	Assets at		Maximum
	Fair Value		Credit Risk
	(In millions)
Counterparty:
The Bank of New York Mellon	$	12.7	$	16.4
Goldman Sachs		2.6		3.2
Total	$	15.3	$	19.6

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9. DEFERRED ACQUISITION COSTS (“DAC”), VALUE OF BUSINESS ACQUIRED (“VOBA”) AND OTHER INTANGIBLE ASSETS

DAC, VOBA and other acquisition related intangible assets are generally originated through the issuance of new business or the purchase of existing business, either by purchasing blocks of insurance policies from other insurers or by the outright purchase of other companies. The Company’s other intangible assets are subject to impairment tests on an annual basis or more frequently if circumstances indicate that carrying values may not be recoverable.

The following table sets forth activity for DAC, VOBA and other intangible assets:

	Three Months Ended   March 31, 2013			Year Ended     December 31, 2012
	(In millions)
Carrying value at beginning of period:
DAC	$	284.9		$	274.4
VOBA		23.4			26.4
Other intangible assets		38.2			44.1
Total balance at beginning of period		346.5			344.9
Deferred or acquired:
DAC		20.7			71.4
Total deferred or acquired during period		20.7			71.4
Amortized during period:
DAC		(12.4	)		(60.9	)
VOBA		(0.6	)		(3.0	)
Other intangible assets		(1.8	)		(5.9	)
Total amortized during period		(14.8	)		(69.8	)
Carrying value at end of period, net:
DAC		293.2			284.9
VOBA		22.8			23.4
Other intangible assets		36.4			38.2
Total carrying value at end of period	$	352.4		$	346.5

The Company defers certain acquisition costs that vary with and are directly related to the origination of new business. Certain costs related to obtaining new business and acquiring business through reinsurance agreements have been deferred and will be amortized to accomplish matching against related future premiums or gross profits as appropriate. The Company normally defers certain acquisition-related commissions and incentive payments, certain costs of policy issuance and underwriting, and certain printing costs. Assumptions used in developing DAC and amortization amounts each period include the amount of business in-force, expected future persistency, withdrawals, interest rates and profitability. These assumptions are modified to reflect actual experience when appropriate. Additional amortization of DAC is charged to current earnings, to the extent it is determined that future premiums or gross profits are not adequate to cover the remaining amounts deferred. Changes in actual persistency are reflected in the calculated DAC balance. Costs that are not directly associated with the acquisition of new business are not deferred as DAC and are charged to expense as incurred. Generally, annual commissions are considered expenses and are not deferred.

DAC for group and individual disability insurance products and group life insurance products is amortized over the life of related policies in proportion to future premiums. The Company amortizes DAC for group disability and life insurance products over the initial premium rate guarantee period, which averages 2.5 years. DAC for individual disability insurance products is amortized in proportion to future premiums over the life of the contract, averaging 20 to 25 years.

The Company’s individual deferred annuities and group annuity products are classified as investment contracts. DAC related to these products is amortized over the life of related policies in proportion to expected gross profits. For the Company’s individual deferred annuities, DAC is amortized over 30 years. DAC for group annuity products is amortized over 10 years.

VOBA primarily represents the discounted future profits of business assumed through reinsurance agreements. The Company has established VOBA for a block of individual disability business assumed from Minnesota Life Insurance Company (“Minnesota Life”) and a block of group disability and group life business assumed from Teachers Insurance and Annuity Association of America (“TIAA”). VOBA is generally amortized in proportion to future premiums for group and individual disability insurance products and group life products. However, the VOBA related to the TIAA transaction associated with an in-force block of group long term disability claims for which no ongoing premium is received is amortized in proportion to expected gross profits. If actual premiums or future profitability are inconsistent with the Company’s assumptions, the Company could be required to make adjustments to VOBA

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and related amortization. The VOBA associated with the TIAA transaction is amortized in proportion to expected gross profits with an amortization period of up to 20 years. For the VOBA associated with the Minnesota Life block of business assumed, the amortization period is up to 30 years and is amortized in proportion to future premiums. The accumulated amortization of VOBA was $66.0 million and $65.4 million at March 31, 2013 and December 31, 2012, respectively.

The following table sets forth the amount of DAC and VOBA balances amortized in proportion to expected gross profits and the percentage of the total balance of DAC and VOBA amortized in proportion to expected gross profits:

	March 31, 2013				December 31, 2012
	Amount		Percent		Amount		Percent
	(Dollars in millions)
DAC	$	63.8		21.8%	$	60.9		21.4%
VOBA		5.7		25.0		5.9		25.2

Key assumptions, which will affect the determination of expected gross profits for determining DAC and VOBA balances, are:

• Persistency.

• Interest rates, which affect both investment income and interest credited.

• Stock market performance.

• Capital gains and losses.

• Claim termination rates.

• Amount of business in-force.

These assumptions are modified to reflect actual experience when appropriate. Although a change in a single assumption may have an impact on the calculated amortization of DAC or VOBA for balances associated with investment contracts, it is the relationship of that change to the changes in other key assumptions that determines the ultimate impact on DAC or VOBA amortization. Because actual results and trends related to these assumptions vary from those assumed, the Company revises these assumptions annually to reflect its current best estimate of expected gross profits. As a result of this process, known as “unlocking,” the cumulative balances of DAC and VOBA are adjusted with an offsetting benefit or charge to income to reflect changes in the period of the revision. An unlocking event generally occurs as a result of actual experience or future expectations differing from previous estimates. As a result of unlocking, the amortization schedule for future periods is also adjusted.

The following table sets forth the impact of unlocking on DAC and VOBA balances:

	Three Months Ended March  31,
	2013		2012
	(In millions)
Decrease to DAC and VOBA	$	—	$	(0.8	)

Significant, unanticipated changes in key assumptions, which affect the determination of expected gross profits, may result in a large unlocking event that could have a material adverse effect on the Company’s financial position or results of operations. However, future changes in DAC and VOBA balances due to changes in underlying assumptions are not expected to be material.

The Company’s other intangible assets are subject to amortization and consist of certain customer lists from Asset Management business acquired and an individual disability marketing agreement. Customer lists have a combined estimated weighted-average remaining life of 7.2 years. The marketing agreement which accompanied the Minnesota Life transaction, provides access to Minnesota Life agents, some of whom now market Standard’s individual disability insurance products. The Minnesota Life marketing agreement will be fully amortized by the end of 2023. The accumulated amortization of other intangible assets was $38.3 million and $36.5 million at March 31, 2013 and December 31, 2012, respectively.

The following table sets forth the estimated net amortization of VOBA and other intangible assets for the remainder of 2013 and for each of the next five years:

	Amount
	(In millions)
2013	$	6.4
2014		7.5
2015		7.3
2016		5.8
2017		4.4
2018		4.3

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10. COMMITMENTS AND CONTINGENCIES

Litigation Contingencies

In the normal course of business, the Company is involved in various legal actions and other state and federal proceedings. A number of actions or proceedings were pending at March 31, 2013. In some instances, lawsuits include claims for punitive damages and similar types of relief in unspecified or substantial amounts, in addition to amounts for alleged contractual liability or other compensatory damages. In the opinion of management, the ultimate liability, if any, arising from the actions or proceedings is not expected to have a material effect on the Company’s business, financial position, results of operations or cash flows.

Senior Unsecured Revolving Credit Facility (“Facility”) Contingencies

The Company maintains a $250 million Facility. Upon the request of StanCorp and with the consent of the lenders under the Facility, the Facility can be increased to $350 million. The termination date of the Facility is June 22, 2016, though, at the option of StanCorp and with the consent of the lenders under the Facility, the termination date can be extended for two additional one year periods. Borrowings under the Facility are used for working capital, general corporate purposes and for the issuance of letters of credit.

Under the agreement, the Company is subject to two financial covenants that are based on the Company’s ratio of total debt to total capitalization and consolidated net worth. The Company is also subject to covenants that limit subsidiary indebtedness. The Facility is subject to pricing levels based upon the Company’s publicly announced debt ratings and includes an interest rate option at the election of the borrower of a base rate plus the applicable margin or the LIBOR rate plus the applicable margin, plus facility and utilization fees. At March 31, 2013, the Company was in compliance with all financial covenants under the Facility and had no outstanding balance on the Facility.

Other Financing Obligations

The Company has $250 million of 5.00% senior notes (“Senior Notes’’), which mature on August 15, 2022. Interest is paid semi-annually on February 15 and August 15, began on February 15, 2013.

The Company has $300 million of 6.90% junior subordinated debentures (“Subordinated Debt”), which matures on June 1, 2067 and is non-callable prior to June 1, 2017. The principal amount of the Subordinated Debt is payable at maturity. Interest is payable semi-annually on June 1 and December 1 until June 1, 2017, and quarterly thereafter at a floating rate equal to three-month LIBOR plus 2.51%. StanCorp has the option to defer interest payments for up to five years. The declaration and payment of dividends to shareholders would be restricted if the Company elected to defer interest payments on its Subordinated Debt. If elected, the restriction would be in place during the interest deferral period. The Company is currently not deferring interest on the Subordinated Debt.

In the normal course of business, the Company commits to fund commercial mortgage loans generally up to 90 days in advance. At March 31, 2013, the Company had outstanding commitments to fund commercial mortgage loans totaling $171.7 million, with fixed interest rates ranging from 4.125% to 5.500%. These commitments generally have fixed expiration dates. A small percentage of commitments expire due to the borrower failing to deliver the required items by the expiration date. In these cases, the Company retains the commitment fee and good faith deposit. Alternatively, if the Company terminates a commitment due to the disapproval of a commitment requirement, the commitment fee and good faith deposit will typically be refunded to the borrower, less an administrative fee.

11. ACCOUNTING PRONOUNCEMENTS

Accounting Standards Update (“ASU”) No. 2011-11, Disclosures about Offsetting Assets and Liabilities

In December 2011, the FASB issued ASU No. 2011-11, Disclosures about Offsetting Assets and Liabilities. The main objective of ASU No. 2011-11 is to enhance disclosures for financial instruments and derivative instruments that have right of setoff conditions. Under the guidance provided in this ASU, entities will be required to disclose the amount of both the recognized asset and the recognized liability subject to setoff under the same arrangement.

ASU No. 2011-11 became effective for interim and annual periods beginning on or after January 1, 2013. The Company does not currently have exposure to hedges, derivatives or master netting arrangements that would be subjected to these additional disclosures. Therefore, the Company does not expect this ASU to have a material effect on its asset and liability disclosures in the financial statements.

ASU No. 2013-01, Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities

In January 2013, the FASB issued ASU No. 2013-01, Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities. The main objective of ASU No. 2013-01 is to address the implementation issues and clarify the scope of ASU No. 2011-11 to apply to derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions offset or subject to a master netting arrangement or similar agreement. This clarification is consistent with the Company’s original interpretation of the ASU and does not change the Company’s conclusion on the impact of ASU 2011-11.

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12. INCOME TAXES

Income taxes may differ from the amount computed by applying the federal corporate tax rate of 35% to pre-tax income because of the net results of permanent differences between book and taxable income and because of the inclusion of state and local income taxes, net of the federal tax benefit.

The following table sets forth the combined federal and state effective income tax rates:

	Three Months Ended
	March 31,
	2013		2012
Combined federal and state effective income tax rates		22.4%		26.2%

During the first quarter of 2013 and throughout 2012, the Company purchased tax-advantaged investments. These investments were the primary drivers of the decrease in the effective income tax rate for the first quarter of 2013 compared to the first quarter of 2012.

13. ACCUMULATED OTHER COMPREHENSIVE INCOME

The following table sets forth the changes in accumulated other comprehensive income by component:

	Net Unrealized Gains (losses) on Fixed Maturity Securities     Available-for-Sale			Employee       Benefit Plans			Total Accumulated Other     Comprehensive     Income
	(In millions)
Balance, January 1, 2012	$	315.2		$	(80.1	)	$	235.1
Other comprehensive income, net of tax before reclassification adjustment(1)		71.4			—			71.4
Amounts reclassified from accumulated other comprehensive income, net of tax(2)		(3.6	)		6.4			2.8
Net other comprehensive income, net of tax		67.8			6.4			74.2
Balance, December 31, 2012		383.0			(73.7	)		309.3
Other comprehensive loss, net of tax before reclassification adjustment(3)		(17.2	)		—			(17.2	)
Amounts reclassified from accumulated other comprehensive income, net of tax(4)		(1.2	)		(4.8	)		(6.0	)
Net other comprehensive loss, net of tax		(18.4	)		(4.8	)		(23.2	)
Balance, March 31, 2013	$	364.6		$	(78.5	)	$	286.1

⁽¹⁾  Net of tax expenses of $38.3 million for unrealized gains on fixed maturity securities and $0.2 million for employee benefits, respectively.

⁽²⁾  Net of tax benefit of $2.2 million for unrealized gains on fixed maturity securities and net of tax expense of $3.4 million for employee benefits.

⁽³⁾  Net of tax benefit of $7.5 million for unrealized losses on fixed maturity securities.

⁽⁴⁾  Net of tax benefits of $0.8 million for unrealized gains on fixed maturity securities and $2.6 million for employee benefits, respectively.

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14. SEVERANCE, TRANSITION COSTS AND LEASE TERMINATIONS

During the first quarter of 2013, the Company implemented expense management initiatives to offset the negative effects of the continued low interest rate environment and lower group insurance premiums compared to 2012.

The following table sets forth expenses incurred related to the expense management initiatives:

	Three Months Ended, March 31, 2013
	Beginning         Accrued         Liability		Charged to     Expense, Net		Expenditures		Ending Accrued     Liability
	(In millions)
Severance	$	0.1	$	2.9	$	1.8	$	1.2
Transition costs		—		1.1		1.1		—
Lease terminations		0.3		—		0.1		0.2
Total severance, transition costs and lease terminations	$	0.4	$	4.0	$	3.0	$	1.4

	Year Ended, December 31, 2012
	Beginning Accrued     Liability(1)		Charged to     Expense, Net		Expenditures		Ending     Accrued     Liability
	(In millions)
Severance	$	1.0	$	—	$	0.9	$	0.1
Transition costs		—		—		—		—
Lease terminations		1.0		—		0.7		0.3
Total severance, transition costs and lease terminations	$	2.0	$	—	$	1.6	$	0.4

⁽¹⁾  Amounts relate to restructuring charges implemented by the Company during 2011.

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ITEM 2: MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

As used in this Form 10-Q, the terms “StanCorp,” “Company,” “we,” “us” and “our” refer to StanCorp Financial Group, Inc. and its subsidiaries, unless the context otherwise requires. The following analysis of the consolidated financial condition and results of operations of StanCorp should be read in conjunction with the unaudited condensed consolidated financial statements and related notes thereto. See Item 1, “Financial Statements.”

Our filings with the Securities and Exchange Commission (“SEC”) include our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, proxy statements, registration statements and amendments to those reports. Access to all filed reports is available free of charge on our website at www.stancorpfinancial.com as soon as reasonably practicable after we electronically file such material with, or furnish it to, the SEC. The SEC also maintains an Internet site that contains reports, proxy and information statements and other information regarding issuers that file electronically with the SEC at www.sec.gov.

The following management assessment of the financial condition and results of operations should be read in conjunction with the consolidated financial statements and notes thereto in our 2012 Form 10-K. Those consolidated financial statements and certain disclosures made in this Form 10-Q have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and require us to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosures of contingent assets and contingent liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during each reporting period. The estimates most susceptible to material changes due to significant judgment are identified as critical accounting policies. The results of these estimates are critical because they affect our profitability and may affect key indicators used to measure our performance. See “Critical Accounting Policies and Estimates.”

EXECUTIVE SUMMARY

Financial Results Overview

The following table sets forth selected consolidated financial results:

	Three Months Ended March 31,
	2013			2012
	(Dollars in millions except per share data)
Net income	$	46.8		$	35.2
After-tax net capital losses		(1.0	)		(0.1	)
Net income excluding after-tax net capital losses	$	47.8		$	35.3
Diluted earnings per common share:
Net income	$	1.05		$	0.79
After-tax net capital losses		(0.02	)		—
Net income excluding after-tax net capital losses	$	1.07		$	0.79
Diluted weighted-average common shares outstanding		44,500,049			44,461,841

Financial measures that exclude after-tax net capital gains and losses are non-GAAP measures. To provide investors with a broader understanding of earnings, we provide net income per diluted share excluding after-tax net capital gains and losses, along with the GAAP measure of net income per diluted share, because capital gains and losses are not likely to occur in a stable pattern.

Net income excluding after-tax net capital losses increased to $1.07 per diluted share for the first quarter of 2013 from $0.79 per diluted share for the first quarter of 2012, and was primarily due to lower operating expenses as a result of expense management initiatives implemented in the first quarter of 2013. The expense management initiatives included an amendment to the postretirement benefit plan which reduced operating expenses by $10.3 million or $0.15 per diluted share for the first quarter of 2013.

Outlook

We continue to be confronted with macro-economic factors that have challenged the growth of our business over the past few years. A persistent low interest rate environment and elevated claims incidence has driven pricing increases in a very price sensitive group insurance marketplace. In addition, high levels of unemployment, and low wage and employment growth of our customers, particularly in the public and education sectors, has led to a lack of organic growth within our book of business. Despite these challenges, we will continue to focus on our long-term objectives and address challenges that arise with financial discipline, from a position of financial strength. We manage for long-term profitability by focusing on business diversification, disciplined product pricing, sound underwriting, effective claims management and high-quality customer service.

We intend to preserve the value of our businesses by providing excellent service to our customers. We will optimize shareholder value by investing in new product and service capabilities and through the strategic use of capital. We believe these actions position us well for growth as the economy recovers.

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Our first quarter financial results reflect a strong start to 2013. We have made good progress in implementing pricing actions in our group long term disability business. Our expense management efforts have made significant contributions to our earnings for the first quarter of 2013 as we manage expenses to a level consistent with premium expectations. We amended our postretirement benefit plan as part of our expense management initiatives to reduce future benefits to plan participants. The amendment reduced operating expenses by $10.3 million or $0.15 per diluted share for the first quarter of 2013 and is expected to reduce operating expenses for the second quarter of 2013 by a similar amount. In addition, we have resumed share repurchases during the first quarter of 2013.

Primary Drivers of First Quarter 2013 Results

The primary drivers of our first quarter 2013 results are the group insurance benefit ratio and expense management initiatives. The benefit ratio is primarily affected by reserves established based on premium levels, claims experience, assumptions used to establish related reserves, such as our discount rate, and growth of our in-force block of business. Our group insurance benefit ratio for the first quarter of 2013 was 83.9%, compared to 83.5% for the first quarter of 2012. Our discount rate used for newly established long term disability claim reserves for the first quarter of 2013 was 3.75% compared to 4.75% for the first quarter of 2012. The 100 basis point decrease from the first quarter of 2012 was due to the continued low interest rate environment. A 100 basis point decrease in the discount rate results in a corresponding decrease in quarterly pre-tax income of approximately $8 million. Using a common discount rate, the benefit ratio for this quarter improved by 120 basis points compared to the first quarter of 2012. Claims experience can fluctuate widely from quarter to quarter and tends to be more stable when measured over a longer period of time.

Our Insurance Services segment premiums decreased 3.2% to $533.2 million for the first quarter of 2013 compared to the first quarter of 2012 primarily due to higher experience rated refunds (“ERRs”) and lower group insurance sales from 2012 and the first quarter of 2013. Excluding the effect of ERRs, premiums for the Insurance Services segment decreased 1.7%. Premium growth in our group insurance in-force business is affected by employment and wage growth in our existing customer base, changes in price per insured and average age of employees. The economy has continued to negatively affect wage rate and employment levels in a significant portion of our customer base, including state and local public and education sectors, and therefore has put downward pressure on our premiums.

We continue to make progress with the implementation of our pricing actions related to the low interest rate environment and higher claims incidence that began in 2011. We have had the opportunity to re-price approximately 75% of our long term disability business for elevated claims incidence as of March 31, 2013. In addition, pricing actions related to interest rates were introduced in 2010 and 2012. We continued to refine our pricing to account for a continued low interest rate environment. During the renewal process, we evaluate pricing on a case by case basis and consider the underlying performance of each case. We are pleased with the acceptance of our rate increases. Our sales force is communicating and selling our unique value proposition, while the rest of our employees are delivering the quality service on which we have based our reputation in the employee benefits marketplace.

Consolidated Results of Operations

Revenues

Revenues consist of premiums, administrative fees, net investment income and net capital gains and losses.

The following table sets forth consolidated revenues:

	Three Months Ended March  31,
	2013			2012			Percent     Change
	(Dollars in millions)
Revenues:
Premiums	$	536.2		$	553.3			(3.1)%
Administrative fees		28.7			28.6			0.3
Net investment income		159.2			159.7			(0.3)
Net capital losses		(1.6	)		(0.2	)		(700.0)
Total revenues	$	722.5		$	741.4			(2.5)

The decrease in revenues for the first quarter of 2013 compared to the first quarter of 2012 was primarily due to a decrease in premiums from our Insurance Services segment.

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Premiums

Insurance Services segment premiums are the primary driver of consolidated premiums and are affected by the following factors:

• Sales. Sales represent annualized new premiums that are expected to be received on new insurance contracts underwritten.

• Persistency. Persistency is the measured on an annual basis and is a percentage of written policies remaining in-force without lapsing.

• Organic growth. A portion of premium growth in our in-force business is affected by employment and wage growth in our existing customer base, changes in price per insured and the average age of employees. While the national economy has shown positive employment growth recently, the economy has continued to negatively affect wage rate and employment levels in a significant portion of our customer base, including state and local public and education sectors, and therefore has put downward pressure on our premiums.

• Experience rated refunds (“ERRs”). ERRs represent a cost sharing arrangement with certain group contract holders that provides refunds to the contract holders when claims experience is more favorable than contractual benchmarks, and provides for additional premiums to be paid when claims experience is less favorable than contractual benchmarks. ERRs can fluctuate widely from quarter to quarter depending on the underlying experience of specific contracts.

Premiums from our Asset Management segment are generated from sales of life-contingent annuities, which are a single-premium product. Due to the competitive nature of single-premium products, premiums in the Asset Management segment can fluctuate widely from quarter to quarter. See “Business Segments—Asset Management Segment.”

The following table sets forth premiums by segment:

	Three Months Ended March 31,
	2013		2012		Percent     Change
	(Dollars in millions)
Premiums:
Insurance Services	$	533.2	$	551.1		(3.2)%
Asset Management		3.0		2.2		36.4
Total premiums	$	536.2	$	553.3		(3.1)

The decrease in premiums for the first quarter of 2013 compared to the first quarter of 2012 was primarily due to ERRs and lower group insurance sales from 2012 and the first quarter of 2013. ERRs for the first quarter of 2013 decreased premiums by $4.5 million, while ERRs for the first quarter of 2012 increased premiums by $4.1 million. See “Business Segments—Insurance Services Segment.”

Administrative Fee Revenues

The primary driver for administrative fee revenues is the level of assets under administration in our Asset Management segment, which is driven by equity market performance and net customer deposits. Administrative fee revenues from our Insurance Services segment are primarily derived from insurance products for which we provide only administrative services.

The following table sets forth administrative fee revenues by segment:

	Three Months Ended March 31,
	2013			2012			Percent     Change
	(Dollars in millions)
Administrative fee revenues:
Insurance Services	$	3.5		$	3.1			12.9%
Asset Management		29.9			29.9			—
Other		(4.7	)		(4.4	)		(6.8)
Total administrative fee revenues	$	28.7		$	28.6			0.3

The increase in administrative fee revenues in our Insurance Services segment for the first quarter of 2013 compared to the first quarter of 2012 was primarily due to an increase in administrative and absence management service fees. The administrative fee revenues in our Asset Management segment remained flat for the first quarter of 2013 compared to the first quarter of 2012. See “Business Segments—Asset Management Segment.”

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Net Investment Income

Net investment income is primarily affected by changes in levels of invested assets, interest rates, fluctuations in the fair value of our Standard & Poor’s (“S&P”) 500 Index call spread options (“S&P 500 Index options”) related to our indexed annuity product, commercial mortgage loan prepayment revenues, bond call premiums on fixed maturity securities, and operating losses related to our tax-advantaged investments.

The following tables set forth net investment income by segment and associated key indicators:

	Three Months Ended March 31,
	2013		2012		Percent     Change
	(Dollars in millions)
Net investment income:
Insurance Services	$	82.0	$	84.6		(3.1)%
Asset Management		73.3		73.1		0.3
Other		3.9		2.0		95.0
Total net investment income	$	159.2	$	159.7		(0.3)
Key indicators of net investment income:
Contribution from the change in fair value of the S&P 500 Index options	$	6.0	$	6.7		(10.4)%
Average invested assets		12,799.7		12,009.2		6.6
Tax-advantaged investment operating losses		(3.1)		(2.1)		(47.6)
Commercial mortgage loan prepayment revenues		2.5		1.2		108.3
Bond call premiums		1.2		0.5		140.0
Consolidated portfolio yields:
Fixed maturity securities		4.58%		5.00%
Commercial mortgage loans		6.03		6.30

The decrease in net investment income for the first quarter of 2013 compared to the first quarter of 2012 was primarily due to a decline in the portfolio yields for fixed maturity securities and commercial mortgage loans and a decrease in the contribution from the change in fair value of our S&P 500 Index options compared to the first quarter of 2012. Partially offsetting the decrease was an increase in average invested assets, which primarily resulted from increases in average retirement plan general account assets under administration and average individual annuity assets due to higher individual annuity sales since the first quarter of 2012. In addition, commercial mortgage loan prepayment revenues and bond call premiums received on certain fixed maturity securities were higher in the first quarter of 2013 compared to the first quarter of 2012.

Given the uncertainty surrounding credit spreads and the direction of interest rates, we may experience lower new money investment interest rates in the future if credit spreads remain tight and interest rates remain low. New money investment interest rates are also affected by the current volume and mix of commercial mortgage loan originations, the purchases of fixed maturity securities and other investments.

The majority of our investments contain call or prepayment protection to ensure our expected cash flow is not adversely affected by unexpected prepayments. These investments have contractual provisions that require the borrower to compensate us in part or in full for reinvestment losses if the security or loan is retired before maturity. Callable bonds, excluding bonds with make-whole provisions and bonds with provisions that allow the borrower to prepay near maturity, represented 4.2%, or $305.5 million, of our fixed maturity securities portfolio at March 31, 2013. We also originate commercial mortgage loans containing a make-whole prepayment provision requiring the borrower to pay a prepayment fee. As interest rates decrease, potential prepayment fees increase. These larger prepayment fees deter borrowers from refinancing during a low interest rate environment. Approximately 97% of the commercial mortgage loan portfolio contains this prepayment provision. Approximately 2% of the commercial mortgage loan portfolio, without a make-whole prepayment provision, contains fixed percentage prepayment fees that mitigate prepayments but may not fully protect our expected cash flows in the event of prepayment.

Net Capital Gains (Losses)

Net capital gains and losses are reported in the Other category and are not likely to occur in a stable pattern. Net capital gains and losses primarily occur as a result of sales of our assets for more or less than carrying value, other-than-temporary impairments (“OTTI”) of assets in our bond portfolio, provision to our commercial mortgage loan loss allowance, losses recognized due to impairment of real estate and impairments of tax-advantaged investments.

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The following table sets forth net capital gains and losses and associated key components:

	Three Months Ended March 31,
	2013			2012			Dollar     Change
	(In millions)
Net capital losses	$	(1.6	)	$	(0.2	)	$	(1.4	)
Key components of net capital gains (losses):
Fixed maturity securities	$	2.0		$	1.2		$	0.8
Real estate owned		(0.9	)		(0.4	)		(0.5	)
Provision to our commercial mortgage loan loss allowance		(3.1	)		(1.3	)		(1.8	)

Net capital losses for both the first quarter of 2013 and 2012 were primarily related to our commercial mortgage loan loss allowance provision and losses recognized on real estate acquired in satisfaction of debt through foreclosure or the acceptance of deeds in lieu of foreclosure on commercial mortgage loans (“Real Estate Owned”). These losses were partially offset by net capital gains related to the sale of fixed maturity securities. See “Liquidity and Capital Resources—Investing Cash Flows—Commercial Mortgage Loans” and “Business Segments—Other—Net Capital Gains (Losses).”

Benefits and Expenses

Benefits to Policyholders

Consolidated benefits to policyholders are primarily affected by the following factors:

• Reserves that are established in part based on premium levels.

• Claims experience – the predominant factors affecting claims experience are claims incidence, measured by the number of claims, and claims severity, measured by the magnitude of the claim and the length of time a disability claim is paid.

• Reserve assumptions – the assumptions used to establish the related reserves reflect expected incidence and severity, and the discount rate. The discount rate is affected by new money investment interest rates and the overall portfolio yield. See “Critical Accounting Policies and Estimates—Reserves for Future Policy Benefits and Claims.”

• Estimates for future benefits on life-contingent annuities.

The following table sets forth benefits to policyholders by segment:

	Three Months Ended March 31,
	2013		2012		Percent     Change
	(Dollars in millions)
Benefits to policyholders:
Insurance Services	$	436.0	$	444.7		(2.0)%
Asset Management		5.8		5.3		9.4
Total benefits to policyholders	$	441.8	$	450.0		(1.8)

The decrease in benefits to policyholders for the first quarter of 2013 compared to the first quarter of 2012 was primarily due to a decline in our group insurance in-force block of business, as evidenced by comparatively lower premiums, and comparatively favorable claims experience, partially offset by a 100 basis point decrease in the discount rate used for newly established long term disability claim reserves for the first quarter of 2013 compared to the first quarter of 2012, which resulted in an increase of approximately $8 million. See “Business Segments—Insurance Services Segment—Benefits and Expenses—Benefits to Policyholders (including interest credited).”

Interest Credited

Interest credited represents interest paid to policyholders on retirement plan general account assets, individual fixed-rate annuity deposits and index-based interest guarantees embedded in indexed annuities (“index-based interest guarantees”) in the Asset Management segment and interest paid on life insurance proceeds on deposit in the Insurance Services segment.

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Interest credited is primarily affected by the following factors:

• Growth in general account assets under management.

• Growth in individual fixed-rate annuity liabilities.

• Changes in new investment interest rates and overall portfolio yield, which influence our interest-crediting rate for our customers.

• Persistency.

• Changes in the fair value of the index-based interest guarantees. These changes may fluctuate from quarter to quarter due to changes in interest rates and equity market volatility. See “Business Segments—Asset Management Segment—Benefits and Expenses—Interest Credited” for information regarding the interest credited on our indexed annuity product.

The following table sets forth interest credited and associated key components:

	Three Months Ended March 31,
	2013		2012		Percent     Change
	(Dollars in millions)
Interest credited	$	46.6	$	47.2		(1.3	)%
Key components of interest credited:
Contribution from the change in fair value of index-based interest guarantees	$	6.2	$	6.4		(3.1	)%
Average individual annuity assets under administration		3,229.3		2,994.1		7.9

The decrease in interest credited for the first quarter of 2013 compared to the first quarter of 2012 was primarily due to the change in fair value of the index-based interest guarantees and a decrease in the average interest-crediting rate for our annuity products.

Operating Expenses

The following table sets forth operating expenses:

	Three Months Ended March 31,
	2013		2012		Percent     Change
	(Dollars in millions)
Operating expenses	$	105.1	$	123.9		(15.2)%

The decrease in operating expenses for the first quarter of 2013 compared to the first quarter of 2012 was primarily a result of expense management initiatives, including a reduction of $10.3 million relating to the amendment of the Company’s postretirement benefit plan. See “Business Segments.”

Commissions and Bonuses

Commissions and bonuses primarily represent sales-based compensation, which can vary depending on the product, the structure of the commission program and other factors such as customer retention, sales, in-force premium, growth in assets under administration and the profitability of business in each of our segments.

The following table sets forth commissions and bonuses:

	Three Months Ended March 31,
	2013		2012		Percent     Change
	(Dollars in millions)
Commissions and bonuses	$	53.8	$	55.4		(2.9)%

The decrease in commissions and bonuses for the first quarter of 2013 compared to the first quarter of 2012 was primarily due to lower group insurance sales.

Net Change in Deferred Acquisition Costs (“DAC”), Value of Business Acquired (“VOBA”) and Other Intangible Assets

We normally defer certain acquisition-related commissions and incentive payments, certain costs of policy issuance and underwriting, and certain printing costs. These costs are then amortized into expenses over a period not to exceed the life of the related

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policies, which for group insurance contracts is the initial premium rate guarantee period and averages 2.5 years. VOBA primarily represents the discounted future profits of business assumed through reinsurance agreements. A portion of VOBA is amortized each year to achieve matching against expected gross profits. Our other intangible assets, consisting of customer lists and marketing agreements, are also subject to amortization. Customer lists were obtained through acquisitions of Asset Management businesses and have a combined estimated weighted-average remaining life of 7.2 years. The intangible asset associated with the individual disability marketing agreement with the Minnesota Life Insurance Company (“Minnesota Life”) will be fully amortized by 2023. See “Critical Accounting Policies and Estimates—DAC, VOBA and Other Intangible Assets.”

The following table sets forth the operating impact resulting in a net increase in DAC, VOBA and other intangible assets:

	Three Months Ended March 31,
	2013			2012			Dollar     Change
	(In millions)
Deferral of acquisition costs	$	(20.7	)	$	(21.5	)	$	0.8
Amortization of DAC, VOBA and other intangible assets		17.6			19.0			(1.4	)
Net increase in DAC, VOBA and other intangible assets	$	(3.1	)	$	(2.5	)	$	(0.6	)

The decrease in deferrals of acquisition costs for the first quarter of 2013 compared to the first quarter of 2012 was primarily due to lower group insurance sales.

Income Taxes

Income taxes may differ from the amount computed by applying the federal corporate tax rate of 35% to pre-tax income because of the net result of permanent differences between book and taxable income and because of the inclusion of state and local income taxes, net of the federal tax benefit.

The following table sets forth the combined federal and state effective income tax rates:

	Three Months Ended March  31,
	2013		2012
Combined federal and state effective income tax rates		22.4%		26.2%

The decrease in the effective tax rate for the first quarter of 2013 compared to the first quarter of 2012 was primarily due to the purchase of tax-advantaged investments in the first quarter of 2013 and throughout 2012.

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BUSINESS SEGMENTS

We operate through two reportable segments: Insurance Services and Asset Management, as well as an Other category. Subsidiaries, or operating segments, have been aggregated to form our reportable segments. Resources are allocated and performance is evaluated at the segment level. The Insurance Services segment offers group and individual disability insurance, group life and accidental death and dismemberment (“AD&D”) insurance, group dental and group vision insurance, and absence management services. The Asset Management segment offers full-service 401(k) plans, 403(b) plans, 457 plans, defined benefit plans, money purchase pension plans, profit sharing plans and non-qualified deferred compensation products and services. This segment also offers investment advisory and management services, financial planning services, commercial mortgage loan origination and servicing, individual fixed-rate annuity products, group annuity contracts and retirement plan trust products. The Other category includes return on capital not allocated to the product segments, holding company expenses, operations of certain unallocated subsidiaries, interest on debt, unallocated expenses, net capital gains and losses and adjustments made in consolidation.

The following table sets forth segment revenues measured as a percentage of total revenues, excluding revenues from the Other category:

	Three Months Ended March  31,
	2013		2012
Insurance Services		85.3%		85.9%
Asset Management		14.7		14.1

Insurance Services Segment

The Insurance Services segment is our largest segment and substantially influences our consolidated financial results.

The following table sets forth key indicators that we use to manage and assess the performance of the Insurance Services segment:

	Three Months Ended March 31,
	2013		2012		Percent     Change
	(Dollars in millions)
Premiums	$	533.2	$	551.1		(3.2)%
Total revenues		618.7		638.8		(3.1)
Income before income taxes		48.8		46.1		5.9
Sales (annualized new premiums)		101.6		133.8		(24.1)
Benefit ratios, including interest credited (% of premiums):
Insurance Services segment		81.9%		81.0%
Group insurance		83.9		83.5
Individual disability		61.9		52.3
Operating expense ratio (% of premiums)		15.4		16.8

Income before income taxes increased for the first quarter of 2013 compared to the first quarter of 2012, primarily due to lower operating expenses resulting from expense reduction initiatives. This was partially offset by a higher group insurance benefit ratio primarily due to a 100 basis point decrease in the discount rate used to establish reserves on newly incurred group long term disability claims.

Revenues

Revenues for the Insurance Services segment are primarily driven by insurance premiums. The decrease in revenues for the first quarter of 2013 compared to the first quarter of 2012 was primarily due to lower premiums in our group insurance business.

Premiums

The primary factors that affect premiums for the Insurance Services segment are sales and persistency for our insurance products and organic growth in our group insurance businesses derived from existing group policyholders’ employment and wage growth. Premiums are also affected by ERRs, which are cost sharing arrangements with certain group contract holders that provide refunds to the contract holders when claims experience is more favorable than contractual benchmarks, and provide for additional premiums to be paid when claims experience is less favorable than contractual benchmarks. ERRs can fluctuate widely from quarter to quarter depending on the underlying experience of specific contracts.

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The following table sets forth premiums and sales by line of business for the Insurance Services segment:

	Three Months Ended March 31,
	2013			2012		Percent     Change
	(Dollars in millions)
Premiums:
Group life and AD&D	$	215.4		$	224.9		(4.2)%
Group long term disability		200.3			204.2		(1.9)
Group short term disability		55.9			53.8		3.9
Group other		19.1			19.9		(4.0)
Experience rated refunds		(4.5	)		4.1		(209.8)
Total group insurance		486.2			506.9		(4.1)
Individual disability		47.0			44.2		6.3
Total premiums	$	533.2		$	551.1		(3.2)
Key indicators of premiums:
Total premiums excluding ERRs	$	537.7		$	547.0		(1.7)%
Group insurance sales (annualized new premiums) reported at contract effective date		97.6			128.8		(24.2)
Individual disability sales (annualized new premiums)		4.0			5.0		(20.0)

The decrease in group insurance premiums for the first quarter of 2013 compared to the first quarter of 2012 was primarily due to a decrease in group insurance sales from 2012 and the first quarter of 2013. In addition, ERRs decreased premiums by $4.5 million for the first quarter of 2013, while ERRs increased premiums by $4.1 million for the first quarter of 2012.

We continue to make progress with the implementation of our pricing actions related to the low interest rate environment and higher claims incidence. Our pricing reflects our long-term expectations of claims experience, demographic changes, return objectives and interest rates. As of the first quarter of 2013, we have re-priced about 75% of our long term disability business for elevated claims incidence levels. Our sales force is communicating and selling our unique value proposition, while the rest of our employees are delivering the quality service on which we have based our reputation in the employee benefits marketplace.

Net Investment Income

The following table sets forth net investment income for the Insurance Services segment:

	Three Months Ended March 31,
	2013		2012		Percent     Change
	(Dollars in millions)
Net investment income	$	82.0	$	84.6		(3.1)%

Net investment income is primarily affected by changes in levels of invested assets and interest rates. See “Consolidated Results of Operations—Revenues—Net Investment Income.”

Benefits and Expenses

Benefits to Policyholders (including interest credited)

Benefits to policyholders are primarily affected by the following factors:

• Reserves that are established in part based on premium levels.

• Claims experience – the predominant factors affecting claims experience are claims incidence, measured by the number of claims, and claims severity, measured by the magnitude of the claim and the length of time a disability claim is paid.

• Reserve assumptions – the assumptions used to establish the related reserves reflect claims incidence and severity, and the discount rate. The discount rate is affected by the new money investment interest rates and the overall portfolio yield. See “Critical Accounting Policies and Estimates—Reserves for Future Policy Benefits and Claims.”

The benefit ratio, calculated as benefits to policyholders and interest credited as a percentage of premiums, is utilized to provide a measurement of claims normalized for changes in our in-force block.

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The following table sets forth benefits to policyholders (including interest credited) and the benefit ratios for the Insurance Services segment:

	Three Months Ended March 31,
	2013		2012		Percent     Change
	(Dollars in millions)
Benefits to policyholders, including interest credited	$	436.9	$	446.3		(2.1)%
Benefit ratios, including interest credited (% of premiums):
Insurance Services segment		81.9%		81.0%
Group insurance		83.9		83.5
Individual disability		61.9		52.3

The decrease in Insurance Services benefits to policyholders (including interest credited) for the first quarter of 2013 compared to the first quarter of 2012 was primarily due to a decline in our group insurance in-force block of business, as evidenced by comparatively lower premiums, and comparatively favorable claims experience, partially offset by a 100 basis point decrease in the discount rate used for newly established long term disability claim reserves for the first quarter of 2013 compared to the first quarter of 2012, which resulted in an increase of approximately $8 million.

The benefit ratio for individual disability insurance increased for the first quarter of 2013 compared to the first quarter of 2012 primarily due to favorable claims experience for the first quarter of 2012. Due to the relatively small size of the individual disability insurance block of business, the benefit ratio for this business will generally fluctuate more than the benefit ratio for the group insurance business.

