Cat Losses Rise but State Auto Q1 Income Nearly Even with Last Year

State Auto Financial Corp., based in Columbus, Ohio, has reported first quarter 2011 net income of $12.7 million versus net income of $12.9 million for the first quarter of 2010.

STFC’s GAAP combined ratio for the first quarter 2011 was 103.0 versus 99.7 for the first quarter of 2010. Catastrophe losses for the first quarter 2011 accounted for 4.6 points of the 69.3 total loss ratio points, or $16.0 million, versus 3.3 points of the total 66.2 loss ratio points, or $10.1 million, for the same period in 2010.

Overall net written premium increased 12.9 percent over the same period in 2010.

The Rockhill Insurers’ business, which is now in the intercompany reinsurance pooling arrangement, contributed 8.0 points to this growth, while the State Auto legacy business contributed 4.9 points.

For the first quarter of 2011, net written premium for the personal and business insurance segments declined 1.4 percent and 0.5 percent, respectively, compared to the same period in 2010, while net written premium for the specialty insurance segment increased $42.2 million compared to the same period in 2010.

The increase in net written premium for the specialty insurance segment was principally driven by the addition of the Rockhill Insurers’ business to the pooling arrangement and increased business written through our RED unit, which is part of the State Auto legacy business.

The State Auto Group markets its insurance products, primarily through independent insurance agencies, in all 50 states and the District of Columbia. 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.

Source: State Auto Financial Corp.

Topics Trends Auto Profit Loss