Securian Financial reports strong 2019
ST. PAUL, MN (February 24, 2020) — Securian Financial announced preliminary 2019 financial results at its annual all-company meeting last week, highlighted by strong revenue growth and increased community giving.
“In 2019, we delivered excellent operating performance consistent with our 140-year history of outstanding financial strength,” said Chris Hilger, Securian Financial’s chairman, president and CEO. “At the same time, we invested in our strategic business priorities and enhanced our community commitment. Most importantly, we again fulfilled our purpose by paying $5.6 billion in statutory benefits to our customers and their families when they needed us most.”
Performance on key metrics
- Top-line revenue, the company’s primary revenue metric which excludes certain non-recurring revenue, increased 9% to $5.9 billion. GAAP revenue surged 20% to $6.6 billion.
- Retirement product sales—including 401(k) plans, individual annuities and pension risk transfers—grew 43% to $3.8 billion.
- Insurance sales1, including group life insurance, individual life insurance and insurance products sold through financial institutions and affinity organizations, increased 8% to $561 million.
- Operating earnings were consistent with the previous year at $331 million. Securian Financial benefited from favorable mortality in group life insurance, its largest business, but this was partially offset by the impact of low interest rates and significant strategic investments by the company.
- Net income grew 35% to $435 million, driven by strong realized gains on investments.
- Insurance in force—the financial protection Securian Financial provides to its customers—increased 5% to nearly $1.3 trillion.
- Assets under management increased 18% to $93 billion.
- Capital remained excellent and at a level considered “AAA” by rating agencies.
Company highlights
- Achieved customer retention results of 93% or better across all insurance and retirement business lines
- Made significant investments in strategic business priorities, including a multi-year technology transformation
- Acquired Empyrean Benefit Solutions to strengthen position in employee benefits
- Remained among the most highly rated insurance companies in the U.S.2
Community giving
Securian Financial’s contributions to the community from its foundation, in-kind donations, employee (associate) volunteerism and other cash gifts totaled $6.8 million in 2019—an 11% increase over 2018. Securian Financial associates volunteered more than 20,000 hours in the community on activities ranging from mentoring local K-12 students to service on more than 125 nonprofit boards.
Profit sharing
For the 46th consecutive year, Securian Financial is making a profit-sharing contribution to eligible associates’ retirement accounts. This year’s company contribution is 7% of annual salary. All eligible associates receive a contribution, regardless of whether or how much they contribute to their retirement plans themselves. Securian Financial also maintains a fully-funded, 100% employer-paid pension plan, with associates vested in the pension after five years of service. The company retained 95% of its associates in 2019.
Per its usual annual cycle, Securian Financial expects to release its 2019 Annual Report—with audited GAAP financial information—in late April.
About Securian Financial
At Securian Financial, we’re here for family. And we’re here because of it. We’re guided by our purpose: helping customers build secure tomorrows. Since 1880, we’ve been building a uniquely diversified company that has outlasted economic ups and downs while staying true to our customers. We’re committed to the markets we serve, providing insurance, investment and retirement solutions that give families the confidence to focus on what’s truly valuable: banking memories with those who matter most.