The following table sets forth the discount rate used for newly established long term disability claim reserves and life waiver reserves:

	Three Months Ended
	March 31,          2013		December 31,          2012		March 31,          2012
Discount rate		3.75%		4.00%		4.75%

The discount rate is based on the average rate we receive on newly invested assets during the previous 12 months, less a margin. We also consider our average investment yield and average discount rate on our entire block of claims when deciding whether to increase or decrease the discount rate. A 25 basis point increase or decrease in the discount rate results in a corresponding increase or decrease in pre-tax income of approximately $2 million per quarter. Any offsetting adjustments of group insurance premium rates due to sustained changes in investment yields can take from one to three years given that most new contracts have rate guarantees in place.

If investment rates prove to be lower than provided for in the margin between the new money investment rate and the reserve discount rate, we could be required to increase reserves, which could cause expense for benefits to policyholders to increase. Given the uncertainty of the movement of future interest rates, this may result in significantly higher or lower discount rates. A sustained low interest rate environment, lower commercial mortgage loan originations and utilization of other investments could result in future reductions to the discount rate. The margin in our overall block of business for group insurance between the invested asset yield and the weighted-average reserve discount rate at March 31, 2013 and 2012 was 44 and 42 basis points, respectively. See “Liquidity and Capital Resources.”

Operating Expenses

The following table sets forth operating expenses for the Insurance Services segment:

	Three Months Ended March 31,
	2013		2012		Percent     Change
	(Dollars in millions)
Operating expenses	$	82.1	$	92.6		(11.3)%

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The decrease in Insurance Services operating expenses for the first quarter of 2013 compared to the first quarter of 2012 was primarily due to expense management initiatives, which reduced headcount and other non-compensation related expenses to align operating expenses with lower anticipated premium levels.

Asset Management Segment

The following tables set forth key indicators that we use to manage and assess the performance of the Asset Management segment:

	Three Months Ended March 31,
	2013		2012		Percent     Change
	(Dollars in millions)
Revenues:
Premiums	$	3.0	$	2.2		36.4%
Administrative fees		29.9		29.9		—
Net investment income		73.3		73.1		0.3
Total revenues	$	106.2	$	105.2		1.0
Income before income taxes	$	17.2	$	15.0		14.7%
Sales (Individual annuity deposits)		87.9		63.5		38.4
Interest credited (% of net investment income):
Retirement plans		54.1%		53.0%
Individual annuities		70.6		70.8
Retirement plans annualized operating expenses (% of average assets under administration)		0.52%		0.62%
	At March 31,
	2013		2012		Percent     Change
	(Dollars in millions)
Assets under administration:
Retirement plans general account	$	2,028.0	$	1,738.2		16.7%
Retirement plans separate account		5,600.1		5,083.4		10.2
Total retirement plans group annuity products		7,628.1		6,821.6		11.8
Retirement plans trust products		8,123.8		8,002.8		1.5
Individual annuities		3,252.1		3,012.4		8.0
Commercial mortgage loans for other investors		2,843.6		2,686.9		5.8
Private client wealth management		888.6		1,059.9		(16.2)
Total assets under administration	$	22,736.2	$	21,583.6		5.3

The increase in income before income taxes for the first quarter of 2013 compared to the first quarter of 2012 was primarily due to lower operating expenses.

Revenues

Revenues for the Asset Management segment include administrative fees for retirement plan and private client wealth management businesses and fees related to servicing commercial mortgage loans, and net investment income on general account assets under administration and fees related to the origination of commercial mortgage loans. Premiums and benefits to policyholders reflect both the sale of immediate annuities by our individual annuity business and the conversion of retirement plan assets into life-contingent annuities. Most of the sales for this segment are recorded as deposits and are therefore not reflected as premiums. Individual fixed-rate annuity deposits earn investment income, a portion of which is credited to policyholders.

The increase in revenues for the Asset Management segment for the first quarter of 2013 compared to the first quarter of 2012 was primarily due to an increase in the sales of life-contingent annuity premiums.

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Premiums

Premiums for the Asset Management segment are generated from the sale of life-contingent annuities, which are primarily a single-premium product. Premiums and benefits to policyholders reflect both the sale of immediate annuities by our individual annuity business and the conversion of retirement plan assets into life-contingent annuities, which can be selected by plan participants at the time of retirement. Premiums for the segment can vary significantly from quarter to quarter due to low sales volume of life-contingent annuities and the varying size of single premiums. Increases or decreases in premiums for life-contingent annuities generally correlate with corresponding increases or decreases in benefits to policyholders.

The following table sets forth premiums by line of business for the Asset Management segment:

	Three Months Ended March 31,
	2013		2012		Dollar     Change
	(In millions)
Premiums:
Retirement plans	$	1.2	$	0.8	$	0.4
Individual annuities		1.8		1.4		0.4
Total premiums	$	3.0	$	2.2	$	0.8

The increase in premiums for the first quarter of 2013 compared to the same period for 2012 was primarily due to the increase in sales of life-contingent annuities.

Administrative Fee Revenues

Administrative fee revenues for the Asset Management segment include asset-based and plan-based fees related to our retirement plans and private client wealth management businesses, and fees related to the origination and servicing of commercial mortgage loans. The primary driver for administrative fee revenues is the level of assets under administration for retirement plans, which is driven by equity market performance and net customer deposits. Assets under administration that produce administrative fee revenues include retirement plan group annuity products, retirement plan trust products, private client wealth management and commercial mortgage loans under administration for other investors.

The following tables set forth administrative fee revenues by line of business and associated key indicators for the Asset Management segment:

	Three Months Ended March 31,
	2013		2012		Percent Change
	(Dollars in millions)
Administrative fee revenues:
Retirement plans	$	22.2	$	22.2		—  %
Other financial services business		7.7		7.7		—
Total administrative fee revenues	$	29.9	$	29.9		—
	At March 31,
	2013		2012		Percent Change
	(Dollars in millions)
Key indicators of administrative fee revenues:
Average assets under administration:
Retirement plan separate account	$	5,377.2	$	4,838.5		11.1%
Retirement plan trust products		7,928.1		7,722.0		2.7
Commercial mortgage loans for other investors		2,812.6		2,689.3		4.6
Private client wealth management		868.8		1,030.7		(15.7)

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Administrative fee revenues in our Asset Management segment remained flat for the first quarter of 2013 compared to the first quarter of 2012. The increase in administrative fee revenues from higher average assets under administration were offset by fewer retirement plans in the first quarter of 2013 compared to the first quarter of 2012.

Net Investment Income

The following tables set forth net investment income and associated key indicators for the Asset Management segment:

	Three Months Ended March 31,
	2013		2012		Percent     Change
	(Dollars in millions)
Net investment income:
Retirement plans	$	24.2	$	23.4		3.4%
Individual annuities		46.2		46.9		(1.5)
Other financial services business		2.9		2.8		3.6
Total net investment income	$	73.3	$	73.1		0.3
Key indicators of net investment income:
Average assets under administration:
Retirement plan general account	$	1,998.4	$	1,734.2		15.2%
Individual annuities		3,229.3		2,994.1		7.9
Contribution from the change in fair value of the S&P 500 Index options	$	6.0	$	6.7		(10.4)
Commercial mortgage loan prepayment revenues		0.5		0.5		—
Bond call premiums		0.5		0.4		25.0
Commercial mortgage loan originations		273.7		209.5		30.6
Consolidated portfolio yields:
Fixed maturity securities		4.58%		5.00%
Commercial mortgage loans		6.03		6.30

The increase in net investment income for the first quarter of 2013 compared to the first quarter of 2012 was primarily due to an increase in average individual annuity assets under administration resulting from higher individual annuity sales since the first quarter of 2012, and an increase in average retirement plan general account assets under administration. These increases were partially offset by a decline in the portfolio yields for fixed maturity securities and commercial mortgage loans.

Benefits and Expenses

Benefits to Policyholders

Benefits to policyholders for the Asset Management segment primarily represent current and future benefits on life-contingent annuities. Changes in the level of benefits to policyholders will generally correlate to changes in premium levels because these annuities are primarily single-premium life-contingent annuity products with a significant portion of all premium payments established as reserves.

The following table sets forth benefits to policyholders for the Asset Management segment:

	Three Months Ended March 31,
	2013		2012		Percent     Change
	(Dollars in millions)
Benefits to policyholders	$	5.8	$	5.3		9.4%

The increase in benefits to policyholders for the first quarter of 2013 compared to the same period for 2012 was primarily due to the increase in sales of life-contingent annuities.

Interest Credited

Interest credited represents interest paid to policyholders on retirement plan general account assets, individual fixed-rate annuity deposits and index-based interest guarantees.

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The following table sets forth interest credited and associated key indicators for the Asset Management segment:

	Three Months Ended March 31,
	2013		2012		Percent     Change
	(Dollars in millions)
Interest credited	$	45.7	$	45.6		0.2 %
Key indicators of interest credited:
Contribution from the change in fair value of index-based interest guarantees	$	6.2	$	6.4		(3.1)%
Average individual annuity assets under administration		3,229.3		2,994.1		7.9

The increase in interest credited for the first quarter of 2013 compared to the first quarter of 2012 was primarily due to growth in our average individual fixed-rate annuity assets under administration, partially offset by a decrease in the contribution from the change in fair value of index-based guarantees and a decrease in the average interest-crediting rate for our annuity products. See Item 1, “Financial Statements—Notes to Unaudited Condensed Consolidated Financial Statements—Note 8—Derivative Financial Instruments” for further derivatives disclosure.

Operating Expenses

The following table sets forth operating expenses for the Asset Management segment:

	Three Months Ended March 31,
	2013		2012		Percent     Change
	(Dollars in millions)
Operating expenses	$	28.2	$	30.2		(6.6)%

The decrease in Asset Management operating expenses for the first quarter of 2013 compared to the first quarter of 2012 was primarily a result of expense management initiatives, which reduced headcount and other non-compensation related expenses.

Other

In addition to our two reportable segments, we report our holding company and corporate activities in the Other category. This category includes return on capital not allocated to the product segments, holding company expenses, operations of certain unallocated subsidiaries, interest on debt, unallocated expenses, net capital gains and losses and adjustments made in consolidation.

The following table sets forth results for the Other category:

	Three Months Ended March 31,
	2013		2012		Percent     Change
	(Dollars in millions)
Loss before income taxes	$	5.7	$	13.4		(57.5)%

The decrease in losses before income taxes for the first quarter of 2013 compared to the first quarter of 2012 was primarily due to a decrease in operating expenses and an increase in net investment income, partially offset by an increase in net capital losses.

Operating expenses were reduced by $10.3 million for the first quarter of 2013 due to the amendment of our postretirement benefit plan and is expected to reduce operating expenses for the second quarter of 2013 by a similar amount. This reduction in operating expenses was partially offset by approximately $4 million of non-recurring costs related to other expense management initiatives.

Net Capital Gains (Losses)

Net capital gains and losses are reported in the Other category and are not likely to occur in a stable pattern. Net capital gains and losses primarily occur as a result of sales of our assets for more or less than carrying value, OTTI of assets in our bond portfolio, provisions to our commercial mortgage loan loss allowance, losses recognized due to impairment of real estate and impairment of tax-advantaged investments.

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The following table sets forth net capital gains and losses and associated key components:

	Three Months Ended March  31,
	2013			2012
	(In millions)
Net capital gains (losses):
Fixed maturity securities	$	2.0		$	1.2
Commercial mortgage loans		(2.6	)		(1.1	)
Real estate owned		(0.9	)		(0.4	)
Other		(0.1	)		0.1
Total net capital losses	$	(1.6	)	$	(0.2	)
Key components of net capital gains (losses):
Provision to our commercial mortgage loan loss allowance	$	(3.1	)	$	(1.3	)
OTTI on fixed maturity securities		(0.3	)		(0.8	)
OTTI on real estate owned		(1.0	)		(0.4	)

Net capital losses for the first quarter of 2013 were primarily related to our commercial mortgage loan loss allowance provision. These losses were partially offset by net capital gains related to the sale of real estate owned and fixed maturity securities.

Liquidity and Capital Resources

Asset-Liability Matching and Interest Rate Risk Management

Asset-liability management is a part of our risk management structure. The risks we assume related to asset-liability mismatches vary with economic conditions. The primary sources of economic risk are interest rate related and include changes in interest rate term risk, credit risk and liquidity risk. It is generally management’s objective to align the characteristics of assets and liabilities so that our financial obligations can be met under a wide variety of economic conditions. From time to time, management may choose to liquidate certain investments and reinvest in different investments so that the likelihood of meeting our financial obligations is increased. See “—Investing Cash Flows.”

We manage interest rate risk, in part, through asset-liability analyses. In accordance with presently accepted actuarial standards, we have made adequate provisions for the anticipated cash flows required to meet contractual obligations and related expenses through the use of statutory reserves and related items at March 31, 2013.

Our interest rate risk analysis reflects the influence of call and prepayment rights present in our fixed maturity securities and commercial mortgage loans. The majority of these investments have contractual provisions that require the borrower to compensate us in part or in full for reinvestment losses if the security or loan is retired before maturity. Callable bonds, excluding bonds with make-whole provisions and bonds with provisions that allow the borrower to prepay near maturity, represented 4.2%, or $305.5 million, of our fixed maturity securities portfolio at March 31, 2013. We also originate commercial mortgage loans containing a make-whole prepayment provision requiring the borrower to pay a prepayment fee. As interest rates decrease, potential prepayment fees increase. These larger prepayment fees deter borrowers from refinancing during a low interest rate environment. Approximately 97% of the commercial mortgage loan portfolio contains this type of prepayment provision. Approximately 2% of the commercial mortgage loan portfolio, without a make-whole prepayment provision, contains fixed percentage prepayment fees that mitigate prepayments but may not fully protect our expected cash flows in the event of prepayment.

Operating Cash Flows

Net cash provided by operating activities, which is net income adjusted for non-cash items and accruals, was $72.8 million for the first quarter of 2013, compared to $128.0 million for the first quarter of 2012. The change in operating cash flows for the first quarter of 2013 compared to the same period in 2012 was primarily due to fluctuations in other assets and liabilities, mainly attributable to timing differences. We typically generate positive cash flows from operating activities, as premiums collected from our insurance products and income received from our investments exceed policy acquisition costs, benefits paid, redemptions and operating expenses. These positive cash flows are then invested to support the obligations of our insurance products and required capital supporting these products. Our cash flows from operating activities are affected by the timing of premiums, fees, and investment income received and expenses paid.

Investing Cash Flows

We maintain a diversified investment portfolio primarily consisting of fixed maturity securities and fixed-rate commercial mortgage loans. Investing cash inflows primarily consist of the proceeds of investments sold, matured or repaid. Investing cash outflows primarily consist of payments for investments acquired or originated.

The insurance laws of the states of domicile and other states in which the insurance subsidiaries conduct business regulate the investment portfolios of the insurance subsidiaries. Relevant laws and regulations generally limit investments to bonds and other fixed

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maturity securities, commercial mortgage loans, common and preferred stock and real estate. Decisions to acquire and dispose of investments are made in accordance with guidelines adopted and modified from time to time by the Boards of Directors of our insurance subsidiaries. Each investment transaction requires the approval of one or more members of senior investment staff, with increasingly higher approval authorities required for transactions that are more significant. Transactions are reported quarterly to the Audit Committee of the Board of Directors for Standard Insurance Company (“Standard”) and to the Board of Directors for The Standard Life Insurance Company of New York.

Net cash used in investing activities was $181.8 million and $198.6 million for the first quarter of 2013 and 2012, respectively. The decrease in net cash used in investing activities for the first quarter of 2013 compared to the first quarter of 2012 was primarily due to higher proceeds from the sale or repayment of commercial mortgage loans, net of commercial mortgage loan acquisitions, partially offset by higher cash payments for other invested assets for the first quarter of 2013 compared to the first quarter of 2012.

Our long-term target investment portfolio allocation is approximately 60% fixed maturity securities and 40% commercial mortgage loans with a maximum allocation of 45% to commercial mortgage loans. At March 31, 2013, our portfolio consisted of 56.3% fixed maturity securities, 41.3% commercial mortgage loans and 2.4% of real estate and other invested assets.

Fixed Maturity Securities

We maintain prudent diversification across industries, issuers and maturities and we have sought to avoid the types of structured products that we believe are not adequately transparent to allow for good decision making. Our corporate bond industry diversification targets are based on the Bank of America Merrill Lynch U.S. Corporate Master Index, which we believe reasonably reflects the mix of issuers broadly available in the market. Our fixed maturity securities below investment grade are primarily managed by a third party.

Our fixed maturity securities portfolio generates unrealized gains or losses primarily resulting from market interest rates that are lower or higher relative to our book yield at the reporting date. In addition, changes in the spread between the risk-free rate and market rates for any given issuer can fluctuate based on the demand for the instrument, the near term prospects of the issuer and the overall economic climate.

The following tables set forth the composition of our fixed maturity securities portfolio by industry category with the associated unrealized gains and losses:

	March 31, 2013
	Amortized     Cost		Unrealized     Gains		Unrealized     Losses			Fair         Value
	(In millions)
Fixed maturity securities:
Corporate bonds:
Basic industry	$	414.9	$	32.1	$	(0.9	)	$	446.1
Capital goods		751.3		64.1		(1.0	)		814.4
Communications		323.9		31.2		(0.3	)		354.8
Consumer cyclical		464.5		35.9		(0.5	)		499.9
Consumer non cyclical		888.9		105.4		(0.7	)		993.6
Energy		492.4		47.7		(1.3	)		538.8
Finance		1,584.9		112.5		(1.3	)		1,696.1
Utilities		924.6		106.8		(0.7	)		1,030.7
Transportation and other		200.3		21.9		(0.2	)		222.0
Total corporate bonds		6,045.7		557.6		(6.9	)		6,596.4
U.S. government and agency bonds		340.9		56.9		—			397.8
U.S. state and political subdivision bonds		151.4		16.5		—			167.9
Foreign government bonds		61.2		10.1		—			71.3
S&P 500 Index options		15.3		—		—			15.3
Total fixed maturity securities	$	6,614.5	$	641.1	$	(6.9	)	$	7,248.7

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	December 31, 2012
	Amortized     Cost		Unrealized     Gains		Unrealized     Losses			Fair         Value
	(In millions)
Fixed maturity securities:
Corporate bonds:
Basic industry	$	386.1	$	33.3	$	(0.4	)	$	419.0
Capital goods		727.1		66.5		(0.8	)		792.8
Communications		302.0		34.9		—			336.9
Consumer cyclical		442.0		38.3		(0.4	)		479.9
Consumer non cyclical		908.0		113.5		(0.5	)		1,021.0
Energy		484.4		51.1		(0.1	)		535.4
Finance		1,551.9		113.9		(1.1	)		1,664.7
Utilities		932.7		113.3		(0.4	)		1,045.6
Transportation and other		207.8		22.9		(0.1	)		230.6
Total corporate bonds		5,942.0		587.7		(3.8	)		6,525.9
U.S. government and agency bonds		351.5		61.5		—			413.0
U.S. state and political subdivision bonds		151.6		16.8		—			168.4
Foreign government bonds		61.3		10.8		—			72.1
S&P 500 Index options		11.3		—		—			11.3
Total fixed maturity securities	$	6,517.7	$	676.8	$	(3.8	)	$	7,190.7

The following table sets forth key indicators of our fixed maturity securities portfolio:

	March 31,		December 31,
	2013		2012		Change
	(Dollars in millions)
Fixed maturity securities	$	7,248.7	$	7,190.7		0.8 %
Weighted-average credit quality of our fixed maturity securities portfolio (S&P)		A-		A-
Fixed maturity securities below investment grade:
As a percent of total fixed maturity securities		5.6%		5.4%
Managed by a third party	$	375.3	$	349.5		7.4 %
Fixed maturity securities on our watch list:
Fair value	$	2.8	$	1.7	$	1.1
Amortized cost after OTTI		2.7		1.7		1.0
Gross unrealized capital gains in our fixed maturity securities portfolio		641.1		676.8		(5.3)%
Gross unrealized capital losses in our fixed maturity securities portfolio		(6.9)		(3.8)		(81.6)

We recorded OTTI of $0.3 million and $0.8 million for the first quarters of 2013 and 2012, respectively. See “Critical Accounting Policies and Estimates—Investment Valuations—Fixed Maturity Securities.” We did not have any direct exposure to sub-prime or Alt-A mortgages in our fixed maturity securities portfolio at March 31, 2013.

Commercial Mortgage Loans

StanCorp Mortgage Investors, LLC originates and services fixed-rate commercial mortgage loans for the investment portfolios of our insurance subsidiaries and generates additional fee income from the origination and servicing of commercial mortgage loans participated to institutional investors. The level of commercial mortgage loan originations in any period is influenced by market conditions as we respond to changes in interest rates, available spreads and borrower demand.

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The following table sets forth commercial mortgage loan originations:

	Three Months Ended March 31,
	2013		2012		Percent       Change
	(Dollars in millions)
Commercial mortgage loan originations	$	273.7	$	209.5		30.6%

The increase in commercial mortgage loan originations for the first quarter of 2013 compared to the first quarter of 2012 was primarily due to increased purchase and sale activity in the commercial real estate market.

The following table sets forth commercial mortgage loan servicing data:

	March 31,		December 31,		Percent
	2013		2012		Change
	(Dollars in millions)
Commercial mortgage loans serviced:
For subsidiaries of StanCorp	$	5,319.8	$	5,266.8		1.0%
For other institutional investors		2,843.6		2,781.5		2.2
Capitalized commercial mortgage loan servicing rights associated with commercial mortgage loans serviced for other institutional investors	$	7.6	$	7.4		2.7%

The estimated average loan to value ratio for the overall portfolio was less than 70% at March 31, 2013. The average loan balance of our commercial mortgage loan portfolio was approximately $0.8 million at March 31, 2013. We have the contractual ability to pursue personal recourse on approximately 75% of our loans and partial personal recourse on a majority of the remaining loans. The average capitalization rate for the portfolio at March 31, 2013 was approximately 9%. Capitalization rates are used as part of our annual internal analysis of the commercial mortgage loan portfolio. The rate is used in converting the property’s income to an estimated property value.

At March 31, 2013, we did not have any direct exposure to sub-prime or Alt-A mortgages in our commercial mortgage loan portfolio. When we undertake mortgage risk, we do so directly through loans that we originate ourselves rather than in packaged products such as commercial mortgage-backed securities. Given that we service the vast majority of loans in our portfolios, we are prepared to deal with them promptly and proactively. Should the delinquency rate or loss performance of our commercial mortgage loan portfolio increase significantly, the increase could have a material adverse effect on our business, financial position, results of operations or cash flows.

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The following table sets forth our commercial mortgage loan portfolio by property type, by geographic region within the U.S., and by U.S. state:

	March 31, 2013				December 31, 2012
	Amount		Percent		Amount		Percent
	(Dollars in millions)
Property type:
Retail	$	2,571.8		48.3%	$	2,560.7		48.6%
Industrial		1,020.4		19.2		995.8		18.9
Office		967.0		18.1		960.8		18.2
Hotel/motel		280.0		5.3		280.8		5.3
Commercial		215.9		4.1		205.3		4.0
Apartment and other		265.3		5.0		264.0		5.0
Total commercial mortgage loans, net	$	5,320.4		100.0%	$	5,267.4		100.0%
Geographic region*:
Pacific	$	1,869.7		35.1%	$	1,844.1		35.0%
South Atlantic		1,084.2		20.4		1,069.2		20.2
West South Central		644.2		12.2		634.8		12.1
Mountain		614.4		11.5		612.7		11.6
East North Central		446.8		8.4		443.9		8.4
Middle Atlantic		240.4		4.5		240.3		4.6
West North Central		181.5		3.4		183.0		3.5
East South Central		152.7		2.9		150.5		2.9
New England		86.5		1.6		88.9		1.7
Total commercial mortgage loans, net	$	5,320.4		100.0%	$	5,267.4		100.0%
U.S. state:
California	$	1,455.0		27.3%	$	1,436.3		27.3%
Texas		590.9		11.1		587.0		11.1
Florida		336.1		6.3		331.9		6.3
Georgia		309.3		5.8		311.5		5.9
Other states		2,629.1		49.5		2,600.7		49.4
Total commercial mortgage loans, net	$	5,320.4		100.0%	$	5,267.4		100.0%

* Geographic regions obtained from the American Council of Life Insurers Mortgage Loan Portfolio Profile.

Our largest concentration of commercial mortgage loan property type was retail properties and primarily consisted of convenience related properties in strip malls, convenience stores and restaurants. Our exposure to retail properties is diversified among various borrowers, properties and geographic regions. In addition, retail commercial lending represents an area of experience and expertise, where careful underwriting and consistent surveillance mitigate risks surrounding our commercial mortgage lending in this area.

At March 31, 2013, our ten largest borrowers represented less than 7% of our total commercial mortgage loan portfolio balance. Our largest borrower concentrations within our commercial mortgage loan portfolio consisted of one borrower that comprised less than 2% of our total commercial mortgage loan portfolio balance. The second largest borrower comprised less than 1% of our total commercial mortgage loan portfolio balance.

Due to the concentration of commercial mortgage loans in California, we could be exposed to potential losses as a result of an economic downturn in California as well as certain catastrophes. See Part II, Item 1A, “Risk Factors.”

Under the laws of certain states, environmental contamination of a property may result in a lien on the property to secure recovery of the costs of cleanup. In some states, such a lien has priority over the lien of an existing mortgage against such property. As a commercial mortgage lender, we customarily conduct environmental assessments prior to making commercial mortgage loans secured by real estate and before taking title through foreclosure on real estate collateralizing delinquent commercial mortgage loans held by us. Based on our environmental assessments, we believe that any compliance costs associated with environmental laws and regulations or any remediation of affected properties would not have a material effect on our business, financial position, results of operations or cash flows. However, we cannot provide assurance that material compliance costs will not be incurred by us.

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In the normal course of business, we commit to fund commercial mortgage loans generally up to 90 days in advance. At March 31, 2013, we had outstanding commitments to fund commercial mortgage loans totaling $171.7 million, with fixed interest rates ranging from 4.125% to 5.500%. These commitments generally have fixed expiration dates. A small percentage of commitments expire due to the borrower’s failure to deliver the requirements of the commitment by the expiration date. In these cases, we will retain the commitment fee and good faith deposit. Alternatively, if we terminate a commitment due to the disapproval of a commitment requirement, the commitment fee and good faith deposit may be refunded to the borrower, less an administrative fee.

The following table sets forth key commercial mortgage loan statistics:

	March 31,          2013		December 31,       2012		Percent       Change
	(Dollars in millions)
Commercial mortgage loans sixty-day delinquencies:
Book value	$	19.1	$	21.3		(10.3)%
Delinquency rate		0.35%		0.40%
In process of foreclosure	$	6.7	$	9.8		(31.6)
Restructured commercial mortgage loans on a statutory basis		80.2		77.6		3.4

The performance of our commercial mortgage loan portfolio may fluctuate in the future. However, based on our business approach of diligently underwriting high-quality loans, we believe our delinquency rate will remain contained. We have steadfastly avoided the types of structured products that do not meet an adequate level of transparency for good decision making.

The following table sets forth details of our commercial mortgage loans foreclosed or accepted as deeds in lieu of foreclosure:

	Three Months Ended March 31,
	2013		2012		Change
	(Dollars in millions)
Number of loans foreclosed		11		11		—
Book value of loans foreclosed	$	6.6	$	8.6	$	(2.0	)
Number of properties foreclosed and transferred to Real Estate Owned		11		9		2
Real estate acquired	$	3.8	$	6.8	$	(3.0	)

Commercial mortgage loan foreclosures may result in the sale of the property to a third party at the time of foreclosure, resulting in fewer properties transferred to real estate owned than the number of loans foreclosed during the period. Commercial mortgage loans may have multiple properties as collateral, resulting in more properties transferred to Real Estate Owned than the number of loans foreclosed during the period. Real estate acquired through foreclosure or accepted as deeds in lieu of foreclosure is initially recorded at estimated net realizable value, which includes an estimate for disposal costs. These amounts may be adjusted in a subsequent period as additional market information regarding fair value is received, however, these adjustments would not result in a carrying value greater than the initial recorded amount. The book value of real estate acquired during the first quarter of 2013 decreased from the first quarter of 2012 primarily due to properties acquired having lower average book values in the first quarter of 2013 compared to the first quarter of 2012. See “Critical Accounting Policies and Estimates—Investment Valuations—Commercial Mortgage Loans” for our commercial mortgage loan loss allowance policy.

The following table sets forth changes in the commercial mortgage loan loss allowance:

	Three Months Ended
	March 31,
	2013			2012			Dollar              Change
	(In millions)
Commercial mortgage loan loss allowance:
Beginning balance	$	46.6		$	48.1		$	(1.5	)
Provision		3.1			1.3			1.8
Charge-offs, net		(6.9	)		(3.8	)		(3.1	)
Ending balance	$	42.8		$	45.6		$	(2.8	)

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The decrease in the commercial mortgage loan loss allowance at March 31, 2013 compared to March 31, 2012 was primarily due to the decrease in the specific loan loss allowance at March 31, 2013 compared to March 31, 2012. The increase in the provision and charge-offs for the first quarter of 2013 compared to the first quarter of 2012 were primarily related to losses associated with foreclosures, accepted deeds in lieu of foreclosure on commercial mortgage loans and other related charges associated with commercial mortgage loans leaving the portfolio during the first quarter of 2013.

The following table sets forth impaired commercial mortgage loans identified in management’s specific review of probable loan losses and the related allowance:

	March 31,       2013			December 31,       2012			Dollar       Change
	(In millions)
Impaired commercial mortgage loans with specific allowances for losses	$	71.4		$	74.1		$	(2.7	)
Impaired commercial mortgage loans without specific allowances for losses		26.8			25.7			1.1
Specific allowance for losses on impaired commercial mortgage loans, end of the period		(22.8	)		(25.6	)		2.8
Net carrying value of impaired commercial mortgage loans	$	75.4		$	74.2		$	1.2

A commercial mortgage loan is impaired when we do not expect to receive contractual principal and interest in accordance with the terms of the original loan agreement. A specific allowance for losses is recorded when a loan is considered to be impaired and it is probable that all amounts due will not be collected based on the terms of the original note. We also hold specific loan loss allowances on certain performing commercial mortgage loans that we continue to monitor and evaluate. Impaired commercial mortgage loans without specific allowances for losses are those for which we have determined that it remains probable that all amounts due will be collected although the timing or nature may be outside the original contractual terms. The increase in the net carrying value of the impaired commercial mortgage loans balance at March 31, 2013 compared to December 31, 2012 was primarily due to the changes in the composition of our impaired loans based on those leaving the portfolio due to loan repayments and foreclosures as well as those added to the portfolio given updated market information at March 31, 2013.

The following table sets forth the average recorded investment in impaired commercial mortgage loans before specific allowance for losses:

	Three Months Ended March 31,
	2013		2012		Dollar       Change
	(In millions)
Average recorded investment	$	99.0	$	104.4	$	(5.4	)

Interest income is recorded in net investment income. We continue to recognize interest income on delinquent commercial mortgage loans until the loans are more than 90 days delinquent. Interest income and accrued interest receivable are reversed when a loan is put on non-accrual status. For loans that are less than 90 days delinquent, we may reverse interest income and the accrued interest receivable if there is a question on the collectability of the interest. Interest income on loans in the 90-day delinquent category is recognized in the period the cash is collected. We resume the recognition of interest income when the loan becomes less than 90 days delinquent and we determine it is probable that the loan will remain performing.

The amount of interest income recognized on impaired commercial mortgage loans was $1.0 million and $1.1 million for the first quarters of 2013 and 2012, respectively. The cash received by us in payment of interest on impaired commercial mortgage loans was $0.9 million and $1.1 million for the first quarters of 2013 and 2012, respectively.

Financing Cash Flows

Financing cash flows primarily consist of policyholder fund deposits and withdrawals, borrowings and repayments on the line of credit, borrowings and repayments on long-term debt, repurchases of common stock and dividends paid on common stock. Net cash provided by financing activities was $91.6 million and $48.2 million for the first quarters of 2013 and 2012, respectively. The increase in funds provided by financing cash flows for the first quarter of 2013 compared to the first quarter of 2012 was primarily due to an increase in policyholder fund deposits, partially offset by an increase in cash used to repurchase shares of common stock. See “Capital Management—Share Repurchases” for further discussion on share repurchases.

On June 22, 2012, we entered into an agreement for a four-year, $250 million credit facility (the “Facility”). Upon our request and with consent of the lenders under the Facility, the Facility can be increased to $350 million. The termination date of the Facility is June 22, 2016 though, at our option and with the consent of the lenders under the Facility, the termination date can be extended for two additional one year periods. Borrowings under the Facility will be used for working capital, general corporate purposes and for issuance of letters of credit.

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Under the agreement, we are subject to customary covenants that take into consideration the impact of material transactions, changes to the business, compliance with legal requirements and financial performance. The two financial covenants are based on our total debt to total capitalization ratio and consolidated net worth. Under the two financial covenants, we are required to maintain a total debt to total capitalization ratio that does not exceed 35% and a consolidated net worth that is equal to at least $1.28 billion. The financial covenants exclude the unrealized gains and losses related to fixed maturity securities that are held in accumulated other comprehensive income (loss). At March 31, 2013, we had a total debt to total capitalization ratio of 23.3% and consolidated net worth of $1.82 billion as defined by the financial covenants. The Facility is subject to pricing levels based upon our publicly announced debt ratings and includes an interest rate option at the election of the borrower of a base rate plus the applicable margin or London Interbank Offered Rate (“LIBOR”) plus the applicable margin, plus facility and utilization fees. At March 31, 2013, we were in compliance with all covenants under the Facility and had no outstanding balance on the Facility. We believe we will continue to meet the financial covenants throughout the life of the Facility.

On August 10, 2012, we issued $250 million of 5.00%, 10-year senior notes (“Senior Notes’’), which mature on August 15, 2022. Interest is paid semi-annually on February 15 and August 15.

We have $300 million of 6.90% junior subordinated debentures (“Subordinated Debt”), which matures on June 1, 2067 and is non-callable prior to June 1, 2017. The principal amount of the Subordinated Debt is payable at maturity. Interest is payable semi-annually on June 1 and December 1 until June 1, 2017, and quarterly thereafter at a floating rate equal to three-month LIBOR plus 2.51%. We have the option to defer interest payments for up to five years. The declaration and payment of dividends to shareholders would be restricted if we elected to defer interest payments on our Subordinated Debt. If elected, the restriction would be in place during the interest deferral period. We are not currently deferring interest on the Subordinated Debt.

Capital Management

State insurance departments require insurance enterprises to maintain minimum levels of capital and surplus. The target for our insurance subsidiaries is generally to maintain statutory capital at 300% of the Company Action Level of Risk-Based Capital (“RBC”) required by regulators, which is 600% of the Authorized Control Level RBC required by our states of domicile. The insurance subsidiaries held estimated statutory capital of 377% of the Company Action Level RBC at March 31, 2013. At March 31, 2013, statutory capital, adjusted to exclude asset valuation reserves, for our regulated insurance subsidiaries totaled $1.39 billion.

Statutory capital growth from our insurance subsidiaries is generally a result of generated income, less a charge for business growth, measured by insurance premium growth, which includes individual annuity sales. The level of capital in excess of targeted RBC we generate varies inversely in relation to the level of our premium growth. As premium growth increases, capital is utilized to fund additional reserve requirements, meet increased regulatory capital requirements based on premium and cover certain acquisition costs associated with policy issuance, leaving less available capital beyond our target level. Higher levels of premium growth can result in increased utilization of capital beyond that which is generated by the business, and at very high levels of premium growth, we could generate the need for capital infusions. At lower levels of premium growth, additional capital produced by the business exceeds the capital utilized to meet these requirements, which can result in additional capital above our targeted RBC level. In assessing our capital position, we also consider cash and capital at the holding company and non-insurance subsidiaries.

Investments

The insurance laws of the states of domicile and other states in which the insurance subsidiaries conduct business regulate the investment portfolios of the insurance subsidiaries. Relevant laws and regulations generally limit the admissibility of investments to bonds and other fixed maturity securities, commercial mortgage loans, common and preferred stock and real estate. Decisions to acquire and dispose of investments are made in accordance with guidelines adopted and modified from time to time by the Boards of Directors of our insurance subsidiaries. Each investment transaction requires the approval of one or more members of senior investment staff, with increasingly higher approval authorities required for transactions that are more significant. Transactions are reported quarterly to the Audit Committee of the Board of Directors for Standard Insurance Company (“Standard”) and to the Board of Directors for The Standard Life Insurance Company of New York.

Dividends from Standard

Our ability to pay dividends to our shareholders, repurchase our shares and meet our obligations substantially depends upon the receipt of distributions from our subsidiary, Standard. Standard’s ability to pay dividends to StanCorp is affected by factors deemed relevant by Standard’s Board of Directors and by Oregon law, which limits Standard to pay dividends and other distributions only from the earned surplus arising from its business. If the proposed dividend or other distribution exceeds certain statutory limitations, Standard must receive the prior approval of the Director of the Oregon Department of Consumer and Business Services—Insurance Division (“Oregon Insurance Division”). The current statutory limitations are the greater of (a) 10% of Standard’s combined capital and surplus as of December 31 of the preceding year, or (b) the net gain from operations after dividends to policyholders and federal income taxes and before realized capital gains or losses for the 12-month period ended on the preceding December 31. In each case, the limitation must be determined under statutory accounting practices. Oregon law gives the Oregon Insurance Division broad discretion to approve or decline requests for dividends and other distributions in excess of these limits. With the exception of StanCorp Equities, Inc., a limited broker-dealer and member of the Financial Industry Regulatory Authority, there are no regulatory restrictions on dividends from our non-insurance subsidiaries.

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As of December 31, 2012, Standard’s net gain from operations after dividends to policyholders and federal income taxes and before capital gains or losses for the 12-month period then ended was $132.7 million and capital and surplus was $1.19 billion. Based upon Standard’s results for 2012, the amount of ordinary dividends and other distributions available in 2013, without prior approval from the Oregon Insurance Division is $132.7 million. As of December 31, 2011, Standard’s net gain from operations after dividends to policyholders and federal income taxes and before capital gains or losses for the 12-month period then ended was $144.0 million and capital and surplus was $1.14 billion. Based upon Standard’s results for 2011, the amount of ordinary dividends and other distributions available in 2012, without prior approval from the Oregon Insurance Division was $144.0 million. As of December 31, 2012 Standard had issued, upon approval of the Oregon Insurance Division, dividends in excess of $144.0 million.

In August 2012, Standard paid an extraordinary cash distribution of $250.0 million to StanCorp from its paid-in and contributed surplus. Concurrently with the distribution, Standard issued a $250.0 million subordinated surplus note (“Surplus Note”), payable to StanCorp. The Surplus Note matures in 2027 and bears an interest rate of 5.25%, with interest payments due September 30, December 31, March 31 and June 30 of each year. Standard has the right to prepay the principal balance of the Surplus Note, in whole or in part, at any time or from time to time, without penalty. In accordance with the requirements of the National Association of Insurance Commissioners (“NAIC”), the Surplus Note provides that no interest or principal payments may be made by Standard without the prior approval of the Oregon Insurance Division, interest will not be represented as an addition to the instrument, interest will not accrue additional interest and any payments with respect to the Surplus Note will be subordinate to Standard’s other obligations to policyholders, lenders and creditors. As a result of the extraordinary dividend, future dividends will require the approval from the Oregon Insurance Division through August 14, 2013 as they will be considered extraordinary.

Dividends paid from Standard to StanCorp are based on levels of available capital and needs at the holding company, which are driven by the financial results of Standard and the Company as a whole. Standard paid extraordinary cash dividends to StanCorp of $30.0 million for the first quarter of 2013. Standard paid ordinary cash dividends to StanCorp of $10.0 million for the first quarter of 2012.

Dividends to Shareholders

The declaration and payment of dividends to shareholders in the future is subject to the discretion of our Board of Directors. It is anticipated that annual dividends to shareholders will be paid in December of each year depending on our financial condition, results of operations, cash requirements, future prospects, regulatory restrictions on dividends from the insurance subsidiaries, the ability of the insurance subsidiaries to maintain adequate capital and other factors deemed relevant by our Board of Directors. In addition, the declaration and payment of dividends would be restricted if we elect to defer interest payments on our Subordinated Debt issued May 7, 2007. If elected, the restriction would be in place during the interest deferral period, which cannot exceed five years. We have not deferred interest on the Subordinated Debt, and have paid dividends each year since our initial public offering in 1999. In the fourth quarter of 2012, StanCorp paid an annual cash dividend of $0.93 per share, totaling $41.3 million.

Share Repurchases

On November 14, 2012 we announced the Board of Directors’ approval of a share repurchase authorization of up to 3.0 million shares of StanCorp common stock. The November 2012 authorization expires on December 31, 2014. Share repurchases under the repurchase program are made in the open market or in negotiated transactions in compliance with the safe harbor provisions of Rule 10b-18 under regulations of the Securities Exchange Act of 1934 (“Exchange Act”). Execution of the share repurchase program is based upon management’s assessment of market conditions for its common stock, capital levels, our assessment of the overall economy and other potential growth opportunities or priorities for capital use. We will evaluate share repurchases opportunistically based on our capital levels and our assessment of the direction of the overall economy and equity market valuations.

