- Quarterly loss of $0.14 per share
- Quarterly net loss from operations1 of $0.33 per share
- Quarterly GAAP combined ratio of 111.4
- Return on equity of 6.0%
- Book value per share of $21.07
State Auto Financial Corporation (NASDAQ:STFC) today reported a
second quarter 2019 net loss of $6.2 million, or $0.14 per diluted
share, compared to net income of $6.0 million, or $0.14 per diluted
share, for the same 2018 period. Net loss from operations1 per
diluted share for the second quarter of 2019 was $0.33 versus $0.08
for the same 2018 period.
For the first six months of 2019, STFC had net income of $43.2
million, or $1.00 per diluted share, compared to net income of $3.9
million, or $0.09 per diluted share, for the same 2018 period. Net
loss from operations1 per diluted share for the first six months of
2019 was $0.01 versus net earnings from operations1 per diluted
share of $0.08 for the same 2018 period.
GAAP Operating Results
STFC’s GAAP combined ratio for the second quarter 2019 was 111.4
compared to 107.0 for the same 2018 period. Catastrophe losses
during the second quarter 2019 accounted for 15.4 points of the
76.3 total loss ratio points, or $47.4 million, versus 12.2 points
of the total 70.8 loss ratio points, or $37.5 million, for the same
period in 2018. Non-catastrophe losses and ALAE during the second
quarter 2019 included 5.5 points of favorable development relating
to prior years, or $17.1 million, versus 5.9 points of favorable
development, or $18.1 million, for the same period in 2018.
STFC’s GAAP combined ratio for the first six months of 2019 was
105.6 compared to 104.8 for the same 2018 period. Catastrophe
losses for the first six months of 2019 accounted for 10.7 points
of the 70.3 total loss ratio points, or $65.1 million, versus 7.6
points of the total 69.1 loss ratio points, or $47.3 million, for
the same period in 2018. Non-catastrophe losses and ALAE for the
first six months of 2019 included 6.2 points of favorable
development relating to prior years, or $38.0 million, versus 5.5
points of favorable development, or $34.1 million, for the same
period in 2018.
SAP Personal and Commercial Operating
Results
The exit from our specialty insurance business resulted in the
elimination of specialty insurance as a reportable segment as it is
no longer material to our results. Specialty results, labeled as
"specialty run-off," are included in the SAP Insurance Segment
Results tables below to enable reconciliation to total underwriting
results.
Net written premium for the second quarter 2019 increased 11.6%
compared to the same period in 2018. By insurance segment, net
written premium for the personal and commercial segments increased
10.8% and 12.8%, respectively. The increase in the personal segment
was primarily due to (i) new business growth and rate increases in
homeowners and other personal, and (ii) rate increases in personal
auto partially offset by lower retention. The increase in the
commercial segment was led by new business growth in commercial
auto and middle market commercial. The improvements were partially
offset by a decrease in net written premiums in workers’
compensation due to continued intense competition in this
market.
Net written premium for the first six months of 2019 increased
10.5% compared to the same period in 2018. Net written premium for
the personal and commercial segments increased 11.2% and 9.4%,
respectively. The trends in the personal and commercial net written
premiums are due to the same factors discussed above for the second
quarter.
The SAP personal and commercial segments' combined ratio2 for
the second quarter 2019 was 109.9 compared to 104.7 for the same
2018 period. Catastrophe losses during the second quarter 2019
accounted for 14.4 points of the total 76.5 loss ratio points, or
$44.2 million, versus 13.4 points of the total 70.1 loss ratio
points, or $37.7 million, for the same period in 2018.
Non-catastrophe losses and ALAE during the second quarter 2019
included 4.7 points of favorable development relating to prior
years, or $14.3 million, versus 7.2 points of favorable
development, or $20.2 million, for the same period in 2018.
The SAP personal and commercial segments' combined ratio for the
first six months of 2019 was 104.9 compared to 103.0 for the same
2018 period. Catastrophe losses during the second quarter 2019
accounted for 10.2 points of the total 70.2 loss ratio points, or
$61.4 million, versus 8.6 points of the total 68.3 loss ratio
points, or $47.5 million, for the same period in 2018.
Non-catastrophe losses and ALAE during the second quarter 2019
included 6.2 points of favorable development relating to prior
years, or $38.0 million, versus 6.6 points of favorable
development, or $36.5 million, for the same period in 2018.
Book Value and Return on Equity
STFC’s book value increased to $21.07 per share as of June 30,
2019, compared to $20.67 on March 31, 2019. The increase in book
value was driven by increases in the market value of our investment
portfolio.
Return on stockholders’ equity for the 12 months ended June 30,
2019, was 6.0% compared to (1.3)% for the 12 months ended June 30,
2018.
