StanCorp Financial Group (SFG)

Reclassifications and Segment Changes

Contract administration fees in the Retirement Plans segment, fees on administrative services only contracts in the Employee Benefits segment, and administration fees from our mortgage loan and investment advisory companies have been reclassified to an Administrative fees line in revenues. These fees were formerly included in premiums, other revenue and net investment income, respectively.

Effective January 1, 2006, the Company will realign its businesses into two operating segments. Our individual disability business, currently included in the Individual Insurance segment, will be combined with our Employee Benefits segment to bring our traditional insurance lines of business together into one Insurance Services segment. The Company also will combine its asset management and accumulation businesses, which have previously been reported in the Individual Insurance and Retirement Plans segments and Other, into a single Asset Management segment. Net capital gains and losses on investments, return on capital not allocated to the product segments, holding company expenses, interest on senior notes, and adjustments made in consolidation will continue to be reflected in “Other.” A copy of our fourth quarter statistical supplement presented in the new segment alignment is available on our Website.