The following table sets forth share repurchases activity:

	Three Months Ended
	March 31,
	2013		2012
	(Dollars in millions
	except per share data)
Share repurchases:
Shares repurchased		249,794		—
Cost of share repurchases	$	9.9	$	—
Volume weighted-average price per common share		39.55		—
Shares remaining under repurchase authorizations		2,750,206		3,000,000

Financial Strength and Credit Ratings

Financial strength ratings are gauges of our claims paying ability and are an important factor in establishing the competitive position of insurance companies. In addition, ratings are important for maintaining public confidence in our company and in our

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ability to market our products. Rating organizations regularly review the financial performance and condition of insurance companies. In addition, credit ratings on our Senior Notes and Subordinated Debt are tied to our financial strength ratings. A ratings downgrade could increase surrender levels for our annuity products, adversely affect our ability to market our products and increase costs of future debt issuances.

S&P, Moody’s Investors Service, Inc. (“Moody’s”) and A.M. Best Company (“A.M. Best”) provide financial strength ratings on Standard.

Standard’s financial strength ratings as of April 2013 were:

S&P	Moody’s	A.M. Best
A+ (Strong) 5th of 20 ratings Outlook: Negative	A2 (Good) 6th of 21 ratings Outlook: Negative	A (Excellent)(1) 3rd of 13 ratings Outlook: Stable

⁽¹⁾  Also includes The Standard Life Insurance Company of New York

Debt ratings assess credit quality and the likelihood of issuer default. S&P, Moody’s and A.M. Best provide ratings on StanCorp’s Senior Notes and Subordinated Debt. S&P and A.M. Best also provide issuer credit ratings for both Standard and StanCorp.

Our debt ratings and issuer credit ratings as of April 2013, which we believe are indicators of our liquidity and ability to make payments, were:

	S&P	Moody’s	A.M. Best
StanCorp debt ratings:
Senior Notes	BBB+	Baa2	bbb
Subordinated Debt	BBB-	Baa3	bb+
Issuer credit ratings:
Standard	A+	—	a(1)
StanCorp	BBB+	—	bbb
Outlook	Negative	Negative	Stable(1)

⁽¹⁾  Also includes The Standard Life Insurance Company of New York

We believe our well-managed underwriting and claims operations, high-quality invested asset portfolios, enterprise risk management processes and strong capital position will continue to support our financial strength ratings and strong credit standing. See “Liquidity and Capital Resources—Asset-Liability Matching and Interest Rate Risk Management,” and “Capital Management.” In addition, we remain well within our line of credit financial covenants. See “Liquidity and Capital Resources—Financing Cash Flows.”

Contingencies and Litigation

See Item 1, “Financial Statements—Notes to Unaudited Condensed Consolidated Financial Statements—Note 10—Commitments and Contingencies.”

Off-Balance Sheet Arrangements

See discussion of loan commitments in “Liquidity and Capital Resources—Investing Cash Flows—Commercial Mortgage Loans.”

Insolvency Assessments

Insolvency regulations exist in many of the jurisdictions in which our subsidiaries do business. Such regulations may require insurance companies operating within the jurisdiction to participate in guaranty associations. The associations levy assessments against their members for the purpose of paying benefits due to policyholders of impaired or insolvent insurance companies. There were no association assessments levied against us for first three months of 2013 and 2012. At March 31, 2013, we maintained a reserve of $0.5 million for future assessments with respect to currently impaired, insolvent or failed insurers.

Statutory Financial Accounting

Standard and The Standard Life Insurance Company of New York prepare their statutory financial statements in accordance with accounting practices prescribed or permitted by their states of domicile. Prescribed statutory accounting practices include state laws, regulations and general administrative rules, as well as the Statements of Statutory Accounting Principles set forth in publications of the National Association of Insurance Commissioners.

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The following table sets forth the difference between the statutory net gains from insurance operations before federal income taxes and net capital gains and losses (“Statutory Results”) and GAAP income before income taxes excluding net capital gains and losses (“Adjusted GAAP Results”):

	Three Months Ended March 31,
	2013			2012			Dollar       Change
	(In millions)
Statutory Results	$	28.9		$	42.1		$	(13.2	)
Adjusted GAAP Results		61.9			47.9			14.0
Difference	$	(33.0	)	$	(5.8	)	$	(27.2	)

The decrease in Statutory Results for the first quarter of 2013 compared to the first quarter of 2012 was primarily due to a reserve adjustment for our individual annuity products, resulting in an increase in reserves of $12.7 million and $0.6 million in the first quarters of 2013 and 2012, respectively.

The fluctuations in the difference between the Statutory Results and Adjusted GAAP Results for the first quarter of 2013 compared to the first quarter of 2012 were primarily due to differences in the reserves for our individual annuity products and the $10.3 million operating expense reduction due to the amendment of the post retirement benefit plan, which was not recorded in the statutory results.

The following table sets forth statutory capital and the associated asset valuation reserve:

	March 31,		December 31,		Percent
	2013		2012		Change
	(Dollars in millions)
Statutory capital adjusted to exclude asset valuation reserves for our regulated insurance subsidiaries	$	1,386.9	$	1,377.1		0.7%
Asset valuation reserve		120.3		117.5		2.4

Accounting Pronouncements

See Item 1, “Financial Statements—Notes to Unaudited Condensed Consolidated Financial Statements—Note 11—Accounting Pronouncements.”

Critical Accounting Policies and Estimates

Our consolidated financial statements and certain disclosures made in this Form 10-Q have been prepared in accordance with GAAP and require us to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosures of contingent assets and contingent liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. The estimates most susceptible to material changes due to significant judgment (identified as the “critical accounting policies”) are those used in determining investment valuations, DAC, VOBA and other intangible assets, the reserves for future policy benefits and claims, pension and postretirement benefit plans and the provision for income taxes. The results of these estimates are critical because they affect our profitability and may affect key indicators used to measure our performance. These estimates have a material effect on our results of operations and financial condition.

Investment Valuations

Fixed Maturity Securities

Fixed maturity security capital gains and losses are recognized using the specific identification method. If a debt security’s fair value declines below its amortized cost, we must assess the security’s impairment to determine if the impairment is other than temporary.

In our quarterly fixed maturity security impairment analysis, we evaluate whether a decline in value of the fixed maturity security is other than temporary by considering the following factors:

• The nature of the fixed maturity security.

• The duration until maturity.

• The duration and extent the fair value has been below amortized cost.

• The financial quality of the issuer.

• Estimates regarding the issuer’s ability to make the scheduled payments associated with the fixed maturity security.

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• Our intent to sell or whether it is more likely than not we will be required to sell a fixed maturity security before recovery of the security’s cost basis through the evaluation of facts and circumstances including, but not limited to, decisions to rebalance our portfolio, current cash flow needs and sales of securities to capitalize on favorable pricing.

If it is determined an OTTI exists, we separate the OTTI of debt securities into an OTTI related to credit loss and an OTTI related to noncredit loss. The OTTI related to credit loss represents the portion of losses equal to the difference between the present value of expected cash flows, discounted using the pre-impairment yields, and the amortized cost basis. All other changes in value represent the OTTI related to noncredit loss. The OTTI related to credit loss is recognized in earnings in the current period, while the OTTI related to noncredit loss is deemed recoverable and is recognized in other comprehensive income. The cost basis of the fixed maturity security is permanently adjusted to reflect the credit related impairment. Once an impairment charge has been recorded, we continue to review the OTTI securities for further potential impairment.

We maintain an internally identified list of securities with characteristics that could indicate potential impairment (“watch list”). At March 31, 2013, our fixed maturity securities watch list totaled $2.8 million at fair value and $2.7 million at amortized cost after OTTI. We recorded $0.3 million of OTTI related to credit loss due to impairments for the first quarter of 2013 and $0.8 million of OTTI related to credit loss due to impairments for the first quarter of 2012. We recorded no OTTI related to noncredit loss for the first quarters of 2013 and 2012. See Item 1, “Financial Statements—Notes to Unaudited Condensed Consolidated Financial Statements—Note 7—Investments” for further disclosures.

We will continue to evaluate our holdings; however, we currently expect the fair values of our investments to recover either prior to their maturity dates or upon maturity. Should the credit quality of our fixed maturity securities significantly decline, there could be a material adverse effect on our business, financial position, results of operations or cash flows.

In conjunction with determining the extent of credit losses associated with debt securities, we utilize certain information in order to determine the present value of expected cash flows discounted using pre-impairment yields. Some of these input factors include, but are not limited to, original scheduled contractual cash flows, current market spread information, risk-free rates, fundamentals of the industry and sector in which the issuer operates, and general market information.

Fixed maturity securities are classified as available-for-sale and are carried at fair value on the consolidated balance sheet. See Item 1, “Financial Statements—Notes to Unaudited Condensed Consolidated Financial Statements—Note 6—Fair Value” for a detailed explanation of the valuation methods we use to calculate the fair value of our financial instruments. Valuation adjustments for fixed maturity securities not accounted for as OTTI are reported as net increases or decreases to other comprehensive income (loss), net of tax, on the consolidated statements of income and comprehensive income.

Commercial Mortgage Loans

The carrying value of commercial mortgage loans represents the outstanding principal balance less a loan loss allowance for probable uncollectible amounts. The commercial mortgage loan loss allowance is estimated based on evaluating known and inherent risks in the loan portfolio and consists of a general loan loss allowance and a specific loan loss allowance. The general loan loss allowance is based on our analysis of factors including changes in the size and composition of the loan portfolio, debt coverage ratios, loan to value ratios, actual loan loss experience and individual loan analysis. An impaired commercial mortgage loan is a loan where we do not expect to receive contractual principal and interest in accordance with the terms of the loan agreement. A specific allowance for losses is recorded when a loan is considered to be impaired. We also hold specific allowances for losses on certain performing loans that we continue to monitor and evaluate. Impaired commercial mortgage loans without specific allowances for losses are those for which we have determined that it remains probable that we will collect all amounts due. In addition, for impaired commercial mortgage loans, we evaluate the loss to dispose of the underlying collateral, any significant out of pocket expenses the loan may incur, the loan-to-value ratio and other quantitative information we have concerning the loan. Portions of loans that are deemed uncollectible are generally written off against the allowance, and recoveries, if any, are credited to the allowance. See “Liquidity and Capital Resources—Investing Cash Flows—Commercial Mortgage Loans.”

Real Estate

Real estate is comprised of two components: real estate investments and real estate owned.

Our real estate investments are stated at cost less accumulated depreciation. Generally, we depreciate this real estate using the straight-line depreciation method with property lives varying from 30 to 40 years.

We record impairments when it is determined that the decline in fair value of an investment below its carrying value is other than temporary. The impairment loss is charged to net capital losses, and the cost basis of the investment is permanently adjusted to reflect the impairment.

Real estate owned is initially recorded at the lower of cost or net realizable value, which includes an estimate for disposal costs. This amount may be adjusted in a subsequent period as additional information is received. Our real estate owned is initially considered an investment held for sale and is expected to be sold within one year from acquisition. For any real estate expected to be sold, an impairment charge is recorded if we do not expect the investment to recover its carrying value prior to the expected date of sale. Once an impairment charge has been recorded, we continue to review the investment for further potential impairment.

Total real estate was $94.2 million at March 31, 2013, compared to $95.5 million at December 31, 2012. The $1.3 million decrease in total real estate during the first quarter of 2013 was primarily due to the sale of real estate owned that was acquired in satisfaction of debt through foreclosure or the acceptance of deeds in lieu of foreclosure on commercial mortgage loans and impairments on our real estate owned. The decrease was partially offset by the acquisition of real estate owned during the quarter.

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All Other Investments

All other investments include tax-advantaged investments, derivative financial instruments and policy loans. Valuation adjustments for these investments are recognized using the specific identification method.

Tax-advantaged investments are accounted for under the equity method of accounting. These investments are structured as limited partnerships for the purpose of investing in the construction and rehabilitation of low-income housing and to provide favorable returns to investors. We have invested in tax-advantaged investments due to the higher returns associated with these investments relative to their perceived risk. The primary sources of investment return are tax credits and the tax benefits derived from passive losses on the investments, both of which may exhibit variability over the life of the investment. Tax credits received from these investments are reported in our consolidated statements of income as either a reduction of state premium taxes, or a reduction of income tax. Our share of the operating losses of the limited partnerships decreases our basis in the investments and is reported as a component of net investment income.

If the net present value of expected future cash flows of the investments is less than the current book value of the investments, we evaluate whether a decline in value is other than temporary. If it is determined an OTTI exists, the investment is written down to the net present value of expected future cash flows and the OTTI is recognized as a capital loss.

Derivative financial instruments are carried at fair value, and valuation adjustments are reported as a component of net investment income. See Item 1, “Financial Statements—Notes to Unaudited Condensed Consolidated Financial Statements—Note 8 —Derivative Financial Instruments.”

Policy loans are stated at their aggregate unpaid principal balances and are secured by policy cash values.

Net investment income and capital gains and losses related to separate account assets and liabilities are included in the separate account assets and liabilities.

DAC, VOBA and Other Intangible Assets

DAC, VOBA and other acquisition related intangible assets are generally originated through the issuance of new business or the purchase of existing business, either by purchasing blocks of insurance policies from other insurers or by the outright purchase of other companies. Our intangible assets are subject to impairment tests on an annual basis or more frequently if circumstances indicate that carrying values may not be recoverable.

The following table sets forth the balances of DAC, VOBA and other intangible assets:

	March 31,          2013		December 31,       2012		Percent       Change
	(Dollars in millions)
DAC	$	293.2	$	284.9		2.9%
VOBA		22.8		23.4		(2.6)
Other intangible assets		36.4		38.2		(4.7)
Total DAC, VOBA and other intangible assets	$	352.4	$	346.5		1.7

We defer certain acquisition costs that vary with and are directly related to the origination of new business and placing that business in-force. Certain costs related to obtaining new business and acquiring business through reinsurance agreements have been deferred and will be amortized to accomplish matching against related future premiums or gross profits as appropriate. We normally defer certain acquisition-related commissions and incentive payments, certain costs of policy issuance and underwriting, and certain printing costs. Assumptions used in developing DAC and amortization amounts each period include the amount of business in-force, expected future persistency, withdrawals, interest rates and profitability. These assumptions are modified to reflect actual experience when appropriate. Additional amortization of DAC is charged to current earnings to the extent it is determined that future premiums or gross profits are not adequate to cover the remaining amounts deferred. Changes in actual persistency are reflected in the calculated DAC balance. Costs that are not directly associated with the acquisition of new business are not deferred as DAC and are charged to expense as incurred. Generally, annual commissions are considered expenses and are not deferred.

DAC for group and individual disability insurance products and group life insurance products is amortized over the life of related policies in proportion to future premiums. We amortize DAC for group disability and life insurance products over the initial premium rate guarantee period, which averages 2.5 years. DAC for individual disability insurance products is amortized in proportion to future premiums over the life of the contract, averaging 20 to 25 years with approximately 50% and 75% expected to be amortized by years 10 and 15, respectively.

Our individual deferred annuities and group annuity products are classified as investment contracts. DAC related to these products is amortized over the life of related policies in proportion to expected gross profits. For our individual deferred annuities, DAC is generally amortized over 30 years with approximately 55% and 95% expected to be amortized by years 5 and 15, respectively. DAC for group annuity products is amortized over 10 years with approximately 80% expected to be amortized by year five.

VOBA primarily represents the discounted future profits of business assumed through reinsurance agreements. We have established VOBA for a block of individual disability business assumed from Minnesota Life and a block of group disability and

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group life business assumed from Teachers Insurance and Annuity Association of America (“TIAA”). VOBA is generally amortized in proportion to future premiums for group and individual disability insurance products and group life products. However, the VOBA related to the TIAA transaction associated with an in-force block of group long term disability claims for which no ongoing premium is received is amortized in proportion to expected gross profits. If actual premiums or future profitability are inconsistent with our assumptions, we could be required to make adjustments to VOBA and related amortization. During the first quarter of 2012, we recorded a $0.8 million impairment to VOBA due to experience related to the block of claims assumed from TIAA. The VOBA associated with the TIAA transaction is amortized in proportion to expected gross profits with an amortization period of up to 20 years. For the VOBA associated with the Minnesota Life block of business assumed, the amortization period is up to 30 years and is amortized in proportion to future premiums. The accumulated amortization of VOBA was $66.0 million and $65.4 million at March 31, 2013 and December 31, 2012, respectively.

The following table sets forth the amount of DAC and VOBA balances amortized in proportion to expected gross profits and the percentage of the total balance of DAC and VOBA amortized in proportion to expected gross profits:

	March 31, 2013				December 31, 2012
	Amount		Percent		Amount		Percent
	(Dollars in millions)
DAC	$	63.8		21.8%	$	60.9		21.4%
VOBA		5.7		25.0		5.9		25.2

Key assumptions, which will affect the determination of expected gross profits for determining DAC and VOBA balances, are:

• Persistency.

• Interest rates, which affect both investment income and interest credited.

• Stock market performance.

• Capital gains and losses.

• Claim termination rates.

• Amount of business in-force.

These assumptions are modified to reflect actual experience when appropriate. Although a change in a single assumption may have an impact on the calculated amortization of DAC or VOBA for balances associated with investment contracts, it is the relationship of that change to the changes in other key assumptions that determines the ultimate impact on DAC or VOBA amortization. Because actual results and trends related to these assumptions vary from those assumed, we revise these assumptions annually to reflect our current best estimate of expected gross profits. As a result of this process, known as “unlocking,” the cumulative balances of DAC and VOBA are adjusted with an offsetting benefit or charge to income to reflect changes in the period of the revision. An unlocking event that results in an after-tax benefit generally occurs as a result of actual experience or future expectations being favorable compared to previous estimates. An unlocking event that results in an after-tax charge generally occurs as a result of actual experience or future expectations being unfavorable compared to previous estimates. As a result of unlocking, the amortization schedule for future periods is also adjusted.

The following table sets forth the impact of unlocking on DAC and VOBA balances:

	Three Months Ended March  31,
	2013		2012
	(In millions)
Decrease to DAC and VOBA	$	—	$	(0.8	)

Significant, unanticipated changes in key assumptions, which affect the determination of expected gross profits, may result in a large unlocking event that could have a material adverse effect on our financial position or results of operations. However, future changes in DAC and VOBA balances due to changes in underlying assumptions are not expected to be material.

Our other intangible assets are subject to amortization and consist of certain customer lists from Asset Management business acquired and an individual disability marketing agreement. Customer lists have a combined estimated weighted-average remaining life of 7.2 years. The marketing agreement which accompanied the Minnesota Life transaction provides access to Minnesota Life agents, some of whom now market Standard’s individual disability insurance products. The Minnesota Life marketing agreement will be fully amortized by the end of 2023. The accumulated amortization of other intangible assets was $38.3 million and $36.5 million at March 31, 2013 and December 31, 2012, respectively.

Reserves for Future Policy Benefits and Claims

Reserves include policy reserve liabilities, and claim reserve liabilities and represent amounts to pay future benefits and claims. Claim reserve liabilities are for claims that have been incurred or are estimated to have been incurred but not yet reported to us. Policy reserve liabilities reflect our best estimate of assumptions at the time of policy issuance including adjustments for adverse deviations in actual experience.

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The following table sets forth total reserve balances by reserve type:

	March 31,          2013		December 31,       2012
	(In millions)
Reserves:
Policy reserves	$	1,074.5	$	1,072.0
Claim reserves		4,777.4		4,771.2
Total reserves	$	5,851.9	$	5,843.2

Developing the estimates for reserves, and thus the resulting impact on earnings, requires varying degrees of subjectivity and judgment, depending upon the nature of the reserve. For most of our reserves, the reserve calculation methodology is prescribed by various accounting and actuarial standards, although judgment is required in the determination of assumptions used in the calculation. We also hold reserves that lack a prescribed methodology but instead are determined by a formula that we have developed based on our own experience. Because this type of reserve requires a higher level of subjective judgment, we closely monitor its adequacy. These reserves are primarily incurred but not reported (“IBNR”) claim reserves associated with our disability products. Finally, a small amount of reserves is held based entirely upon subjective judgment. These reserves are generally set up as a result of unique circumstances that are not expected to continue far into the future and are released according to pre-established conditions and timelines.

The following table sets forth total reserve balances by calculation methodology:

	March 31,       2013		Percent of       Total		December 31,       2012		Percent of       Total
	(Dollars in millions)
Reserves:
Reserves determined through prescribed methodology	$	5,194.8		88.8%	$	5,186.2		88.8%
Reserves determined by internally-developed formulas		647.4		11.1		648.2		11.1
Reserves based on subjective judgment		9.7		0.1		8.8		0.1
Total reserves	$	5,851.9		100.0%	$	5,843.2		100.0%

Policy Reserves

Policy reserves include reserves established for individual disability insurance, individual and group immediate annuity businesses and individual life insurance. Policy reserves are calculated using our best estimates of assumptions and considerations at the time the policy was issued, adjusted for the effect of adverse deviations in actual experience. These assumptions are not subsequently modified unless policy reserves become inadequate, at which time we may need to change assumptions to increase reserves. We maintain a policy reserve for as long as a policy is in-force, even after a separate claim reserve is established.

The following table sets forth policy reserves by block of business:

	March 31,		December 31,
	2013		2012
	(In millions)
Policy reserves:
Individual disability insurance	$	236.7	$	233.7
Individual and group immediate annuity businesses		237.0		237.4
Individual life insurance		600.8		600.9
Total policy reserves	$	1,074.5	$	1,072.0

Individual disability insurance. Policy reserves for our individual disability block of business are established at the time of policy issuance using the net level premium method as prescribed by GAAP and represent the current value of projected future benefits including expenses less projected future premium. Assumptions used to calculate individual disability policy reserves may vary by the age, gender and occupation class of the insured, the year of policy issue and specific contract provisions and limitations.

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Individual disability policy reserves are sensitive to assumptions and considerations regarding:

• Claim incidence rates.

• Claim termination rates.

• Discount rates used to value expected future claim payments and premiums.

• Persistency rates.

• The amount of monthly benefit paid to the insured less reinsurance recoveries and other offsets.

• Expense rates including inflation.

Individual and group immediate annuity businesses. Policy reserves for our individual and group immediate annuity blocks of business are established at the time of policy issue and represent the present value of future payments due under the annuity contracts. The contracts are single premium contracts, and, therefore, there is no projected future premium. Assumptions used to calculate immediate annuity policy reserves may vary by the age and gender of the annuitant and year of policy issue.

Immediate annuity policy reserves are sensitive to assumptions and considerations regarding:

• Annuitant mortality rates.

• Discount rates used to value expected future annuity payments.

Individual life insurance. Effective January 1, 2001, substantially all of our individual life policies and the associated reserves were ceded to Protective Life Insurance Company (“Protective Life”) under a reinsurance agreement. If Protective Life were to become unable to meet its obligations, Standard would retain the reinsured liabilities. Therefore, the associated reserves remain on Standard’s consolidated balance sheets and an equal amount is recorded as a recoverable from the reinsurer. We also retain a small number of individual policies arising out of individual conversions from our group life policies.

Claim Reserves

Claim reserves are established when a claim is incurred or is estimated to have been incurred but not yet reported to us and, as prescribed by GAAP, equal our best estimate of the present value of the liability of future unpaid claims and claim adjustment expenses. Reserves for IBNR claims are determined using our experience and consider actual historical incidence rates, claim-reporting patterns and the average cost of claims. The IBNR claim reserves are calculated using a company derived formula based primarily upon premiums, which is validated through a close examination of reserve run-out experience. The claim reserves are related to group and individual disability insurance and group life insurance products offered by our Insurance Services segment.

Claim reserves are subject to revision based on credible changes in claim experience and expectations of future factors that may influence claim experience. During each quarter, we monitor our emerging claim experience to ensure that the claim reserves remain appropriate. We make adjustments to our assumptions based on emerging trends that are credible and are expected to persist, and expectations of future factors that may influence our claim experience. Assumptions used to calculate claim reserves may vary by the age, gender and occupation class of the claimant, the year the claim was incurred, time elapsed since disablement, and specific contract provisions and limitations.

The following table sets forth total claim reserves by block of business:

	March 31,		December 31,
	2013		2012
	(In millions)
Claim reserves:
Group disability insurance	$	3,255.8	$	3,250.7
Individual disability insurance		763.8		755.2
Group life insurance		757.8		765.3
Total claim reserves	$	4,777.4	$	4,771.2

Group and individual disability insurance. Claim reserves for our disability products are sensitive to assumptions and considerations regarding:

• Claim incidence rates for IBNR claim reserves.

• Claim termination rates.

• Discount rates used to value expected future claim payments.

• The amount of monthly benefit paid to the insured less reinsurance recoveries and other offsets.

• Expense rates including inflation.

• Historical delay in reporting of claims incurred.

Certain of these factors could be materially affected by changes in social perceptions about work ethics, emerging medical perceptions and legal interpretations regarding physiological or psychological causes of disability, emerging or changing health issues and changes in industry regulation. If there are changes in one or more of these factors or if actual claims experience is materially inconsistent with our assumptions, we could be required to change our reserves.

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Group life insurance. Claim reserves for our group life products are established for death claims reported but not yet paid, IBNR for death and waiver claims and waiver of premium benefits. The death claim reserve is based on the actual amount to be paid. The IBNR claim reserves are calculated using historical information, and the waiver of premium benefit is calculated using a tabular reserve method that takes into account company experience and published industry tables.

Trends in Key Assumptions

Key assumptions affecting our reserve calculations are:

• The discount rate.

• The claim termination rate.

• The claim incidence rate for policy reserves and IBNR claim reserves.

The following table sets forth the discount rate used for newly incurred long term disability claim reserves and life waiver reserves:

	Three Months Ended
	March 31,          2013		December 31,          2012		March 31,     2012
Discount rate		3.75%		4.00%		4.75%

Reserve discount rates for newly incurred claims are reviewed quarterly and, if necessary, are adjusted to reflect our current and expected new investment yields. The discount rate is based on the average rate we received on newly invested assets during the previous 12 months, less a margin. We also consider our average investment yield and average discount rate on our entire block of claims when deciding whether to increase or decrease the discount rate. The 100 basis point decrease in the discount rate for the first quarter of 2013 compared to the first quarter of 2012 was primarily the result of a continued low interest rate, the compression of interest rate spread for certain investment types with similar duration, and the mix of new money investments. A 25 basis point decrease in the discount rate for newly incurred claims results in a corresponding decrease in quarterly pre-tax income of approximately $2 million. We do not adjust group insurance premium rates based on short-term fluctuations in investment yields. Any offsetting adjustments of group insurance premium rates due to sustained changes in investment yields can take from one to three years given that most new contracts have rate guarantees in place.

Claim termination rates can vary widely from quarter to quarter. The claim termination assumptions used in determining our reserves represent our expectation for claim terminations over the life of our block of business and will vary from actual experience in any one quarter. While we have experienced some variation in our claim termination experience, we did not see any prolonged or systemic change in the first quarter of 2013 that would indicate a sustained underlying trend that would affect the claim termination rates used in the calculation of reserves.

The claims incidence rate for policy reserves and IBNR claim reserves can also fluctuate widely from quarter to quarter and tends to be more stable when measured over a longer period of time. While we continue to see improvement in claims incidence, the levels remain elevated when compared to historical levels.

We evaluate the claim termination rate assumptions for the reserves on a small Minnesota Life block of individual disability claims annually. Our block of business is relatively small, and as a result, we view a blend of established industry tables and our own experience as a more appropriate method for establishing reserve levels compared solely to our own experience. We will continue to monitor the credibility of our developing experience and the use of available industry tables, and if necessary, will adjust reserves accordingly.

We monitor the adequacy of our reserves relative to our key assumptions. In our estimation, scenarios based on reasonably possible variations in claim termination assumptions could produce a percentage change in reserves for our group insurance lines of business of approximately +/-0.2% or $8 million. However, given that claims experience can fluctuate widely from quarter to quarter, significant unanticipated changes in claim termination rates over time could produce a change in reserves for our group insurance lines outside of this range.

Pension and Postretirement Benefit Plans

We have two non-contributory defined benefit pension plans: the employee pension plan and the agent pension plan. The employee pension plan is for all eligible employees and the agent pension plan is for former field employees and agents. The defined benefit pension plans provide benefits based on years of service and final average pay. Participation in the defined benefit pension plans is generally limited to eligible employees whose date of employment began before 2003. The employee pension plan is sponsored by StanCorp and the agent pension plan is sponsored by Standard. Both plans are administered by Standard Retirement Services, Inc. and are closed for new participants. In addition, eligible executive officers are covered by a non-qualified supplemental retirement plan.

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We also have a postretirement benefit plan that includes medical, prescription drug benefits and group term life insurance. Eligible retirees are required to contribute specified amounts for medical and prescription drug benefits that are determined periodically and are based on retirees’ length of service and age at retirement. Participation in the postretirement benefit plan is limited to employees who had reached the age of 40 or whose combined age and length of service was equal to or greater than 45 years as of January 1, 2006. This plan is sponsored and administered by Standard and is closed for new participants. In 2012, the postretirement benefit plan was amended to reduce future benefits to plan participants that are either not eligible to or choose not to retire on or before July 1, 2013, which reduced operating expenses by $10.3 million for the first quarter of 2013. The 2012 amendment will not affect future benefits for employees who are retired as of July 1, 2013. In addition, as of December 31, 2011, the group term life insurance benefit was curtailed for plan participants who were not retired at December 31, 2011.

We are required to recognize the funded status of our pension and postretirement benefit plans as an asset or liability on the balance sheet. For pension plans, this is measured as the difference between the plan assets at fair value and the projected benefit obligation as of the year-end balance sheet date. For our postretirement plan, this is measured as the difference between the plan assets at fair value and the accumulated benefit obligation as of the year-end balance sheet date. Unrecognized actuarial gains or losses, prior service costs or credits, and transition assets are amortized, net of tax, out of accumulated other comprehensive income or loss as components of net periodic benefit cost.

In accordance with the accounting principles related to our pension and other postretirement plans, we are required to make a significant number of assumptions in order to calculate the related liabilities and expenses each period. The major assumptions that affect net periodic benefit cost and the funded status of the plans include the weighted-average discount rate, the expected return on plan assets, and the rate of compensation increase.

The weighted-average discount rate is an interest assumption used to convert the benefit payment stream to present value. The discount rate is selected based on the yield of a portfolio of high quality corporate bonds with durations that are similar to the expected distributions from the employee benefit plan.

The expected return on plan assets assumption is the best long term estimate of the average annual return that will be produced from the pension trust assets until current benefits are paid. Our expectations for the future investment returns of the asset categories are based on a combination of historical and projected market performance. The expected return for the total portfolio is calculated based on each plan’s strategic asset allocation.

The long term rate of return for the employee pension plan portfolio is derived by calculating the average return for the portfolio monthly, from 1971 to the present, using the average mutual fund manager returns in each asset category, weighted by the target allocation to each category.

The rate of compensation increase is a long term assumption that is based on an estimated inflation rate in addition to merit and promotion-related compensation increase components.

For the postretirement benefit plan, the assumed health care cost trend rates are also major assumptions that affect expenses and liabilities. Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. A one-percentage-point change in assumed health care cost trend rates would have the following effects:

	1% Point         Increase		1% Point         Decrease
	(In millions)
Effect on total of service and interest cost	$	0.6	$	(0.5	)
Effect on postretirement benefit obligation		2.2		(1.8	)

Our discount rate assumption is reviewed annually, and we use a December 31 measurement date for each of our plans. For more information concerning our pension and postretirement plans, see Item 1, “Financial Statements—Notes to Unaudited Condensed Consolidated Financial Statements—Note 4—Retirement Benefits.”

Income Taxes

We file a U.S. consolidated income tax return that includes all subsidiaries. Our U.S. income tax is calculated using regular corporate income tax rates on a tax base determined by laws and regulations administered by the Internal Revenue Service (“IRS”). We also file corporate income tax returns in various states. The provision for income taxes includes amounts currently payable and deferred amounts that result from temporary differences between financial reporting and tax basis of assets and liabilities. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply when the temporary differences are expected to reverse.

GAAP requires management to use a more likely than not standard to evaluate whether, based on available evidence, each deferred tax asset will be realized. A valuation allowance is recorded to reduce a deferred tax asset to the amount expected to be realized. We have recorded a deferred tax asset for certain loss carryforwards. Realization is dependent on generating sufficient taxable income prior to expiration of the loss carryforwards. Although realization is not assured, management believes it is more likely than not that all of the deferred tax assets without a valuation allowance will be realized. The amount of the deferred tax asset considered realizable is evaluated at least annually and could be reduced if estimates of future taxable income during the carryforward period are reduced.

Management is required to determine whether tax return positions are more likely than not to be sustained upon audit by taxing authorities. Tax benefits of uncertain tax positions, as determined and measured by this interpretation, cannot be recognized in our financial statements.

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We record income tax interest and penalties in the income tax provision according to our accounting policy. Currently, years 2009 through 2012 are open for audit by the IRS.

Forward-looking Statements

Some of the statements contained or incorporated by reference in this Form 10-Q, including guidance, estimates, projections, statements related to business plans, strategies, objectives and expected operating results and the outlook section of Management’s Discussion and Analysis of Operating results and the assumptions upon which those statements are based, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements also include, without limitation, any statement that includes words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “estimates,” “seeks,” “will be,” “will continue,” “will likely result” and similar expressions that are predictive in nature or that depend on or refer to future events or conditions. Our forward-looking statements are not guarantees of future performance and involve uncertainties that are difficult to predict. They involve risks and uncertainties which may cause actual results to differ materially from the forward-looking statements.

As a provider of financial products and services, our actual results of operations may vary significantly in response to economic trends, interest rates, investment performance, claims experience, operating expenses and pricing. Given these uncertainties or circumstances, investors are cautioned not to place undue reliance on forward-looking statements as a predictor of future results. We assume no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

The following factors could cause our results to differ materially from management expectations suggested by forward-looking statements:

• Growth of sales, premiums, annuity deposits, cash flows, assets under administration including performance of equity investments in the separate account, gross profits and profitability.

• Availability of capital required to support business growth and the effective use of capital, including the ability to achieve financing through debt or equity.

• Changes in liquidity needs and the liquidity of assets in our investment portfolios.

• Performance of business acquired through reinsurance or acquisition.

• Changes in financial strength and credit ratings.

• Changes in the regulatory environment at the state or federal level including changes in income tax rates and regulations or changes in U.S. GAAP accounting principles, practices or policies.

• Findings in litigation or other legal proceedings.

• Intent and ability to hold investments consistent with our investment strategy.

• Receipt of dividends from, or contributions to, our subsidiaries.

• Adequacy of the diversification of risk by product offerings and customer industry, geography and size, including concentration of risk, especially inherent in group life products.

• Adequacy of asset-liability management.

• Events of terrorism, natural disasters or other catastrophic events, including losses from a disease pandemic.

• Benefit ratios, including changes in claims incidence, severity and recovery.

• Levels of customer persistency.

• Adequacy of reserves established for future policy benefits.

• The effect of changes in interest rates on reserves, policyholder funds, investment income and commercial mortgage loan prepayment fees.

• Levels of employment and wage growth and the impact of rising benefit costs on employer budgets for employee benefits.

• Competition from other insurers and financial services companies, including the ability to competitively price our products.

• Ability of reinsurers to meet their obligations.

• Availability, adequacy and pricing of reinsurance and catastrophe reinsurance coverage and potential charges incurred.

• Achievement of anticipated levels of operating expenses.

• Adequacy of diversification of risk within our fixed maturity securities portfolio by industries, issuers and maturities.

• Adequacy of diversification of risk within our commercial mortgage loan portfolio by borrower, property type and geographic region.

• Credit quality of the holdings in our investment portfolios.

• The condition of the economy and expectations for interest rate changes.

• The effect of changing levels of bond call premiums, commercial mortgage loan prepayment fees and commercial mortgage loan participation levels on cash flows.

• Experience in delinquency rates or loss experience in our commercial mortgage loan portfolio.

• Adequacy of commercial mortgage loan loss allowance.

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• Concentration of commercial mortgage loan assets collateralized in certain states such as California.

• Environmental liability exposure resulting from commercial mortgage loan and real estate investments.

ITEM 3: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There have been no material changes in market risks faced by StanCorp Financial Group, Inc. since those reported in the Company’s annual report on Form 10-K for the year ended December 31, 2012.

ITEM 4: CONTROLS AND PROCEDURES

Management of StanCorp Financial Group, Inc. has evaluated, under the supervision and with the participation of the Company’s chief executive officer and chief financial officer, the effectiveness of the design and operation of the Company’s “disclosure controls and procedures,” as defined by the Securities Exchange Act of 1934 (the “Exchange Act”) Rules 13a-15(e) and 15d-15(e), as of the end of the period covered by this report. Based on this evaluation, the chief executive officer and chief financial officer have concluded that the Company’s disclosure controls and procedures were effective at March 31, 2013, and designed to ensure that information required to be disclosed by the issuer in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, and is accumulated and communicated to management, including the Company’s chief executive officer and chief financial officer, as appropriate, to allow timely decisions regarding required disclosure.

There were no changes in the Company’s internal control over financial reporting that occurred during the last fiscal quarter that have materially affected, or are reasonably likely to affect materially, the Company’s internal control over financial reporting.

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PART II. OTHER INFORMATION

As used in this Form 10-Q, the terms “StanCorp,” “Company,” “we,” “us” and “our” refer to StanCorp Financial Group, Inc. and its subsidiaries, unless the context otherwise requires.

ITEM 1: LEGAL PROCEEDINGS

See Part 1, Item 1, “Financial Statements—Notes to Unaudited Condensed Consolidated Financial Statements—Note 10—Commitments and Contingencies.”

ITEM 1A: RISK FACTORS

Risk factors that may affect our business are as follows:

• Our reserves for future policy benefits and claims related to our current and future business, may prove to be inadequate—For certain of our product lines, we establish and carry, as a liability, actuarially determined reserves to meet our obligations for future policy benefits and claims. These reserves do not represent an exact calculation of our future benefit liabilities but instead are estimates based on assumptions, which can be materially affected by changes in the economy, changes in social perceptions about work ethics, emerging medical perceptions regarding physiological or psychological causes of disability, emerging or changing health issues and changes in industry regulation. Claims experience on our products can fluctuate widely from period to period. If actual events vary materially from our assumptions used when establishing the reserves to meet our obligations for future policy benefits and claims, we may be required to increase our reserves, which could have a material adverse effect on our business, financial position, results of operations or cash flows.

• Differences between actual claims experience and underwriting and reserving assumptions may adversely affect our financial results—Our long term disability products provide coverage for claims incurred during the policy period. Generally, group policies offer rate guarantees for periods from one to three years. While we can prospectively re-price and re-underwrite coverages at the end of these guarantee periods, we must pay benefits with respect to claims incurred during these periods without being able to increase guaranteed premium rates during these periods. Historically, approximately 50% of all claims filed under our long term disability policies close within 24 months. However, claims caused by more severe disabling conditions may be paid over much longer periods, including, in some cases, up to normal retirement age or longer. Longer duration claims, in addition to a higher volume of claims than we expect, expose us to the possibility that we may pay benefits in excess of the amount that we anticipated when the policy was underwritten. The profitability of our long term disability products is thus subject to volatility resulting from the difference between our actual claims experience and our assumptions at the time of underwriting.

• We are exposed to concentration risk on our group life insurance business—Due to the nature of group life insurance coverage, we are subject to geographical concentration risk from the occurrence of a catastrophe.

• We may be exposed to disintermediation risk during periods of increasing interest rates—In periods of increasing interest rates, withdrawals of annuity contracts may increase as policyholders seek investments with higher perceived returns. This process, referred to as disintermediation, may lead to net cash outflows. These outflows may require investment assets to be sold at a time when the prices of those assets are adversely affected by the increase in interest rates, which may result in realized investment losses. A significant portion of our investment portfolio consists of commercial mortgage loans, which are relatively illiquid, thus increasing our liquidity risk in the event of disintermediation during a period of rising interest rates.

• Our profitability may be adversely affected by declining or low interest rates—During periods of declining or low interest rates, annuity products may be relatively more attractive investments, resulting in increases in the percentage of policies remaining in-force from year to year during a period when our new investments carry lower returns. During these periods, actual returns on our investments could prove inadequate for us to meet contractually guaranteed minimum payments to holders of our annuity products. In addition, the profitability of our life and disability insurance products can be affected by declining or low interest rates. A factor in pricing our insurance products is prevailing interest rates. Longer duration claims and premium rate guarantees can expose us to interest rate risk when portfolio yields are less than those assumed when pricing these products. Mortgages and bonds in our investment portfolio are more likely to be prepaid or redeemed as borrowers seek to borrow at lower interest rates, and we may be required to reinvest those funds in lower interest-bearing investments.

