State Auto Financial Announces Third Quarter Results
25 October 2005 - 8:00PM
Business Wire
State Auto Financial Corporation (NASDAQ:STFC) -- Third quarter
earnings of $0.41 -- Quarterly GAAP combined ratio of 100.2 --
Catastrophes accounted for 16.0 points of quarterly combined ratio
-- Return on Equity rises to 19.9% State Auto Financial Corporation
(NASDAQ:STFC) today reported third quarter net income of $16.8
million, or $0.41 per diluted share, versus $5.0 million or $0.12
per diluted share for the same period in 2004. Net income from
operations(a) per diluted share for the third quarter of 2005 was
$0.34 versus $0.12 for the same period in 2004. STFC's GAAP
combined ratio for the third quarter of 2005 was 100.2, versus
105.1 for the third quarter of 2004. Catastrophe losses amounted to
$42.1 million or 16.0 points of the loss ratio during the third
quarter of 2005 compared to a reported $57.6 million or 22.7 points
for the same period in 2004. STFC's third quarter 2005 revenue was
$288.5 million, up from $273.2 million for the same period in 2004.
Revenue for the first nine months of 2005 was $858.6 million, up
4.8% from $819.4 million for the same 2004 period. For the first
nine months of 2005, net income was $96.4 million, or $2.35 per
diluted share, compared to $72.0 million or $1.77 per diluted share
for the same 2004 period, an increase of 32.8%. The GAAP combined
ratio for the first nine months of 2005 was 90.0, as compared to
93.9 for the same period in 2004. STFC shareholders' book value per
share increased 18.2%, from the third quarter of 2004, to $18.20
per share as of September 30, 2005. "As we reported a couple of
weeks ago, our third quarter results were negatively impacted by a
series of catastrophic storms that affected several regions
throughout our operating territory. Included were losses from five
hurricanes, Cindy, Dennis, Katrina, Ophelia and Rita and from two
significant Midwest hail storms. These storms, combined with others
occurring during the quarter, caused losses currently estimated to
total $42.1 million," said STFC Chairman and CEO Bob Moone. "While
third quarter weather-related catastrophe losses are a normal
occurrence, over the past two years storm frequency and severity
have been trending higher. Over the past nine years our book has
averaged approximately 8.0 loss ratio points from catastrophes
during the third quarter of the year. As testimony to the intensity
of 2004 and 2005 storms, the Company incurred 22.7 and 16.0 loss
ratio points respectively, with no changes to our underwriting
strategies. "The bottom line results for the quarter attest to the
fact that our core book of business continues to perform very well.
Given the outstanding results posted in the first two quarters of
the year and the historically less catastrophe prone fourth quarter
ahead, we believe that 2005 will be a strong year in terms of
earnings and building value for shareholders of STFC," added Moone.
State Auto Financial Corporation, headquartered in Columbus, Ohio,
is a regional property and casualty insurance holding company
engaged primarily in writing both personal and commercial lines of
insurance. The company markets its products through nearly 22,000
independent insurance agents associated with more than 3,100
agencies in 26 central and eastern states, excluding New York, New
Jersey and the New England states. The company is included in the
2005 Forbes Magazine's Platinum 400 list of the best-managed
companies in America and is one of only 314 publicly traded
companies to earn the Mergent Award for having increased its
dividends for ten or more years in succession. The State Auto
Insurance Companies are rated A+ (Superior) by the A.M. Best
Company. Additional information on the company can be found on its
web page at www.STFC.com. (a) Net income from operations, a
non-GAAP financial measure which management believes is informative
to Company management and investors, differ from GAAP net earnings
only by the exclusion of realized capital gains or losses, net of
applicable taxes, on investment activity for the periods being
reported. For STFC, this amounts to $0.07 for the third quarter and
$0.11 for 2005 year to date compared to $0.00 and $0.11 for the
same periods in 2004. STFC has scheduled a conference call with
interested investors for Tuesday, October 25, 10:00 a.m. Eastern
Time to discuss the company's third quarter 2005 performance. Live
and archived broadcasts of the call can be accessed via links on
www.STFC.com. A replay of the call can be heard beginning at noon
October 25, by calling 1-800-283-4984. Supplemental schedules
detailing the company's third quarter 2005 financial, sales and
underwriting results are made available on www.STFC.com prior to
the conference call. Except for historical information, all other
information in this news release consists of forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. These forward-looking statements are subject to
risks and uncertainties that could cause actual results to differ
materially from those projected, anticipated or implied. The most
significant of these uncertainties are described in State Auto
Financial's Form 10-K and Form 10-Q reports and exhibits to those
reports, and include (but are not limited to) legislative changes
at both the state and federal level, state and federal regulatory
rule making promulgations and adjudications, class action
litigation involving the insurance industry and judicial decisions
affecting claims, policy coverages and the general costs of doing
business, the impact of competition on products and pricing,
inflation in the costs of the products and services insurance pays
for, product development, geographic spread of risk,
weather-related events, and other types of catastrophic events.
State Auto Financial undertakes no obligation to update or revise
any forward-looking statements. -0- *T STATE AUTO FINANCIAL
CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME
(unaudited) Three Months Ended Nine Months Ended ($ millions,
except per share September 30 September 30 amounts) 2005 2004 2005
2004 --------- -------- ------- ------- Net premiums written $268.5
$262.9 $824.7(B) $778.3 --------- -------- ------- ------- Earned
premiums 262.9 253.6 789.7 754.7 Net investment income 20.1 18.0
58.4 53.3 Net realized gain on investments 4.4 0.2 6.8 6.9 Other
income 1.1 1.4 3.7 4.5 --------- -------- ------- ------- Total
revenue 288.5 273.2 858.6 819.4 --------- -------- ------- -------
Income before federal income taxes 20.2 2.6 132.4 97.8 Federal
income tax expense 3.4 (2.4) 36.0 25.8 --------- -------- -------
------- Net income $16.8 $5.0 $96.4 $72.0 ========= ========
======= ======= Earnings per share: - basic $0.41 $0.12 $2.39 $1.81
- diluted $0.41 $0.12 $2.35 $1.77 Earnings per share from
operations (A): - basic $0.34 $0.12 $2.28 $1.70 - diluted $0.34
$0.12 $2.24 $1.66 Weighted average shares outstanding: - basic 40.4
40.0 40.3 39.8 - diluted 41.2 40.9 41.0 40.7 Book value per share
$18.20 $15.40 Dividends paid per share $0.090 $0.045 $0.180 $0.125
Total shares outstanding 40.4 40.0 GAAP ratios: Loss and LAE ratio
69.3 74.7 58.5 64.0 Expense ratio 30.9 30.4 31.5 29.9 ---------
-------- ------- ------- Combined ratio 100.2 105.1 90.0 93.9
========= ======== ======= ======= (A) Net income from operations:
Net income $16.8 $5.0 $96.4 $72.0 Less net realized gains on
investments, less applicable federal income taxes 2.9 0.1 4.4 4.5
--------- -------- ------- ------- Net income from operations $13.9
$4.9 $92.0 $67.5 ========= ======== ======= ======= (B) Net
premiums written for the nine months ended September 30, 2005,
includes $23.9 million of unearned premiums transferred to STFC in
connection with the addition of Meridian Security Insurance Company
and Meridian Citizens Mutual Insurance Company to the State Auto
Pool, effective January 1, 2005. *T
State Auto Financial (NASDAQ:STFC)
Historical Stock Chart
From Jun 2024 to Jul 2024
State Auto Financial (NASDAQ:STFC)
Historical Stock Chart
From Jul 2023 to Jul 2024