STFC’s Chairman, President and CEO Mike LaRocco commented on the
quarter as follows:
"The results for the quarter were worse than expected, but this
is not unusual for the second quarter. Our greatest CAT and non-cat
weather exposure comes during the second quarter, and both had
significant impact. Additionally, favorable development of prior
accident year's non-cat loss and allocated loss adjustment expense
reserves was less this quarter. Our year-to-date results eliminate
some of this volatility, giving a clear picture of overall
performance. While through six months of 2019 favorable development
is down, our current accident year non-cat loss and allocated loss
adjustment expense ratio continued to improve.
"Key to our continued progress is becoming a more efficient
organization. As our significant investment in technology continues
to deliver, our path to competitive expense ratios has become clear
by means of efficient growth through our Connect platform.
"In personal lines, our largest line, personal auto, remains
profitable and growing year to date. However, growth in personal
auto has slowed. While some of this is due to aggressive rate
reduction by our competition, we believe we can regain momentum in
auto during the second half of the year. In homeowners, seasonal
weather drove a poor underwriting result, while growth in the line
remains strong. We’re optimistic that this line can profitably
grow.
"In commercial lines, we’re beginning to see the impact of the
rollout of our digital only technology and efforts to improve
efficiency, leading to improvement in the expense ratio. Overall
growth in the segment is strong and momentum is building."
About State Auto Financial Corporation
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 fourth 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. 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.
1 Net earnings (loss) from operations, a non-GAAP financial
measure which management believes is informative to Company
management and investors, differs from GAAP net income (loss) only
by the exclusion of net investment gain (loss), net of applicable
taxes, on investment activity for the periods being reported. For
STFC, this amounted to income of $0.19 per diluted share for the
second quarter of 2019 and income of $1.01 year-to-date 2019 versus
income of $0.22 per diluted share for the second quarter 2018 and
income of $0.01 year-to-date 2018.
2 Insurance industry regulators require STFC's insurance
subsidiaries to report their financial condition and results of
operations using Statutory Accounting Practices ("SAP"). The SAP
personal and commercial segments combined ratio is a measure used
by management to evaluate STFC’s operating performance for its
ongoing operations. Details behind the compilation of these results
can be found in the SAP Insurance Segment Results tables of this
release.
STFC has scheduled a conference call with interested investors
for Thursday, August 1, at 11 a.m. ET to discuss the Company’s
second quarter 2019 performance. Live and archived broadcasts of
the call can be accessed at http://www.StateAuto.com/STFC. A replay
of the call can be heard beginning at 2 p.m., August 1, by calling
855-859-2056, conference ID 8499618. Supplemental schedules
detailing the Company’s second quarter 2019 financial, sales and
underwriting results are made available on
http://www.StateAuto.com/STFC prior to the conference call.