• Our investment portfolio is subject to risks of market value fluctuations, defaults, delinquencies and liquidity—Our general account investments primarily consist of fixed maturity securities—available-for-sale (“fixed maturity securities”), commercial mortgage loans and real estate. The fair values of our investments vary with changing economic and market conditions and interest rates. In addition, we are subject to default risk on our fixed maturity securities portfolio and its corresponding impact on credit spreads. Our commercial mortgage loan portfolio is subject to delinquency, default and borrower concentration risks. Related declines in market activity due to overall declining values of fixed maturity securities may result in our fixed maturity securities portfolio becoming less liquid. Also, our commercial mortgage loans are relatively illiquid and the demand for our real estate owned may remain low due to macroeconomic conditions. We may have difficulty selling our fixed maturity securities, commercial mortgage loans and real estate owned at attractive prices, in a timely manner, or both if we require significant amounts of cash on short notice.

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• Our business is subject to significant competition—Each of our business segments faces competition from other insurers and financial services companies, such as banks, broker-dealers, mutual funds, and managed care providers for employer groups, individual consumers and distributors. Since many of our competitors have greater financial resources, offer a broader array of products and, with respect to other insurers, may have higher financial strength ratings than we do, the possibility exists that any one of our business segments could be adversely affected by competition, which in turn could have a material adverse effect on our business, financial position, results of operations or cash flows.

• A downgrade in our financial strength ratings may negatively affect our business—Financial strength ratings, which are an indicator of our claims paying ability, are an important factor in establishing the competitive position of insurance companies. Ratings are important to maintaining public confidence in our company and in our ability to market our products. Rating organizations regularly review the financial performance and condition of insurance companies, including our company. A ratings downgrade could increase our surrender levels for our annuity products, could adversely affect our ability to market our products, could increase costs of future debt issuances, and could thereby have a material adverse effect on our business, financial position, results of operations or cash flows.

• Our profitability may be affected by changes in state and federal regulation—Our business is subject to comprehensive regulation and supervision throughout the United States including rules and regulations relating to income taxes and accounting principles generally accepted in the U.S. While we cannot predict the impact of potential or future state or federal legislation or regulation on our business, future laws and regulations, or the interpretation thereof, could have a material adverse effect on our business, financial position, results of operations or cash flows.

• Our deferred tax asset includes net operating losses which depend on future taxable income to be realized and may be limited or impaired by future ownership changes—Our deferred tax assets include federal, state and local net operating losses. Certain of our subsidiaries as a group have generated losses in recent years. Net operating losses can be available to reduce income taxes that might otherwise be incurred on future taxable income. There can be no assurance that we will generate the future taxable income necessary to utilize our net operating losses. Furthermore, the availability of these losses to be utilized in the future can become limited if certain changes in company structure or income levels occur. In such a circumstance, we may be unable to utilize the losses even in the event the company generates future taxable income.

• Our business is subject to litigation risk—In the normal course of business, we are a plaintiff or defendant in actions arising out of our insurance business and investment operations. We are from time to time involved in various governmental and administrative proceedings. While the outcome of any pending or future litigation cannot be predicted, as of the date hereof, we do not believe that any pending litigation will have a material adverse effect on our results of operations or financial condition. However, no assurances can be given that such litigation would not materially and adversely affect our business, financial position, results of operations or cash flows.

• We may be exposed to environmental liability from our commercial mortgage loan and real estate investments—As a commercial mortgage lender, we customarily conduct environmental assessments prior to making commercial mortgage loans secured by real estate and before taking title through foreclosure or deeds in lieu of foreclosure to real estate collateralizing delinquent commercial mortgage loans held by us. Compliance costs associated with environmental laws and regulations or any remediation of affected properties could have a material adverse effect on our results of operations or financial condition.

• Certain concentrations in our commercial mortgage loan investments may subject us to losses resulting from an economic downturn—While isolated to a small number of borrowers, the concentration of our commercial mortgage loan portfolio assets by individual borrower may expose us to potential losses resulting from an economic downturn. Although we diversify our commercial mortgage loan portfolio by location, type of property and individual borrower, such diversification may not eliminate the risk of such losses, which could have a material adverse effect on our business, financial position, results of operations or cash flows.

• The concentration of our investments in California may subject us to losses resulting from the economic downturn—Our commercial mortgage loans are concentrated in the western region of the U.S., particularly in California. Currently, our California exposure is primarily in Los Angeles County, Orange County, San Diego County and the Bay Area Counties. We have a smaller concentration of commercial mortgage loans in the Inland Empire and the San Joaquin Valley where there has been greater economic decline. A continued decline in economic conditions in California could have a material adverse effect on our business, financial position, results of operations or cash flows.

• The concentration of our investments in the western region of the U.S. may subject us to losses resulting from certain natural catastrophes in this area—Due to our commercial mortgage loan concentration in the western region of the U.S., particularly in California, we are exposed to potential losses resulting from certain natural catastrophes, such as earthquakes and fires, which may affect the region. Although we require borrowers to maintain fire insurance, consider the potential for earthquake loss based upon specific information to each property and diversify our commercial mortgage loan portfolio within the western region by both location and type of property in an effort to reduce earthquake exposure, such diversification may not eliminate the risk of such losses, which could have a material adverse effect on our business, financial position, results of operations or cash flows.

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• Catastrophe losses from a disease pandemic could have an adverse effect on us—Our life insurance operations are exposed to the risk of loss from an occurrence of catastrophic mortality caused by a disease pandemic, which could have a material adverse effect on our business, financial position, results of operations or cash flows.

• Catastrophe losses from terrorism or other factors could have an adverse effect on us—An occurrence of a significant catastrophic event, including terrorism, natural or other disasters, or a change in the nature and availability of or continuation of existing reinsurance and catastrophe reinsurance, could have a material adverse effect on our business, financial position, results of operations, cash flows or capital levels.

• As a holding company, we depend on the ability of our subsidiaries to transfer funds to us in sufficient amounts to pay dividends to shareholders, make payments on debt securities and meet our other obligations—We are a holding company for our insurance and asset management subsidiaries as well as for the subsidiaries that comprise our Other category and do not have any significant operations of our own. Dividends and permitted payments from our subsidiaries are our principal source of cash to pay dividends to shareholders, make payments on debt securities and meet our other obligations. As a result, our ability to pay dividends to shareholders and interest payments on debt securities will primarily depend upon the receipt of dividends and other distributions from our subsidiaries.

Many of our subsidiaries are non-insurance businesses and have no regulatory restrictions on dividends. Our insurance subsidiaries, however, are regulated by insurance laws and regulations that limit the maximum amount of dividends, distributions and other payments that they could declare and pay to us without prior approval of the states in which the subsidiaries are domiciled. Under Oregon law, Standard Insurance Company may pay dividends only from the earned surplus arising from its business. Oregon law gives the Director of the Oregon Department of Consumer and Business Services—Insurances Division (“Oregon Insurance Division”) broad discretion regarding the approval of dividends in excess of certain statutory limitations. Oregon law requires us to receive the prior approval of the Oregon Insurance Division to pay such a dividend. See Part I, Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Capital Management—Dividends from Standard.”

• Our ability to refinance debt and raise capital in future years depends not only on contributions from our subsidiaries but also on market conditions and availability of credit in the market— We do not have any significant debt maturities in the near term. Our 10-year senior notes of $250 million will mature in August 2022, and our junior subordinated debentures (“Subordinated Debt”) of $300 million will mature in 2067 with a call option in 2017. We maintain a $250 million senior unsecured revolving credit facility (“Facility”) for general corporate purposes. Upon our request and with consent of the lenders under the Facility, the Facility can be increased to $350 million. The termination date of the Facility is June 22, 2016, though, at our option and with the consent of the lenders under the Facility, the termination date can be extended for two additional one year periods. We had no outstanding balance on the Facility at March 31, 2013. The Facility is composed of a syndication of seven banks. Commitments from the banks toward the available line of credit range from $15.0 million to $60.0 million per bank. Should a bank from this syndication default, the available line of credit would be reduced by that bank’s commitment toward the line.

• Our portfolio of investments, including U.S. government and agency bonds and U.S. state and political subdivision bonds could be negatively impacted by U.S. credit and financial market conditions—A potential ratings downgrade of U.S. government securities could lead to future deterioration in the U.S. and global credit and financial markets. As a result, these events may materially adversely affect our business, financial condition and results of operations.

• Our business continues to be affected by employment and wage levels—Factors influencing the growth of our group insurance and retirement plans businesses include the employment levels, benefit offerings, and salary and wage growth of our employer groups. Current economic conditions have caused our employer groups to experience lower levels of insured employees, to limit benefit offerings, to reduce work hours, or to reduce or slow the growth of wage levels. If economic conditions worsen, it could have a material adverse effect on premium levels for our group businesses and revenues for our retirement plans business.

• Our profitability may be adversely affected by declining equity markets—U.S. and global equity markets heavily influence the value of our retirement plan assets under administration, which are a significant component from which our administrative fee revenues are derived. Sustained equity market declines could result in decreases in the value of the assets under administration in our retirement plans, which could reduce our ability to earn administrative fee revenues derived from the value of those assets.

• Declining equity markets and low interest rates could affect the funding status of Company sponsored pension plans—Our estimates of liabilities and expenses for pension and other postretirement benefits incorporate significant assumptions including the rate used to discount the estimated future liability, the long term rate of return on plan assets and the employee work force. Declines in the discount rate or the rate of return on plan assets resulting from the current economic downturn could increase our required cash contributions or pension-related expenses in future periods. The funding status of the Company’s pension plans is evaluated annually during the fourth quarter.

• Our ability to conduct business may be compromised if we are unable to maintain the availability of our systems and safeguard the security of our data in the event of a disaster or other unanticipated events—We use computer systems to store, retrieve, evaluate and utilize customer and company data and information. Our business is highly dependent on our ability to access these systems to perform necessary business functions. System failures, system outages, outsourcing risk or

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the failure or unwillingness of a service provider to perform could compromise our ability to perform these functions in a timely manner and could hurt our relationships with our business partners and customers. In the event of a disaster such as a natural catastrophe, fire, a blackout, a computer virus, a terrorist attack or war, these systems may be inaccessible to our employees, customers or business partners for an extended period of time. These systems could also be subject to physical and electronic break-ins and subject to similar disruptions from unauthorized tampering. This may impede or interrupt our business operations and could have a material adverse effect on our business, financial position, results of operations or cash flows.

• The U.S. economic downturn and disruption in global financial markets could continue to adversely affect us in the near term—The U.S. economic downturn and disruption in the global financial market present risks and uncertainties. In the current economic downturn, we face the following risks:

• Declines in revenues or profitability as a result of lost wages or lower levels of insured employees by our customers due to reductions in workforce. Additionally, revenues and profitability could decline as a result of lower levels of assets under administration.

• Increases in pricing pressure and competition resulting in a loss of customers or new business as customers seek to reduce benefit costs and competitors seek to protect market share.

• A declining or a continued low interest rate environment and its effect on product pricing and the reserves we must carry.

• Increases in commercial mortgage loan foreclosures.

• Increases in holdings of real estate owned properties due to a decline in demand for these properties and the decline in value of these properties during our holding period.

• Continued pressure on budgets for public institutions could impact our the employment and wage levels of our customer groups in this sector, which represents a significant customer group for our employee benefits business, which may have an adverse effect on our premium levels for our group businesses and revenues for our retirement plans business.

• Increases in corporate tax rates to finance government-spending programs.

• Reductions in the number of our potential lenders or to our committed credit availability due to combinations or failures of financial institutions.

• Loss of employer groups due to business acquisitions, bankruptcy or failure.

• Declines in the financial health of reinsurers.

• Reduction in the value of our general account investment portfolio.

• Declines in revenues and profitability as a result of lower levels of assets under administration.

ITEM 2: UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

The following table sets forth share repurchase information for the periods indicated:

	Total Number     of Shares Purchased		Average Price     Paid per Share		Total Number of Shares Purchased as Part of Publicly     Announced Plans     or Programs		Maximum     Number of Shares     that May Yet Be Purchased Under the Plans or Programs
Period:
January 1-31, 2013		—	$	—		—		3,000,000
February 1-28, 2013		148,000		38.95		148,000		2,852,000
March 1-31, 2013		101,794		40.43		101,794		2,750,206
Total first quarter		249,794		39.55		249,794		2,750,206

On November 14, 2012 we announced the Board of Directors’ approval of a share repurchase authorization of up to 3.0 million shares of StanCorp common stock. The November 2012 authorization expires on December 31, 2014. Share repurchases under the repurchase program are made in the open market or in negotiated transactions in compliance with the safe harbor provisions of Rule 10b-18 under regulations of the Securities Exchange Act of 1934 (“Exchange Act”). Execution of the share repurchase program is based upon management’s assessment of market conditions for its common stock, capital levels, our assessment of the overall economy and other potential growth opportunities or priorities for capital use. We will evaluate share repurchases opportunistically based on equity markets, capital levels and our assessment of the direction of the overall economy and equity market valuations.

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The following table sets forth share repurchase activity:

	Three Months Ended March 31,
	2013		2012
	(Dollars in millions except per share data)
Share repurchases:
Shares repurchased		249,794		—
Cost of share repurchases	$	9.9	$	—
Weighted-average price per common share		39.55		—
Shares remaining under repurchase authorizations		2,750,206		3,000,000

The declaration and payment of dividends would be restricted if we elect to defer interest payments on its Subordinated Debt. If we elect to defer interest payments, the dividend restriction would be in place during the interest deferral period, which cannot exceed five years. See Part I, Item 2, “Management’s Discussion and Analysis of Financial Conditions and Results of Operations—Capital Management—Dividends to Shareholders.”

ITEM 3: DEFAULTS UPON SENIOR SECURITIES

None

ITEM 4: MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5: OTHER INFORMATION

None

74

ITEM 6: EXHIBITS

Exhibit Index
Exhibit 3.1	Articles of Incorporation of StanCorp Financial Group, Inc., As Amended
Exhibit 3.2	Bylaws of StanCorp Financial Group, Inc.
Exhibit 10.1	Form of StanCorp Financial Group, Inc. Restricted Stock Unit Award Agreement
Exhibit 31.1	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
Exhibit 31.2	Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
Exhibit 32.1	Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
Exhibit 32.2	Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
Exhibit 101.INS	XBRL Instance Document
Exhibit 101.SCH	XBRL Taxonomy Extension Schema Document
Exhibit 101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
Exhibit 101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
Exhibit 101.LAB	XBRL Taxonomy Extension Label Linkbase Document
Exhibit 101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

75

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Date: May 9, 2013	By:	/s/ FLOYD F. CHADEE
		Floyd F. Chadee Senior Vice President and Chief Financial Officer (Principal Financial Officer)

EXHIBITS INDEX

Number	Name	Method of Filing
3.1	Articles of Incorporation of StanCorp Financial Group, Inc., As Amended	Filed as Exhibit 3.1 on Registrant’s Form 10-Q, dated August 8, 2012, and incorporated herein by this reference
3.2	Bylaws of StanCorp Financial Group, Inc.	Filed as Exhibit 3.2 on Registrant’s Form S-1A, dated March 12, 1999, and incorporated herein by this reference
10.1	Form of StanCorp Financial Group, Inc. Restricted Stock Unit Award Agreement	Filed as Exhibit 10.1 on Registrant’s Form 8-K dated February 14, 2013 and incorporated herein by this reference
31.1	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002	Filed herewith
31.2	Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002	Filed herewith
32.1	Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002	Filed herewith
32.2	Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002	Filed herewith
101.INS	XBRL Instance Document	*
101.SCH	XBRL Taxonomy Extension Schema Document	*
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document	*
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document	*
101.LAB	XBRL Taxonomy Extension Label Linkbase Document	*
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document	*

* Pursuant to Rule 406T of Regulation S-T, these interactive data files are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, or Section 18 of the Securities and Exchange Act of 1934, as amended and otherwise are not subject to liability under those sections.

EX-31.1

Exhibit 31.1

Certification

I, J. Greg Ness, certify that:

1. I have reviewed this quarterly report on Form 10-Q of StanCorp Financial Group, Inc.;

2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the Audit Committee of the registrant’s Board of Directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: May 9, 2013

/s/ J. GREG NESS

J. Greg Ness

Chairman, President and Chief Executive Officer

EX-31.2

Exhibit 31.2

Certification

I, Floyd F. Chadee, certify that:

1. I have reviewed this quarterly report on Form 10-Q of StanCorp Financial Group, Inc.;

2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the Audit Committee of the registrant’s Board of Directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: May 9, 2013

/s/ FLOYD F. CHADEE

Floyd F. Chadee

Senior Vice President and Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly report of StanCorp Financial Group, Inc. (the “Company”) on Form 10-Q for the quarter ended March 31, 2013, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, J. Greg Ness, Chairman, President and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: May 9, 2013

/s/ J. GREG NESS

J. Greg Ness

Chairman, President and Chief Executive Officer

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly report of StanCorp Financial Group, Inc. (the “Company”) on Form 10-Q for the quarter ended March 31, 2013, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Floyd F. Chadee, Senior Vice President and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: May 9, 2013

/s/ FLOYD F. CHADEE

Floyd F. Chadee

Senior Vice President and Chief Financial Officer

XML

Share Based Compensation (Narratvie-ESPP) (Details) (USD $)	Mar. 31, 2013
Employee Stock Purchase 1999 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Discount rate for employee stock purchase plan	15.00%
Employee share purchase plan offering period, months	0 years 6 months 0 days
Maximum employee gross compensation withheld to purchase common stock	10.00%
Maximum fair value of common stock purchased by employee each calendar year	$ 25,000
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	3,500,000
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	1,460,593
Amended Employee Stock Purchase 1999 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Discount rate for employee stock purchase plan	5.00%
Employee share purchase plan offering period, months	0 years 6 months 0 days
Maximum employee gross compensation withheld to purchase common stock	5.00%
Maximum fair value of common stock purchased by employee each calendar year	25,000
Maxium dollar contribution to ESPP	$ 5,000

XML

Investments (Narrative) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012	Dec. 31, 2012
Schedule of Investments [Line Items]
Callable bonds without a make-whole provision of fixed maturity available-for-sale securities, percentage	4.20%
Callable bonds without a make-whole provision of fixed maturity available-for-sale securities, amount	$ 305.5
Securities deposited for the benefit of policyholders in accordance with state regulations	7.8		7.9
Interest income recognized on impaired commercial mortgage loans	1.0	1.1
Cash received by the company as interest on impaired commercial mortgage loans	0.9	1.1
Commercial mortgage loans that were at least 60 days past due	19.1		21.3
60 day delinquency proportion of commercial mortgage loan portfolio	0.35%		0.40%
Total fixed maturity securities-available-for-sale	7,248.7		7,190.7
Investments And Commercial Banks In Euro Zone [Member]
Schedule of Investments [Line Items]
Total fixed maturity securities-available-for-sale	$ 57.3
Total fixed maturity securities-available-for-sale, Percentage	0.80%

XML

Fair Value (Narrative) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012	Dec. 31, 2012
Impact on interest credited during the period due to changes in Level 3 actuarial assumptions	$ 0	$ 0
Impaired recorded investment, with related allowance	71.4		74.1
Assets measured at fair value on a nonrecurring basis during the period and still held as of the balance sheet date	68.9		102.1
Related Allowance	22.8		25.6
Real Estate Owned [Member]
Capital losses recorded during the period on real estate owned measured on a nonrecurring basis and still held as of the balance sheet date	0.6	2.1
Assets measured at fair value on a nonrecurring basis during the period and still held as of the balance sheet date	14.9		48.2
Commercial Mortgage Loans [Member]
Assets measured at fair value on a nonrecurring basis during the period and still held as of the balance sheet date	$ 54.0		$ 53.9

XML

Derivative Financial Instruments (Gain Or Loss Recognized In Earnings From The Change in Fair Value of Derivative Assets and Liabilities) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Derivative Instruments, Gain (Loss) [Line Items]
Net investment income	$ 159.2	$ 159.7
Interest credited	(46.6)	(47.2)
Net gain (loss)	(0.2)	0.3
S and P Five Hundred Index Options [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Net investment income	6.0	6.7
Index Based Interest Guarantees [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Interest credited	$ 6.2	$ 6.4

XML

Investments (Amortized Costs And Fair Values Of Fixed Maturity Securities Available-For-Sale) (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012
Schedule of Investments [Line Items]
Total fixed maturity securities-available-for-sale, Amortized Cost	$ 6,614.5	$ 6,517.7
Total fixed maturity securities-available-for-sale, Unrealized Gains	641.1	676.8
Total fixed maturity securities-available-for-sale, Unrealized losses	(6.9)	(3.8)
Total fixed maturity securities-available-for-sale	7,248.7	7,190.7
Estimate of Fair Value, Fair Value Disclosure [Member]
Schedule of Investments [Line Items]
Total fixed maturity securities-available-for-sale	7,248.7	7,190.7
U.S. Government and Agency Bonds [Member]
Schedule of Investments [Line Items]
Total fixed maturity securities-available-for-sale, Amortized Cost	340.9	351.5
Total fixed maturity securities-available-for-sale, Unrealized Gains	56.9	61.5
Total fixed maturity securities-available-for-sale, Unrealized losses	0	0
U.S. Government and Agency Bonds [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
Schedule of Investments [Line Items]
Total fixed maturity securities-available-for-sale	397.8	413.0
U.S. State and Political Subdivision Bonds [Member]
Schedule of Investments [Line Items]
Total fixed maturity securities-available-for-sale, Amortized Cost	151.4	151.6
Total fixed maturity securities-available-for-sale, Unrealized Gains	16.5	16.8
Total fixed maturity securities-available-for-sale, Unrealized losses	0	0
U.S. State and Political Subdivision Bonds [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
Schedule of Investments [Line Items]
Total fixed maturity securities-available-for-sale	167.9	168.4
Foreign Government Bonds [Member]
Schedule of Investments [Line Items]
Total fixed maturity securities-available-for-sale, Amortized Cost	61.2	61.3
Total fixed maturity securities-available-for-sale, Unrealized Gains	10.1	10.8
Total fixed maturity securities-available-for-sale, Unrealized losses	0	0
Foreign Government Bonds [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
Schedule of Investments [Line Items]
Total fixed maturity securities-available-for-sale	71.3	72.1
Corporate Bonds [Member]
Schedule of Investments [Line Items]
Total fixed maturity securities-available-for-sale, Amortized Cost	6,045.7	5,942.0
Total fixed maturity securities-available-for-sale, Unrealized Gains	557.6	587.7
Total fixed maturity securities-available-for-sale, Unrealized losses	(6.9)	(3.8)
Corporate Bonds [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
Schedule of Investments [Line Items]
Total fixed maturity securities-available-for-sale	6,596.4	6,525.9
S and P Five Hundred Index Options [Member]
Schedule of Investments [Line Items]
Total fixed maturity securities-available-for-sale, Amortized Cost	15.3	11.3
Total fixed maturity securities-available-for-sale, Unrealized Gains	0	0
Total fixed maturity securities-available-for-sale, Unrealized losses	0	0
S and P Five Hundred Index Options [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
Schedule of Investments [Line Items]
Total fixed maturity securities-available-for-sale	$ 15.3	$ 11.3

XML

Incom Taxes (Narrative) (Details)	3 Months Ended
	Mar. 31, 2013
Income Tax Disclosure [Abstract]
Federal corporate tax rate	35.00%

XML

Segments (PTOI and Assets Additional Information) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012	Dec. 31, 2012
Segment Reporting Revenue Reconciling Item [Line Items]
Income (loss) before income taxes	$ 60.3	$ 47.7
Total Assets	20,369.5	19,099.1	19,791.3
Insurance Services [Member]
Segment Reporting Revenue Reconciling Item [Line Items]
Income (loss) before income taxes	48.8	46.1
Total Assets	8,311.1	8,162.9
Asset Management [Member]
Segment Reporting Revenue Reconciling Item [Line Items]
Income (loss) before income taxes	17.2	15.0
Total Assets	$ 11,592.0	$ 10,632.6

XML

Accumulated Other Comprehensive Income (Tables)

3 Months Ended

Mar. 31, 2013

AOCI, net of tax [Abstract]

Schedule Of Accumulated Other Comprehensive Income [Table Text Block]

			Net Unrealized				Total
			Gains (losses) on				Accumulated
			Fixed Maturity		Employee		Other
			Securities		Benefit		Comprehensive
			Available-for-Sale		Plans		Income
			(In millions)
Balance, January 1, 2012			$	315.2	$	(80.1)	$	235.1
	Other comprehensive income, net of tax
		before reclassification adjustment(1)		71.4		0.0		71.4
	Amounts reclassified from accumulated
		other comprehensive income, net of tax(2)		(3.6)		6.4		2.8
Net other comprehensive income, net of tax				67.8		6.4		74.2
Balance, December 31, 2012				383.0		(73.7)		309.3
	Other comprehensive loss, net of tax
		before reclassification adjustment(3)		(17.2)		0.0		(17.2)
	Amounts reclassified from accumulated
		other comprehensive income, net of tax(4)		(1.2)		(4.8)		(6.0)
Net other comprehensive loss, net of tax				(18.4)		(4.8)		(23.2)
Balance, March 31, 2013			$	364.6	$	(78.5)	$	286.1

• Net of tax expenses of $38.3 million for unrealized gains on fixed maturity securities and $0.2 million for employee benefits, respectively.
• Net of tax benefit of $2.2 million for unrealized gains on fixed maturity securities and net of tax expense of $3.4 million for employee benefits.
• Net of tax benefit of $7.5 million for unrealized losses on fixed maturity securities.
• Net of tax benefits of $0.8 million for unrealized gains on fixed maturity securities and $2.6 million for employee benefits, respectively.

XML

Income Taxes (Combined Effective Tax Rate) (Details)	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Income Tax Disclosure [Abstract]
Combined Federal And State Effective Income Tax Rates	22.40%	26.20%

XML

Deferred Acquisition Costs ("DAC"), Value Of Business Acquired ("VOBA") And Other Intangible Assets (Schedule Of Activity For DAC, VOBA And Other Intangible Assets) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended	12 Months Ended
	Mar. 31, 2013	Dec. 31, 2012
Deferred Acquisition Costs, Value Of Business Acquired And Other Intangible Assets Disclosures [Abstract]
Carrying value at beginning of period, DAC	$ 284.9	$ 274.4
Carrying value at beginning of period, VOBA	23.4	26.4
Carrying value at beginning of period, Other intangible assets	38.2	44.1
Total balance at beginning of period	346.5	344.9
Deferred or acquired, DAC	20.7	71.4
Total deferred or acquired	20.7	71.4
Amortized during period, DAC	(12.4)	(60.9)
Amortized during period, VOBA	(0.6)	(3.0)
Amortized during period, Other intangible assets	(1.8)	(5.9)
Total amortized during period	(14.8)	(69.8)
Carrying value at end of period, net DAC	293.2	284.9
Carrying value at end of period, net VOBA	22.8	23.4
Carrying value at end of period, Other intangible assets	36.4	38.2
Total carrying value at end of period	$ 352.4	$ 346.5

XML

Investments (Schedule Of Gross Unrealized Losses And Fair Value Of Investments) (Details) (Corporate Bonds [Member], USD $) In Millions, unless otherwise specified	Mar. 31, 2013 NumberOfInvestments	Dec. 31, 2012 NumberOfInvestments
Corporate Bonds [Member]
Unrealized losses, Number	291	198
Unrealized losses	$ 6.9	$ 3.8
Unrealized losses, Less than 12 months, Number	282	188
Unrealized losses, Less than 12 months	6.7	3.6
Unrealized losses, 12 or more months, Number	9	10
Unrealized losses, 12 or more months	0.2	0.2
Fair market value of securities with unrealized losses, Number	291	198
Fair market value of securities with unrealized losses, Amount	515.3	342.5
Fair market value of securities with unrealized losses, Less than 12 months, Number	282	188
Fair market value of securities with unrealized losses, Less than 12 months, Amount	508.4	335.5
Fair market value of securities with unrealized losses, 12 or more months, Number	9	10
Fair market value of securities with unrealized losses, 12 or more months, Amount	$ 6.9	$ 7.0

XML

Deferred Acquisition Costs ("DAC"), Value Of Business Acquired ("VOBA") And Other Intangible Assets (Estimated Net Amortization Of VOBA For Next Five Years) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2013
Deferred Acquisition Costs, Value Of Business Acquired And Other Intangible Assets Disclosures [Abstract]
2013	$ 6.4
2014	7.5
2015	7.3
2016	5.8
2017	4.4
2018	$ 4.3

XML

Accumulated Other Comprehensive Income (Parenthenticals) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended	12 Months Ended
	Mar. 31, 2013	Dec. 31, 2012
Unrealized Gains (losses) on Available For Sale Securities [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Tax effect on other comprehensive income (loss) before reclassifications	$ (7.5)	$ 38.3
Tax effect of reclassification from other comprehensive income	(0.8)	(2.2)
Employee Benefit Plans [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Tax effect on other comprehensive income (loss) before reclassifications	0	0.2
Tax effect of reclassification from other comprehensive income	$ (2.6)	$ 3.4

XML

Commitments And Contingencies (Details) (USD $)	3 Months Ended
	Mar. 31, 2013 NumberOfDebtCovenants NumberOfContractExtentions
Commitments And Contingencies [Line Items]
Total outstanding commitments to fund commercial mortgage loans	$ 171.7
Minimum fixed interest rate on commercial mortgage loan commitments	4.125%
Maximum fixed interest rate on commercial mortgage loan commitments	5.50%
Unsecured revolving credit facility [Member]
Commitments And Contingencies [Line Items]
Line of Credit Facility, Borrowing Capacity, Description	The Company maintains a $250 million Facility. Upon the request of StanCorp and with the consent of the lenders under the Facility, the Facility can be increased to $350 million.
Line of Credit Facility, Current Borrowing Capacity	250,000,000
Line of credit facility, maximum borrowing capacity	350,000,000
Line of credit facility, expiration date	Jun. 22, 2016
Line of credit facility, number of one year extension periods	2
Line of Credit Facility, Covenant Terms	Under the agreement, the Company is subject to two financial covenants that are based on the Company's ratio of total debt to total capitalization and consolidated net worth. The Company is also subject to covenants that limit subsidiary indebtedness.
Line of credit facility, financial covenants, number	2
Line of credit facility, amount outstanding	0
Junior Subordinated Debentures [Member]
Commitments And Contingencies [Line Items]
Debt instrument, face amount	300,000,000
Debt instrument, interest rate, stated percentage	6.90%
Debt instrument, maturity date	Jun. 01, 2067
Debt instrument, call date, earliest	Jun. 01, 2017
Debt instrument, floating rate, LIBOR rate plus	2.51%
Debt Instrument, Description of Variable Rate Basis	LIBOR
Debt instrument, option to defer interest payments, years	5 years 0 months 0 days
Senior Notes 2022 [Member]
Commitments And Contingencies [Line Items]
Debt instrument, face amount	$ 250,000,000
Debt instrument, interest rate, stated percentage	5.00%
Debt instrument, maturity date	Aug. 15, 2022

XML

Derivative Financial Instruments (Fair Value Of Derivative Assets And Its Maximum Credit Risk Exposure) (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2013
Derivative [Line Items]
Derivative Assets at Fair Value	$ 15.3
Maximum Credit Risk	19.6
Bank of New York Mellon [Member]
Derivative [Line Items]
Derivative Assets at Fair Value	12.7
Maximum Credit Risk	16.4
Goldman Sachs [Member]
Derivative [Line Items]
Derivative Assets at Fair Value	2.6
Maximum Credit Risk	$ 3.2

XML

Share Based Compensation (Tables)

3 Months Ended

Mar. 31, 2013

Share-Based Compensation

Schedule of Compensation Cost and Related Income Tax Benefit under Share-Based Compensation Plans

	Three Months Ended
	March 31,
	2013		2012
	(In millions)
Compensation cost	$	1.4	$	2.3
Related income tax benefit		0.5		0.8

Schedule of Compensation Cost and Related Income Tax Benefit under Employee Stock Purchase Plans

	Three Months Ended
	March 31,
	2013		2012
	(In millions)
Compensation cost	$	0.2	$	0.6
Related income tax benefit		0.1		0.2

XML

Fair Value (Significant Unobservable Inputs Used in Level 3 Valuations of Assets and Liabilities) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2013		Dec. 31, 2012	Mar. 31, 2012	Dec. 31, 2011
Fair Value Measurement Inputs Disclosure [Line Items]
Fair Value Assets	$ 94.4		$ 94.5	$ 69.2	$ 73.1
Various Assumptions [Member] | Maximum [Member]
Fair Value Measurement Inputs Disclosure [Line Items]
Unobservable Inputs	36%
Various Assumptions [Member] | Minimum [Member]
Fair Value Measurement Inputs Disclosure [Line Items]
Unobservable Inputs	5%
Various Assumptions [Member] | Black-Scholes Option Pricing model [Member]
Fair Value Measurement Inputs Disclosure [Line Items]
Unobservable Inputs	(a)	[1]
Commercial Mortgage Loans [Member]
Fair Value Measurement Inputs Disclosure [Line Items]
Fair Value Assets	54.0
FairValueMeasurementsSignificantAssumptions	Reduction on appraisal , Capitalization rate (c)	[2]
FairValueMeasurementsValuationTechniques	Appraisals, Cash flows
Commercial Mortgage Loans [Member] | Discount For Dated Appraisal [Member]
Fair Value Measurement Inputs Disclosure [Line Items]
Unobservable Inputs	0%-25%
Commercial Mortgage Loans [Member] | Discount For Dated Appraisal [Member] | Maximum [Member]
Fair Value Measurement Inputs Disclosure [Line Items]
Unobservable Inputs	25%
Commercial Mortgage Loans [Member] | Discount For Dated Appraisal [Member] | Minimum [Member]
Fair Value Measurement Inputs Disclosure [Line Items]
Unobservable Inputs	0%
Commercial Mortgage Loans [Member] | Capitalization Rate [Member]
Fair Value Measurement Inputs Disclosure [Line Items]
Unobservable Inputs	7%-16%
Commercial Mortgage Loans [Member] | Capitalization Rate [Member] | Maximum [Member]
Fair Value Measurement Inputs Disclosure [Line Items]
Unobservable Inputs	16%
Commercial Mortgage Loans [Member] | Capitalization Rate [Member] | Minimum [Member]
Fair Value Measurement Inputs Disclosure [Line Items]
Unobservable Inputs	7%
Real Estate Owned [Member]
Fair Value Measurement Inputs Disclosure [Line Items]
Fair Value Assets	14.9
FairValueMeasurementsSignificantAssumptions	Reduction on appraisal
FairValueMeasurementsValuationTechniques	Appraisals
Real Estate Owned [Member] | Discount For Dated Appraisal [Member]
Fair Value Measurement Inputs Disclosure [Line Items]
Unobservable Inputs	0%-53%
Real Estate Owned [Member] | Discount For Dated Appraisal [Member] | Maximum [Member]
Fair Value Measurement Inputs Disclosure [Line Items]
Unobservable Inputs	53%
Real Estate Owned [Member] | Discount For Dated Appraisal [Member] | Minimum [Member]
Fair Value Measurement Inputs Disclosure [Line Items]
Unobservable Inputs	0%
S and P Five Hundred Index Options [Member]
Fair Value Measurement Inputs Disclosure [Line Items]
Fair Value Assets	15.3		11.3	14.3	7.2
Unobservable Inputs	(a)	[1]
FairValueMeasurementsSignificantAssumptions	Various assumptions
FairValueMeasurementsValuationTechniques	Black-Scholes option pricing model
Index Based Interest Guarantees [Member]
Fair Value Measurement Inputs Disclosure [Line Items]
Fair Value Liabilities	$ 63.6		$ 57.4	$ 55.3	$ 49.5
FairValueMeasurementsSignificantAssumptions	Expected future option purchase, Various assumptions	[3]
FairValueMeasurementsValuationTechniques	Discounted cash flow, Black-Scholes option pricing model
Index Based Interest Guarantees [Member] | Various Assumptions [Member]
Fair Value Measurement Inputs Disclosure [Line Items]
Unobservable Inputs	(b)	[3]
Index Based Interest Guarantees [Member] | Expected Future Option Purchase [Member]
Fair Value Measurement Inputs Disclosure [Line Items]
Unobservable Inputs	1%-5%
Index Based Interest Guarantees [Member] | Expected Future Option Purchase [Member] | Maximum [Member]
Fair Value Measurement Inputs Disclosure [Line Items]
Unobservable Inputs	5%
Index Based Interest Guarantees [Member] | Expected Future Option Purchase [Member] | Minimum [Member]
Fair Value Measurement Inputs Disclosure [Line Items]
Unobservable Inputs	1%

[1] Represents various assumptions derived from market data, which include estimates of bid ask spreads and the implied volatilities for the S&P 500 index.

[2] Capitalization rates are used as an internal analysis in converting the underlying property's income to an estimated property value.

[3] Represents various actuarial assumptions which include combined lapse, mortality and withdrawal decrement rates which generally have a range of inputs from 5%-36%.

