StanCorp Financial Group Inc. ( SFG - Analyst Report ) gave insight into its second quarter 2012 earnings results. The company expects adjusted earnings to be 51 cents per share, a year-over-year decline of 13.5% from 59 cents earned in the year-ago quarter.

The company had a less favorable claims experience in the group long-term disability insurance business in the second quarter, which led to the lower numbers. It also expects to deliver a higher benefit ratio for its group insurance products. It is expected to be 88.5%, exceeding the guided range of 80% to 82% for 2012.

StanCorp, however, delivered a lower benefit ratio in the first quarter due to initiatives undertaken by management to improve the pricing of the long-term disability business.

The Zacks Consensus Estimate is currently pegged at 85 cents.

StanCorp expects to incur after-tax net capital losses of 6 cents per share in the second quarter. Taking this into account, net income is expected to be 45 cents per share, representing a year-over-year improvement of 12.5%.

In its first quarter earnings release, StanCorp expected its full year 2012 adjusted earnings to be in the band of $3.60–$3.90 per share. However, given the performance in the first half of 2012, it now expects to fall short of its guidance. StanCorp’s first quarter earnings had missed the Zacks Consensus Estimate, although it fared better compared with the year-ago results.

The share price dropped 0.96% to close at $37.09 as of Monday.

We believe premium growth, continued good investment performance, conservative underwriting practices and focus on increasing shareholder value along with a strong capital position auger well for the company over a longer term.

Stancorp is expected to release its second quarter results on July 23 after the bell.

The quantitative Zacks #5 Rank (short-term Strong Sell rating) for StanCorp indicates downward pressure on the stock over the near term. Metlife Inc. ( MET - Analyst Report ) and Unum Group ( UNM - Analyst Report ) , which compete with Stancorp, both hold a quantitative Zacks #3 Rank (short-term Hold rating), indicating no clear directional pressure on the stock over the near term. Another peer, Principal Financial Group Inc. ( PFG - Analyst Report ) , holds a quantitative Zacks #4 Rank (short-term Sell rating) indicating slight downward pressure on the stock over the near term.