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.
Selected Consolidated Financial
Data
($ in millions, except per share
amounts)
(unaudited)
Three months ended June 30
Six months ended June 30
2019
2018
2019
2018
Net premiums written
$
341.7
$
308.1
$
647.7
$
600.3
Earned premiums
307.7
307.5
610.4
622.4
Net investment income
21.7
21.5
41.1
41.4
Net investment gain
10.3
12.1
55.2
0.4
Other income
0.4
0.6
1.0
1.2
Total revenue
340.1
341.7
707.7
665.4
(Loss) income before federal income
taxes
(7.6
)
7.7
54.0
4.4
Federal tax (benefit) expense
(1.4
)
1.7
10.8
0.5
Net (loss) income
$
(6.2
)
$
6.0
$
43.2
$
3.9
(Loss) earnings per common share:
- basic
$
(0.14
)
$
0.14
$
1.00
$
0.09
- diluted
$
(0.14
)
$
0.14
$
1.00
$
0.09
(Loss) earnings per share from operations
(A):
- basic
$
(0.33
)
$
(0.08
)
$
(0.01
)
$
0.08
- diluted
$
(0.33
)
$
(0.08
)
$
(0.01
)
$
0.08
Weighted average shares outstanding:
- basic
43.4
42.8
43.3
42.7
- diluted
43.4
43.4
43.9
43.3
Return on average equity (LTM)
6.0
%
(1.3
)%
Book value per share
$
21.07
$
18.85
Dividends paid per share
$
0.10
$
0.10
$
0.20
$
0.20
Total shares outstanding
43.5
42.9
GAAP ratios:
Cat loss and ALAE ratio
15.4
12.2
10.7
7.6
Non-cat loss and LAE ratio
60.9
58.6
59.6
61.5
Loss and LAE ratio
76.3
70.8
70.3
69.1
Expense ratio
35.1
36.2
35.3
35.7
Combined ratio
111.4
107.0
105.6
104.8
(A) Reconciliation of non-GAAP financial
measure:
Net (loss) income from operations:
Net (loss) income
$
(6.2
)
$
6.0
$
43.2
$
3.9
Net investment gain, net of tax
8.1
9.5
43.6
0.3
Net (loss) income from operations
$
(14.3
)
$
(3.5
)
$
(0.4
)
$
3.6
Condensed Consolidated Balance
Sheets
($ and shares in millions, except per
share amounts)
(unaudited)
June 30
December 31
2019
2018
ASSETS
Fixed maturities, available-for-sale, at
fair value (amortized cost $2,119.0 and $2,188.2, respectively)
$
2,157.9
$
2,159.5
Equity securities
374.9
315.0
Other invested assets
55.0
48.8
Other invested assets, at cost
6.5
5.6
Notes receivable from affiliate
70.0
70.0
Total investments
2,664.3
2,598.9
Cash and cash equivalents
44.8
59.8
Accrued investment income and other
assets
30.7
32.4
Deferred policy acquisition costs
109.1
101.9
Reinsurance recoverable on losses and loss
expenses payable
8.4
5.5
Prepaid reinsurance premiums
7.1
6.6
Due from affiliate
34.2
—
Current federal income taxes
6.3
5.9
Net deferred federal income taxes
52.1
77.8
Property and equipment, net
4.2
7.1
Total assets
$
2,961.2
$
2,895.9
LIABILITIES
Losses and loss expenses payable
$
1,135.2
$
1,146.8
Unearned premiums
621.6
584.2
Notes payable (affiliates $15.2 and $15.2,
respectively)
122.0
122.0
Pension and postretirement benefits
71.5
83.0
Due to affiliate
—
22.4
Other liabilities
94.7
119.0
Total liabilities
2,045.0
2,077.4
STOCKHOLDERS' EQUITY
Common stock, without par value.
Authorized 100.0 shares; 50.3 and 50.0 shares issued, respectively,
at stated value of $2.50 per share
125.7
125.0
Treasury stock, 6.8 and 6.8 shares,
respectively, at cost
(117.5
)
(117.0
)
Additional paid-in capital
202.5
194.2
Accumulated other comprehensive loss
(41.7
)
(96.4
)
Retained earnings
747.2
712.7
Total stockholders' equity
916.2
818.5
Total liabilities and stockholders'
equity
$
2,961.2
$
2,895.9
Condensed Consolidated Statements of
Income
($ in millions, except per share
amounts)
(unaudited)
Three months ended June 30
Six months ended June 30
2019
2018
2019
2018
Earned premiums
$
307.7
$
307.5
$
610.4
$
622.4