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Retirement Benefits (Narrative) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2013	Dec. 31, 2012
Supplemental Employee Retirement Plans, Defined Benefit [Member]
Expenses towards non-qualified supplemental retirement plan	$ 0.6
Other liabilities for non-qualified plan		27.6	27.5
Accumulated other comprehensive loss net of tax		0.2	4.7
Deferred Compensation Plans [Member]
Employer contributions to the deferred compensation plans	3.1
Liability for the plans		$ 10.9	$ 10.5

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Deferred Acquisition Costs ("DAC"), Value Of Business Acquired ("VOBA") And Other Intangible Assets (Balances Of Unlocking On DAC And VOBA) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Deferred Acquisition Costs, Value Of Business Acquired And Other Intangible Assets Disclosures [Abstract]
Decrease to DAC and VOBA	$ 0	$ 0.8

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Share-Based Compensation (Narrative-Options) (Details) (Stock Incentive 2002 Plan [Member], USD $) In Millions, except Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares of common stock authorized for share based compensation arrangements	4,800,000
Number of shares of common stock available for grant	595,416
Award vesting period	4 years 0 months 0 days
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation cost related to unvested option, not recognized	$ 6.9
Weighted average recognition period of unrecognized compensation cost for stock options	2 years 8 months 12 days
Stock option awards granted in period	163,367	225,133
Weighted average exercise price of stock option awards granted in period	$ 38.56	$ 39.58
Weighted average grant date fair value of stock option awards granted in period	$ 13.64	$ 14.44

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Fair Value (Changes In Unrealized Gains (Losses) Included In Net Income) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
S and P Five Hundred Index Options [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Changes in unrealized gains (losses) included in net income relating to asset positions still held	$ 4.9	$ 5.7
Index Based Interest Guarantees [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Changes in unrealized gains (losses) included in net income relating to liability positions still held	$ (6.5)	$ (6.8)

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Investments (Schedule Of Gross Capital Gains And Losses By Investment Type) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Gross Capital Gains And Losses By Investment Type [Line Items]
Gross capital gains	$ 3.4	$ 2.9
Gross capital losses	(5.0)	(3.1)
Total net capital gains (losses)	(1.6)	(0.2)
Total Fixed Maturity Securities [Member]
Gross Capital Gains And Losses By Investment Type [Line Items]
Gross capital gains	2.6	2.5
Gross capital losses	(0.6)	(1.3)
Real Estate Investments [Member]
Gross Capital Gains And Losses By Investment Type [Line Items]
Gross capital gains	0	0
Gross capital losses	0	0
Real Estate Owned [Member]
Gross Capital Gains And Losses By Investment Type [Line Items]
Gross capital gains	0.1	0.1
Gross capital losses	(1.0)	(0.5)
Commercial Mortgage Loans [Member]
Gross Capital Gains And Losses By Investment Type [Line Items]
Gross capital gains	0.5	0.2
Gross capital losses	(3.1)	(1.3)
Other Investment Classification [Member]
Gross Capital Gains And Losses By Investment Type [Line Items]
Gross capital gains	0.2	0.1
Gross capital losses	$ (0.3)	$ 0

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Investments (Performing And Nonperforming Commercial Mortgage Loans By Property Type) (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012
Commercial mortgage loans, net	$ 5,320.4	$ 5,267.4
Performing Financing Receivable [Member]
Commercial mortgage loans, net	5,306.1	5,250.3
Nonperforming Financing Receivable [Member]
Commercial mortgage loans, net	14.3	17.1
Retail [Member]
Commercial mortgage loans, net	2,571.8	2,560.7
Retail [Member] | Performing Financing Receivable [Member]
Commercial mortgage loans, net	2,564.2	2,552.5
Retail [Member] | Nonperforming Financing Receivable [Member]
Commercial mortgage loans, net	7.6	8.2
Office [Member]
Commercial mortgage loans, net	967.0	960.8
Office [Member] | Performing Financing Receivable [Member]
Commercial mortgage loans, net	965.3	955.8
Office [Member] | Nonperforming Financing Receivable [Member]
Commercial mortgage loans, net	1.7	5.0
Industrial [Member]
Commercial mortgage loans, net	1,020.4	995.8
Industrial [Member] | Performing Financing Receivable [Member]
Commercial mortgage loans, net	1,016.7	993.0
Industrial [Member] | Nonperforming Financing Receivable [Member]
Commercial mortgage loans, net	3.7	2.8
Hotels and Motels [Member]
Commercial mortgage loans, net	280.0	280.8
Hotels and Motels [Member] | Performing Financing Receivable [Member]
Commercial mortgage loans, net	280.0	280.8
Hotels and Motels [Member] | Nonperforming Financing Receivable [Member]
Commercial mortgage loans, net	0	0
Commercial [Member]
Commercial mortgage loans, net	215.9	205.3
Commercial [Member] | Performing Financing Receivable [Member]
Commercial mortgage loans, net	215.2	204.7
Commercial [Member] | Nonperforming Financing Receivable [Member]
Commercial mortgage loans, net	0.7	0.6
Apartment and Other [Member]
Commercial mortgage loans, net	265.3	264.0
Apartment and Other [Member] | Performing Financing Receivable [Member]
Commercial mortgage loans, net	264.7	263.5
Apartment and Other [Member] | Nonperforming Financing Receivable [Member]
Commercial mortgage loans, net	$ 0.6	$ 0.5

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Segments (Segment Information) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012	Dec. 31, 2012
Premiums	$ 536.2	$ 553.3
Administrative fees	28.7	28.6
Net investment income	159.2	159.7
Net capital gains (losses)	(1.6)	(0.2)
Total revenues	722.5	741.4
Benefits to policyholders	441.8	450.0
Interest credited	46.6	47.2
Operating expenses	105.1	123.9
Commissions and bonuses	53.8	55.4
Premium taxes	9.5	10.0
Interest expense	8.5	9.7
Net increase in deferred acquisition costs, value of business acquired and intangible assets	(3.1)	(2.5)
Total benefits and expenses	662.2	693.7
Income (loss) before income taxes	60.3	47.7
Total Assets	20,369.5	19,099.1	19,791.3
Insurance Services [Member]
Premiums	533.2	551.1
Administrative fees	3.5	3.1
Net investment income	82.0	84.6
Net capital gains (losses)	0	0
Total revenues	618.7	638.8
Benefits to policyholders	436.0	444.7
Interest credited	0.9	1.6
Operating expenses	82.1	92.6
Commissions and bonuses	45.9	48.7
Premium taxes	9.5	10.0
Interest expense	0	0
Net increase in deferred acquisition costs, value of business acquired and intangible assets	(4.5)	(4.9)
Total benefits and expenses	569.9	592.7
Income (loss) before income taxes	48.8	46.1
Total Assets	8,311.1	8,162.9
Asset Management [Member]
Premiums	3.0	2.2
Administrative fees	29.9	29.9
Net investment income	73.3	73.1
Net capital gains (losses)	0	0
Total revenues	106.2	105.2
Benefits to policyholders	5.8	5.3
Interest credited	45.7	45.6
Operating expenses	28.2	30.2
Commissions and bonuses	7.9	6.7
Premium taxes	0	0
Interest expense	0	0
Net increase in deferred acquisition costs, value of business acquired and intangible assets	1.4	2.4
Total benefits and expenses	89.0	90.2
Income (loss) before income taxes	17.2	15.0
Total Assets	11,592.0	10,632.6
Other Category [Member]
Administrative fees	(4.7)	(4.4)
Net investment income	3.9	2.0
Net capital gains (losses)	(1.6)	(0.2)
Total revenues	(2.4)	(2.6)
Benefits to policyholders	0	0
Interest credited	0	0
Operating expenses	(5.2)	1.1
Commissions and bonuses	0	0
Premium taxes	0	0
Interest expense	8.5	9.7
Net increase in deferred acquisition costs, value of business acquired and intangible assets	0	0
Total benefits and expenses	3.3	10.8
Income (loss) before income taxes	(5.7)	(13.4)
Total Assets	$ 466.4	$ 303.6

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Unaudited Condensed Consolidated Statements Of Cash Flows (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Operating:
Net income	$ 46.8	$ 35.2
Adjustments to reconcile net income to net cash provided by operating activities:
Net realized capital losses	1.6	0.2
Depreciation and amortization	28.3	31.0
Deferral of acquisition costs, value of business acquired and other intangible assets, net	(20.7)	(21.5)
Deferred income taxes	13.3	12.0
Changes in other assets and liabilities:
Receivables and accrued income	(9.0)	(11.0)
Future policy benefits and claims	17.7	31.9
Other, net	(5.2)	50.2
Net cash provided by operating activities	72.8	128.0
Investing:
Proceeds from sale, maturity, or repayment of fixed maturity securities-available-for-sale	283.6	195.1
Proceeds from sale or repayment of commercial mortgage loans	220.6	130.5
Proceeds from sale of real estate	3.5	1.8
Proceeds from sales of other investments, net	0.2	0
Acquisition of fixed maturity securities-available-for-sale	(376.0)	(285.7)
Acquisition or origination of commercial mortgage loans	(280.1)	(216.6)
Acquisition of real estate	(0.3)	(0.1)
Acquisition of other invested assets	(31.6)	(19.7)
Acquisition of property and equipment, net	(1.7)	(3.9)
Net cash used in investing activities	(181.8)	(198.6)
Financing:
Policyholder fund deposits	521.0	476.2
Policyholder fund withdrawals	(421.3)	(431.8)
Issuance of common stock	1.5	3.3
Repurchases of common stock	(9.9)	0
Other financing activity, net	0.3	0.5
Net cash provided by financing activities	91.6	48.2
Decrease in cash and cash equivalents	(17.4)	(22.4)
Cash and cash equivalents, beginning of period	160.7	138.4
Cash and cash equivalents, end of period	143.3	116.0
Cash paid (received) during the period for:
Interest	46.6	43.3
Income taxes	10.7	(0.5)
Non-cash transactions:
Real estate acquired through commercial mortgage loan foreclosure	3.8	6.8
Commercial mortgage loans originated on real estate sold	$ 0	$ 0.2

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Investments (Impaired Commercial Mortgage Loans Identified In Management's Specific Review Of Probable Loan Losses And The Related Allowance) (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012
Financing Receivable, Impaired [Line Items]
Impaired recorded investment, with no related allowance	$ 26.8	$ 25.7
Impaired recorded investment, with related allowance	71.4	74.1
Total impaired recorded investment	98.2	99.8
Impaired unpaid principal balance, with no related allowance	26.8	25.7
Impaired unpaid principal balance, with related allowance	71.4	74.1
Total impaired unpaid principal balance	98.2	99.8
Related Allowance	22.8	25.6
Impaired recorded investment with no related allowance on nonaccrual status	8.4	6.5
Impaired recorded investment with related allowance on nonaccrual status	14.1	15.3
Total impaired recorded investment amount on Nonaccrual Status	22.5	21.8
Retail [Member]
Financing Receivable, Impaired [Line Items]
Impaired recorded investment, with no related allowance	16.6	15.3
Impaired recorded investment, with related allowance	37.7	37.9
Impaired unpaid principal balance, with no related allowance	16.6	15.3
Impaired unpaid principal balance, with related allowance	37.7	37.9
Related Allowance	11.4	13.2
Impaired recorded investment with no related allowance on nonaccrual status	4.1	2.2
Impaired recorded investment with related allowance on nonaccrual status	7.3	9.3
Office [Member]
Financing Receivable, Impaired [Line Items]
Impaired recorded investment, with no related allowance	4.1	5.2
Impaired recorded investment, with related allowance	9.9	10.3
Impaired unpaid principal balance, with no related allowance	4.1	5.2
Impaired unpaid principal balance, with related allowance	9.9	10.3
Related Allowance	2.4	2.5
Impaired recorded investment with no related allowance on nonaccrual status	2.9	4.1
Impaired recorded investment with related allowance on nonaccrual status	0.7	1.3
Industrial [Member]
Financing Receivable, Impaired [Line Items]
Impaired recorded investment, with no related allowance	4.2	3.3
Impaired recorded investment, with related allowance	10.8	11.4
Impaired unpaid principal balance, with no related allowance	4.2	3.3
Impaired unpaid principal balance, with related allowance	10.8	11.4
Related Allowance	3.1	3.6
Impaired recorded investment with no related allowance on nonaccrual status	1.4	0.2
Impaired recorded investment with related allowance on nonaccrual status	3.0	2.0
Hotels and Motels [Member]
Financing Receivable, Impaired [Line Items]
Impaired recorded investment, with no related allowance	0	0
Impaired recorded investment, with related allowance	0	0
Impaired unpaid principal balance, with no related allowance	0	0
Impaired unpaid principal balance, with related allowance	0	0
Related Allowance	0	0
Impaired recorded investment with no related allowance on nonaccrual status	0	0
Impaired recorded investment with related allowance on nonaccrual status	0	0
Commercial [Member]
Financing Receivable, Impaired [Line Items]
Impaired recorded investment, with no related allowance		0
Impaired recorded investment, with related allowance	10.0	11.4
Impaired unpaid principal balance, with no related allowance		0
Impaired unpaid principal balance, with related allowance	10.0	11.4
Related Allowance	5.8	6.2
Impaired recorded investment with no related allowance on nonaccrual status		0
Impaired recorded investment with related allowance on nonaccrual status	3.1	2.7
Apartment and Other [Member]
Financing Receivable, Impaired [Line Items]
Impaired recorded investment, with no related allowance	1.9	1.9
Impaired recorded investment, with related allowance	3.0	3.1
Impaired unpaid principal balance, with no related allowance	1.9	1.9
Impaired unpaid principal balance, with related allowance	3.0	3.1
Related Allowance	0.1	0.1
Impaired recorded investment with no related allowance on nonaccrual status	0	0
Impaired recorded investment with related allowance on nonaccrual status	$ 0	$ 0

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Retirement Benefits (Components Of Net Periodic Benefit Cost And Other Amounts Recognized In Other Comprehensive Income For Pension Benefits) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Defined Benefit Pension Plans [Member]
Service cost	$ 2.6	$ 2.5
Interest cost	4.1	4.1
Expected return on plan assets	(7.3)	(6.6)
Amortization of prior service cost	0.2	0.2
Amortization of net actuarial gain (loss)	2.3	2.1
Net periodic benefit cost	1.9	2.3
Amortization of prior service cost	(0.2)	(0.2)
Amortization of net actuarial gain (loss)	(2.3)	(2.1)
Total recognized in other comprehensive income	(2.5)	(2.3)
Total recognized in net periodic benefit cost and other comprehensive income (loss)	(0.6)	0
Postretirement Benefit Plan [Member]
Service cost	0	0.2
Interest cost	0.2	0.4
Expected return on plan assets	(0.2)	(0.2)
Amortization of prior service cost	(13.2)	(0.1)
Amortization of net actuarial gain (loss)	2.9	0
Net periodic benefit cost	(10.3)	0.3
Net gain	0	(0.7)
Amortization of prior service cost	13.2	0.1
Amortization of net actuarial gain (loss)	(2.9)	0
Total recognized in other comprehensive income	10.3	(0.6)
Total recognized in net periodic benefit cost and other comprehensive income (loss)	$ 0	$ (0.3)

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Investment (Tables)

3 Months Ended

Mar. 31, 2013

Investments [Abstract]

Amortized Costs and Fair Values of Fixed Maturity Securities Available-for-Sale

		March 31, 2013
		Amortized		Unrealized		Unrealized		Fair
		Cost		Gains		Losses		Value
		(In millions)
Corporate bonds		$	6,045.7	$	557.6	$	(6.9)	$	6,596.4
U.S. government and agency bonds			340.9		56.9		0.0		397.8
U.S. state and political subdivision bonds			151.4		16.5		0.0		167.9
Foreign government bonds			61.2		10.1		0.0		71.3
S&P 500 Index options			15.3		0.0		0.0		15.3
	Total fixed maturity securities	$	6,614.5	$	641.1	$	(6.9)	$	7,248.7

		December 31, 2012
		Amortized		Unrealized		Unrealized		Fair
		Cost		Gains		Losses		Value
		(In millions)
Corporate bonds		$	5,942.0	$	587.7	$	(3.8)	$	6,525.9
U.S. government and agency bonds			351.5		61.5		0.0		413.0
U.S. state and political subdivision bonds			151.6		16.8		0.0		168.4
Foreign government bonds			61.3		10.8		0.0		72.1
S&P 500 Index options			11.3		0.0		0.0		11.3
	Total fixed maturity securities	$	6,517.7	$	676.8	$	(3.8)	$	7,190.7

Schedule of Contractual Maturities of Fixed Maturity Securities Available-for-Sale

		March 31, 2013				December 31, 2012
		Amortized		Fair		Amortized		Fair
		Cost		Value		Cost		Value
		(In millions)
Due in one year or less		$	680.6	$	694.9	$	699.2	$	712.9
Due after one year through five years			2,746.6		2,975.2		2,779.9		3,009.1
Due after five years through ten years			2,365.0		2,579.7		2,184.7		2,422.6
Due after ten years			822.3		998.9		853.9		1,046.1
	Total fixed maturity securities	$	6,614.5	$	7,248.7	$	6,517.7	$	7,190.7

Schedule of Gross Unrealized Losses and Fair Value of Investments

			March 31, 2013
			Total				Less than 12 months				12 or more months
			Number		Amount		Number		Amount		Number		Amount
			(Dollars in millions)
Unrealized losses:
		Corporate bonds		291	$	6.9		282	$	6.7		9	$	0.2
Fair market value of securities with
	unrealized losses:
		Corporate bonds		291	$	515.3		282	$	508.4		9	$	6.9

			December 31, 2012
			Total				Less than 12 months				12 or more months
			Number		Amount		Number		Amount		Number		Amount
			(Dollars in millions)
Unrealized losses:
		Corporate bonds		198	$	3.8		188	$	3.6		10	$	0.2
Fair market value of securities with
	unrealized losses:
		Corporate bonds		198	$	342.5		188	$	335.5		10	$	7.0

Commercial Mortgage Loan Portfolio by Property Type, by Geographic Region within the U.S. and by U.S. State

			March 31, 2013				December 31, 2012
			Amount		Percent		Amount		Percent
			(Dollars in millions)
Property type:
	Retail		$	2,571.8	48.3	%	$	2,560.7	48.6	%
	Industrial			1,020.4	19.2			995.8	18.9
	Office			967.0	18.1			960.8	18.2
	Hotel/motel			280.0	5.3			280.8	5.3
	Commercial			215.9	4.1			205.3	4.0
	Apartment and other			265.3	5.0			264.0	5.0
		Total commercial mortgage loans, net	$	5,320.4	100.0	%	$	5,267.4	100.0	%
Geographic region*:
	Pacific		$	1,869.7	35.1	%	$	1,844.1	35.0	%
	South Atlantic			1,084.2	20.4			1,069.2	20.2
	West South Central			644.2	12.2			634.8	12.1
	Mountain			614.4	11.5			612.7	11.6
	East North Central			446.8	8.4			443.9	8.4
	Middle Atlantic			240.4	4.5			240.3	4.6
	West North Central			181.5	3.4			183.0	3.5
	East South Central			152.7	2.9			150.5	2.9
	New England			86.5	1.6			88.9	1.7
		Total commercial mortgage loans, net	$	5,320.4	100.0	%	$	5,267.4	100.0	%
U.S. state:
	California		$	1,455.0	27.3	%	$	1,436.3	27.3	%
	Texas			590.9	11.1			587.0	11.1
	Florida			336.1	6.3			331.9	6.3
	Georgia			309.3	5.8			311.5	5.9
	Other states			2,629.1	49.5			2,600.7	49.4
		Total commercial mortgage loans, net	$	5,320.4	100.0	%	$	5,267.4	100.0	%

Changes in Commercial Mortgage Loan Loss Allowance

			Three Months Ended
			March 31,
			2013		2012
			(In millions)
Commercial mortgage loan loss allowance:
Beginning balance			$	46.6	$	48.1
	Provision			3.1		1.3
	Charge-offs, net			(6.9)		(3.8)
		Ending balance	$	42.8	$	45.6
Specific loan loss allowance			$	22.8	$	25.5
General loan loss allowance				20.0		20.1
		Total commercial mortgage loan loss allowance	$	42.8	$	45.6

Schedule of Recorded Investment in Commercial Mortgage Loans

		March 31, 2013		December 31, 2012
		(In millions)
Commercial mortgage loans collectively evaluated for impairment		$	5,265.0	$	5,214.2
Commercial mortgage loans individually evaluated for impairment			98.2		99.8
Commercial mortgage loan loss allowance			(42.8)		(46.6)
	Total commercial mortgage loans	$	5,320.4	$	5,267.4

Performing and Nonperforming Commercial Mortgage Loans by Property Type

		March 31, 2013
								Hotel/				Apartment
		Retail		Office		Industrial		Motel		Commercial		and Other		Total
		(In millions)
Performing commercial mortgage loans		$	2,564.2	$	965.3	$	1,016.7	$	280.0	$	215.2	$	264.7	$	5,306.1
Nonperforming commercial mortgage loans			7.6		1.7		3.7		0.0		0.7		0.6		14.3
	Total commercial mortgage loans	$	2,571.8	$	967.0	$	1,020.4	$	280.0	$	215.9	$	265.3	$	5,320.4

		December 31, 2012
								Hotel/				Apartment
		Retail		Office		Industrial		Motel		Commercial		and Other		Total
		(In millions)
Performing commercial mortgage loans		$	2,552.5	$	955.8	$	993.0	$	280.8	$	204.7	$	263.5	$	5,250.3
Nonperforming commercial mortgage loans			8.2		5.0		2.8		0.0		0.6		0.5		17.1
	Total commercial mortgage loans	$	2,560.7	$	960.8	$	995.8	$	280.8	$	205.3	$	264.0	$	5,267.4

Impaired Commercial Mortgage Loans Identified in Management's Specific Review of Probable Loan Losses and the Related Allowance

						March 31, 2013
								Unpaid				Amount on
						Recorded		Principal		Related		Nonaccrual
						Investment		Balance		Allowance		Status
						(In millions)
Impaired commercial mortgage loans:
	Without specific loan loss allowances:
		Retail				$	16.6	$	16.6	$	0.0	$	4.1
		Office					4.1		4.1		0.0		2.9
		Industrial					4.2		4.2		0.0		1.4
		Apartment and other					1.9		1.9		0.0		0.0
			Total impaired commercial mortgage loans without specific
				loan loss allowances			26.8		26.8		0.0		8.4
	With specific loan loss allowances:
		Retail					37.7		37.7		11.4		7.3
		Office					9.9		9.9		2.4		0.7
		Industrial					10.8		10.8		3.1		3.0
		Commercial					10.0		10.0		5.8		3.1
		Apartment and other					3.0		3.0		0.1		0.0
			Total impaired commercial mortgage loans with specific
				loan loss allowances			71.4		71.4		22.8		14.1
					Total impaired commercial mortgage loans	$	98.2	$	98.2	$	22.8	$	22.5

						December 31, 2012
								Unpaid				Amount on
						Recorded		Principal		Related		Nonaccrual
						Investment		Balance		Allowance		Status
						(In millions)
Impaired commercial mortgage loans:
	Without specific loan loss allowances:
		Retail				$	15.3	$	15.3	$	0.0	$	2.2
		Office					5.2		5.2		0.0		4.1
		Industrial					3.3		3.3		0.0		0.2
		Apartment and other					1.9		1.9		0.0		0.0
			Total impaired commercial mortgage loans without specific
				loan loss allowances			25.7		25.7		0.0		6.5
	With specific loan loss allowances:
		Retail					37.9		37.9		13.2		9.3
		Office					10.3		10.3		2.5		1.3
		Industrial					11.4		11.4		3.6		2.0
		Commercial					11.4		11.4		6.2		2.7
		Apartment and other					3.1		3.1		0.1		0.0
			Total impaired commercial mortgage loans with specific
				loan loss allowances			74.1		74.1		25.6		15.3
					Total impaired commercial mortgage loans	$	99.8	$	99.8	$	25.6	$	21.8

Troubled Debt Restructurings on Financing Receivables [Table Text Block]

		Three Months Ended
		March 31, 2013
				Pre-		Post-
				Restructuring		Restructuring
		Number		Recorded		Recorded
		of Loans		Investment		Investment
		(Dollars in millions)
Troubled debt restructurings:
	Retail		3	$	1.9	$	4.9

Average Recorded Investment in Impaired Commercial Mortgage Loans before Specific Allowances for Losses

	Three Months Ended
	March 31,
	2013		2012
	(In millions)
Average recorded investment	$	99.0	$	104.4

Aging of Commercial Mortgage Loans by Property Type

			March 31, 2013
															Total
							Greater Than				Allowance				Commercial
			30 Days		60 Days		90 Days		Total		Related		Current,		Mortgage
			Past Due		Past Due		Past Due		Past Due		to Past Due		net		Loans
			(In millions)
Commercial mortgage loans:
	Retail		$	27.0	$	0.7	$	8.2	$	35.9	$	(1.3)	$	2,537.2	$	2,571.8
	Office			1.5		0.4		1.6		3.5		(0.3)		963.8		967.0
	Industrial			1.6		0.0		4.7		6.3		(1.0)		1,015.1		1,020.4
	Hotel/motel			0.0		0.0		0.0		0.0		0.0		280.0		280.0
	Commercial			0.0		0.0		2.9		2.9		(2.3)		215.3		215.9
	Apartment and other			0.0		0.0		0.6		0.6		0.0		264.7		265.3
		Total commercial mortgage loans	$	30.1	$	1.1	$	18.0	$	49.2	$	(4.9)	$	5,276.1	$	5,320.4

			December 31, 2012
															Total
							Greater Than				Allowance				Commercial
			30 Days		60 Days		90 Days		Total		Related		Current,		Mortgage
			Past Due		Past Due		Past Due		Past Due		to Past Due		net		Loans
			(In millions)
Commercial mortgage loans:
	Retail		$	17.2	$	4.9	$	4.7	$	26.8	$	(1.4)	$	2,535.3	$	2,560.7
	Office			4.1		0.0		5.6		9.7		(0.6)		951.7		960.8
	Industrial			1.6		0.5		3.6		5.7		(1.4)		991.5		995.8
	Hotel/motel			0.0		0.0		0.0		0.0		0.0		280.8		280.8
	Commercial			2.7		0.0		1.4		4.1		(0.8)		202.0		205.3
	Apartment and other			0.0		0.6		0.0		0.6		0.0		263.4		264.0
		Total commercial mortgage loans	$	25.6	$	6.0	$	15.3	$	46.9	$	(4.2)	$	5,224.7	$	5,267.4

Net Investment Income Summarized by Investment Type

				Three Months Ended
				March 31,
				2013		2012
				(In millions)
Bonds				$	76.4	$	79.2
S&P 500 Index options					6.0		6.7
	Total fixed maturity securities				82.4		85.9
Commercial mortgage loans					83.4		79.5
Real estate					(0.3)		0.1
Other					2.4		2.0
		Gross investment income			167.9		167.5
Investment expenses					(5.6)		(5.7)
Tax-advantaged investment operating losses					(3.1)		(2.1)
			Net investment income	$	159.2	$	159.7

Schedule of Gross Capital Gains and Losses by Investment Type

				Three Months Ended
				March 31,
				2013		2012
				(In millions)
Gains:
	Fixed maturity securities			$	2.6	$	2.5
	Commercial mortgage loans				0.5		0.2
	Real Estate Owned				0.1		0.1
	Other				0.2		0.1
		Gross capital gains			3.4		2.9
Losses:
	Fixed maturity securities				(0.6)		(1.3)
	Provision for commercial mortgage loan losses				(3.1)		(1.3)
	Real Estate Owned				(1.0)		(0.5)
	Other				(0.3)		0.0
		Gross capital losses			(5.0)		(3.1)
			Net capital losses	$	(1.6)	$	(0.2)

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Fair Value (Tables)

3 Months Ended

Mar. 31, 2013

Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Abstract

Estimated Fair Value and the Carrying Value of Each Financial Instrument Categorized by Fair Value Hierarcy

				March 31, 2013
				Carrying		Fair
				Value		Value		Level 1		Level 2		Level 3
				(In millions)
Assets:
	Fixed maturity securities:
		Corporate bonds		$	6,596.4	$	6,596.4	$	0.0	$	6,520.1	$	76.3
		U.S. government and agency bonds			397.8		397.8		0.0		396.7		1.1
		U.S. state and political subdivision bonds			167.9		167.9		0.0		166.2		1.7
		Foreign government bonds			71.3		71.3		0.0		71.3		0.0
		S&P 500 Index options			15.3		15.3		0.0		0.0		15.3
			Total fixed maturity securities	$	7,248.7	$	7,248.7	$	0.0	$	7,154.3	$	94.4
	Commercial mortgage loans, net			$	5,320.4	$	5,962.5	$	0.0	$	0.0	$	5,962.5
	Policy loans				2.5		2.5		0.0		0.0		2.5
	Separate account assets				5,600.1		5,600.1		5,455.9		144.2		0.0
Liabilities:
	Total other policyholder funds, investment
		type contracts		$	5,013.3	$	5,386.7	$	0.0	$	0.0	$	5,386.7
	Index-based interest guarantees				63.6		63.6		0.0		0.0		63.6
	Short-term debt				1.1		1.3		0.0		1.3		0.0
	Long-term debt				551.6		580.7		0.0		580.7		0.0

				December 31, 2012
				Carrying		Fair
				Value		Value		Level 1		Level 2		Level 3
				(In millions)
Assets:
	Fixed maturity securities:
		Corporate bonds		$	6,525.9	$	6,525.9	$	0.0	$	6,445.5	$	80.4
		U.S. government and agency bonds			413.0		413.0		0.0		411.9		1.1
		U.S. state and political subdivision bonds			168.4		168.4		0.0		166.7		1.7
		Foreign government bonds			72.1		72.1		0.0		72.1		0.0
		S&P 500 Index options			11.3		11.3		0.0		0.0		11.3
			Total fixed maturity securities	$	7,190.7	$	7,190.7	$	0.0	$	7,096.2	$	94.5
	Commercial mortgage loans, net			$	5,267.4	$	5,946.3	$	0.0	$	0.0	$	5,946.3
	Policy loans				2.5		2.5		0.0		0.0		2.5
	Separate account assets				5,154.3		5,154.3		5,007.5		146.8		0.0
Liabilities:
	Total other policyholder funds, investment
		type contracts		$	4,916.7	$	5,331.3	$	0.0	$	0.0	$	5,331.3
	Index-based interest guarantees				57.4		57.4		0.0		0.0		57.4
	Short-term debt				1.0		1.2		0.0		1.2		0.0
	Long-term debt				551.4		567.4		0.0		567.4		0.0

Valuation Techniques Fair Values Of Assets And Liabilities Measured And Recorded At Fair Value On A Recurring Basis

	March 31, 2013
	Fair Value		Valuation Technique	Unobservable Input	Range of inputs
	(Dollars in millions)
S&P 500 Index options	$	15.3	Black-Scholes option pricing model	Various assumptions	(a)
Index-based interest guarantees		63.6	Discounted cash flow	Expected future option purchase	1%-5%
				Various assumptions	(b)
			Black-Scholes option pricing model	Various assumptions	(a)
Commercial mortgage loans		54.0	Appraisals	Reduction on appraisal	0%-25%
			Cash flows	Capitalization rate (c)	7%-16%
Real Estate Owned		14.9	Appraisals	Reduction on appraisal	0%-53%

• Represents various assumptions derived from market data, which include estimates of bid ask spreads and the implied volatilities for the S&P 500 Index.
• Represents various actuarial assumptions which include combined lapse, mortality and withdrawal decrement rates which generally have a range of inputs from 5%-36%.
• Capitalization rates are used as an internal analysis in converting the underlying property's income to an estimated property value.

Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Level 3 Inputs

		Three Months Ended March 31, 2013
		Assets										Liabilities
		U.S.		U.S. State								Index-
		Government		and Political				S&P 500				Based
		and Agency		Subdivision		Corporate		Index		Total		Interest
		Bonds		Bonds		Bonds		Options		Assets		Guarantees
		(In millions)
Beginning balance		$	1.1	$	1.7	$	80.4	$	11.3	$	94.5	$	57.4
Total realized/unrealized gains (losses):
	Included in net income		0.0		0.0		0.0		6.0		6.0		6.2
	Included in other comprehensive income (loss)		0.0		0.0		(4.1)		0.0		(4.1)		0.0
Purchases, issuances, sales and settlements:
	Purchases		0.0		0.0		0.0		1.9		1.9		0.0
	Issuances		0.0		0.0		0.0		0.0		0.0		1.1
	Sales		0.0		0.0		0.0		0.0		0.0		0.0
	Settlements		0.0		0.0		0.0		(3.9)		(3.9)		(1.1)
Transfers into level 3			0.0		0.0		0.0		0.0		0.0		0.0
Transfers out of level 3			0.0		0.0		0.0		0.0		0.0		0.0
Ending balance		$	1.1	$	1.7	$	76.3	$	15.3	$	94.4	$	63.6

		Three Months Ended March 31, 2012
		Assets										Liabilities
		U.S.		U.S. State								Index-
		Government		and Political				S&P 500				Based
		and Agency		Subdivision		Corporate		Index		Total		Interest
		Bonds		Bonds		Bonds		Options		Assets		Guarantees
		(In millions)
Beginning balance		$	0.5	$	1.4	$	64.0	$	7.2	$	73.1	$	49.5
Total realized/unrealized gains (losses):
	Included in net income		0.0		0.0		0.0		6.7		6.7		6.4
	Included in other comprehensive income (loss)		0.0		0.0		(1.4)		0.0		(1.4)		0.0
Purchases, issuances, sales and settlements:
	Purchases		0.0		0.0		0.0		2.0		2.0		0.0
	Issuances		0.0		0.0		0.0		0.0		0.0		0.1
	Sales		0.0		0.0		0.0		0.0		0.0		0.0
	Settlements		0.0		0.0		0.0		(1.6)		(1.6)		(0.7)
Transfers into level 3			0.0		0.4		0.0		0.0		0.4		0.0
Transfers out of level 3			(0.5)		0.0		(9.5)		0.0		(10.0)		0.0
Ending balance		$	0.0	$	1.8	$	53.1	$	14.3	$	69.2	$	55.3

Changes in unrealized gains (losses) included in net income relating to positions still held

		Three Months Ended
		March 31,
		2013		2012
		(In millions)
Assets:
	S&P 500 Index options	$	4.9	$	5.7
Liabilities:
	Index-based interest guarantees	$	(6.5)	$	(6.8)

Assets measured at fair value on a nonrecurring basis and still held as of the balance sheet date

		March 31, 2013
		Total		Level 1		Level 2		Level 3
		(In millions)
Commercial mortgage loans		$	54.0	$	0.0	$	0.0	$	54.0
Real Estate Owned			14.9		0.0		0.0		14.9
	Total assets measured at fair value on a nonrecurring basis	$	68.9	$	0.0	$	0.0	$	68.9

		December 31, 2012
		Total		Level 1		Level 2		Level 3
		(In millions)
Commercial mortgage loans		$	53.9	$	0.0	$	0.0	$	53.9
Real Estate Owned			48.2		0.0		0.0		48.2
	Total assets measured at fair value on a nonrecurring basis	$	102.1	$	0.0	$	0.0	$	102.1

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Investments (Schedule Of Contractual Maturities Of Fixed Maturity Securities Available-For-Sale) (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012
Investments [Abstract]
Due in one year or less, Amortized cost	$ 680.6	$ 699.2
Due after one year through five years, Amortized cost	2,746.6	2,779.9
Due after five years through ten years, Amortized Cost	2,365.0	2,184.7
Due after ten years, Amortized Cost	822.3	853.9
Total fixed maturity securities-available-for-sale, Amortized Cost	6,614.5	6,517.7
Due in one year or less, Fair Value	694.9	712.9
Due after one year through five years, Fair Value	2,975.2	3,009.1
Due after five years through ten years, Fair Value	2,579.7	2,422.6
Due after ten years, Fair Value	998.9	1,046.1
Total fixed maturity securities-available-for-sale	$ 7,248.7	$ 7,190.7

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Segments (Intersegment Administrative Fee Revenues) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Administrative fees	$ 28.7	$ 28.6
IntersegmentEliminationMember
Administrative fees	$ 4.7	$ 4.4

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Derivative Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2013

Derivative Financial Instruments [Abstract]

Fair Value of the Company's Derivative Assets and Liabilities

			March 31,		December 31,
Derivatives Not Designated as Hedging Instruments			2013		2012
			(In millions)
Assets:
	Fixed maturity securities:
		S&P 500 Index options	$	15.3	$	11.3
Liabilities:
	Other policyholder funds:
		Index-based interest guarantees	$	63.6	$	57.4

Gain or Loss Recognized in Earnings from the Change in Fair Value of Derivative Assets and Liabilities

			Three Months Ended
			March 31,
Derivatives Not Designated as Hedging Instruments			2013		2012
			(In millions)
Net investment income:
	S&P 500 Index options		$	6.0	$	6.7
Interest credited:
	Index-based interest guarantees			(6.2)		(6.4)
		Net (loss) gain	$	(0.2)	$	0.3

Fair Value of Derivative Assets and Maximum Credit Risk Exposure

			March 31, 2013
			Assets at		Maximum
			Fair Value		Credit Risk
			(In millions)
Counterparty:
	The Bank of New York Mellon		$	12.7	$	16.4
	Goldman Sachs			2.6		3.2
		Total	$	15.3	$	19.6

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Deferred Acquisition Costs ("DAC"), Value Of Business Acquired ("VOBA") And Other Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2013

Deferred Acquisition Costs, Value Of Business Acquired And Other Intangible Assets Disclosures [Abstract]

Schedule Of Activity For DAC, VOBA And Other Intangible Assets

			Three Months Ended		Year Ended
			March 31, 2013		December 31, 2012
			(In millions)
Carrying value at beginning of period:
	DAC		$	284.9	$	274.4
	VOBA			23.4		26.4
	Other intangible assets			38.2		44.1
		Total balance at beginning of period		346.5		344.9
Deferred or acquired:
	DAC			20.7		71.4
		Total deferred or acquired during period		20.7		71.4
Amortized during period:
	DAC			(12.4)		(60.9)
	VOBA			(0.6)		(3.0)
	Other intangible assets			(1.8)		(5.9)
		Total amortized during period		(14.8)		(69.8)
Carrying value at end of period, net:
	DAC			293.2		284.9
	VOBA			22.8		23.4
	Other intangible assets			36.4		38.2
		Total carrying value at end of period	$	352.4	$	346.5

Schedule Of DAC And VOBA Balances Amortized In Proportion To Expected Gross Profits And The Percentage Of The Total Balance Of DAC And VOBA Amortized In Proportion To Expected Gross Profits

	March 31, 2013				December 31, 2012
	Amount		Percent		Amount		Percent
	(Dollars in millions)
DAC	$	63.8	21.8	%	$	60.9	21.4	%
VOBA		5.7	25.0			5.9	25.2

Impact Of Unlocking On DAC And VOBA Balances

	Three Months Ended
	March 31,
	2013		2012
	(In millions)
Decrease to DAC and VOBA	$	0.0	$	(0.8)

Schedule Of The Estimated Net Amortization Of Value Of Business Acquired And Other Intangible Assets For The Next Five Years

	Amount
	(In millions)
2013	$	6.4
2014		7.5
2015		7.3
2016		5.8
2017		4.4
2018		4.3

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Unaudited Condensed Consolidated Statements Of Changes In Shareholders' Equity (Parentheticals) (USD $)	12 Months Ended
	Dec. 31, 2012
Consolidated Statements Of Changes In Shareholders' Equity
Common stock dividends per share cash paid	$ 0.93

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Income Taxes (Tables)

3 Months Ended

Mar. 31, 2013

Income Tax Disclosure [Abstract]

Combined Federal And State Effective Income Tax Rates Table Textblock

	Three Months Ended
	March 31,
	2013		2012
Combined federal and state effective income tax rates	22.4	%	26.2	%

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Share-Based Compensation (Schedule Of Compensation Cost And Related Income Tax Benefit Under Share-Based Compensation Plans) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Share-Based Compensation
Compensation cost	$ 1.4	$ 2.3
Related income tax benefit	$ 0.5	$ 0.8

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Fair Value (Assets Measured At Fair Value On A Nonrecurring Basis) (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012
Assets measured at fair value on a nonrecurring basis during the period and still held as of the balance sheet date	$ 68.9	$ 102.1
Level 1 [Member]
Assets measured at fair value on a nonrecurring basis during the period and still held as of the balance sheet date	0	0
Level 2 [Member]
Assets measured at fair value on a nonrecurring basis during the period and still held as of the balance sheet date	0	0
Level 3 [Member]
Assets measured at fair value on a nonrecurring basis during the period and still held as of the balance sheet date	68.9	102.1
Commercial Mortgage Loans [Member]
Assets measured at fair value on a nonrecurring basis during the period and still held as of the balance sheet date	54.0	53.9
Commercial Mortgage Loans [Member] | Level 1 [Member]
Assets measured at fair value on a nonrecurring basis during the period and still held as of the balance sheet date	0	0
Commercial Mortgage Loans [Member] | Level 2 [Member]
Assets measured at fair value on a nonrecurring basis during the period and still held as of the balance sheet date	0	0
Commercial Mortgage Loans [Member] | Level 3 [Member]
Assets measured at fair value on a nonrecurring basis during the period and still held as of the balance sheet date	54.0	53.9
Real Estate Owned [Member]
Assets measured at fair value on a nonrecurring basis during the period and still held as of the balance sheet date	14.9	48.2
Real Estate Owned [Member] | Level 1 [Member]
Assets measured at fair value on a nonrecurring basis during the period and still held as of the balance sheet date	0	0
Real Estate Owned [Member] | Level 2 [Member]
Assets measured at fair value on a nonrecurring basis during the period and still held as of the balance sheet date	0	0
Real Estate Owned [Member] | Level 3 [Member]
Assets measured at fair value on a nonrecurring basis during the period and still held as of the balance sheet date	$ 14.9	$ 48.2

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Deferred Acquisition Costs ("DAC"), Value Of Business Acquired ("VOBA") And Other Intangible Assets (Narrative) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended							3 Months Ended				3 Months Ended
	Mar. 31, 2013 Deferred Acquisition Costs [Member] Group Disability and Life Insurance [Member] Weighted Average	Mar. 31, 2013 Deferred Acquisition Costs [Member] Individual Policies [Member] Maximum [Member]	Mar. 31, 2013 Deferred Acquisition Costs [Member] Individual Policies [Member] Minimum [Member]	Mar. 31, 2013 Deferred Acquisition Costs [Member] Individual Deferred Annuities [Member] Weighted Average	Mar. 31, 2013 Deferred Acquisition Costs [Member] Group Annuity Products [Member] Weighted Average	Mar. 31, 2013 Value of Business Acquired [Member]	Dec. 31, 2012 Value of Business Acquired [Member]	Mar. 31, 2013 Value of Business Acquired [Member] TIAA [Member] Maximum [Member]	Mar. 31, 2013 Value of Business Acquired [Member] Minnesota Life [Member] Maximum [Member]	Mar. 31, 2013 Other Intangible Assets [Member]	Dec. 31, 2012 Other Intangible Assets [Member]	Mar. 31, 2013 Customer Lists [Member] Weighted Average
Indefinite-lived Intangible Assets by Major Class [Line Items]
Intangible assets, useful life	2 years 6 months 0 days	25 years 0 months 0 days	20 years 0 months 0 days	30 years 0 months 0 days	10 years 0 months 0 days			20 years 0 months 0 days	30 years 0 months 0 days			7 years 2 months 12 days
Intangible assets, accumulated amortization						$ 66.0	$ 65.4			$ 38.3	$ 36.5

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Unaudited Condensed Consolidated Statements Of Income (USD $) In Millions, except Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Revenues:
Premiums	$ 536.2	$ 553.3
Administrative fees	28.7	28.6
Net investment income	159.2	159.7
Net capital gains (losses):
Total other-than-temporary impairment losses on fixed maturity securities-available-for-sale	(0.3)	(0.8)
All other net capital gains (losses)	(1.3)	0.6
Total net capital gains (losses)	(1.6)	(0.2)
Total revenues	722.5	741.4
Benefits and expenses:
Benefits to policyholders	441.8	450.0
Interest credited	46.6	47.2
Operating expenses	105.1	123.9
Commissions and bonuses	53.8	55.4
Premium taxes	9.5	10.0
Interest expense	8.5	9.7
Net decrease (increase) in DAC, VOBA, and other intangibles	(3.1)	(2.5)
Total benefits and expenses	662.2	693.7
Income before income taxes	60.3	47.7
Income taxes	13.5	12.5
Net income	$ 46.8	$ 35.2
Net income per common share:
Basic	$ 1.05	$ 0.79
Diluted	$ 1.05	$ 0.79
Weighted-average common shares outstanding:
Basic	44,426,153	44,327,122
Diluted	44,500,049	44,461,841

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Segments (Premiums, Administrative Fees And Net Investment Income By Major Product Line Or Category) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Premiums	$ 536.2	$ 553.3
Administrative fees	28.7	28.6
Net investment income	159.2	159.7
Insurance Services [Member]
Premiums	533.2	551.1
Administrative fees	3.5	3.1
Net investment income	82.0	84.6
Individual Policies [Member]
Premiums	47.0	44.2
Administrative fees	0	0.1
Net investment income	13.4	13.3
Group Insurance [Member]
Premiums	486.2	506.9
Administrative fees	3.5	3.0
Net investment income	68.6	71.3
Group Life And ADD [Member]
Premiums	215.4	224.9
Group Long Term Disability [Member]
Premiums	200.3	204.2
Group Short Term Disability [Member]
Premiums	55.9	53.8
Group Other [Member]
Premiums	19.1	19.9
Experience Rated Refunds [Member]
Premiums	(4.5)	4.1
Asset Management [Member]
Premiums	3.0	2.2
Administrative fees	29.9	29.9
Net investment income	73.3	73.1
Retirement Plans [Member]
Premiums	1.2	0.8
Administrative fees	22.2	22.2
Net investment income	24.2	23.4
Individual Annuities [Member]
Premiums	1.8	1.4
Net investment income	46.2	46.9
Other Financial Services Businesses [Member]
Administrative fees	7.7	7.7
Net investment income	2.9	2.8
Other Category [Member]
Administrative fees	(4.7)	(4.4)
Net investment income	$ 3.9	$ 2.0

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Unaudited Condensed Consolidated Balance Sheets (Parenthetical) (USD $) In Millions, except Share data, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012
Consolidated Balance Sheets (Parenthetical) [Abstract]
Amortized cost of fixed maturity securities-available-for-sale	$ 6,614.5	$ 6,517.7
Preferred stock, shares authorized	100,000,000	100,000,000
Preferred stock, shares issued	0	0
Common stock, shares authorized	300,000,000	300,000,000
Common stock, shares issued	44,323,664	44,419,448

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Investments (Changes In Commercial Mortgage Loan Loss Allowance) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012	Dec. 31, 2012
Investments [Abstract]
Beginning balance	$ 46.6	$ 48.1
Provision	3.1	1.3
Charge-offs, net	(6.9)	(3.8)
Ending balance	42.8	45.6
Specific loan loss allowance	22.8		25.6
General loan loss allowance	20.0	20.1
Commercial mortgage loan loss allowance	$ 42.8	$ 45.6

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Organization, Principles Of Consolidation And Basis Of Presentation (Narrative) (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012
Organization, Principles Of Consolidation And Basis Of Presentation [Abstract]
Total investment in low-income housing tax credit investments	$ 204.4	$ 173.0

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Investments (Aging Of Commercial Mortgage Loans By Property Type) (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 Days Past Due	$ 30.1	$ 25.6
60 Days Past Due	1.1	6.0
Greater Than 90 Days Past Due	18.0	15.3
Total Past Due	49.2	46.9
Allowance Related to Past Due	(4.9)	(4.2)
Current	5,276.1	5,224.7
Total commercial mortgage loans	5,320.4	5,267.4
Retail [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 Days Past Due	27.0	17.2
60 Days Past Due	0.7	4.9
Greater Than 90 Days Past Due	8.2	4.7
Total Past Due	35.9	26.8
Allowance Related to Past Due	(1.3)	(1.4)
Current	2,537.2	2,535.3
Total commercial mortgage loans	2,571.8	2,560.7
Office [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 Days Past Due	1.5	4.1
60 Days Past Due	0.4	0
Greater Than 90 Days Past Due	1.6	5.6
Total Past Due	3.5	9.7
Allowance Related to Past Due	(0.3)	(0.6)
Current	963.8	951.7
Total commercial mortgage loans	967.0	960.8
Industrial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 Days Past Due	1.6	1.6
60 Days Past Due	0	0.5
Greater Than 90 Days Past Due	4.7	3.6
Total Past Due	6.3	5.7
Allowance Related to Past Due	(1.0)	(1.4)
Current	1,015.1	991.5
Total commercial mortgage loans	1,020.4	995.8
Hotels and Motels [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 Days Past Due	0	0
60 Days Past Due	0	0
Greater Than 90 Days Past Due	0	0
Total Past Due	0	0
Allowance Related to Past Due	0	0
Current	280.0	280.8
Total commercial mortgage loans	280.0	280.8
Commercial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 Days Past Due	0	2.7
60 Days Past Due	0	0
Greater Than 90 Days Past Due	2.9	1.4
Total Past Due	2.9	4.1
Allowance Related to Past Due	(2.3)	(0.8)
Current	215.3	202.0
Total commercial mortgage loans	215.9	205.3
Apartment and Other [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 Days Past Due	0	0
60 Days Past Due	0	0.6
Greater Than 90 Days Past Due	0.6	0
Total Past Due	0.6	0.6
Allowance Related to Past Due	0	0
Current	264.7	263.4
Total commercial mortgage loans	$ 265.3	$ 264.0

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Accumulated Other Comprehensive Income

3 Months Ended

Mar. 31, 2013

AOCI, net of tax [Abstract]

Accumulated Other Comprehensive Income [Text Block]

13.ACCUMULATED OTHER COMPREHENSIVE INCOME

The following table sets forth the changes in accumulated other comprehensive income by component:

			Net Unrealized				Total
			Gains (losses) on				Accumulated
			Fixed Maturity		Employee		Other
			Securities		Benefit		Comprehensive
			Available-for-Sale		Plans		Income
			(In millions)
Balance, January 1, 2012			$	315.2	$	(80.1)	$	235.1
	Other comprehensive income, net of tax
		before reclassification adjustment(1)		71.4		0.0		71.4
	Amounts reclassified from accumulated
		other comprehensive income, net of tax(2)		(3.6)		6.4		2.8
Net other comprehensive income, net of tax				67.8		6.4		74.2
Balance, December 31, 2012				383.0		(73.7)		309.3
	Other comprehensive loss, net of tax
		before reclassification adjustment(3)		(17.2)		0.0		(17.2)
	Amounts reclassified from accumulated
		other comprehensive income, net of tax(4)		(1.2)		(4.8)		(6.0)
Net other comprehensive loss, net of tax				(18.4)		(4.8)		(23.2)
Balance, March 31, 2013			$	364.6	$	(78.5)	$	286.1

• Net of tax expenses of $38.3 million for unrealized gains on fixed maturity securities and $0.2 million for employee benefits, respectively.
• Net of tax benefit of $2.2 million for unrealized gains on fixed maturity securities and net of tax expense of $3.4 million for employee benefits.
• Net of tax benefit of $7.5 million for unrealized losses on fixed maturity securities.
• Net of tax benefits of $0.8 million for unrealized gains on fixed maturity securities and $2.6 million for employee benefits, respectively.

