State Auto Financial Reports Storm Activity to Impact Second Quarter Results
03 May 2011 - 7:00AM
Business Wire
State Auto Financial Corporation (NASDAQ:STFC) today announced
that recent storms will adversely affect its financial results for
the second quarter of 2011.
“In April, we experienced five separate catastrophes that
triggered widespread damage from tornadoes, wind and hail in 20 of
our operating states,” said STFC President, Chairman and CEO Bob
Restrepo. “State Auto claim teams are currently in communities
throughout the region, assisting our policyholders and agents.
We’re determined to help them through this difficult time.
“While it will take several weeks to prepare reliable loss
estimates, as of now we know that our experience in April will
exceed our recent historic five-year average experience in the
second quarter for catastrophe weather related claims, perhaps by a
significant amount. Prior to 2011, our historic five-year average
catastrophe loss ratio for the second quarter is 18 points or $50
million of losses. We will provide an update when we have more
accurate information on the impact of these April storms.
“We will announce our first quarter results on Tuesday, May 3,
as planned, including the disclosure of our first quarter
catastrophe weather related losses. In the first quarter of 2011,
our catastrophe loss ratio was 4.6 percentage points, or
approximately $16.0 million of losses, compared to 3.3 percentage
points, or approximately $10.1 million of losses, in
2010. Over the five-year period 2006-2010, our historic
average five-year catastrophe loss ratio was 7.6 percentage points
in the first quarter.”
State Auto Financial Corporation, headquartered in Columbus,
Ohio, is a super regional property and casualty insurance holding
company and is proud to be a Trusted Choice® company partner. STFC
stock is traded on the NASDAQ Global Select Market, which
represents the top third of all NASDAQ listed companies.
The insurance subsidiaries of State Auto Financial Corporation
are part of the State Auto Group. The State Auto Group markets its
insurance products in all 50 states and the District of Columbia
through independent insurance agencies and brokers. The State Auto
Group is rated A+ (Superior) by the A.M. Best Company and includes
State Automobile Mutual, State Auto Property & Casualty, State
Auto Ohio, State Auto Wisconsin, State Auto Florida, Milbank,
Farmers Casualty, Meridian Security, Meridian Citizens Mutual,
Beacon National, Beacon Lloyds, Patrons Mutual, Litchfield Mutual
Fire, Rockhill Insurance, Plaza Insurance, American Compensation
and Bloomington Compensation. Additional information on State Auto
Financial Corporation and the State Auto Insurance Companies can be
found online at http://www.StateAuto.com/.
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 and weather-related
events, and other types of catastrophic events. State Auto
Financial undertakes no obligation to update or revise any
forward-looking statements.
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