Net investment income
21.7
21.5
41.1
41.4
Net investment gain
10.3
12.1
55.2
0.4
Other income from affiliates
0.4
0.6
1.0
1.2
Total revenues
340.1
341.7
707.7
665.4
Losses and loss expenses
234.9
217.8
429.2
430.1
Acquisition and operating expenses
107.9
111.3
215.5
222.1
Interest expense
1.3
1.7
2.5
3.3
Other expenses
3.6
3.2
6.5
5.5
Total expenses
347.7
334.0
653.7
661.0
(Loss) income before federal income
taxes
(7.6
)
7.7
54.0
4.4
Federal income tax (benefit) expense
Current
—
—
(0.4
)
(1.0
)
Deferred
(1.4
)
1.7
11.2
1.5
Federal income tax (benefit) expense
(1.4
)
1.7
10.8
0.5
Net (loss) income
$
(6.2
)
$
6.0
$
43.2
$
3.9
(Loss) earnings per common share:
Basic
$
(0.14
)
$
0.14
$
1.00
$
0.09
Diluted
$
(0.14
)
$
0.14
$
1.00
$
0.09
Dividends paid per common share
$
0.10
$
0.10
$
0.20
$
0.20
Consolidated Statements of
Comprehensive Income
($ in millions)
(unaudited)
Three months ended June 30
Six months ended June 30
2019
2018
2019
2018
Net (loss) income
$
(6.2
)
$
6.0
$
43.2
$
3.9
Other comprehensive income (loss), net
of tax:
Net unrealized holding gain (loss) on
available-for-sale investments:
Unrealized holding gain (loss)
34.7
(10.2
)
69.2
(46.9
)
Reclassification adjustments for gains
realized in net income
(1.5
)
(1.3
)
(1.6
)
(1.7
)
Income tax (expense) benefit
(7.0
)
2.4
(14.2
)
10.2
Total net unrealized holding gain (loss)
on available- for-sale investments
26.2
(9.1
)
53.4
(38.4
)
Net unrecognized benefit plan
obligations:
Reclassification adjustments for
amortization to statements of income:
Prior service credit
(1.6
)
(1.6
)
(3.2
)
(3.2
)
Net actuarial loss
2.4
3.3
4.8
6.6
Income tax expense
(0.1
)
(0.3
)
(0.3
)
(0.7
)
Total net unrecognized benefit plan
obligations
0.7
1.4
1.3
2.7
Other comprehensive income (loss)
26.9
(7.7
)
54.7
(35.7
)
Comprehensive income (loss)
$
20.7
$
(1.7
)
$
97.9
$
(31.8
)
Condensed Consolidated Statement of
Stockholders' Equity
($ and shares in millions)
(unaudited)
Six months ended
Year Ended
June 30
December 31
2019
2018
Common shares:
Balance at beginning of year
50.0
49.2
Issuance of shares
0.3
0.8
Balance at period ended
50.3
50.0
Treasury shares:
Balance at beginning of year
(6.8
)
(6.8
)
Balance at period ended
(6.8
)
(6.8
)
Common stock:
Balance at beginning of year
$
125.0
$
123.0
Issuance of shares
0.7
2.0
Balance at period ended
125.7
125.0
Treasury stock:
Balance at beginning of year
$
(117.0
)
$
(116.8
)
Shares acquired on stock award exercises
and vested restricted shares
(0.5
)
(0.2
)
Balance at beginning of year and period
ended
(117.5
)
(117.0
)
Additional paid-in capital:
Balance at beginning of year
$
194.2
$
171.8
Issuance of common stock
3.3
13.3
Stock awards granted
5.0
9.1
Balance at period ended
202.5
194.2
Accumulated other comprehensive (loss)
income:
Balance at beginning of the year
$
(96.4
)
$
3.8
Cumulative effect of change in accounting
for equity securities and other invested assets and
reclassification of stranded tax effects as of January 1, 2018
—
(63.9
)
Change in unrealized holding gain (loss)
on investments, net of tax
53.4
(38.3
)
Change in unrecognized benefit plan
obligations, net of tax
1.3
2.0
Balance at period ended
(41.7
)
(96.4
)
Retained earnings:
Balance at beginning of year
$
712.7
$
653.2
Cumulative effect of change in accounting
for equity securities and other invested assets and
reclassification of stranded tax effects as of January 1, 2018
—
63.9
Net income
43.2
12.8
Cash dividends paid
(8.7
)
(17.2
)