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Net Income Per Common Share (Details) (USD $) In Millions, except Share data, unless otherwise specified	3 Months Ended		12 Months Ended
	Mar. 31, 2013	Mar. 31, 2012	Dec. 31, 2012
Net Income Per Common Share [Abstract]
Net income	$ 46.8	$ 35.2	$ 138.5
Basic weighted-average common shares outstanding	44,426,153	44,327,122
Stock options	71,621	127,126
Stock awards	2,275	7,593
Diluted weighted-average common shares outstanding	44,500,049	44,461,841
Net income per basic common share	$ 1.05	$ 0.79
Net income per diluted common share	$ 1.05	$ 0.79
Antidilutive shares not included in net income per diluted common share calculation	1,874,311	1,909,874

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Net Income Per Common Share (Tables)

3 Months Ended

Mar. 31, 2013

Net Income Per Common Share [Abstract]

Calculation Of Net Income Per Basic And Diluted Weighted-Average Common Shares Outstanding

		Three Months Ended
		March 31,
		2013		2012
Net income (In millions)		$	46.8	$	35.2
Basic weighted-average common shares outstanding			44,426,153		44,327,122
Stock options			71,621		127,126
Stock awards			2,275		7,593
Diluted weighted-average common shares outstanding			44,500,049		44,461,841
Net income per common share:
	Net income per basic common share	$	1.05	$	0.79
	Net income per diluted common share		1.05		0.79
Antidilutive shares not included in net income per diluted common share calculation			1,874,311		1,909,874

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Derivative Financial Instruments (Narrative) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2013 NumberOfDerivativeContracts	Mar. 31, 2012	Dec. 31, 2012
Derivative [Line Items]
S & P 500 index options purchased per month	1
Notional amount of index option contract	$ 319.1		$ 315.2
Derivative Option premiums paid	1.9	2.0
Amount received for derivative options exercised	3.9	1.6
Maximum credit exposure required increase in S&P 500 index, percentage	5.20%
Impact On Interest Credited Changes In Actuarial Assumptions	$ 0	$ 0
S and P Five Hundred Index Options [Member]
Derivative [Line Items]
Expiry date of S & P 500 index options purchased, years		1 year 0 months 0 days

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Unaudited Condensed Consolidated Statements Of Changes In Shareholders' Equity (USD $) In Millions, except Share data, unless otherwise specified	Total	Common Stock	Accumulated Other Comprehensive Income	Retained Earnings
Balance at Dec. 31, 2011	$ 1,990.4	$ 82.4	$ 235.1	$ 1,672.9
Balance, shares at Dec. 31, 2011		44,268,859
Changes in Shareholders' Equity
Net income	138.5			138.5
Other comprehensive income, net of tax	74.2		74.2
Common stock:
Repurchased	(10.0)	(10.0)
Shares repurchased		(279,700)
Issued under share-based compensation plans, net	17.2	17.2
Issued under share-based compensation plans net, shares		430,289
Dividends declared on common stock ($0.93 per share)	(41.3)			(41.3)
Balance at Dec. 31, 2012	2,169.0	89.6	309.3	1,770.1
Balance, shares at Dec. 31, 2012		44,419,448
Changes in Shareholders' Equity
Net income	46.8			46.8
Other comprehensive income, net of tax	(23.2)		(23.2)
Common stock:
Repurchased	(9.9)	(9.9)
Shares repurchased		(249,794)
Issued under share-based compensation plans, net	4.9	4.9
Issued under share-based compensation plans net, shares		154,010
Balance at Mar. 31, 2013	$ 2,187.6	$ 84.6	$ 286.1	$ 1,816.9
Balance, shares at Mar. 31, 2013		44,323,664

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Unaudited Condensed Consolidated Statements of Comprehensive Income (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2013		Mar. 31, 2012
Unaudited Condensed Consolidated Statements Of Income And Comprehensive Income
Net income	$ 46.8		$ 35.2
Other comprehensive income (loss), net of tax:
Net unrealized capital gains (losses) on fixed maturity securities-available-for-sale	(17.2)	[1]	1.3	[1]
Reclassification adjustment for net capital gains included in net income	(1.2)	[2]	(0.8)	[2]
Employee benefit plans:
Prior service credit and net losses arising during the period, net	0	[3]	0.4	[3]
Reclassification adjustment for amortization to net periodic pension cost (credit), net	(4.8)	[4]	1.6	[4]
Total other comprehensive income, net of tax	(23.2)		2.5
Comprehensive income	$ 23.6		$ 37.7

[1] Net of tax benefit of $7.5 million and tax expense of $2.3 million for the three months ended March 31, 2013 and 2012, respectively

[2] Net of tax benefits of $0.8 million and $0.4 million for the three months ended March 31, 2013 and 2012, respectively.

[3] Net of tax expense of $0.2 million for the three months ended March 31, 2012.

[4] Net of tax benefit of $2.6 million and tax expense of $0.9 million for the three months ended March 31, 2013 and 2012, respectively.

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Derivative Financial Instruments

3 Months Ended

Mar. 31, 2013

Derivative Financial Instruments [Abstract]

Derivative Financial Instruments

8.       DERIVATIVE FINANCIAL INSTRUMENTS

The Company sells indexed annuities, which permit the holder to elect a fixed interest rate return or an indexed return, where interest credited to the contracts is based on the performance of the S&P 500 Index, subject to an upper limit or cap and minimum guarantees. Policyholders may elect to rebalance between interest crediting options at renewal dates annually. At each renewal date, the Company has the opportunity to re-price the indexed component by changing the cap, subject to minimum guarantees. The Company estimates the fair value of the index-based interest guarantees for the current period and for all future reset periods until contract maturity. Changes in the fair value of the index-based interest guarantees are recorded as interest credited. The liability represents an estimate of the cost of the options to be purchased in the future to manage the risk related to the index-based interest guarantees. The liability for index-based interest guarantees is the present value of future cash flows attributable to the projected index growth that is in excess of cash flows attributable to fixed interest rates guarantees. The excess cash flows are discounted back to the date of the balance sheet using current market indicators for future interest rates and option costs. Cash flows depend on actuarial estimates for policyholder lapse behavior and management's discretion in setting renewal index-based interest guarantees.

The Company purchases S&P 500 Index options for its interest crediting strategy used in its indexed annuity product. The S&P 500 Index options are purchased from investment banks and are selected in a manner that supports the amount of interest that is expected to be credited in the current year to annuity policyholder accounts that are dependent on the performance of the S&P 500 Index. The purchase of S&P 500 Index options is a pivotal part of the Company's risk management strategy for indexed annuity products. The S&P 500 Index options are exclusively used for risk management. While valuations of the S&P 500 Index options are sensitive to a number of variables, valuations for S&P 500 Index options purchased are most sensitive to changes in the S&P 500 Index value and the implied volatilities of this index. The Company generally purchases oneS&P 500 Index option contract per month, which has an expiry date of one year from the date of purchase.

The notional amount of the Company's S&P 500 Index options at March 31,2013and December 31, 2012 was $319.1 million and $315.2 million, respectively. Option premiums paid for the Company's S&P 500 Index options were $1.9 million and $2.0 millionfor the first quarters of2013 and 2012, respectively. The Company received $3.9 million and $1.6 million for options exercised for the first quarters of2013 and 2012, respectively.

The Company recognizes all derivative investments as assets or liabilities on the balance sheet at fair value. The Company currently does not designate its derivatives as hedging instruments and thus does not use hedge accounting. As such, any change in the fair value of the derivative assets and derivative liabilities is recognized as income or loss in the period of change. See “Note 6—Fair Value” for additional information regarding the fair value of the Company's derivative assets and liabilities.

The following table sets forth the fair value of the Company's derivative assets and liabilities:

			March 31,		December 31,
Derivatives Not Designated as Hedging Instruments			2013		2012
			(In millions)
Assets:
	Fixed maturity securities:
		S&P 500 Index options	$	15.3	$	11.3
Liabilities:
	Other policyholder funds:
		Index-based interest guarantees	$	63.6	$	57.4

The following table sets forth the amount of gain or loss recognized in earnings from the change in fair value of the Company's derivative assets and liabilities:

			Three Months Ended
			March 31,
Derivatives Not Designated as Hedging Instruments			2013		2012
			(In millions)
Net investment income:
	S&P 500 Index options		$	6.0	$	6.7
Interest credited:
	Index-based interest guarantees			(6.2)		(6.4)
		Net (loss) gain	$	(0.2)	$	0.3

Fluctuations in the fair value of the S&P 500 Index options related to the volatility of the S&P 500 Index increased net investment income for the first quarters of2013 and 2012. Fluctuations in the fair value of the index-based interest guarantees related to the volatility of the S&P 500 Index increased interest credited for the first quarters of2013and 2012. The combined changes in fair value of the S&P 500 Index options and the index-based interest guarantees resulted in a net loss for the first quarter of2013 and a net gain for thefirst quarter of2012.

The Company does not bear derivative-related risk that would require it to post collateral with another institution, and its index option contracts do not contain counterparty credit-risk-related contingent features. The Company is exposed to the credit worthiness of the institutions from which it purchases its S&P 500 Index options and these institutions' continued abilities to perform according to the terms of the contracts. The current values for the credit exposure have been affected by fluctuations in the S&P 500 Index. The Company's maximum credit exposure would require an increase of 5.2% in the value of the S&P 500 Index. The maximum credit risk is calculated using the cap strike price of the Company's S&P 500 Index options less the floor price, multiplied by the notional amount of the S&P 500 Index options.

The following table sets forth the fair value of the Company's derivative assets and its maximum credit risk exposure related to its derivatives:

			March 31, 2013
			Assets at		Maximum
			Fair Value		Credit Risk
			(In millions)
Counterparty:
	The Bank of New York Mellon		$	12.7	$	16.4
	Goldman Sachs			2.6		3.2
		Total	$	15.3	$	19.6

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Document And Entity Information	3 Months Ended
	Mar. 31, 2013	Apr. 26, 2013
Document And Entity Information [Abstract]
Document Type	10-Q
Document Period End Date	Mar. 31, 2013
Amendment Flag	false
Entity Registrant Name	STANCORP FINANCIAL GROUP INC
Entity Central Index Key	0001079577
Entity Current Reporting Status	Yes
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Well-known Seasoned Issuer	Yes
Entity Common Stock, Shares Outstanding		44,269,963
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q1

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Deferred Acquisition Costs ("DAC"), Value Of Business Acquired ("VOBA") And Other Intangible Assets

3 Months Ended

Mar. 31, 2013

Deferred Acquisition Costs, Value Of Business Acquired And Other Intangible Assets Disclosures [Abstract]

Deferred Acquisition Costs ("DAC"), Value Of Business Acquired ("VOBA") And Other Intangible Assets

9.       DEFERRED ACQUISITION COSTS (“DAC”), VALUE OF BUSINESS ACQUIRED (“VOBA”) AND OTHER INTANGIBLE ASSETS

DAC, VOBA and other acquisition related intangible assets are generally originated through the issuance of new business or the purchase of existing business, either by purchasing blocks of insurance policies from other insurers or by the outright purchase of other companies. The Company's other intangible assets are subject to impairment tests on an annual basis or more frequently if circumstances indicate that carrying values may not be recoverable.

The following table sets forth activity for DAC, VOBA and other intangible assets:

			Three Months Ended		Year Ended
			March 31, 2013		December 31, 2012
			(In millions)
Carrying value at beginning of period:
	DAC		$	284.9	$	274.4
	VOBA			23.4		26.4
	Other intangible assets			38.2		44.1
		Total balance at beginning of period		346.5		344.9
Deferred or acquired:
	DAC			20.7		71.4
		Total deferred or acquired during period		20.7		71.4
Amortized during period:
	DAC			(12.4)		(60.9)
	VOBA			(0.6)		(3.0)
	Other intangible assets			(1.8)		(5.9)
		Total amortized during period		(14.8)		(69.8)
Carrying value at end of period, net:
	DAC			293.2		284.9
	VOBA			22.8		23.4
	Other intangible assets			36.4		38.2
		Total carrying value at end of period	$	352.4	$	346.5

The Company defers certain acquisition costs that vary with and are directly related to the origination of new business. Certain costs related to obtaining new business and acquiring business through reinsurance agreements have been deferred and will be amortized to accomplish matching against related future premiums or gross profits as appropriate. The Company normally defers certain acquisition-related commissions and incentive payments, certain costs of policy issuance and underwriting, and certain printing costs. Assumptions used in developing DAC and amortization amounts each period include the amount of business in-force, expected future persistency, withdrawals, interest rates and profitability. These assumptions are modified to reflect actual experience when appropriate. Additional amortization of DAC is charged to current earnings, to the extent it is determined that future premiums or gross profits are not adequate to cover the remaining amounts deferred. Changes in actual persistency are reflected in the calculated DAC balance. Costs that are not directly associated with the acquisition of new business are not deferred as DAC and are charged to expense as incurred. Generally, annual commissions are considered expenses and are not deferred.

DAC for group and individual disability insurance products and group life insurance products is amortized over the life of related policies in proportion to future premiums. The Company amortizes DAC for group disability and life insurance products over the initial premium rate guarantee period, which averages 2.5 years. DAC for individual disability insurance products is amortized in proportion to future premiums over the life of the contract, averaging 20 to 25 years.

The Company's individual deferred annuities and group annuity products are classified as investment contracts. DAC related to these products is amortized over the life of related policies in proportion to expected gross profits. For the Company's individual deferred annuities, DAC is amortized over 30 years. DAC for group annuity products is amortized over 10 years.

VOBA primarily represents the discounted future profits of business assumed through reinsurance agreements. The Company has established VOBA for a block of individual disability business assumed from Minnesota Life Insurance Company (“Minnesota Life”) and a block of group disability and group life business assumed from Teachers Insurance and Annuity Association of America (“TIAA”). VOBA is generally amortized in proportion to future premiums for group and individual disability insurance products and group life products. However, the VOBA related to the TIAA transaction associated with an in-force block of group long term disability claims for which no ongoing premium is received is amortized in proportion to expected gross profits. If actual premiums or future profitability are inconsistent with the Company's assumptions, the Company could be required to make adjustments to VOBA and related amortization.The VOBA associated with the TIAA transaction is amortized in proportion to expected gross profits with an amortization period of up to 20 years. For the VOBA associated with the Minnesota Life block of business assumed, the amortization period is up to 30 years and is amortized in proportion to future premiums. The accumulated amortization of VOBA was $66.0 million and $65.4 million at March 31,2013 and December 31, 2012, respectively.

The following table sets forth the amount of DAC and VOBA balances amortized in proportion to expected gross profits and the percentage of the total balance of DAC and VOBA amortized in proportion to expected gross profits:

	March 31, 2013				December 31, 2012
	Amount		Percent		Amount		Percent
	(Dollars in millions)
DAC	$	63.8	21.8	%	$	60.9	21.4	%
VOBA		5.7	25.0			5.9	25.2

Key assumptions, which will affect the determination of expected gross profits for determining DAC and VOBA balances, are:

• Persistency.
• Interest rates, which affect both investment income and interest credited.
• Stock market performance.
• Capital gains and losses.
• Claim termination rates.
• Amount of business in-force.

These assumptions are modified to reflect actual experience when appropriate. Although a change in a single assumption may have an impact on the calculated amortization of DAC or VOBA for balances associated with investment contracts, it is the relationship of that change to the changes in other key assumptions that determines the ultimate impact on DAC or VOBA amortization. Because actual results and trends related to these assumptions vary from those assumed, the Company revises these assumptions annually to reflect its current best estimate of expected gross profits. As a result of this process, known as “unlocking,” the cumulative balances of DAC and VOBA are adjusted with an offsetting benefit or charge to income to reflect changes in the period of the revision. An unlocking event generally occurs as a result of actual experience or future expectations differing from previous estimates. As a result of unlocking, the amortization schedule for future periods is also adjusted.

The following table sets forth the impact of unlocking on DAC and VOBA balances:

	Three Months Ended
	March 31,
	2013		2012
	(In millions)
Decrease to DAC and VOBA	$	0.0	$	(0.8)

Significant, unanticipated changes in key assumptions, which affect the determination of expected gross profits, may result in a large unlocking event that could have a material adverse effect on the Company's financial position or results of operations. However, future changes in DAC and VOBA balances due to changes in underlying assumptions are not expected to be material.

The Company's other intangible assets are subject to amortization and consist of certain customer lists from Asset Management business acquired and an individual disability marketing agreement. Customer lists have a combined estimated weighted-average remaining life of 7.2years. The marketing agreement whichaccompanied the Minnesota Life transaction, provides access to Minnesota Life agents, some of whom now market Standard's individual disability insurance products. The Minnesota Life marketing agreement will be fully amortized by the end of 2023. The accumulated amortization of other intangible assets was $38.3 million and $36.5 million at March 31,2013and December 31, 2012, respectively.

The following table sets forth the estimated net amortization of VOBA and other intangible assets for the remainder of 2013 and for each of the next five years:

	Amount
	(In millions)
2013	$	6.4
2014		7.5
2015		7.3
2016		5.8
2017		4.4
2018		4.3

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Accumulated Other Comprehensive Income (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended			12 Months Ended
	Mar. 31, 2013		Mar. 31, 2012	Dec. 31, 2012
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated Other Comprehensive Income (Loss), Net of Tax, Beginning Balance	$ 309.3		$ 235.1	$ 235.1
Other Comprehensive Income Loss Before Reclassifications Net Of Tax	(17.2)			71.4
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	(6.0)			2.8
Other Comprehensive Income (Loss), Net of Tax	(23.2)		2.5	74.2
Accumulated Other Comprehensive Income (Loss), Net of Tax, Ending Balance	286.1			309.3
Unrealized Gains (losses) on Available For Sale Securities [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated Other Comprehensive Income (Loss), Net of Tax, Beginning Balance	383.0		315.2	315.2
Other Comprehensive Income Loss Before Reclassifications Net Of Tax	(17.2)	[1]		71.4	[2]
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	(1.2)	[3]		(3.6)	[4]
Other Comprehensive Income (Loss), Net of Tax	(18.4)			67.8
Accumulated Other Comprehensive Income (Loss), Net of Tax, Ending Balance	364.6			383.0
Employee Benefit Plans [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated Other Comprehensive Income (Loss), Net of Tax, Beginning Balance	(73.7)		(80.1)	(80.1)
Other Comprehensive Income Loss Before Reclassifications Net Of Tax	0	[1]		0	[2]
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	(4.8)	[3]		6.4	[4]
Other Comprehensive Income (Loss), Net of Tax	(4.8)			6.4
Accumulated Other Comprehensive Income (Loss), Net of Tax, Ending Balance	$ (78.5)			$ (73.7)

[1] Net of tax benefit of $7.5 million for unrealized losses on fixed maturity securities.

[2] Net of tax expenses of $38.3 million for unrealized gains on fixed maturity securities and $0.2 million for employee benefits, respectively.

[3] Net of tax benefits of $0.8 million for unrealized gains on fixed maturity securities and $2.6 million for employee benefits, respectively.

[4] Net of tax benefit of $2.2 million for unrealized gains on fixed maturity securities and net of tax expense of $3.4 million for employee benefits.

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Unaudited Condensed Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Available-for-sale securities other comprehensive income, tax effect:
Tax effect on unrealized capital gains (losses) on securities-available-for-sale	$ (7.5)	$ 2.3
Reclassification adjustment for net capital gains included in net income, tax effect	(0.8)	(0.4)
Employee benefit plans, tax effect:
Prior service credit and net losses arising during the period, tax effect	0	0.2
Reclassification adjustment for amortization to net periodic pension cost, tax effect	$ (2.6)	$ 0.9

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Share-Based Compensation

3 Months Ended

Mar. 31, 2013

Share-Based Compensation

Share-Based Compensation

3.       SHARE-BASED COMPENSATION

The Company has two active share-based compensation plans: the 2002 Stock Incentive Plan (“2002 Plan”) and the 1999 Employee Share Purchase Plan (“ESPP”). The 2002 Plan authorizes the Board of Directors to grant incentive or non-statutory stock options and stock awards to eligible employees and certain related parties. Of the 4,800,000 shares of common stock authorized for the 2002 Plan,595,416 shares or options for shares remain available for grant at March 31,2013. The Company's ESPP allows eligible employees to purchase StanCorp common stock at a discount. Of the 3,500,000 shares authorized for the ESPP, 1,460,593 shares remain available for issuance at March 31,2013.

The following table sets forth the total compensation cost and related income tax benefit under the Company's share-based compensation plans:

	Three Months Ended
	March 31,
	2013		2012
	(In millions)
Compensation cost	$	1.4	$	2.3
Related income tax benefit		0.5		0.8

The Company has provided two types of share-based compensation pursuant to the 2002 Plan: option grants and stock award grants.

Option Grants

Options are granted to officers and certain non-officer employees. Options are granted with an exercise price equal to the closing market price of StanCorp common stock on the grant date. Options generally vest in equal installments on the first four anniversaries of the vesting reference date.

The Company granted options to purchase 163,367 and 225,133 sharesfor the first quarters of2013 and 2012, respectively, at a weighted-average per share exercise price of $38.56 and $39.58, respectively. The fair value of each option award granted was estimated using the Black-Scholes option pricing model as of the grant date. The weighted-average grant date fair value of options granted for the first quarters of2013 and 2012 was $13.64and $14.44 per share, respectively.

The compensation cost of stock options is recognized over the vesting period, which is also the period over which the grantee must provide services to the Company. At March 31,2013, the total compensation cost related to unvested option awards that had not yet been recognized in the financial statements was $6.9 million. This compensation cost will be recognized over a weighted-average period of 2.7 years.

Stock Award Grants

The Company currently grants three types of stock awards: restricted stock unit awards (“RSUs”),performance-based stock awards (“Performance Shares”) and non-employee director stock awards (“Director Stock Grants”). Under the 2002Plan, the Company had 408,926 shares available for issuance as stock award grants at March 31,2013.

RSUs

Beginning in the first quarter of 2013, the Company grantedannual RSUs to officers and senior officers of the Company. The RSUs cliff vest on the third anniversary of the vesting reference date.The actual number of shares issued is based on continued employment with a portion of shares withheld to cover required tax withholding.

The Company granted 59,823RSUsfor the first quarter of2013.

The compensation cost of RSUs is recognized over the vesting period, which is also the period over which the grantee must provide services to the Company. At March 31,2013, the total compensation cost related to unvested RSUs that had not yet been recognized in the financial statements was $2.1 million. This compensation cost will be recognized over a weighted-average period of 2.9 years.

Performance Shares

The Company grants Performance Shares to designated senior officers as long-term incentive compensation. The payout for these awards is based on the Company's financial performance over a three-year period.Performance Shares represent the maximum number of shares of StanCorp common stock issuable to the designatedsenior officers. The actual number of shares issued at the end of the performance period is based on continued employment and satisfaction of Company financial performance conditions, with a portion of the shares withheld to cover required tax withholding.

The Company granted 117,172 and 179,818 Performance Shares for the first quarters of2013 and 2012, respectively.

The Company issued no sharesfor the first quarter of2013and 9,899shares of StanCorp common stock for the first quarter ofand 2012, respectively, to redeem Performance Shares that vested following the 2012 and 2011 performance periods, net of Performance Shareswithheld to cover the required taxes.

The fair value of the Performance Shares is determined based on the closing market price of StanCorp common stock on the grant date.

The compensation cost that the Company will ultimately recognize as a result of these stock awards is dependent on the Company's financial performance. Assuming that the maximum performance is achieved for each performance goal, $17.3million in additional compensation cost would be recognized through 2015. The target or expected payout is 50% of the maximum Performance Shares for the 2013 and 2015 performance periods. A target payout for these periods would result in $8.7million of additional compensation cost through 2015. This cost is expected to be recognized over a weighted-average period of 1.7years.

Director Stock Grants

Each director who is not an employee of the Company receives annual stock grants with a fair value equal to $100,000 based on the closing market price of StanCorp common stock on the day of the annual shareholders meeting. The stock grants generally vest after one year.

Employee Share Purchase Plan

Currently, the Company's ESPP allows eligible employees to purchase StanCorp common stock at a 5% discount of the lesser of the closing market price of StanCorp common stock on either the commencement date or the final date of each six-month offering period. Under the terms of the plan, each eligible employee may elect to have the lesser of up to 5% of the employee's gross total cash compensation or $5,000 per offering period to be withheld to purchase StanCorp common stock. No employee may purchase StanCorp common stock having a fair market value in excess of $25,000 in any calendar year.

Purchases prior to February 2, 2013, allowed for a purchase discount of 15% and contributions of up to 10% of the employee's gross total cash compensation.

The following table sets forth the compensation cost and related income tax benefit under the Company's ESPP:

	Three Months Ended
	March 31,
	2013		2012
	(In millions)
Compensation cost	$	0.2	$	0.6
Related income tax benefit		0.1		0.2

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Net Income Per Common Share

3 Months Ended

Mar. 31, 2013

Net Income Per Common Share [Abstract]

Net Income Per Common Share

2.NET INCOME PER COMMON SHARE

Net income per basic common share was calculated by dividing net income by the weighted-average number of common shares outstanding. Net income per diluted common share, as calculated using the treasury stock method, reflects the potential dilutive effects of stock award grants and exercises of dilutive outstanding stock options. The computation of diluted weighted-average earnings per share does not include stock options with an option exercise price greater than the average market price because they are antidilutive and inclusion would increase earnings per share.

The following table sets forth the calculation of net income per basic and diluted weighted-average common shares outstanding:

		Three Months Ended
		March 31,
		2013		2012
Net income (In millions)		$	46.8	$	35.2
Basic weighted-average common shares outstanding			44,426,153		44,327,122
Stock options			71,621		127,126
Stock awards			2,275		7,593
Diluted weighted-average common shares outstanding			44,500,049		44,461,841
Net income per common share:
	Net income per basic common share	$	1.05	$	0.79
	Net income per diluted common share		1.05		0.79
Antidilutive shares not included in net income per diluted common share calculation			1,874,311		1,909,874

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Severance and Transition Costs

3 Months Ended

Mar. 31, 2013

Severance, Transition Costs and Lease Terminations Abstract

Severance, Transition Costs and Lease Terminations

14.SEVERANCE, TRANSITION COSTS AND LEASE TERMINATIONS

During the first quarter of 2013, the Company implemented expense management initiatives to offset the negative effects of the continued low interest rate environment and lower group insurance premiums compared to 2012.

The following table sets forth expenses incurred related to the expense management initiatives:

		Three Months Ended, March 31, 2013
		Beginning						Ending
		Accrued		Charged to				Accrued
		Liability		Expense, Net		Expenditures		Liability
		(In millions)
Severance		$	0.1	$	2.9	$	1.8	$	1.2
Transition costs			0.0		1.1		1.1		0.0
Lease terminations			0.3		0.0		0.1		0.2
	Total severance, transition costs and lease terminations	$	0.4	$	4.0	$	3.0	$	1.4

		Year Ended, December 31, 2012
		Beginning						Ending
		Accrued		Charged to				Accrued
		Liability(1)		Expense, Net		Expenditures		Liability
		(In millions)
Severance		$	1.0	$	0.0	$	0.9	$	0.1
Transition costs			0.0		0.0		0.0		0.0
Lease terminations			1.0		0.0		0.7		0.3
	Total severance, transition costs and lease terminations	$	2.0	$	0.0	$	1.6	$	0.4

• Amounts relate to restructuring charges implemented by the Company during 2011.

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Commitments And Contingencies

3 Months Ended

Mar. 31, 2013

Commitments And Contingencies [Abstract]

Commitments And Contingencies

10.       COMMITMENTS AND CONTINGENCIES

Litigation Contingencies

In the normal course of business, the Company is involved in various legal actions and other state and federal proceedings. A number of actions or proceedings were pending atMarch 31,2013. In some instances, lawsuits include claims for punitive damages and similar types of relief in unspecified or substantial amounts, in addition to amounts for alleged contractual liability or other compensatory damages. In the opinion of management, the ultimate liability, if any, arising from the actions or proceedings is not expected to have a material effect on the Company's business, financial position, results of operations or cash flows.

Senior Unsecured Revolving Credit Facility (“Facility”) Contingencies

The Company maintains a$250 million Facility. Upon the request of StanCorp and with the consent of the lenders under the Facility, the Facility canbe increased to $350 million. The termination date of the Facility is June 22, 2016, though, at the option of StanCorp andwith the consent of the lenders under the Facility, the termination date can be extended for two additional one year periods. Borrowings under the Facility are used for working capital, general corporate purposes and for the issuance of letters of credit.

Under the agreement, the Company is subject to two financial covenants that are based on the Company's ratio of total debt to total capitalization andconsolidated net worth.The Company is also subject to covenants that limit subsidiary indebtedness.The Facility is subject to pricing levels based upon the Company's publicly announced debt ratings and includes an interestrate option at the election of the borrower of a base rate plus the applicable margin or the LIBOR rate plus the applicable margin, plus facility and utilization fees. At March 31,2013, the Company was in compliance with all financial covenants under the Facility and had no outstanding balance on the Facility.

Other Financing Obligations

The Company has$250 millionof 5.00%senior notes (“Senior Notes''), which mature onAugust 15, 2022. Interest is paid semi-annually on February 15 and August 15, began on February 15, 2013.

The Company has $300 million of 6.90% junior subordinated debentures (“Subordinated Debt”), which matures on June 1, 2067and is non-callable prior to June 1, 2017. The principal amount of the Subordinated Debt is payable at maturity. Interest is payable semi-annually on June 1 and December 1untilJune 1, 2017, and quarterly thereafter at a floating rate equal to three-month LIBOR plus 2.51%. StanCorp has the option to defer interest payments for up to five years. The declaration and payment of dividends to shareholders would be restricted if the Company elected to defer interest payments on its Subordinated Debt. If elected, the restriction would be in place during the interest deferral period. The Company is currently not deferring interest on the Subordinated Debt.

In the normal course of business, the Company commits to fund commercial mortgage loans generally up to 90 days in advance. At March 31,2013, the Company had outstanding commitments to fund commercial mortgage loans totaling$171.7 million, with fixed interest rates ranging from 4.125% to 5.500%. These commitments generally have fixed expiration dates. A small percentage of commitments expire due to the borrower failing to deliver the required items by the expiration date. In these cases, the Company retains the commitment fee and good faith deposit. Alternatively, if the Company terminates a commitment due to the disapproval of a commitment requirement, the commitment fee and good faith deposit will typically be refunded to the borrower, less an administrative fee.

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Fair Value

3 Months Ended

Mar. 31, 2013

Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Abstract

Fair Value

6.       FAIR VALUE

Assets and liabilities recorded at fair value are disclosed using a three-level hierarchy. The classification of assets and liabilities within the hierarchy is based on whether the inputs to the valuation methodology used for measurement are observable or unobservable. Observable inputs reflect market-derived or market-based information obtained from independent sources while unobservable inputs reflect the Company's estimates about market data.

The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels: Level 1 inputs are based upon quoted prices in active markets for identical assets or liabilities that the Company can access at the measurement date. Level 2 inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. Level 3 inputs are generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect the Company's estimates of assumptions that market participants would use in pricing the asset or liability.

There are three types of valuation techniques used to measure assets and liabilities recorded at fair value:

• The market approach uses prices or other relevant information generated by market transactions involving identical or comparable assets or liabilities.
• The income approach uses the present value of cash flows or earnings.
• The cost approach, which uses replacement costs more readily adaptable for valuing physical assets.

       The Company uses both the market and income approach in its fair value measurements. These measurements are discussed in more detail below.

The following tables set forth the estimated fair value and the carrying value of each financial instrument:

				March 31, 2013
				Carrying		Fair
				Value		Value		Level 1		Level 2		Level 3
				(In millions)
Assets:
	Fixed maturity securities:
		Corporate bonds		$	6,596.4	$	6,596.4	$	0.0	$	6,520.1	$	76.3
		U.S. government and agency bonds			397.8		397.8		0.0		396.7		1.1
		U.S. state and political subdivision bonds			167.9		167.9		0.0		166.2		1.7
		Foreign government bonds			71.3		71.3		0.0		71.3		0.0
		S&P 500 Index options			15.3		15.3		0.0		0.0		15.3
			Total fixed maturity securities	$	7,248.7	$	7,248.7	$	0.0	$	7,154.3	$	94.4
	Commercial mortgage loans, net			$	5,320.4	$	5,962.5	$	0.0	$	0.0	$	5,962.5
	Policy loans				2.5		2.5		0.0		0.0		2.5
	Separate account assets				5,600.1		5,600.1		5,455.9		144.2		0.0
Liabilities:
	Total other policyholder funds, investment
		type contracts		$	5,013.3	$	5,386.7	$	0.0	$	0.0	$	5,386.7
	Index-based interest guarantees				63.6		63.6		0.0		0.0		63.6
	Short-term debt				1.1		1.3		0.0		1.3		0.0
	Long-term debt				551.6		580.7		0.0		580.7		0.0

				December 31, 2012
				Carrying		Fair
				Value		Value		Level 1		Level 2		Level 3
				(In millions)
Assets:
	Fixed maturity securities:
		Corporate bonds		$	6,525.9	$	6,525.9	$	0.0	$	6,445.5	$	80.4
		U.S. government and agency bonds			413.0		413.0		0.0		411.9		1.1
		U.S. state and political subdivision bonds			168.4		168.4		0.0		166.7		1.7
		Foreign government bonds			72.1		72.1		0.0		72.1		0.0
		S&P 500 Index options			11.3		11.3		0.0		0.0		11.3
			Total fixed maturity securities	$	7,190.7	$	7,190.7	$	0.0	$	7,096.2	$	94.5
	Commercial mortgage loans, net			$	5,267.4	$	5,946.3	$	0.0	$	0.0	$	5,946.3
	Policy loans				2.5		2.5		0.0		0.0		2.5
	Separate account assets				5,154.3		5,154.3		5,007.5		146.8		0.0
Liabilities:
	Total other policyholder funds, investment
		type contracts		$	4,916.7	$	5,331.3	$	0.0	$	0.0	$	5,331.3
	Index-based interest guarantees				57.4		57.4		0.0		0.0		57.4
	Short-term debt				1.0		1.2		0.0		1.2		0.0
	Long-term debt				551.4		567.4		0.0		567.4		0.0

Financial Instruments Not Recorded at Fair Value

The Company did not elect to measure and record commercial mortgage loans, policy loans, other policyholders funds that are investment-type contracts, short-term debt, or long-term debt at fair value on the consolidated balance sheets.

For disclosure purposes, the fair values of commercial mortgage loans were estimated using an option-adjusted discounted cash flow valuation. The valuation includes both observable market inputs and estimated model parameters.

Significant observable inputs to the valuation include:

• Indicative quarter-end pricing for a package of loans similar to those originated by the Company near quarter-end.
• U.S. Government treasury yields.
• Indicative yields from industrial bond issues.
• The contractual terms of nearly every mortgage subject to valuation.

Significant estimated parameters include:

• A liquidity premium that is estimated from historical loan sales and is applied over and above base yields.
• Adjustments in interest rate spread based on an aggregate portfolio loan-to-value ratio, estimated from historical differential yields with respect to loan-to-value ratios.
• Projected prepayment activity.

