Stancorp Financial Presents Strong Performance (SFG)

Stancorp Financial Group Inc. SFG has immensely benefitted from its hands-on approach to lending to small businesses. According to a report released by Wunderlich Securities, Stancorp Financial Group (SFG) represents an excellent investment in a high quality conservative company. The company is expected to generate excess cash flow of approximately $250 million in 2010. SFG is planning to buy-back $40 million-$80 million per year in stock. However, market uncertainty and the perception of the ratings agencies are likely to limit SFG’s willingness to be more aggressive. The company has also made a significant investment to increase services of interest to private sector companies. Stancorp Financial has been given a ‘Buy’ rating with a price target of $55, which is 1.3x 2010 book value of $41.25.