Balance at period ended
747.2
712.7
Total stockholders' equity at period
ended
$
916.2
$
818.5
Condensed Consolidated Statements of
Cash Flow
($ in millions)
(unaudited)
Six months ended
June 30
2019
2018
Cash flows from operating
activities:
Net income
$
43.2
$
3.9
Adjustments to reconcile net income to net
cash (used in) provided by operating activities:
Depreciation and amortization, net
3.8
4.6
Share-based compensation
4.4
4.8
Net investment (gain) loss
(55.2
)
(0.4
)
Changes in operating assets and
liabilities:
Deferred policy acquisition costs
(7.2
)
5.7
Accrued investment income and other
assets
1.8
(2.2
)
Postretirement and pension benefits
(11.3
)
(8.3
)
Other liabilities and due to/from
affiliates, net
(79.1
)
14.5
Reinsurance recoverable on losses and loss
expenses payable and prepaid reinsurance premiums
(3.4
)
(2.5
)
Losses and loss expenses payable
(11.6
)
(21.1
)
Unearned premiums
37.4
(21.7
)
Deferred tax expense on share-based
awards
(0.6
)
0.2
Federal income taxes
11.4
0.3
Net cash used in operating
activities
(66.4
)
(22.2
)
Cash flows from investing
activities:
Purchases of fixed maturities
available-for-sale
(334.8
)
(207.9
)
Purchases of equity securities
(30.4
)
(78.4
)
Purchases of other invested assets
(2.6
)
(0.9
)
Maturities, calls and pay downs of fixed
maturities available-for-sale
203.2
110.2
Sales of fixed maturities
available-for-sale
198.7
60.9
Sales of equity securities
20.3
81.8
Sales of other invested assets
0.6
0.7
Net disposal of property and equipment
1.6
—
Net cash provided by (used in)
investing activities
56.6
(33.6
)
Cash flows from financing
activities:
Proceeds from issuance of common stock
4.0
14.3
Payments to acquire treasury stock
(0.5
)
(0.1
)
Payment of dividends
(8.7
)
(8.7
)
Payment of prepayment fee
—
(0.4
)
Net cash (used in) provided by
financing activities
(5.2
)
5.1
Net decrease in cash and cash
equivalents
(15.0
)
(50.7
)
Cash and cash equivalents at beginning of
period
59.8
91.5
Cash and cash equivalents at end of
period
$
44.8
$
40.8
Supplemental
disclosures:
Interest paid (affiliates $0.5 and $0.5,
respectively)
$
2.3
$
3.3
Net Investment Income
($ in millions)
(unaudited)
6/30/2018
9/30/2018
12/31/2018
3/31/2019
6/30/2019
Quarter to Date
Gross investment income:
Fixed maturities
$
14.9
$
15.1
$
15.0
$
15.4
$
14.7
TIPS
2.0
1.3
0.9
(0.3
)
2.6
Total fixed maturities
16.9
16.4
15.9
15.1
17.3
Equity securities
3.1
3.0
4.8
2.8
3.1
Other
1.8
1.7
2.0
1.7
1.4
Total gross investment income
21.8
21.1
22.7
19.6
21.8
Less: Investment expenses
0.3
0.3
—
0.2
0.1
Net investment income
$
21.5
$
20.8
$
22.7
$
19.4
$
21.7
Year to Date
Gross investment income:
Fixed maturities
$
29.9
$
45.0
$
60.0
$
15.4
$
30.1
TIPS
3.1
4.4
5.3
(0.3
)
2.3
Total fixed maturities
33.0
49.4
65.3
15.1
32.4
Equity securities
5.6
8.6
13.4
2.8
5.9
Other
3.5
5.2
7.2
1.7
3.1
Total gross investment income
42.1
63.2
85.9
19.6
41.4
Less: Investment expenses
0.7
1.0
1.0
0.2
0.3
Net investment income
$
41.4
$
62.2
$
84.9
$
19.4
$
41.1
6/30/2018
9/30/2018
12/31/2018
3/31/2019
6/30/2019
TIPS, fair value
$
156.5
$
143.8
$
142.3
$
147.0
$
145.2
TIPS, book value
$
150.6
$
140.8
$
141.2
$
140.5
$
137.4
Net Investment Gain (Loss)
($ in millions)
unaudited
Three months ended June 30
Six months ended June 30
2019
2018
2019
2018
Realized gains on sales of securities:
Fixed maturities
$
1.5
$
1.3
$
1.6
$
1.7
Equity securities
1.2
1.7
1.5
5.0
Other invested assets
—
—
—
0.1
Total realized gains