  For policy loans, the carrying value represents historical cost but approximates fair value. While potentially financial instruments, policy loans are an integral component of the insurance contract and have no maturity date.

  The fair value of other policyholder funds that are investment-type contracts was calculated using the income approach in conjunction with the cost of capital method. The parameters used for discounting in the calculation were estimated using the perspective of the principal market for the contracts under consideration. The principal market consists of other insurance carriers with similar contracts on their books.

  The fair value for long-term debt was predominantly based on quoted market prices as of March 31,2013 and December 31, 2012, and trades occurring close to March 31,2013and December 31, 2012.

  Financial Instruments Measured and Recorded at Fair Value

  Fixed maturity securities, Standard & Poor's (“S&P”) 500 Index call options (“S&P 500 Index options”) and index-based interest guarantees embedded in indexed annuities (“index-based interest guarantees”) are recorded at fair value on a recurring basis. In the Company's consolidated statements of income and comprehensive income, unrealized gains and losses are reported in other comprehensive income for fixed maturity securities, in net investment income for S&P 500 Index options and in interest credited for index-based interest guarantees.

  Separate account assets represent segregated funds held for the exclusive benefit of contract holders. The activities of the account primarily relate to participant-directed 401(k) contracts. Separate account assets are recorded at fair value on a recurring basis, with changes in fair value recorded in separate account liabilities. Separate account assets consist of mutual funds. The mutual funds' fair value is determined through Level 1 and Level 2 inputs. The majority of the separate account assets are valued using quoted prices in an active market with the remainder of the assets valued using quoted prices from an independent pricing service. The Company reviews the values obtained from the pricing service for reasonableness through analytical procedures and performance reviews.

  Fixed maturity securities are comprised of the following classes:

• Corporate bonds.
• U.S. government and agency bonds.
• U.S. state and political subdivision bonds.
• Foreign government bonds.
• S&P 500 Index options.

  The fixed maturity securities are diversified across industries, issuers and maturities. The Company calculates fair values for all classes of fixed maturity securities using valuation techniques described below. They are placed into three levels depending on the valuation technique used to determine the fair value of the securities.

  The Company uses an independent pricing service to assist management in determining the fair value of these assets. The pricing service incorporates a variety of information observable in the market in its valuation techniques, including:

• Reported trading prices.
• Benchmark yields.
• Broker-dealer quotes.
• Benchmark securities.
• Bids and offers.
• Credit ratings.
• Relative credit information.
• Other reference data.

The pricing service also takes into account perceived market movements and sector news, as well as a bond's terms and conditions, including any features specific to that issue that may influence risk, and thus marketability. Depending on the security, the priority of the use of observable market inputs may change as some observable market inputs may not be relevant or additional inputs may be necessary. The Company generally obtains one value from its primary external pricing service. On a case-by-case basis, the Company may obtain further quotes or prices from additional parties as needed.

The pricing service provides quoted market prices when available. Quoted prices are not always available due to bond market inactivity. The pricing service obtains a broker quote when sufficient information, such as security structure or other market information, is not available to produce a valuation. Valuations and quotes obtained from third party commercial pricing services are non-binding and do not represent quotes on which one may execute the disposition of the assets.

The significant unobservable inputs used in the fair value measurement of the reporting entity's bonds are valuations and quotes received from secondary pricing service, analytical reviews and broker quotes. Significant increases or decreases in any of those inputs in isolation would result in a significantly lower or higher fair value measurement. Generally, a change in the assumption used for the pricing evaluation is accompanied by a directionally similar change in the assumption used for the methodologies.

The Company performs control procedures over the external valuations at least quarterly through a combination of procedures that include an evaluation of methodologies used by the pricing service, analytical reviews and performance analysis of the prices against statistics and trends, back testing of sales activity and maintenance of a securities watch list. As necessary, the Company compares prices received from the pricing service to prices independently estimated by the Company utilizing discounted cash flow models or through performing independent valuations of inputs and assumptions similar to those used by the pricing service in order to ensure prices represent a reasonable estimate of fair value. Although the Company does identify differences from time to time as a result of these validation procedures, the Company did not make any significant adjustments as ofMarch 31,2013or December 31, 2012.

S&P 500 Index options and certain fixed maturity securities were valued using Level 3 inputs. The Level 3 fixed maturity securities were valued using matrix pricing, independent broker quotes and other standard market valuation methodologies. The fair value was determined using inputs that were not observable or could not be derived principally from, or corroborated by, observable market data. These inputs included assumptions regarding liquidity, estimated future cash flows and discount rates. Unobservable inputs to these valuations are based on management's judgment or estimation obtained from the best sources available. The Company's valuations maximize the use of observable inputs, which include an analysis of securities in similar sectors with comparable maturity dates and bond ratings. Broker quotes are validated by management for reasonableness in conjunction with information obtained from matrix pricing and other sources.

The Company calculates the fair value for its S&P 500 Index options using the Black-Scholes option pricing model and parameters derived from market sources. The Company's valuations maximize the use of observable inputs, which include direct price quotes from the Chicago Board Options Exchange (“CBOE”) and values for on-the-run treasury securities and London Interbank Offered Rate (“LIBOR”) as reported by Bloomberg. Unobservable inputs are estimated from the best sources available to the Company. These include estimates of future gross dividends to be paid on the stocks underlying the S&P 500 Index, estimates of bid-ask spreads, and estimates of implied volatilities on options. Valuation parameters are calibrated to replicate the actual end-of-day market quotes for options trading on the CBOE. The Company performs additional validation procedures such as the daily observation of market activity and conditions and the tracking and analyzing of actual quotes provided by banking counterparties each time the Company purchases options from them. Additionally, in order to help validate the values derived through the procedures noted above, the Company obtains indicators of value from representative investment banks.

The Company uses the income approach valuation technique to determine the fair value of index-based interest guarantees. The liability is the present value of future cash flows attributable to the projected index growth in excess of cash flows driven by fixed interest rate guarantees for the indexed annuity product. Level 3 assumptions for policyholder behavior and future index interest rate declarations significantly influence the calculation. Index-based interest guarantees are included in the other policyholder funds line on the Company's consolidated balance sheet.

While valuations for the S&P 500 Index options are sensitive to a number of variables, valuations for S&P 500 Index options purchased are most sensitive to changes in the estimates of bid ask spreads, or the S&P 500 Index value, and the implied volatilities of this index. Significant fluctuations in any of those inputs in isolation would result in a significantly lower or higher fair value measurement. Generally, an increase or decrease used in the assumption for the implied volatilities and in the S&P 500 Index value would result in a directionally similar change in the fair value of the asset.

Valuations for the index-based interest guarantees are sensitive to a number of variables, but are most sensitive to the S&P 500 Index value, the implied volatilities of this index, and LIBOR as reported by Bloomberg. Generally, a significant increase or decrease used in the assumption for the implied volatilities and in the S&P 500 Index value would result in a directionally similar change, while an increase or decrease in LIBOR would result in a directionally opposite change in the fair value of the liability.

Valuations for commercial mortgage loans measured at fair value on a nonrecurring basis using significant unobservable Level 3 inputs are sensitive to a number of variables, but are most sensitive to net operating income and the applied capitalization rate. Generally, an increase or decrease resulting from a change in the stabilized net operating income from the collateralized property would result in a directionally similar change in the fair value of the asset. An increase or decrease in the assumption for the capitalization rate would result in a directionally opposite change in the fair value of the asset.

Valuations for real estate acquired in satisfaction of debt through foreclosure or acceptance of deeds in lieu of foreclosure on commercial mortgage loans (“Real Estate Owned”) measured at fair value on a nonrecurring basis using significant unobservable Level 3 inputs are sensitive to a number of variables, but are most sensitive to the reductions taken on appraisals obtained, which may result in a fair value and carrying value below the appraised value. Generally, an increase in the reductions taken on appraisals obtained would result in a reduction in the fair value of the asset.

Quantitative information regarding significant unobservable inputs used in Level 3 valuation of assets and liabilities measured and recorded at fair value is as follows:

	March 31, 2013
	Fair Value		Valuation Technique	Unobservable Input	Range of inputs
	(Dollars in millions)
S&P 500 Index options	$	15.3	Black-Scholes option pricing model	Various assumptions	(a)
Index-based interest guarantees		63.6	Discounted cash flow	Expected future option purchase	1%-5%
				Various assumptions	(b)
			Black-Scholes option pricing model	Various assumptions	(a)
Commercial mortgage loans		54.0	Appraisals	Reduction on appraisal	0%-25%
			Cash flows	Capitalization rate (c)	7%-16%
Real Estate Owned		14.9	Appraisals	Reduction on appraisal	0%-53%

• Represents various assumptions derived from market data, which include estimates of bid ask spreads and the implied volatilities for the S&P 500 Index.
• Represents various actuarial assumptions which include combined lapse, mortality and withdrawal decrement rates which generally have a range of inputs from 5%-36%.
• Capitalization rates are used as an internal analysis in converting the underlying property's income to an estimated property value.

The following tables set forth the reconciliation for all assets and liabilities measured at fair value on a recurring basis using significant unobservable Level 3 inputs:

		Three Months Ended March 31, 2013
		Assets										Liabilities
		U.S.		U.S. State								Index-
		Government		and Political				S&P 500				Based
		and Agency		Subdivision		Corporate		Index		Total		Interest
		Bonds		Bonds		Bonds		Options		Assets		Guarantees
		(In millions)
Beginning balance		$	1.1	$	1.7	$	80.4	$	11.3	$	94.5	$	57.4
Total realized/unrealized gains (losses):
	Included in net income		0.0		0.0		0.0		6.0		6.0		6.2
	Included in other comprehensive income (loss)		0.0		0.0		(4.1)		0.0		(4.1)		0.0
Purchases, issuances, sales and settlements:
	Purchases		0.0		0.0		0.0		1.9		1.9		0.0
	Issuances		0.0		0.0		0.0		0.0		0.0		1.1
	Sales		0.0		0.0		0.0		0.0		0.0		0.0
	Settlements		0.0		0.0		0.0		(3.9)		(3.9)		(1.1)
Transfers into level 3			0.0		0.0		0.0		0.0		0.0		0.0
Transfers out of level 3			0.0		0.0		0.0		0.0		0.0		0.0
Ending balance		$	1.1	$	1.7	$	76.3	$	15.3	$	94.4	$	63.6

		Three Months Ended March 31, 2012
		Assets										Liabilities
		U.S.		U.S. State								Index-
		Government		and Political				S&P 500				Based
		and Agency		Subdivision		Corporate		Index		Total		Interest
		Bonds		Bonds		Bonds		Options		Assets		Guarantees
		(In millions)
Beginning balance		$	0.5	$	1.4	$	64.0	$	7.2	$	73.1	$	49.5
Total realized/unrealized gains (losses):
	Included in net income		0.0		0.0		0.0		6.7		6.7		6.4
	Included in other comprehensive income (loss)		0.0		0.0		(1.4)		0.0		(1.4)		0.0
Purchases, issuances, sales and settlements:
	Purchases		0.0		0.0		0.0		2.0		2.0		0.0
	Issuances		0.0		0.0		0.0		0.0		0.0		0.1
	Sales		0.0		0.0		0.0		0.0		0.0		0.0
	Settlements		0.0		0.0		0.0		(1.6)		(1.6)		(0.7)
Transfers into level 3			0.0		0.4		0.0		0.0		0.4		0.0
Transfers out of level 3			(0.5)		0.0		(9.5)		0.0		(10.0)		0.0
Ending balance		$	0.0	$	1.8	$	53.1	$	14.3	$	69.2	$	55.3

For all periods disclosed above, fixed maturity securities transferred into Level 3 from Level 2 are the result of the Company being unable to obtain observable assumptions for these investments in the market. Fixed maturity securities transferred out of Level 3 into Level 2 are the result of the Company being able to obtain observable assumptions for these investments in the market. There were no transfers between Level 1 and Level 2 for the first quarterof 2013 and 2012.

The following table sets forth the changes in unrealized gains (losses) included in net income relating to positions that the Company continued to hold:

		Three Months Ended
		March 31,
		2013		2012
		(In millions)
Assets:
	S&P 500 Index options	$	4.9	$	5.7
Liabilities:
	Index-based interest guarantees	$	(6.5)	$	(6.8)

Changes to the fair value of fixed maturity securities, excluding S&P 500 Index options, were recorded in other comprehensive income. Changes to the fair value of the S&P 500 Index options were recorded to net investment income. Changes to the fair value of the index-based interest guarantees were recorded to interest credited.

Certain assets and liabilities are measured at fair value on a nonrecurring basis, such as impaired commercial mortgage loans with specific allowances for losses and Real Estate Owned. The impaired commercial mortgage loans and Real Estate Owned are valued using Level 3 measurements. These Level 3 inputs are reviewed for reasonableness by management and evaluated on a quarterly basis. The commercial mortgage loan measurements include valuation of the market value of the asset using general underwriting procedures and appraisals. Real Estate Owned is initially recorded at net realizable value, which includes an estimate for disposal costs. These amounts may be adjusted in a subsequent period as additional information is received.

The following table sets forth the assets measured at fair value on a nonrecurring basis as of March 31,2013 that the Company continued to hold:

		March 31, 2013
		Total		Level 1		Level 2		Level 3
		(In millions)
Commercial mortgage loans		$	54.0	$	0.0	$	0.0	$	54.0
Real Estate Owned			14.9		0.0		0.0		14.9
	Total assets measured at fair value on a nonrecurring basis	$	68.9	$	0.0	$	0.0	$	68.9

Commercial mortgage loans measured on a nonrecurring basis with a carrying amount of $71.4 million were written down to their fair value of $54.0 million, less selling costs, at March 31,2013. The specific commercial mortgage loan loss allowance related to these commercial mortgage loans was $22.8 million at March 31,2013. The Real Estate Owned measured on a nonrecurring basis as of March 31,2013, and still held at March 31,2013 had net capital losses totaling $0.6millionfor the first quarter of2013.Real Estate Owned measured on a nonrecurring basis represents newly acquired properties or properties with a value that has been adjusted based on pending sale or other market information.

The following table sets forth the assets measured at fair value on a nonrecurring basis as ofDecember 31,2012 that the Company continued to hold:

		December 31, 2012
		Total		Level 1		Level 2		Level 3
		(In millions)
Commercial mortgage loans		$	53.9	$	0.0	$	0.0	$	53.9
Real Estate Owned			48.2		0.0		0.0		48.2
	Total assets measured at fair value on a nonrecurring basis	$	102.1	$	0.0	$	0.0	$	102.1

Commercial mortgage loans measured on a nonrecurring basis with a carrying amount of $74.1 million were written down to their fair value of $53.9 million, less selling costs, at December 31,2012. The specific commercial mortgage loan loss allowance related to these commercial mortgage loans was $25.6million at December 31,2012. The Real Estate Owned measured on a nonrecurring basis as ofDecember 31, 2012, and still held at December 31, 2012 had capital losses totaling $2.1 million for 2012. See “Note 7—Investments—Commercial Mortgage Loans” for further disclosures regarding the commercial mortgage loan loss allowance.

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Investments (Schedule Of Recorded Investment In Commercial Mortgage Loans) (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012	Mar. 31, 2012	Dec. 31, 2011
Investments [Abstract]
Commercial mortgage loans collectively evaluated for impairment	$ 5,265.0	$ 5,214.2
Commercial mortgage loans individually evaluated for impairment	98.2	99.8
Commercial mortgage loan loss allowance	(42.8)	(46.6)	(45.6)	(48.1)
Total commercial mortgage loans	$ 5,320.4	$ 5,267.4

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Retirement Benefits

3 Months Ended

Mar. 31, 2013

Retirement Benefits [Abstract]

Retirement Benefits

4. RETIREMENT BENEFITS

Pension Benefits

The Company has two non-contributory defined benefit pension plans: the employee pension plan and the agent pension plan. The employee pension plan is for all eligible employees of the Company, and the agent pension plan is for former field employees and agents. The defined benefit pension plans provide benefits based on years of service and final average pay. The employee pension plan is sponsored by StanCorp and the agent pension plan is sponsored by Standard. Both plans are administered by Standard Retirement Services and are closed to new participants. Participation in the defined benefit pension plans is generally limited to eligible employees whose date of employment began before 2003.

Under the employee pension plan, a participant is entitled to a normal retirement benefit once the participant reaches age 65. A participant can also receive a normal, unreduced retirement benefit once the sum of his or her age plus years of service is at least 90.

The Company recognizes the funded status of the pension plans as an asset or liability on the balance sheet. The funded status is measured as the difference between the fair value of the plan assets and the projected benefit obligation as of the year-end balance sheet date. While the Company is not obligated to make any contributions to its pension plans for 2013, it does evaluate the funding status of these plans annually in the fourth quarter.

The following table sets forth the components of net periodic benefit cost and other changes in plan assets and benefit obligations recognized in other comprehensive income for pension benefits:

				Three Months Ended
				March 31,
				2013		2012
				(In millions)
Components of net periodic benefit cost:
	Service cost			$	2.6	$	2.5
	Interest cost				4.1		4.1
	Expected return on plan assets				(7.3)		(6.6)
	Amortization of prior service cost				0.2		0.2
	Amortization of net actuarial loss				2.3		2.1
		Net periodic benefit cost			1.9		2.3
Other changes in plan assets and benefit obligation recognized in other comprehensive income:
	Amortization of prior service cost				(0.2)		(0.2)
	Amortization of net actuarial loss				(2.3)		(2.1)
		Total recognized in other comprehensive income			(2.5)		(2.3)
			Total recognized in net periodic benefit cost and other comprehensive income	$	(0.6)	$	0.0

Postretirement Benefits Other Than Pensions

Standard sponsors and administers a postretirement benefit plan that includes medical, prescription drug benefitsand group term life insurance. Eligible retirees are required to contribute specified amounts for medical and prescription drug benefits that are determined periodically and are based on retirees' length of service and age at retirement. Participation in the postretirement benefit plan is limited to employees who had reached the age of 40, or whose combined age and length of service was equal to or greater than 45 years as of January 1, 2006. This plan is closed to new participants. In 2012, the postretirement benefit plan was amended to reduce future benefits to plan participants that are either not eligible to or choose not to retire on or before July 1, 2013, which reduced operatingexpenses by $10.3 million for the first quarter of 2013.The 2012 amendment will notaffect future benefits for employees who are retired as of July 1, 2013. In addition, as of December 31, 2011, the group term life insurance benefit was curtailed for plan participants who were not retired at December 31, 2011.

The Company recognizes the funded status of the postretirement benefit plan as an asset or liability on the balance sheet. The funded status is measured as the difference between the fair value of the plan assets and the accumulated benefit obligation.

The following table sets forth the components of net periodic benefit cost and other amounts recognized in other comprehensive income for postretirement benefits:

				Three Months Ended
				March 31,
				2013		2012
				(In millions)
Components of net periodic benefit (credit) cost:
	Service cost			$	0.0	$	0.2
	Interest cost				0.2		0.4
	Expected return on plan assets				(0.2)		(0.2)
	Amortization of prior service cost				(13.2)		(0.1)
	Amortization of net actuarial loss				2.9		0.0
		Net periodic benefit (credit) cost			(10.3)		0.3
Other changes in plan assets and benefit obligation recognized in other comprehensive (income) loss:
	Net gain				0.0		(0.7)
	Amortization of prior service cost				13.2		0.1
	Amortization of net actuarial loss				(2.9)		0.0
		Total recognized in other comprehensive (income) loss			10.3		(0.6)
			Total recognized in net periodic benefit cost and other comprehensive (income) loss	$	0.0	$	(0.3)

Deferred Compensation Plans

Eligible employees are covered by a qualified deferred compensation plan sponsored by Standard under which a portion of the employee contribution is matched. Employees not eligible for the employee pension plan are eligible for an additional non-elective employer contribution. Contributions to the planwere $3.3 million and $3.1 million for the first quarters of2013 and 2012, respectively.

Eligible executive officers, directors, agents and group producers may participate in one of several non-qualified deferred compensation plans under which a portion of the deferred compensation for participating executive officers, agents and group producers is matched. The liability for the plans was $10.9 million atMarch 31,2013 and$10.5million at December 31, 2012.

Non-Qualified Supplemental Retirement Plan

Eligible executive officers are covered by a non-qualified supplemental retirement plan(“non-qualified plan”). Under the non-qualified plan, a participant is entitled to a normal retirement benefit once the participant reaches age 65. A participant can also receive a normal, unreduced retirement benefit once the sum of his or her age plus years of service is at least 90.The Company recognizes the unfunded status of the non-qualified plan in other liabilities on the balance sheet. The unfunded status was $27.6 million and $27.5 million at March 31,2013and December 31, 2012, respectively. Expenses were $0.8 million and $0.6millionforthe first quarters of2013 and 2012, respectively. The net loss and prior service cost, net of tax, excluded from the net periodic benefit cost and reported as a component of accumulated other comprehensive income was$0.2 million and $4.7 million at March 31,2013 and December 31, 2012, respectively.

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Segments

3 Months Ended

Mar. 31, 2013

Segments [Abstract]

Segments

5. SEGMENTS

StanCorp operates through two reportable segments: Insurance Services and Asset Management, as well as an Other category. Subsidiaries, or operating segments, have been aggregated to form the Company's reportable segments. Resources are allocated and performance is evaluated at the segment level. The Insurance Services segment offers group and individual disability insurance, group life and AD&D insurance, group dental and group vision insurance, and absence management services. The Asset Management segment offers full-service 401(k) plans, 403(b) plans, 457 plans, defined benefit plans, money purchase pension plans, profit sharing plans and non-qualified deferred compensation products and services. This segment also offers investment advisory and management services, financial planning services, origination and servicing of fixed-rate commercial mortgage loans, individual fixed-rate annuity products, group annuity contracts and retirement plan trust products. The Other category includes return on capital not allocated to the product segments, holding company expenses, operations of certain unallocated subsidiaries, interest on debt, unallocated expenses, net capital gains and losses related to the impairment or the disposition of the Company's invested assets and adjustments made in consolidation.

Intersegment revenues are comprised of administrative fee revenues charged by the Asset Management segment to manage the fixed maturity securities—available-for-sale (“fixed maturity securities”) and commercial mortgage loan portfolios for the Company's insurance subsidiaries.

The following table sets forth intersegment revenues:

	Three Months Ended
	March 31,
	2013		2012
	(In millions)
Intersegment administrative fee revenues	$	4.7	$	4.4

The following table sets forth premiums, administrative fee revenues and net investment income by major product line or category within each of the Company's segments:

						Three Months Ended
						March 31,
						2013		2012
						(In millions)
Premiums:
	Insurance Services:
		Group life and AD&D				$	215.4	$	224.9
		Group long term disability					200.3		204.2
		Group short term disability					55.9		53.8
		Group other					19.1		19.9
		Experience rated refunds					(4.5)		4.1
			Total group insurance				486.2		506.9
			Individual disability insurance				47.0		44.2
				Total Insurance Services premiums			533.2		551.1
	Asset Management:
		Retirement plans					1.2		0.8
		Individual annuities					1.8		1.4
				Total Asset Management premiums			3.0		2.2
					Total premiums	$	536.2	$	553.3
Administrative fees:
	Insurance Services:
		Group insurance				$	3.5	$	3.0
		Individual disability insurance					---		0.1
				Total Insurance Services administrative fees			3.5		3.1
	Asset Management:
		Retirement plans					22.2		22.2
		Other financial services businesses					7.7		7.7
				Total Asset Management administrative fees			29.9		29.9
	Other						(4.7)		(4.4)
					Total administrative fees	$	28.7	$	28.6
Net investment income:
	Insurance Services:
		Group insurance				$	68.6	$	71.3
		Individual disability insurance					13.4		13.3
				Total Insurance Services net investment income			82.0		84.6
	Asset Management:
		Retirement plans					24.2		23.4
		Individual annuities					46.2		46.9
		Other financial services businesses					2.9		2.8
				Total Asset Management net investment income			73.3		73.1
	Other						3.9		2.0
					Total net investment income	$	159.2	$	159.7

The following table sets forth income before income taxes and assets by major product line or category within certain of the Company's segments:

					Three Months Ended
					March 31,
					2013		2012
					(In millions)
Income (loss) before income taxes:
	Insurance Services:
		Group insurance			$	34.0	$	28.5
		Individual disability insurance				14.8		17.6
			Total Insurance Services income before income taxes			48.8		46.1
	Asset Management					17.2		15.0
	Other					(5.7)		(13.4)
				Total income before income taxes	$	60.3	$	47.7
Assets:
	Insurance Services:
		Group insurance			$	6,027.8	$	5,954.5
		Individual disability insurance				2,283.3		2,208.4
			Total Insurance Services assets			8,311.1		8,162.9
	Asset Management					11,592.0		10,632.6
	Other					466.4		303.6
				Total assets	$	20,369.5	$	19,099.1

The following tables set forth select segment information:

				Insurance		Asset
				Services		Management		Other		Total
				(In millions)
Three Months Ended March 31, 2013
Revenues:
	Premiums			$	533.2	$	3.0	$	0.0	$	536.2
	Administrative fees				3.5		29.9		(4.7)		28.7
	Net investment income				82.0		73.3		3.9		159.2
	Net capital losses				0.0		0.0		(1.6)		(1.6)
			Total revenues		618.7		106.2		(2.4)		722.5
Benefits and expenses:
	Benefits to policyholders				436.0		5.8		0.0		441.8
	Interest credited				0.9		45.7		0.0		46.6
	Operating expenses				82.1		28.2		(5.2)		105.1
	Commissions and bonuses				45.9		7.9		0.0		53.8
	Premium taxes				9.5		0.0		0.0		9.5
	Interest expense				0.0		0.0		8.5		8.5
	Net (increase) decrease in deferred acquisition costs, value of
		business acquired and other intangible assets			(4.5)		1.4		0.0		(3.1)
			Total benefits and expenses		569.9		89.0		3.3		662.2
Income (loss) before income taxes				$	48.8	$	17.2	$	(5.7)	$	60.3
Total assets				$	8,311.1	$	11,592.0	$	466.4	$	20,369.5

				Insurance		Asset
				Services		Management		Other		Total
				(In millions)
Three Months Ended March 31, 2012
Revenues:
	Premiums			$	551.1	$	2.2	$	0.0	$	553.3
	Administrative fees				3.1		29.9		(4.4)		28.6
	Net investment income				84.6		73.1		2.0		159.7
	Net capital losses				0.0		0.0		(0.2)		(0.2)
			Total revenues		638.8		105.2		(2.6)		741.4
Benefits and expenses:
	Benefits to policyholders				444.7		5.3		0.0		450.0
	Interest credited				1.6		45.6		0.0		47.2
	Operating expenses				92.6		30.2		1.1		123.9
	Commissions and bonuses				48.7		6.7		0.0		55.4
	Premium taxes				10.0		0.0		0.0		10.0
	Interest expense				0.0		0.0		9.7		9.7
	Net (increase) decrease in deferred acquisition costs, value of
		business acquired and other intangible assets			(4.9)		2.4		0.0		(2.5)
			Total benefits and expenses		592.7		90.2		10.8		693.7
Income (loss) before income taxes				$	46.1	$	15.0	$	(13.4)	$	47.7
Total assets				$	8,162.9	$	10,632.6	$	303.6	$	19,099.1

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Investments

3 Months Ended

Mar. 31, 2013

Investments [Abstract]

Investments

7.       INVESTMENTS

Fixed Maturity Securities

The following tables set forth amortized costs, gross unrealized gains and losses and fair values of the Company's fixed maturity securities:

		March 31, 2013
		Amortized		Unrealized		Unrealized		Fair
		Cost		Gains		Losses		Value
		(In millions)
Corporate bonds		$	6,045.7	$	557.6	$	(6.9)	$	6,596.4
U.S. government and agency bonds			340.9		56.9		0.0		397.8
U.S. state and political subdivision bonds			151.4		16.5		0.0		167.9
Foreign government bonds			61.2		10.1		0.0		71.3
S&P 500 Index options			15.3		0.0		0.0		15.3
	Total fixed maturity securities	$	6,614.5	$	641.1	$	(6.9)	$	7,248.7

		December 31, 2012
		Amortized		Unrealized		Unrealized		Fair
		Cost		Gains		Losses		Value
		(In millions)
Corporate bonds		$	5,942.0	$	587.7	$	(3.8)	$	6,525.9
U.S. government and agency bonds			351.5		61.5		0.0		413.0
U.S. state and political subdivision bonds			151.6		16.8		0.0		168.4
Foreign government bonds			61.3		10.8		0.0		72.1
S&P 500 Index options			11.3		0.0		0.0		11.3
	Total fixed maturity securities	$	6,517.7	$	676.8	$	(3.8)	$	7,190.7

The following table sets forth the amortized costs and fair values of the Company's fixed maturity securities by contractual maturity:

		March 31, 2013				December 31, 2012
		Amortized		Fair		Amortized		Fair
		Cost		Value		Cost		Value
		(In millions)
Due in one year or less		$	680.6	$	694.9	$	699.2	$	712.9
Due after one year through five years			2,746.6		2,975.2		2,779.9		3,009.1
Due after five years through ten years			2,365.0		2,579.7		2,184.7		2,422.6
Due after ten years			822.3		998.9		853.9		1,046.1
	Total fixed maturity securities	$	6,614.5	$	7,248.7	$	6,517.7	$	7,190.7

Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations. Callable bonds, excluding bonds with make-whole provisions and bonds with provisions that allow the borrower to prepay near maturity, represented 4.2%, or $305.5million, of the Company's fixed maturity securities portfolio at March 31,2013.At March 31,2013, the Company did not have any direct exposure to sub-prime or Alt-A mortgages in its fixed maturity securities portfolio. At March 31,2013, the Company did not have any direct exposure to euro zone government issued debt or debt issued by investment and commercial banks headquartered in Portugal, Ireland, Italy, Greece or Spain. At March 31,2013, fixed maturity securities issued by investment and commercial banks headquartered in other euro zone countries represented 0.8%, or $57.3 million, of the Company's fixed maturity security portfolio. There were no impairments on fixed maturity securities related to euro zone exposure during the first three months of 2013 or 2012.

Gross Unrealized Losses

The following tables set forth the gross unrealized losses and fair value of investments, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position:

			March 31, 2013
			Total				Less than 12 months				12 or more months
			Number		Amount		Number		Amount		Number		Amount
			(Dollars in millions)
Unrealized losses:
		Corporate bonds		291	$	6.9		282	$	6.7		9	$	0.2
Fair market value of securities with
	unrealized losses:
		Corporate bonds		291	$	515.3		282	$	508.4		9	$	6.9

			December 31, 2012
			Total				Less than 12 months				12 or more months
			Number		Amount		Number		Amount		Number		Amount
			(Dollars in millions)
Unrealized losses:
		Corporate bonds		198	$	3.8		188	$	3.6		10	$	0.2
Fair market value of securities with
	unrealized losses:
		Corporate bonds		198	$	342.5		188	$	335.5		10	$	7.0

The unrealized losses on the investment securities set forth above were partly due to increases in market interest rates, subsequent to their purchase by the Company and have also been affected by overall economic factors. The Company expects the fair value of these investment securities to recover as the investment securities approach their maturity dates or sooner if market yields for such investment securities decline. The Company does not believe that any of the investment securities are impaired due to credit quality or due to any company or industry specific event. Based on management's evaluation of the securities and the Company's intent to hold the securities, and as it is unlikely that the Company will be required to sell the securities, none of the unrealized losses summarized in this table are considered other-than-temporary.

Commercial Mortgage Loans

The Company underwrites mortgage loans on commercial property throughout the United States. In addition to real estate collateral, the Company requires either partial or full recourse on most loans. At March 31,2013, the Company did not have any direct exposure to sub-prime or Alt-A mortgages in its commercial mortgage loan portfolio.

The following table sets forth the commercial mortgage loan portfolio by property type, by geographic region within the U.S. and by U.S. state:

			March 31, 2013				December 31, 2012
			Amount		Percent		Amount		Percent
			(Dollars in millions)
Property type:
	Retail		$	2,571.8	48.3	%	$	2,560.7	48.6	%
	Industrial			1,020.4	19.2			995.8	18.9
	Office			967.0	18.1			960.8	18.2
	Hotel/motel			280.0	5.3			280.8	5.3
	Commercial			215.9	4.1			205.3	4.0
	Apartment and other			265.3	5.0			264.0	5.0
		Total commercial mortgage loans, net	$	5,320.4	100.0	%	$	5,267.4	100.0	%
Geographic region*:
	Pacific		$	1,869.7	35.1	%	$	1,844.1	35.0	%
	South Atlantic			1,084.2	20.4			1,069.2	20.2
	West South Central			644.2	12.2			634.8	12.1
	Mountain			614.4	11.5			612.7	11.6
	East North Central			446.8	8.4			443.9	8.4
	Middle Atlantic			240.4	4.5			240.3	4.6
	West North Central			181.5	3.4			183.0	3.5
	East South Central			152.7	2.9			150.5	2.9
	New England			86.5	1.6			88.9	1.7
		Total commercial mortgage loans, net	$	5,320.4	100.0	%	$	5,267.4	100.0	%
U.S. state:
	California		$	1,455.0	27.3	%	$	1,436.3	27.3	%
	Texas			590.9	11.1			587.0	11.1
	Florida			336.1	6.3			331.9	6.3
	Georgia			309.3	5.8			311.5	5.9
	Other states			2,629.1	49.5			2,600.7	49.4
		Total commercial mortgage loans, net	$	5,320.4	100.0	%	$	5,267.4	100.0	%

*       Geographic regions obtained from the American Council of Life Insurers Mortgage Loan Portfolio Profile.

Due to the concentration of commercial mortgage loans in California, the Company could be exposed to potential losses as a result of an economic downturn in California as well as certain catastrophes. See Part II, Item 1A, “Risk Factors.”

The carrying value of commercial mortgage loans represents the outstanding principal balance less a loan loss allowance for probable uncollectible amounts. The commercial mortgage loan loss allowance is estimated based on evaluating known and inherent risks in the loan portfolio and consists of a general and a specific loan loss allowance.

Impairment Evaluation

The Company monitors its commercial mortgage loan portfolio for potential impairment by evaluating the portfolio and individual loans. Key factors that are monitored are as follows:

• Loan loss experience.
• Delinquency history.
• Debt coverage ratio.
• Loan to value ratio.
• Refinancing and restructuring history.
• Request for forbearance history.

  If the analysis above indicates a loan might be impaired, it is further analyzed through the consideration of the following additional factors:

• Delinquency status.
• Foreclosure status.
• Restructuring status.
• Borrower history.

If it is determined a loan is impaired, a specific allowance is recorded.

General Loan Loss Allowance

The general loan loss allowance is based on the Company's analysis of factors including changes in the size and composition of the loan portfolio, debt coverage ratios, loan to value ratios, actual loan loss experience and individual loan analysis.

Specific Loan Loss Allowance

An impaired commercial mortgage loan is a loanwhere the Company does not expect to receive contractual principal and interest in accordance with the terms of the loan agreement. A specific allowance for losses is recorded when a loan is considered to be impaired and it is probable that all amounts due will not be collected based on the terms of the original note. The Company also holds specific loan loss allowances on certain performing commercial mortgage loans that it continues to monitor and evaluate. Impaired commercial mortgage loans without specific allowances for losses are those for which the Company has determined that it remains probable that all amounts due will be collected although the timing or nature may be outside the original contractual terms. In addition, for impaired commercial mortgage loans, the Company evaluates the cost to dispose of the underlying collateral, any significant out of pocket expenses the loan may incur and other quantitative information management has concerning the loan. Portions of loans that are deemed uncollectible are written off against the allowance, and recoveries, if any, are credited to the allowance.

The following table sets forth changes in the commercial mortgage loan loss allowance:

			Three Months Ended
			March 31,
			2013		2012
			(In millions)
Commercial mortgage loan loss allowance:
Beginning balance			$	46.6	$	48.1
	Provision			3.1		1.3
	Charge-offs, net			(6.9)		(3.8)
		Ending balance	$	42.8	$	45.6
Specific loan loss allowance			$	22.8	$	25.5
General loan loss allowance				20.0		20.1
		Total commercial mortgage loan loss allowance	$	42.8	$	45.6

The decrease in commercial mortgage loan loss allowance as of March 31,2013 compared to March 31,2012 was primarily due to the decrease in the specificloan loss allowance as of March 31, 2013 compared to March 31, 2012. The increase in the provision and charge-offs for the first quarter of2013 compared to the same period of 2012 were primarily related to losses associated with foreclosures, accepted deeds in lieu of foreclosure on commercial mortgage loans and other related charges associated with commercial mortgage loans leaving the portfolio during the first quarterof2013.

The following table sets forth the recorded investment in commercial mortgage loans:

		March 31, 2013		December 31, 2012
		(In millions)
Commercial mortgage loans collectively evaluated for impairment		$	5,265.0	$	5,214.2
Commercial mortgage loans individually evaluated for impairment			98.2		99.8
Commercial mortgage loan loss allowance			(42.8)		(46.6)
	Total commercial mortgage loans	$	5,320.4	$	5,267.4

The Company assesses the credit quality of its commercial mortgage loan portfolio quarterly by reviewing the performance of its portfolio, which includes evaluating its performing and nonperforming commercial mortgage loans. Nonperforming commercial mortgage loans include all commercial mortgage loans that are 60 days or more past due and commercial mortgage loans that are not 60 days past due but are not substantially performing to other original contractual terms.

The following tables set forth performing and nonperforming commercial mortgage loans by property type:

		March 31, 2013
								Hotel/				Apartment
		Retail		Office		Industrial		Motel		Commercial		and Other		Total
		(In millions)
Performing commercial mortgage loans		$	2,564.2	$	965.3	$	1,016.7	$	280.0	$	215.2	$	264.7	$	5,306.1
Nonperforming commercial mortgage loans			7.6		1.7		3.7		0.0		0.7		0.6		14.3
	Total commercial mortgage loans	$	2,571.8	$	967.0	$	1,020.4	$	280.0	$	215.9	$	265.3	$	5,320.4

		December 31, 2012
								Hotel/				Apartment
		Retail		Office		Industrial		Motel		Commercial		and Other		Total
		(In millions)
Performing commercial mortgage loans		$	2,552.5	$	955.8	$	993.0	$	280.8	$	204.7	$	263.5	$	5,250.3
Nonperforming commercial mortgage loans			8.2		5.0		2.8		0.0		0.6		0.5		17.1
	Total commercial mortgage loans	$	2,560.7	$	960.8	$	995.8	$	280.8	$	205.3	$	264.0	$	5,267.4

The following tables set forth impaired commercial mortgage loans identified in management's specific review of probable loan losses and the related allowance:

						March 31, 2013
								Unpaid				Amount on
						Recorded		Principal		Related		Nonaccrual
						Investment		Balance		Allowance		Status
						(In millions)
Impaired commercial mortgage loans:
	Without specific loan loss allowances:
		Retail				$	16.6	$	16.6	$	0.0	$	4.1
		Office					4.1		4.1		0.0		2.9
		Industrial					4.2		4.2		0.0		1.4
		Apartment and other					1.9		1.9		0.0		0.0
			Total impaired commercial mortgage loans without specific
				loan loss allowances			26.8		26.8		0.0		8.4
	With specific loan loss allowances:
		Retail					37.7		37.7		11.4		7.3
		Office					9.9		9.9		2.4		0.7
		Industrial					10.8		10.8		3.1		3.0
		Commercial					10.0		10.0		5.8		3.1
		Apartment and other					3.0		3.0		0.1		0.0
			Total impaired commercial mortgage loans with specific
				loan loss allowances			71.4		71.4		22.8		14.1
					Total impaired commercial mortgage loans	$	98.2	$	98.2	$	22.8	$	22.5

						December 31, 2012
								Unpaid				Amount on
						Recorded		Principal		Related		Nonaccrual
						Investment		Balance		Allowance		Status
						(In millions)
Impaired commercial mortgage loans:
	Without specific loan loss allowances:
		Retail				$	15.3	$	15.3	$	0.0	$	2.2
		Office					5.2		5.2		0.0		4.1
		Industrial					3.3		3.3		0.0		0.2
		Apartment and other					1.9		1.9		0.0		0.0
			Total impaired commercial mortgage loans without specific
				loan loss allowances			25.7		25.7		0.0		6.5
	With specific loan loss allowances:
		Retail					37.9		37.9		13.2		9.3
		Office					10.3		10.3		2.5		1.3
		Industrial					11.4		11.4		3.6		2.0
		Commercial					11.4		11.4		6.2		2.7
		Apartment and other					3.1		3.1		0.1		0.0
			Total impaired commercial mortgage loans with specific
				loan loss allowances			74.1		74.1		25.6		15.3
					Total impaired commercial mortgage loans	$	99.8	$	99.8	$	25.6	$	21.8

The decreasein impaired commercial mortgage loans at March 31,2013 compared to December 31,2012 was primarily due to loan repayments and foreclosuresduring the first three months of 2013. As of March 31,2013and December 31,2012, the Company did not have any commercial mortgage loans greater than 90 days delinquent that were accruing interest.

