Columbus, Ohio-based State Auto Financial Corp. has reported a third quarter 2011 net loss of $58.7 million, or $1.46 per diluted share, versus net income of $0.2 million, or $0.00 per diluted share, for the third quarter of 2010.
“This has been a difficult year for State Auto. The catastrophe loss activity was historic. The actions we’re undertaking strengthen our capital position, leverage the tremendous resources of the State Auto Group, and reduce volatility from our homeowners line,” STFC President, Chairman and CEO Bob Restrepo commented.
STFC’s GAAP combined ratio for the third quarter 2011 was 122.4 versus 105.9 for the third quarter of 2010. Catastrophe losses for the third quarter 2011 accounted for 17.0 points of the total 88.4 loss ratio points, or $60.8 million, versus 7.5 points of the total 73.1 loss ratio, or $23.7 million, for the same period in 2010.
Net written premium for the third quarter of 2011 increased 6.8 percent over the same period in 2010. The Rockhill unit, which is in the intercompany reinsurance pooling arrangement in 2011, contributed 7.4 points to this growth.
For the third quarter of 2011, net written premium for the personal and business insurance segments declined 3.8 percent and 0.8 percent, respectively, compared to the same period in 2010.
Net written premium for the specialty insurance segment increased $32.7 million compared to the same period in 2010.
For the first nine months of 2011, STFC had a net loss of $247.4 million, or $6.15 per diluted share, compared to a net loss of $13.1 million, or $0.33 per diluted share, for the same 2010 period. Included in the results for the first nine months was a charge related to the deferred tax asset valuation allowance in the amount of $143.8 million, or $3.58 per share.
STFC’s GAAP combined ratio for the first nine months of 2011 was 124.2 compared to 106.9 for the same 2010 period. Catastrophe losses increased the loss ratio for the first nine months of 2011 by 22.0 points, or $232.9 million, compared to 9.8 points, or $91.3 million, for the first nine months of 2010.
Net written premium year to date 2011 increased 9.7 percent compared to the same 2010 period, with personal and business insurance declining 2.8 percent and 0.7 percent, respectively.
Net written premium for the specialty insurance segment increased $117.2 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 Rockhill unit to the pooling arrangement and increased business written through Risk Evaluation and Design (RED), STFC’s affiliate for alternative risk and program business.
Topics Auto Profit Loss
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