2.7
3.0
3.1
6.8
Realized losses on sales of
securities:
Sales of equity securities
—
(0.4
)
(2.2
)
(0.6
)
Total realized losses
—
(0.4
)
(2.2
)
(0.6
)
Net realized gain on investments
$
2.7
$
2.6
$
0.9
$
6.2
Net unrealized gain (loss) on
investments(1):
Equity securities
6.4
10.9
50.5
(3.7
)
Other invested assets
1.2
(1.4
)
5.1
(2.1
)
Net unrealized gain (loss) on
investments
7.6
9.5
55.6
(5.8
)
Other net realized loss
$
—
$
—
$
(1.3
)
$
—
Net investment gain
$
10.3
$
12.1
$
55.2
$
0.4
(1)
Unrealized holding gains (losses)
recognized during the period on securities held at the reporting
date
Income Taxes
($ in millions)
(unaudited)
The following table sets forth the tax
effects of temporary differences that give rise to significant
portions of deferred tax assets and deferred tax liabilities:
June 30
December 31
2019
2018
Deferred tax assets:
Unearned premiums not currently
deductible
$
25.8
$
24.3
Losses and loss expenses payable
discounting
11.5
19.9
Postretirement and pension benefits
19.6
21.4
Net unrealized holding losses on
investments
—
6.2
Realized loss on other-than-temporary
impairment
2.0
1.9
Other liabilities
12.5
14.8
Net operating loss carryforward
19.6
15.1
Tax credit carryforwards
2.3
2.7
Other
—
1.6
Total deferred tax assets
94.3
107.9
Deferred tax liabilities:
Deferral of policy acquisition costs
22.9
21.4
Net unrealized holding gains on
investments
19.2
—
Losses and loss expenses payable
discounting (transition rule)
—
8.7
Other
0.1
—
Total deferred tax liabilities
42.2
30.1
Net deferred federal income taxes
$
52.1
$
77.8
The following table sets forth the
components of federal income tax expense (benefit):
Three months ended June 30
Six months ended June 30
2019
2018
2019
2018
(Loss) income before federal income
taxes
$
(7.6
)
$
7.7
$
54.0
$
4.4
Federal income tax (benefit) expense:
Current
—
—
(0.4
)
(1.0
)
Deferred
(1.4
)
1.7
11.2
1.5
Total federal income tax (benefit)
expense
(1.4
)
1.7
10.8
0.5
Net (loss) income
$
(6.2
)
$
6.0
$
43.2
$
3.9
SAP Personal Insurance Segment
Results
(unaudited)
($ in millions)
Three months ended June 30,
2019
Personal Auto
Homeowners
Other Personal
Total
Net written premiums
$
110.0
$
85.5
$
9.4
$
204.9
Net earned premiums
108.4
71.8
8.1
188.3
Losses and LAE incurred:
Cat loss and ALAE
3.6
28.4
3.0
35.0
Non-cat loss and ALAE
Prior accident years non-cat loss and
ALAE
(3.0
)
(0.1
)
(0.3
)
(3.4
)
Current accident year non-cat loss and
ALAE
69.0
39.3
3.6
111.9
Total non-cat loss and ALAE
66.0
39.2
3.3
108.5
Total Loss and ALAE
69.6
67.6
6.3
143.5
ULAE
7.6
5.5
0.4
13.5
Total Loss and LAE
77.2
73.1
6.7
157.0
Underwriting expenses
33.1
25.2
2.9
61.2
Net underwriting loss
$
(1.9
)
$
(26.5
)
$
(1.5
)
$
(29.9
)
Cat loss and ALAE ratio
3.3
%
39.5
%
37.3
%
18.6
%
Non-cat loss and ALAE ratio
Prior accident years non-cat loss and ALAE
ratio
(2.7
)%
(0.2
)%
(4.6
)%
(1.8
)%
Current accident year non-cat loss and
ALAE ratio
63.7
%
54.6
%
45.5
%
59.4
%
Total non-cat loss and ALAE ratio
61.0
%
54.4
%
40.9
%
57.6
%
Total Loss and ALAE ratio
64.3
%
93.9
%
78.2
%
76.2
%
ULAE ratio
7.0
%
7.7
%
5.1
%
7.2
%
Total Loss and LAE ratio
71.3
%
101.6
%
83.3
%
83.4
%
Expense ratio
30.0
%
29.6
%
30.8
%
29.9
%
Combined ratio
101.3
%
131.2
%
114.1
%
113.3
%
($ in millions)
Three months ended June 30, 2018
Personal Auto
Homeowners
Other Personal
Total
Net written premiums
$
106.2
$
72.1
$
6.6
$
184.9
Net earned premiums
99.1
60.4
5.4
164.9
Losses and LAE incurred:
Cat loss and ALAE
3.8
22.3
1.0
27.1
Non-cat loss and ALAE
Prior accident years non-cat loss and
ALAE
(7.2
)
(2.9
)
(0.5
)
(10.6
)
Current accident year non-cat loss and
ALAE
64.8
25.9
3.6
94.3
Total non-cat loss and ALAE
57.6
23.0
3.1
83.7
Total Loss and ALAE
61.4
45.3
4.1
110.8
ULAE
5.9
4.6
0.2
10.7
Total Loss and LAE
67.3
49.9
4.3
121.5
Underwriting expenses
31.4
22.8
2.4
56.6
Net underwriting gain (loss)
$
0.4
$
(12.3
)
$
(1.3
)
$
(13.2
)
Cat loss and ALAE ratio
3.9
%
36.9
%
18.2
%
16.4
%
Non-cat loss and ALAE ratio
Prior accident years non-cat loss and ALAE
ratio
(7.2
)%
(4.8
)%
(9.8
)%
(6.4
)%
Current accident year non-cat loss and
ALAE ratio
65.3
%
43.0
%
65.6
%
57.2
%
Total non-cat loss and ALAE ratio
58.1
%
38.2
%
55.8
%
50.8
%
Total Loss and ALAE ratio
62.0
%
75.1
%
74.0
%
67.2
%
ULAE ratio
6.0
%
7.6
%
5.2
%
6.5
%
Total Loss and LAE ratio
68.0
%
82.7
%
79.2
%
73.7
%
Expense ratio
29.5
%
31.5
%
36.1
%
30.6
%
Combined ratio
97.5
%
114.2
%
115.3
%
104.3
%
($ in millions)
Six months ended June 30, 2019
Personal Auto
Homeowners
Other Personal
Total
Net written premiums
$
217.7
$
149.9
$
17.8
$
385.4
Net earned premiums
213.8
140.5
15.5
369.8
Losses and LAE incurred:
Cat loss and ALAE
4.5
40.8
3.7
49.0
Non-cat loss and ALAE
Prior accident years non-cat loss and
ALAE
(9.8
)
0.5
(1.0
)
(10.3
)
Current accident year non-cat loss and
ALAE
134.8
69.2
8.0
212.0
Total non-cat loss and ALAE
125.0
69.7
7.0
201.7
Total Loss and ALAE
129.5
110.5
10.7
250.7
ULAE
14.8
10.7
0.7
26.2
Total Loss and LAE
144.3
121.2
11.4
276.9
Underwriting expenses
65.8
47.0
5.8
118.6
Net underwriting gain (loss)
$
3.7
$
(27.7
)
$
(1.7
)
$
(25.7
)
Cat loss and ALAE ratio
2.1
%
29.0
%
24.0
%
13.2
%
Non-cat loss and ALAE ratio
Prior accident years non-cat loss and ALAE
ratio
(4.6
)%
0.4
%
(6.6
)%
(2.8
)%
Current accident year non-cat loss and
ALAE ratio
63.1
%
49.2
%
51.8
%
57.3
%
Total non-cat loss and ALAE ratio
58.5
%
49.6
%
45.2
%
54.5
%
Total Loss and ALAE ratio
60.6
%
78.6
%
69.2
%
67.7
%
ULAE ratio
6.9
%
7.6
%
4.6
%
7.1
%
Total Loss and LAE ratio
67.5
%
86.2
%
73.8
%
74.8
%
Expense ratio
30.2
%
31.4
%
32.6
%
30.8
%
Combined ratio
97.7
%
117.6
%
106.4
%
105.6
%
($ in millions)
Six months ended June 30, 2018
Personal Auto
Homeowners
Other Personal
Total
Net written premiums
$
208.1
$
126.4
$
12.1
$
346.6
Net earned premiums
192.6
118.3
10.3
321.2
Losses and LAE incurred:
Cat loss and ALAE
3.9
27.0
1.4
32.3
Non-cat loss and ALAE
Prior accident years non-cat loss and
ALAE
(11.2
)
(5.7
)
(0.3
)
(17.2
)
Current accident year non-cat loss and
ALAE
131.7
54.3
5.6
191.6
Total non-cat loss and ALAE
120.5
48.6
5.3
174.4
Total Loss and ALAE
124.4
75.6
6.7
206.7
ULAE
10.9
8.6
0.5
20.0
Total Loss and LAE
135.3
84.2
7.2
226.7
Underwriting expenses
60.3
41.0
4.7
106.0
Net underwriting loss
$
(3.0
)
$
(6.9
)
$
(1.6
)
$
(11.5
)
Cat loss and ALAE ratio
2.1
%
22.8
%
13.3
%
10.1
%
Non-cat loss and ALAE ratio
Prior accident years non-cat loss and ALAE
ratio
(5.8
)%
(4.8
)%
(2.9
)%
(5.4
)%
Current accident year non-cat loss and
ALAE ratio
68.3
%
45.9
%
53.9
%
59.7
%
Total non-cat loss and ALAE ratio
62.5
%
41.1
%
51.0
%
54.3
%
Total Loss and ALAE ratio
64.6
%
63.9
%
64.3
%
64.4
%
ULAE ratio
5.6
%
7.3
%
5.3
%
6.2
%
Total Loss and LAE ratio
70.2
%
71.2
%
69.6
%
70.6
%
Expense ratio
29.0
%
32.4
%
39.0
%
30.6
%
Combined ratio
99.2
%
103.6
%
108.6
%
101.2
%
SAP Commercial Insurance Segment
Results
(unaudited)
($ in millions)
Three months ended June 30,
