StanCorp Financial Group, Inc.: we believe customer satisfaction and shareholder value are inseparable...

Research, October, 2003

StanCorp Financial Group, Inc. achieved another successful year in 2002 despite a weakened national economy. Record net income of $3.73 per diluted share was up 8.4% from 2001. Net income in 2002 included after-tax net capital losses of $12.6 million compared to no after-tax net capital gains or losses in 2001. While the economy was hit hard by growing unemployment and waves of corporate turmoil, StanCorp continued to grow with total revenues up 10.4% and total assets surpassing $8.74 billion. Return on average equity was 10.4% for the year ended December 31, 2002.

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In focusing on its mission, StanCorp has established a foundation--built on the fundamentals of well-paced growth, exceptional service and financial strength--that...

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