State Auto Financial Reports Estimate of Second Quarter Results
22 July 2014 - 6:01AM
Business Wire
State Auto Financial Corporation (Nasdaq:STFC) today announced
its estimate of second quarter 2014 results. The company is
estimating that net income for the second quarter 2014 will be in
the range of $0.04 to $0.07 per diluted share. This estimate
includes strengthening of prior year loss and loss expense reserves
by approximately $11.4 million pre-tax for 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 are in run off. The
company is estimating that second quarter 2014 pre-tax results will
also include approximately $21.2 million in net catastrophe losses,
approximately $4.4 million for severance costs related to the
reorganization of the company’s information technology department,
and approximately $5.2 million of net realized gains on its
investment portfolio. All of these numbers are unaudited.
STFC expects to release its second quarter 2014 results on
Thursday, July 31, 2014, before the open of regular trading on the
Nasdaq Stock Market, and to discuss these financial results in a
conference call at 11:00 a.m. ET. During the conference call,
management plans to discuss RED reserves and actions being taken
with respect to the RED program business, which include bringing
claims administration in-house to perform a ground up assessment of
outstanding case reserves. In addition, management will discuss the
reorganization of its IT operations including a partnership with a
third party to service the company’s legacy policy administration
and billing systems, among other applications.
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 and
one of Forbes’ 50 Most Trustworthy Financial Companies in America.
STFC stock is traded on the NASDAQ Global Select Market, which is a
segment of the NASDAQ Global Market with the highest initial
listing standards of any exchange in the world.
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, 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.
State Auto Financial CorporationTara Shull, Investor Relations
and Finance Director, 614-917-4478F
614-887-1793Tara.Shull@StateAuto.comorKyle Anderson, AVP/Director
of Corporate Communication, 614-917-5497M
614-477-5301Kyle.Anderson@StateAuto.comorFor additional
information:StateAuto.com/STFCfacebook.com/StateAutotwitter.com/StateAuto
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