Columbus, Ohio-based State Auto Financial Corporation reported that revenue for the year 2005 was $1.14 billion, up from $1.09 billion for the same 2004 period. For the year 2005, State Auto achieved record net income of $125.9 million compared to $110.0 million for the same 2004 period, an increase of 14.5%. The annual combined ratio for 2005 was 90.1, as compared to 91.7 for 2004.
The company’s reported also fourth quarter net income of $29.5 million versus $38.0 million for the same period in 2004. The combined ratio for the fourth quarter of 2005 was 90.5, versus 85.2 for the fourth quarter of 2004. Catastrophe losses, including Hurricane Wilma, contributed 7.6 points to the loss ratio for the fourth quarter of 2005. The company’s fourth quarter 2005 revenue was $280.9 million, up from $273.0 million for the same period in 2004.
“Results for the fourth quarter were strong and 2005 finished as another record setting year for State Auto Financial. We are quite proud to be able to report such outstanding results in a year that experienced devastating losses from numerous weather related events including, most notably, Hurricanes Katrina and Wilma,” said STFC President Bob Moone.
“Normally the impact of catastrophe losses is relatively mild in the final quarter of the year. Hurricane Wilma’s occurrence and a $7.7 million dollar assessment from the Mississippi Windstorm Underwriting Association attributable to Hurricane Katrina were unexpected. The 7.6 loss ratio points contributed by catastrophes is atypical for our fourth quarter. In spite of this, results for the quarter attest to the fact that our core book of business continues to perform very well. Overall, 2005 was an outstanding year in terms of overall earnings growth, return on equity performance and continued value building for shareholders of STFC,” added Moone.
State Auto Financial Corporation is a property and casualty insurance holding company. The company markets its personal and commercial insurance products through more than 22,000 independent insurance agents associated with nearly 3,100 agencies in 27 states.
Topics Catastrophe Trends Auto Profit Loss Hurricane
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