State Auto Financial Reports Reserve Strengthening on Program Business in Run-off and Estimate of Fourth Quarter Earnings
31 January 2014 - 8:30AM
Business Wire
State Auto Financial Corporation (Nasdaq:STFC) today announced
that prior year loss and loss expense reserves will be strengthened
by approximately $15 million for fourth quarter 2013 on program
business written through Risk Evaluation & Design LLC (RED), a
wholly owned subsidiary of State Automobile Mutual Insurance
Company. The increase relates primarily to a large restaurant
program and a commercial auto trucking program, both of which have
been terminated and are in run off. The company is estimating that
fourth quarter 2013 results will include approximately $4.1 million
in pre-tax net catastrophe losses. Overall, the company is
estimating that net income for fourth quarter 2013 will be in the
range of $0.38 to $0.41 per diluted share. All of these numbers are
unaudited.
STFC expects to release its fourth quarter and year 2013 results
on Thursday, Feb. 20, 2014, before the open of regular trading on
the Nasdaq Stock Market, and discuss these financial results in a
conference call at 11:00 a.m. ET.
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 throughout the United States, through
independent insurance agencies, which include retail agencies and
wholesale brokers. The State Auto Group is rated A (Excellent) by
the A.M. Best Company and includes State Automobile Mutual, State
Auto Property & Casualty, State Auto Ohio, State Auto
Wisconsin, Milbank, Meridian Security, Meridian Citizens Mutual,
Patrons Mutual, 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/STFC.
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.
State Auto Financial CorporationTara Shull, 614-917-4478, F
614-887-1793Investor Relations and Finance
DirectorTara.Shull@StateAuto.comorKyle Anderson, 614-917-5497, M
614-477-5301AVP/Director of Corporate
CommunicationKyle.Anderson@StateAuto.comorFor additional
information:StateAuto.com/STFCfacebook.com/StateAutotwitter.com/StateAuto
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