There are a lot of bargains in the insurance industry right now, and Symetra Financial Corporation (SYA) is one of them. The company operates three lines of business: benefits, retirement, and individual life. In this article, I will argue that despite recent deterioration in operating performance, SYA has several catalysts in the next eighteen months that will propel the stock upwards.
The most disappointing business segment of late is the benefits division, which offers disability and medical stop-loss insurance to employers and typically contributes about one-third of total operating income. Sales are flat over the past year and the loss ratio for stop-loss insurance jumped from 61.9 to 69.2 while the combined ratio increased from 88.2...
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