A modification is considered to be a troubled debt restructuring when the debtor is experiencing financial difficulties and the restructured terms constitute a concession. The Company evaluates all restructured commercial mortgage loans for indications of troubled debt restructurings and the potential losses related to these restructurings. If a loan is considered a troubled debt restructuring, the Company impairs the loan and records a specific allowance for estimated losses. In some cases, the recorded investment in the loan may increase post-restructuring. As a result of adopting the amendments in ASU No. 2011-02, A Creditor's Determination of Whether a Restructuring Is a Troubled Debt Restructuring, the Company assessed all restructurings that occurred during the period to determine if they were troubled debt restructurings. The Company did not identify any troubled debt restructurings that were not already considered impaired.

The following table sets forth information related to the troubled debt restructurings of financing receivables:

		Three Months Ended
		March 31, 2013
				Pre-		Post-
				Restructuring		Restructuring
		Number		Recorded		Recorded
		of Loans		Investment		Investment
		(Dollars in millions)
Troubled debt restructurings:
	Retail		3	$	1.9	$	4.9

There were no troubled debt restructurings identified in the previous 12 months that subsequently defaulted during the first three months of 2013.

The following table sets forth the average recorded investment in impaired commercial mortgage loans before specific allowances for losses:

	Three Months Ended
	March 31,
	2013		2012
	(In millions)
Average recorded investment	$	99.0	$	104.4

Interest Income

The Company records interest income in net investment income and continues to recognize interest income on delinquent commercial mortgage loans, until the loans are more than 90 days delinquent. Interest income and accrued interest receivable are reversed when a loan is put on non-accrual status. For loans that are less than 90 days delinquent, management may reverse interest income and the accrued interest receivable if there is a question on the collectability of the interest. Interest income on loans in the 90-day delinquent category is recognized in the period the cash is collected. The Company resumes the recognition of interest income when the loan becomes less than 90 days delinquent and management determines it is probable that the loan will remain performing.

The amount of interest income recognized on impaired commercial mortgage loans was $1.0million and $1.1 million for the first quarters of2013 and 2012, respectively. The cash received by the Company in payment of interest on impaired commercial mortgage loans was $0.9 million and $1.1 million for the first quarters of2013 and 2012, respectively.

The following tables set forth the aging of commercial mortgage loans by property type:

			March 31, 2013
															Total
							Greater Than				Allowance				Commercial
			30 Days		60 Days		90 Days		Total		Related		Current,		Mortgage
			Past Due		Past Due		Past Due		Past Due		to Past Due		net		Loans
			(In millions)
Commercial mortgage loans:
	Retail		$	27.0	$	0.7	$	8.2	$	35.9	$	(1.3)	$	2,537.2	$	2,571.8
	Office			1.5		0.4		1.6		3.5		(0.3)		963.8		967.0
	Industrial			1.6		0.0		4.7		6.3		(1.0)		1,015.1		1,020.4
	Hotel/motel			0.0		0.0		0.0		0.0		0.0		280.0		280.0
	Commercial			0.0		0.0		2.9		2.9		(2.3)		215.3		215.9
	Apartment and other			0.0		0.0		0.6		0.6		0.0		264.7		265.3
		Total commercial mortgage loans	$	30.1	$	1.1	$	18.0	$	49.2	$	(4.9)	$	5,276.1	$	5,320.4

			December 31, 2012
															Total
							Greater Than				Allowance				Commercial
			30 Days		60 Days		90 Days		Total		Related		Current,		Mortgage
			Past Due		Past Due		Past Due		Past Due		to Past Due		net		Loans
			(In millions)
Commercial mortgage loans:
	Retail		$	17.2	$	4.9	$	4.7	$	26.8	$	(1.4)	$	2,535.3	$	2,560.7
	Office			4.1		0.0		5.6		9.7		(0.6)		951.7		960.8
	Industrial			1.6		0.5		3.6		5.7		(1.4)		991.5		995.8
	Hotel/motel			0.0		0.0		0.0		0.0		0.0		280.8		280.8
	Commercial			2.7		0.0		1.4		4.1		(0.8)		202.0		205.3
	Apartment and other			0.0		0.6		0.0		0.6		0.0		263.4		264.0
		Total commercial mortgage loans	$	25.6	$	6.0	$	15.3	$	46.9	$	(4.2)	$	5,224.7	$	5,267.4

The Company closely monitors all past due commercial mortgage loans. Additional attention is given to those loans at least 60days past due. Commercial mortgage loans that were at least 60days past due totaled $19.1 million and $21.3 million at March 31, 2013 and December 31, 2012, respectively. Overall, commercial mortgage loans at least 60dayspast due were 0.35% and 0.40% of the commercial mortgage loan portfolio at March 31, 2013 and December 31, 2012.

Net Investment Income

The following table sets forth net investment income summarized by investment type:

				Three Months Ended
				March 31,
				2013		2012
				(In millions)
Bonds				$	76.4	$	79.2
S&P 500 Index options					6.0		6.7
	Total fixed maturity securities				82.4		85.9
Commercial mortgage loans					83.4		79.5
Real estate					(0.3)		0.1
Other					2.4		2.0
		Gross investment income			167.9		167.5
Investment expenses					(5.6)		(5.7)
Tax-advantaged investment operating losses					(3.1)		(2.1)
			Net investment income	$	159.2	$	159.7

Realized Gross Capital Gains and Losses

The following table sets forth gross capital gains and losses by investment type:

				Three Months Ended
				March 31,
				2013		2012
				(In millions)
Gains:
	Fixed maturity securities			$	2.6	$	2.5
	Commercial mortgage loans				0.5		0.2
	Real Estate Owned				0.1		0.1
	Other				0.2		0.1
		Gross capital gains			3.4		2.9
Losses:
	Fixed maturity securities				(0.6)		(1.3)
	Provision for commercial mortgage loan losses				(3.1)		(1.3)
	Real Estate Owned				(1.0)		(0.5)
	Other				(0.3)		0.0
		Gross capital losses			(5.0)		(3.1)
			Net capital losses	$	(1.6)	$	(0.2)

Securities Deposited as Collateral

Securities deposited for the benefit of policyholders in various states, in accordance with state regulations, amounted to $7.8million and $7.9 millionatMarch 31,2013 and December 31,2012, respectively.

XML

Investments (Average Recorded Investment In Impaired Commercial Mortgage Loans Before Specific Allowances For Losses) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Investments [Abstract]
Average recorded investment	$ 99.0	$ 104.4

XML

Investments (Net Investment Income Summarized By Investment Type) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Summary Of Investment Income [Line Items]
Investment income	$ 167.9	$ 167.5
Investment expenses	(5.6)	(5.7)
Tax-advantaged investment operating losses	3.1	2.1
Net investment income	159.2	159.7
Total Fixed Maturity Securities [Member]
Summary Of Investment Income [Line Items]
Investment income	82.4	85.9
Bonds [Member]
Summary Of Investment Income [Line Items]
Investment income	76.4	79.2
S and P Five Hundred Index Options [Member]
Summary Of Investment Income [Line Items]
Investment income	6.0	6.7
Net investment income	6.0	6.7
Commercial Mortgage Loans [Member]
Summary Of Investment Income [Line Items]
Investment income	83.4	79.5
Total Real Estate [Member]
Summary Of Investment Income [Line Items]
Investment income	(0.3)	0.1
Other Investment Classification [Member]
Summary Of Investment Income [Line Items]
Investment income	$ 2.4	$ 2.0

XML

Investments (Troubled Debt Restructurings on Financing Receivables) (Details) (Retail [Member], USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2013 NumberOfLoans
Retail [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans	3
Pre-Restructuring Recorded Investment	$ 1.9
Post-Restructuring Recorded Investment	$ 4.9

XML

Severance and Transition Costs (Tables)

3 Months Ended

Mar. 31, 2013

Severance, Transition Costs and Lease Terminations Abstract

Severance, transition costs and lease terminations [Table Text Block]

		Three Months Ended, March 31, 2013
		Beginning						Ending
		Accrued		Charged to				Accrued
		Liability		Expense, Net		Expenditures		Liability
		(In millions)
Severance		$	0.1	$	2.9	$	1.8	$	1.2
Transition costs			0.0		1.1		1.1		0.0
Lease terminations			0.3		0.0		0.1		0.2
	Total severance, transition costs and lease terminations	$	0.4	$	4.0	$	3.0	$	1.4

		Year Ended, December 31, 2012
		Beginning						Ending
		Accrued		Charged to				Accrued
		Liability(1)		Expense, Net		Expenditures		Liability
		(In millions)
Severance		$	1.0	$	0.0	$	0.9	$	0.1
Transition costs			0.0		0.0		0.0		0.0
Lease terminations			1.0		0.0		0.7		0.3
	Total severance, transition costs and lease terminations	$	2.0	$	0.0	$	1.6	$	0.4

• Amounts relate to restructuring charges implemented by the Company during 2011.

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Fair Value (Assets And Liabilities Measured At Fair Value On A Recurring Basis Using Significant Unobservable Level 3 Inputs) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Beginning Asset	$ 94.5	$ 73.1
Total Realized/Unrealized Gains (Losses) included in Net Income	6.0	6.7
Total Realized/Unrealized Gains (Losses) Included In Other Comprehensive Income (Loss)	(4.1)	(1.4)
Purchases	1.9	2.0
Issuances	0	0
Sales	0	0
Settlements	(3.9)	(1.6)
Transfers into Level 3	0	0.4
Transfers out of Level 3	0	(10.0)
Ending Asset	94.4	69.2
U.S. Government and Agency Bonds [Member]
Beginning Asset	1.1	0.5
Total Realized/Unrealized Gains (Losses) included in Net Income	0	0
Total Realized/Unrealized Gains (Losses) Included In Other Comprehensive Income (Loss)	0	0
Purchases	0	0
Issuances	0	0
Sales	0	0
Settlements	0	0
Transfers into Level 3	0	0
Transfers out of Level 3	0	(0.5)
Ending Asset	1.1	0
U.S. State and Political Subdivision Bonds [Member]
Beginning Asset	1.7	1.4
Total Realized/Unrealized Gains (Losses) included in Net Income	0	0
Total Realized/Unrealized Gains (Losses) Included In Other Comprehensive Income (Loss)	0	0
Purchases	0	0
Issuances	0	0
Sales	0	0
Settlements	0	0
Transfers into Level 3	0	0.4
Transfers out of Level 3	0	0
Ending Asset	1.7	1.8
Corporate Bonds [Member]
Beginning Asset	80.4	64.0
Total Realized/Unrealized Gains (Losses) included in Net Income	0	0
Total Realized/Unrealized Gains (Losses) Included In Other Comprehensive Income (Loss)	(4.1)	(1.4)
Purchases	0	0
Issuances	0	0
Sales	0	0
Settlements	0	0
Transfers into Level 3	0	0
Transfers out of Level 3	0	(9.5)
Ending Asset	76.3	53.1
S and P Five Hundred Index Options [Member]
Beginning Asset	11.3	7.2
Total Realized/Unrealized Gains (Losses) included in Net Income	6.0	6.7
Total Realized/Unrealized Gains (Losses) Included In Other Comprehensive Income (Loss)	0	0
Purchases	1.9	2.0
Issuances	0	0
Sales	0	0
Settlements	(3.9)	(1.6)
Transfers into Level 3	0	0
Transfers out of Level 3	0	0
Ending Asset	15.3	14.3
Index Based Interest Guarantees [Member]
Beginning Liability	57.4	49.5
Total Realized/Unrealized Gains (Losses) Included in Net Income	6.2	6.4
Total Realized/Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss)	0	0
Purchases	0	0
Issuance	1.1	0.1
Sales	0	0
Settlements	(1.1)	(0.7)
Transfers in to Level 3	0	0
Transfers out of Level 3	0	0
Ending Liability	$ 63.6	$ 55.3

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Income Taxes

3 Months Ended

Mar. 31, 2013

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

12.INCOME TAXES

Income taxes may differ from the amount computed by applying the federal corporate tax rate of 35% to pre-tax income because of the net results of permanent differences between book and taxable income and because of the inclusion of state and local income taxes, net of the federal tax benefit.

The following table sets forth the combined federal and state effective income tax rates:

	Three Months Ended
	March 31,
	2013		2012
Combined federal and state effective income tax rates	22.4	%	26.2	%

During the first quarter of2013 and throughout 2012,the Company purchased tax-advantaged investments. These investments were the primary drivers of the decrease in the effective income tax rate for the first quarterof 2013compared to thefirst quarter of2012.

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Retirement Benefits (Tables)

3 Months Ended

Mar. 31, 2013

Retirement Benefits [Abstract]

Componets of Net Periodic Benefit Cost and Other Amounts Recognized in Other Comprehensive Income for Pension Benefits.

				Three Months Ended
				March 31,
				2013		2012
				(In millions)
Components of net periodic benefit cost:
	Service cost			$	2.6	$	2.5
	Interest cost				4.1		4.1
	Expected return on plan assets				(7.3)		(6.6)
	Amortization of prior service cost				0.2		0.2
	Amortization of net actuarial loss				2.3		2.1
		Net periodic benefit cost			1.9		2.3
Other changes in plan assets and benefit obligation recognized in other comprehensive income:
	Amortization of prior service cost				(0.2)		(0.2)
	Amortization of net actuarial loss				(2.3)		(2.1)
		Total recognized in other comprehensive income			(2.5)		(2.3)
			Total recognized in net periodic benefit cost and other comprehensive income	$	(0.6)	$	0.0

Components of Net Periodic Benefit Cost (Benefit) and Other Amounts Recognized in Other Comprehensive Income for Postretirement Benefits

				Three Months Ended
				March 31,
				2013		2012
				(In millions)
Components of net periodic benefit (credit) cost:
	Service cost			$	0.0	$	0.2
	Interest cost				0.2		0.4
	Expected return on plan assets				(0.2)		(0.2)
	Amortization of prior service cost				(13.2)		(0.1)
	Amortization of net actuarial loss				2.9		0.0
		Net periodic benefit (credit) cost			(10.3)		0.3
Other changes in plan assets and benefit obligation recognized in other comprehensive (income) loss:
	Net gain				0.0		(0.7)
	Amortization of prior service cost				13.2		0.1
	Amortization of net actuarial loss				(2.9)		0.0
		Total recognized in other comprehensive (income) loss			10.3		(0.6)
			Total recognized in net periodic benefit cost and other comprehensive (income) loss	$	0.0	$	(0.3)

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Fair Value (Estimated Fair Value And The Carrying Value Of Each Financial Instrument Categorized by Fair Value Hierarchy) (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012
Total fixed maturity securities-available-for-sale	$ 7,248.7	$ 7,190.7
Commercial mortgage loans, net	5,320.4	5,267.4
Separate account assets	5,600.1	5,154.3
Other policyholder funds	5,630.8	5,531.1
Short-term debt	1.1	1.0
Long-term debt	551.6	551.4
Level 1 [Member]
Total fixed maturity securities-available-for-sale	0	0
Commercial mortgage loans, net	0	0
Policy loans	0	0
Separate account assets	5,455.9	5,007.5
Short-term debt	0	0
Long-term debt	0	0
Level 2 [Member]
Total fixed maturity securities-available-for-sale	7,154.3	7,096.2
Commercial mortgage loans, net	0	0
Policy loans	0	0
Separate account assets	144.2	146.8
Short-term debt	1.3	1.2
Long-term debt	580.7	567.4
Level 3 [Member]
Total fixed maturity securities-available-for-sale	94.4	94.5
Commercial mortgage loans, net	5,962.5	5,946.3
Policy loans	2.5	2.5
Separate account assets	0	0
Short-term debt	0	0
Long-term debt	0	0
U.S. Government and Agency Bonds [Member] | Level 1 [Member]
Total fixed maturity securities-available-for-sale	0	0
U.S. Government and Agency Bonds [Member] | Level 2 [Member]
Total fixed maturity securities-available-for-sale	396.7	411.9
U.S. Government and Agency Bonds [Member] | Level 3 [Member]
Total fixed maturity securities-available-for-sale	1.1	1.1
U.S. State and Political Subdivision Bonds [Member] | Level 1 [Member]
Total fixed maturity securities-available-for-sale	0	0
U.S. State and Political Subdivision Bonds [Member] | Level 2 [Member]
Total fixed maturity securities-available-for-sale	166.2	166.7
U.S. State and Political Subdivision Bonds [Member] | Level 3 [Member]
Total fixed maturity securities-available-for-sale	1.7	1.7
Foreign Government Bonds [Member] | Level 1 [Member]
Total fixed maturity securities-available-for-sale	0	0
Foreign Government Bonds [Member] | Level 2 [Member]
Total fixed maturity securities-available-for-sale	71.3	72.1
Foreign Government Bonds [Member] | Level 3 [Member]
Total fixed maturity securities-available-for-sale	0	0
Corporate Bonds [Member] | Level 1 [Member]
Total fixed maturity securities-available-for-sale	0	0
Corporate Bonds [Member] | Level 2 [Member]
Total fixed maturity securities-available-for-sale	6,520.1	6,445.5
Corporate Bonds [Member] | Level 3 [Member]
Total fixed maturity securities-available-for-sale	76.3	80.4
Investment Type Contracts [Member] | Level 1 [Member]
Other policyholder funds	0	0
Investment Type Contracts [Member] | Level 2 [Member]
Other policyholder funds	0	0
Investment Type Contracts [Member] | Level 3 [Member]
Other policyholder funds	5,386.7	5,331.3
S and P Five Hundred Index Options [Member] | Level 1 [Member]
Total fixed maturity securities-available-for-sale	0	0
S and P Five Hundred Index Options [Member] | Level 2 [Member]
Total fixed maturity securities-available-for-sale	0	0
S and P Five Hundred Index Options [Member] | Level 3 [Member]
Total fixed maturity securities-available-for-sale	15.3	11.3
Index Based Interest Guarantees [Member] | Level 1 [Member]
Index-based interest guarantees	0	0
Index Based Interest Guarantees [Member] | Level 2 [Member]
Index-based interest guarantees	0	0
Index Based Interest Guarantees [Member] | Level 3 [Member]
Index-based interest guarantees	63.6	57.4
Carrying (Reported) Amount, Fair Value Disclosure [Member]
Total fixed maturity securities-available-for-sale	7,248.7	7,190.7
Commercial mortgage loans, net	5,320.4	5,267.4
Policy loans	2.5	2.5
Separate account assets	5,600.1	5,154.3
Short-term debt	1.1	1.0
Long-term debt	551.6	551.4
Carrying (Reported) Amount, Fair Value Disclosure [Member] | U.S. Government and Agency Bonds [Member]
Total fixed maturity securities-available-for-sale	397.8	413.0
Carrying (Reported) Amount, Fair Value Disclosure [Member] | U.S. State and Political Subdivision Bonds [Member]
Total fixed maturity securities-available-for-sale	167.9	168.4
Carrying (Reported) Amount, Fair Value Disclosure [Member] | Foreign Government Bonds [Member]
Total fixed maturity securities-available-for-sale	71.3	72.1
Carrying (Reported) Amount, Fair Value Disclosure [Member] | Corporate Bonds [Member]
Total fixed maturity securities-available-for-sale	6,596.4	6,525.9
Carrying (Reported) Amount, Fair Value Disclosure [Member] | Investment Type Contracts [Member]
Other policyholder funds	5,013.3	4,916.7
Carrying (Reported) Amount, Fair Value Disclosure [Member] | S and P Five Hundred Index Options [Member]
Total fixed maturity securities-available-for-sale	15.3	11.3
Carrying (Reported) Amount, Fair Value Disclosure [Member] | Index Based Interest Guarantees [Member]
Index-based interest guarantees	63.6	57.4
Estimate of Fair Value, Fair Value Disclosure [Member]
Total fixed maturity securities-available-for-sale	7,248.7	7,190.7
Commercial mortgage loans, net	5,962.5	5,946.3
Policy loans	2.5	2.5
Separate account assets	5,600.1	5,154.3
Short-term debt	1.3	1.2
Long-term debt	580.7	567.4
Estimate of Fair Value, Fair Value Disclosure [Member] | U.S. Government and Agency Bonds [Member]
Total fixed maturity securities-available-for-sale	397.8	413.0
Estimate of Fair Value, Fair Value Disclosure [Member] | U.S. State and Political Subdivision Bonds [Member]
Total fixed maturity securities-available-for-sale	167.9	168.4
Estimate of Fair Value, Fair Value Disclosure [Member] | Foreign Government Bonds [Member]
Total fixed maturity securities-available-for-sale	71.3	72.1
Estimate of Fair Value, Fair Value Disclosure [Member] | Corporate Bonds [Member]
Total fixed maturity securities-available-for-sale	6,596.4	6,525.9
Estimate of Fair Value, Fair Value Disclosure [Member] | Investment Type Contracts [Member]
Other policyholder funds	5,386.7	5,331.3
Estimate of Fair Value, Fair Value Disclosure [Member] | S and P Five Hundred Index Options [Member]
Total fixed maturity securities-available-for-sale	15.3	11.3
Estimate of Fair Value, Fair Value Disclosure [Member] | Index Based Interest Guarantees [Member]
Index-based interest guarantees	$ 63.6	$ 57.4

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Share-Based Compensation (Schedule Of Compensation Cost And Related Income Tax Benefit Under Employee Stock Purchase Plan) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Compensation cost	$ 1.4	$ 2.3
Related income tax benefit	0.5	0.8
Employee Stock Purchase 1999 Plan [Member]
Compensation cost	0.2	0.6
Related income tax benefit	$ 0.1	$ 0.2

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Unaudited Condensed Consolidated Balance Sheets (USD $) In Millions, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012
ASSETS
Fixed maturity securities-available-for-sale (amortized cost of $6,614.5 and $6,517.7)	$ 7,248.7	$ 7,190.7
Commercial mortgage loans, net	5,320.4	5,267.4
Real estate, net	94.2	95.5
Other invested assets	206.9	175.5
Total investments	12,870.2	12,729.1
Cash and cash equivalents	143.3	160.7
Premiums and other receivables	121.9	123.0
Accrued investment income	112.8	109.3
Amounts recoverable from reinsurers	979.0	972.4
Deferred acquisition costs, value of business acquired and other intangible assets, net	352.4	346.5
Goodwill	36.0	36.0
Property and equipment, net	86.9	90.7
Other assets	66.9	69.3
Separate account assets	5,600.1	5,154.3
Total assets	20,369.5	19,791.3
Liabilities:
Future policy benefits and claims	5,851.9	5,843.2
Other policyholder funds	5,630.8	5,531.1
Deferred tax liabilities, net	147.6	148.1
Short-term debt	1.1	1.0
Long-term debt	551.6	551.4
Other liabilities	398.8	393.2
Separate account liabilities	5,600.1	5,154.3
Total liabilities	18,181.9	17,622.3
Commitments and contingencies (See Note 10)
Shareholders' equity:
Preferred stock, 100,000,000 shares authorized; none issued	0	0
Common stock, no par, 300,000,000 shares authorized; 44,323,664 and 44,419,448 shares issued at March 31, 2013 and December 31, 2012, respectively	84.6	89.6
Accumulated other comprehensive income	286.1	309.3
Retained earnings	1,816.9	1,770.1
Total shareholders' equity	2,187.6	2,169.0
Total liabilities and shareholders' equity	$ 20,369.5	$ 19,791.3

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Organization, Principles Of Consolidation And Basis Of Presentation

3 Months Ended

Mar. 31, 2013

Organization, Principles Of Consolidation And Basis Of Presentation [Abstract]

Organization, Principles Of Consolidation And Basis Of Presentation

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

As used in this Form 10-Q, the terms “StanCorp,” “Company,” “we,” “us” and “our” refer to StanCorp Financial Group, Inc. and its subsidiaries, unless the context otherwise requires.

1.       ORGANIZATION, PRINCIPLES OF CONSOLIDATION AND BASIS OF PRESENTATION

StanCorp, headquartered in Portland, Oregon, is a holding company and conducts business through wholly-owned operating subsidiaries throughout the United States. Through its subsidiaries, StanCorp has the authority to underwrite insurance products in all 50 states. StanCorp operates through two segments: Insurance Services and Asset Management and also reports in an Other category. See “Note 5—Segments.”

StanCorp has the following wholly-owned operating subsidiaries: Standard Insurance Company (“Standard”), TheStandard Life Insurance Company of New York, Standard Retirement Services, Inc. (“Standard Retirement Services”),StanCorp Equities, Inc. (“StanCorp Equities”), StanCorp Mortgage Investors, LLC (“StanCorp Mortgage Investors”),StanCorp Investment Advisers, Inc. (“StanCorp Investment Advisers”), StanCorp Real Estate, LLC (“StanCorp RealEstate”) and Standard Management, Inc. (“Standard Management”).

Standard, the Company's largest subsidiary, underwrites group and individual disability insurance and annuity products, group life and accidental death and dismemberment (“AD&D”) insurance, and provides group dental and group vision insurance, absence management services and retirement plan products. Founded in 1906, Standard is domiciled in Oregon, licensed in all states except New York, and licensed in the District of Columbia and the U.S. territories of Guam and the Virgin Islands.

The Standard Life Insurance Company of New York was organized in 2000 and is licensed to provide group long term and short term disability insurance, group life and AD&D insurance,group dental insurance and individual disability insurance in New York.

The Standard is a service mark of StanCorp and its subsidiaries and is used as a brand mark and marketing name by Standard and The Standard Life Insurance Company of New York.

Standard Retirement Services administers and services StanCorp's retirement plans group annuity contracts and trust products. Retirement plan products are offered in all 50 states through Standard or Standard Retirement Services.

StanCorp Equities is a limited broker-dealer and member of the Financial Industry Regulatory Authority. As a wholesaler, StanCorp Equities activities are limited to soliciting and supporting third-party broker-dealers and investment advisers that offer or advise their retirement plan clients on using an unregistered group annuity contract or a mutual fund trust platform.

StanCorp Mortgage Investors originates and services fixed-rate commercial mortgage loans for the investment portfolios of the Company's insurance subsidiaries. StanCorp Mortgage Investors also generates additional fee income from the origination and servicing of commercial mortgage loans participated to institutional investors.

StanCorp Investment Advisers, Inc. is a Securities and Exchange Commission (“SEC”) registered investment adviser providing performance analysis, fund selection support, model portfolios and other investment advisory, financial planning, and investment management services to its retirement plan clients, individual investors and subsidiaries of StanCorp.

StanCorp Real Estate is a property management company that owns and manages the Hillsboro, Oregon home office properties and other properties held for investment and held for sale. StanCorp Real Estate also manages the Portland, Oregon home office properties.

Standard Management manages certain real estate properties held for sale from timetotime in conjunction with our real estate business.

Standard holds interests in tax-advantaged investments. These interests are accounted for under the equity method of accounting. The total investment in these interests was $204.4 million and $173.0 million at March 31,2013 and December 31, 2012, respectively.

In February 2013, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. ASU No. 2013-02 requires disclosures for reclassification adjustments including changes in accumulated other comprehensive income (“AOCI”) balances by component and significant items reclassified out of AOCI.Effective January 1, 2013, the Company has adopted this standard.

The accompanying unaudited condensed consolidated financial statements of StanCorp and its subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in conformance with the requirements of Form 10-Q pursuant to the rules and regulations of the SEC. Accordingly, they do not include all of the information and disclosures required by GAAP for complete financial statements. Intercompany balances and transactions have been eliminated on a consolidated basis. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the financial statement date, and the reported amounts of revenues and expenses during the period. Actual results may differ from those estimates. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments, consisting of normal recurring accruals, considered necessary for a fair presentation of the Company's financial condition at March 31,2013, and for the results of operations and cash flows for the three months endedMarch 31,2013 and 2012. Interim results for the three months endedMarch 31,2013 are not necessarily indicative of the results that may be expected for the year ending December 31, 2013. This report should be read in conjunction with the Company's 2012 annual report on Form 10-K.

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Investments (Commercial Mortgage Loan Portfolio By Property Type, By Geographic Region Within The U.S. And By U.S. State) (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012
Commercial Mortgage Loans [Line Items]
Commercial mortgage loans, net	$ 5,320.4	$ 5,267.4
Commercial mortgage loans, Percentage	100.00%	100.00%
California [Member]
Commercial Mortgage Loans [Line Items]
Commercial mortgage loans, net	1,455.0	1,436.3
Commercial mortgage loans, Percentage	27.30%	27.30%
Texas [Member]
Commercial Mortgage Loans [Line Items]
Commercial mortgage loans, net	590.9	587.0
Commercial mortgage loans, Percentage	11.10%	11.10%
Georgia [Member]
Commercial Mortgage Loans [Line Items]
Commercial mortgage loans, net	309.3	311.5
Commercial mortgage loans, Percentage	5.80%	5.90%
Florida [Member]
Commercial Mortgage Loans [Line Items]
Commercial mortgage loans, net	336.1	331.9
Commercial mortgage loans, Percentage	6.30%	6.30%
Other States [Member]
Commercial Mortgage Loans [Line Items]
Commercial mortgage loans, net	2,629.1	2,600.7
Commercial mortgage loans, Percentage	49.50%	49.40%
Pacific [Member]
Commercial Mortgage Loans [Line Items]
Commercial mortgage loans, net	1,869.7	1,844.1
Commercial mortgage loans, Percentage	35.10%	35.00%
South Atlantic [Member]
Commercial Mortgage Loans [Line Items]
Commercial mortgage loans, net	1,084.2	1,069.2
Commercial mortgage loans, Percentage	20.40%	20.20%
Mountain [Member]
Commercial Mortgage Loans [Line Items]
Commercial mortgage loans, net	614.4	612.7
Commercial mortgage loans, Percentage	11.50%	11.60%
West South Central [Member]
Commercial Mortgage Loans [Line Items]
Commercial mortgage loans, net	644.2	634.8
Commercial mortgage loans, Percentage	12.20%	12.10%
East North Central [Member]
Commercial Mortgage Loans [Line Items]
Commercial mortgage loans, net	446.8	443.9
Commercial mortgage loans, Percentage	8.40%	8.40%
Middle Atlantic [Member]
Commercial Mortgage Loans [Line Items]
Commercial mortgage loans, net	240.4	240.3
Commercial mortgage loans, Percentage	4.50%	4.60%
West North Central [Member]
Commercial Mortgage Loans [Line Items]
Commercial mortgage loans, net	181.5	183.0
Commercial mortgage loans, Percentage	3.40%	3.50%
East South Central [Member]
Commercial Mortgage Loans [Line Items]
Commercial mortgage loans, net	152.7	150.5
Commercial mortgage loans, Percentage	2.90%	2.90%
New England [Member]
Commercial Mortgage Loans [Line Items]
Commercial mortgage loans, net	86.5	88.9
Commercial mortgage loans, Percentage	1.60%	1.70%
Retail [Member]
Commercial Mortgage Loans [Line Items]
Commercial mortgage loans, net	2,571.8	2,560.7
Commercial mortgage loans, Percentage	48.30%	48.60%
Office [Member]
Commercial Mortgage Loans [Line Items]
Commercial mortgage loans, net	967.0	960.8
Commercial mortgage loans, Percentage	18.10%	18.20%
Industrial [Member]
Commercial Mortgage Loans [Line Items]
Commercial mortgage loans, net	1,020.4	995.8
Commercial mortgage loans, Percentage	19.20%	18.90%
Hotels and Motels [Member]
Commercial Mortgage Loans [Line Items]
Commercial mortgage loans, net	280.0	280.8
Commercial mortgage loans, Percentage	5.30%	5.30%
Commercial [Member]
Commercial Mortgage Loans [Line Items]
Commercial mortgage loans, net	215.9	205.3
Commercial mortgage loans, Percentage	4.10%	4.00%
Apartment and Other [Member]
Commercial Mortgage Loans [Line Items]
Commercial mortgage loans, net	$ 265.3	$ 264.0
Commercial mortgage loans, Percentage	5.00%	5.00%

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Severance, Transition Costs and lease terminations (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended	12 Months Ended
	Mar. 31, 2013	Dec. 31, 2012
Restructuring Cost And Reserve Line Items
Beginning Accrued Liability	$ 0.4	$ 2.0	[1]
Restructuring charged to expense	4.0	0
Expenditures	3.0	1.6
Ending Accrued Liability	1.4	0.4
Severance Cost Member
Restructuring Cost And Reserve Line Items
Beginning Accrued Liability	0.1	1.0	[1]
Restructuring charged to expense	2.9	0
Expenditures	1.8	0.9
Ending Accrued Liability	1.2	0.1
Transition Costs Member
Restructuring Cost And Reserve Line Items
Beginning Accrued Liability	0	0
Restructuring charged to expense	1.1	0
Expenditures	1.1	0
Ending Accrued Liability	0	0
Lease termination [Member]
Restructuring Cost And Reserve Line Items
Beginning Accrued Liability	0.3	1.0	[1]
Restructuring charged to expense	0	0
Expenditures	0.1	0.7
Ending Accrued Liability	$ 0.2	$ 0.3

[1] Represents various assumptions derived from market data, which include estimates of bid ask spreads and the implied volatilities for the S&P 500 index.

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Derivative Financial Instruments (Fair Value Of The Company's Derivative Assets And Liabilities) (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2013	Mar. 31, 2012
Derivative [Line Items]
Derivative Assets	$ 15.3
S and P Five Hundred Index Options [Member] | Fixed Maturity Securities-Available-for-Sale [Member]
Derivative [Line Items]
Derivative Assets	15.3	11.3
Index Based Interest Guarantees [Member] | Other Policyholder Funds Member
Derivative [Line Items]
Derivative Liabilities	$ 63.6	$ 57.4

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Segments (Tables)

3 Months Ended

Mar. 31, 2013

Segments [Abstract]

Intersegment Administrative Fee Revenues

	Three Months Ended
	March 31,
	2013		2012
	(In millions)
Intersegment administrative fee revenues	$	4.7	$	4.4

Premiums, Administrative Fees and Net Investment Income by Major Product Line or Category

						Three Months Ended
						March 31,
						2013		2012
						(In millions)
Premiums:
	Insurance Services:
		Group life and AD&D				$	215.4	$	224.9
		Group long term disability					200.3		204.2
		Group short term disability					55.9		53.8
		Group other					19.1		19.9
		Experience rated refunds					(4.5)		4.1
			Total group insurance				486.2		506.9
			Individual disability insurance				47.0		44.2
				Total Insurance Services premiums			533.2		551.1
	Asset Management:
		Retirement plans					1.2		0.8
		Individual annuities					1.8		1.4
				Total Asset Management premiums			3.0		2.2
					Total premiums	$	536.2	$	553.3
Administrative fees:
	Insurance Services:
		Group insurance				$	3.5	$	3.0
		Individual disability insurance					---		0.1
				Total Insurance Services administrative fees			3.5		3.1
	Asset Management:
		Retirement plans					22.2		22.2
		Other financial services businesses					7.7		7.7
				Total Asset Management administrative fees			29.9		29.9
	Other						(4.7)		(4.4)
					Total administrative fees	$	28.7	$	28.6
Net investment income:
	Insurance Services:
		Group insurance				$	68.6	$	71.3
		Individual disability insurance					13.4		13.3
				Total Insurance Services net investment income			82.0		84.6
	Asset Management:
		Retirement plans					24.2		23.4
		Individual annuities					46.2		46.9
		Other financial services businesses					2.9		2.8
				Total Asset Management net investment income			73.3		73.1
	Other						3.9		2.0
					Total net investment income	$	159.2	$	159.7

Schedule of PTOI and Assets by Segment

					Three Months Ended
					March 31,
					2013		2012
					(In millions)
Income (loss) before income taxes:
	Insurance Services:
		Group insurance			$	34.0	$	28.5
		Individual disability insurance				14.8		17.6
			Total Insurance Services income before income taxes			48.8		46.1
	Asset Management					17.2		15.0
	Other					(5.7)		(13.4)
				Total income before income taxes	$	60.3	$	47.7
Assets:
	Insurance Services:
		Group insurance			$	6,027.8	$	5,954.5
		Individual disability insurance				2,283.3		2,208.4
			Total Insurance Services assets			8,311.1		8,162.9
	Asset Management					11,592.0		10,632.6
	Other					466.4		303.6
				Total assets	$	20,369.5	$	19,099.1

Segment Information

				Insurance		Asset
				Services		Management		Other		Total
				(In millions)
Three Months Ended March 31, 2013
Revenues:
	Premiums			$	533.2	$	3.0	$	0.0	$	536.2
	Administrative fees				3.5		29.9		(4.7)		28.7
	Net investment income				82.0		73.3		3.9		159.2
	Net capital losses				0.0		0.0		(1.6)		(1.6)
			Total revenues		618.7		106.2		(2.4)		722.5
Benefits and expenses:
	Benefits to policyholders				436.0		5.8		0.0		441.8
	Interest credited				0.9		45.7		0.0		46.6
	Operating expenses				82.1		28.2		(5.2)		105.1
	Commissions and bonuses				45.9		7.9		0.0		53.8
	Premium taxes				9.5		0.0		0.0		9.5
	Interest expense				0.0		0.0		8.5		8.5
	Net (increase) decrease in deferred acquisition costs, value of
		business acquired and other intangible assets			(4.5)		1.4		0.0		(3.1)
			Total benefits and expenses		569.9		89.0		3.3		662.2
Income (loss) before income taxes				$	48.8	$	17.2	$	(5.7)	$	60.3
Total assets				$	8,311.1	$	11,592.0	$	466.4	$	20,369.5

				Insurance		Asset
				Services		Management		Other		Total
				(In millions)
Three Months Ended March 31, 2012
Revenues:
	Premiums			$	551.1	$	2.2	$	0.0	$	553.3
	Administrative fees				3.1		29.9		(4.4)		28.6
	Net investment income				84.6		73.1		2.0		159.7
	Net capital losses				0.0		0.0		(0.2)		(0.2)
			Total revenues		638.8		105.2		(2.6)		741.4
Benefits and expenses:
	Benefits to policyholders				444.7		5.3		0.0		450.0
	Interest credited				1.6		45.6		0.0		47.2
	Operating expenses				92.6		30.2		1.1		123.9
	Commissions and bonuses				48.7		6.7		0.0		55.4
	Premium taxes				10.0		0.0		0.0		10.0
	Interest expense				0.0		0.0		9.7		9.7
	Net (increase) decrease in deferred acquisition costs, value of
		business acquired and other intangible assets			(4.9)		2.4		0.0		(2.5)
			Total benefits and expenses		592.7		90.2		10.8		693.7
Income (loss) before income taxes				$	46.1	$	15.0	$	(13.4)	$	47.7
Total assets				$	8,162.9	$	10,632.6	$	303.6	$	19,099.1

XML

Deferred Acquisition Costs ("DAC"), Value Of Business Acquired ("VOBA") And Other Intangible Assets (Amount For DAC, VOBA Balances And Percentage To The Expected Gross Profit) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended	12 Months Ended
	Mar. 31, 2013	Dec. 31, 2012
Deferred Acquisition Costs, Value Of Business Acquired And Other Intangible Assets Disclosures [Abstract]
DAC	$ 63.8	$ 60.9
VOBA	$ 5.7	$ 5.9
DAC, percent	21.80%	21.40%
VOBA, percent	25.00%	25.20%

XML

Share Based Comensation (Narrative-Stock Awards) (Details) (Stock Incentive 2002 Plan [Member], USD $)	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	595,416
Award vesting period	4 years 0 months 0 days
Stock Award Grants [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	408,926
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period	3 years 0 months 0 days
Performance shares granted during period	117,172	179,818
Issued under share-based compensation plans net, shares	0	9,899
Additional compensation cost assuming maximum payout of outstanding performance-based stock awards	$ 17,300,000
Additional compensation cost assuming a target payout of outstanding performance-based stock awards	8,700,000
Weighted average recognition period of additional compensation cost assuming a target payout, years	1 year 8 months 12 days
Director Stock Grants [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period	1 year 0 months 0 days
Issued under share-based compensation plans net, shares	0	0
Non-employee director annual compensation in common stock, fair value	$ 100,000

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Accounting Pronouncements

3 Months Ended

Mar. 31, 2013

Accounting Pronouncements [Abstract]

Accounting Pronouncements

11.       ACCOUNTING PRONOUNCEMENTS

Accounting Standards Update (“ASU”) No. 2011-11, Disclosures about Offsetting Assets and Liabilities

In December 2011, the FASB issued ASU No. 2011-11, Disclosures about Offsetting Assets and Liabilities. The main objective of ASU No. 2011-11 is to enhance disclosures for financial instruments and derivative instruments that have right of setoff conditions. Under the guidance provided in this ASU, entities will be required to disclose the amount of both the recognized asset and the recognized liability subject to setoff under the same arrangement.

ASU No. 2011-11 became effective for interim and annual periods beginning on or after January 1, 2013. The Company does not currently have exposure to hedges, derivatives or master netting arrangements that would be subjected to these additional disclosures. Therefore, the Company does not expect this ASU to have a material effect on its asset and liability disclosures in the financial statements.

ASU No. 2013-01, Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities

In January 2013, the FASB issued ASU No. 2013-01, Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities. The main objective of ASU No. 2013-01 is to address the implementation issues and clarify the scope of ASU No. 2011-11 to apply to derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions offset or subject to a master netting arrangement or similar agreement. This clarification is consistent with the Company's original interpretation of the ASU and does not change theCompany's conclusion on the impact of ASU 2011-11.