2019
Commercial Auto
Small Commercial Package
Middle Market Commercial
Workers' Comp
Farm & Ranch
Other Commercial
Total
Net written premiums
$
29.7
$
31.5
$
41.1
$
15.4
$
13.6
$
5.0
$
136.3
Net earned premiums
21.8
29.4
32.5
18.1
12.0
4.2
118.0
Losses and LAE incurred:
Cat loss and ALAE
—
3.5
3.9
—
1.8
—
9.2
Non-cat loss and ALAE
Prior accident years non-cat loss and
ALAE
(1.0
)
(2.9
)
(2.9
)
(4.5
)
(0.8
)
1.2
(10.9
)
Current accident year non-cat loss and
ALAE
14.1
17.5
16.5
14.8
6.7
2.4
72.0
Total non-cat loss and ALAE
13.1
14.6
13.6
10.3
5.9
3.6
61.1
Total Loss and ALAE
13.1
18.1
17.5
10.3
7.7
3.6
70.3
ULAE
1.3
1.7
1.7
2.0
0.5
0.2
7.4
Total Loss and LAE
14.4
19.8
19.2
12.3
8.2
3.8
77.7
Underwriting expenses
11.0
11.8
15.9
5.6
6.5
1.9
52.7
Net underwriting (loss) gain
$
(3.6
)
$
(2.2
)
$
(2.6
)
$
0.2
$
(2.7
)
$
(1.5
)
$
(12.4
)
Cat loss and ALAE ratio
0.2
%
11.8
%
11.8
%
—
%
15.1
%
—
%
7.8
%
Non-cat loss and ALAE ratio
Prior accident years non-cat loss and ALAE
ratio
(5.0
)%
(10.0
)%
(8.7
)%
(24.7
)%
(6.2
)%
28.4
%
(9.2
)%
Current accident year non-cat loss and
ALAE ratio
64.8
%
59.3
%
50.8
%
81.4
%
56.0
%
55.8
%
60.9
%
Total non-cat loss and ALAE ratio
59.8
%
49.3
%
42.1
%
56.7
%
49.8
%
84.2
%
51.7
%
Total Loss and ALAE ratio
60.0
%
61.1
%
53.9
%
56.7
%
64.9
%
84.2
%
59.5
%
ULAE ratio
6.1
%
5.9
%
5.2
%
10.7
%
4.3
%
4.5
%
6.3
%
Total Loss and LAE ratio
66.1
%
67.0
%
59.1
%
67.4
%
69.2
%
88.7
%
65.8
%
Expense ratio
36.9
%
37.2
%
38.7
%
36.8
%
47.5
%
38.7
%
38.6
%
Combined ratio
103.0
%
104.2
%
97.8
%
104.2
%
116.7
%
127.4
%
104.4
%
($ in millions)
Three months ended June 30, 2018
Commercial Auto
Small Commercial Package
Middle Market Commercial
Workers' Comp
Farm & Ranch
Other Commercial
Total
Net written premiums
$
21.4
$
31.6
$
32.8
$
17.6
$
12.7
$
4.7
$
120.8
Net earned premiums
18.7
30.3
28.7
22.6
11.1
4.2
115.6
Losses and LAE incurred:
Cat loss and ALAE
0.6
4.5
3.8
—
1.7
—
10.6
Non-cat loss and ALAE
Prior accident years non-cat loss and
ALAE
(1.1
)
(4.2
)
1.7
(3.6
)
(1.5
)
(0.9
)
(9.6
)
Current accident year non-cat loss and
ALAE
11.0
18.6
15.7
13.9
6.4
1.7
67.3
Total non-cat loss and ALAE
9.9
14.4
17.4
10.3
4.9
0.8
57.7
Total Loss and ALAE
10.5
18.9
21.2
10.3
6.6
0.8
68.3
ULAE
1.1
1.7
1.5
1.5
0.7
0.3
6.8
Total Loss and LAE
11.6
20.6
22.7
11.8
7.3
1.1
75.1
Underwriting expenses
9.5
13.9
12.3
6.4
5.4
1.8
49.3
Net underwriting (loss) gain
$
(2.4
)
$
(4.2
)
$
(6.3
)
$
4.4
$
(1.6
)
$
1.3
$
(8.8
)
Cat loss and ALAE ratio
2.9
%
14.8
%
13.3
%
—
%
14.8
%
—
%
9.1
%
Non-cat loss and ALAE ratio
Prior accident years non-cat loss and ALAE
ratio
(5.7
)%
(14.0
)%
6.2
%
(15.9
)%
(13.8
)%
(21.0
)%
(8.3
)%
Current accident year non-cat loss and
ALAE ratio
59.4
%
61.8
%
54.2
%
61.2
%
58.0
%
38.2
%
58.2
%
Total non-cat loss and ALAE ratio
53.7
%
47.8
%
60.4
%
45.3
%
44.2
%
17.2
%
49.9
%
Total Loss and ALAE ratio
56.6
%
62.6
%
73.7
%
45.3
%
59.0
%
17.2
%
59.0
%
ULAE ratio
5.9
%
5.7
%
5.4
%
7.2
%
6.3
%
6.1
%
6.0
%
Total Loss and LAE ratio
62.5
%
68.3
%
79.1
%
52.5
%
65.3
%
23.3
%
65.0
%
Expense ratio
44.0
%
43.9
%
37.5
%
36.1
%
42.4
%
40.2
%
40.7
%
Combined ratio
106.5
%
112.2
%
116.6
%
88.6
%
107.7
%
63.5
%
105.7
%
($ in millions)
Six months ended June 30, 2019
Commercial Auto
Small Commercial Package
Middle Market Commercial
Workers' Comp
Farm & Ranch
Other Commercial
Total
Net written premiums
$
53.7
$
62.0
$
75.3
$
34.9
$
26.0
$
9.5
$
261.4
Net earned premiums
41.5
59.0
63.2
38.6
23.8
8.3
234.4
Losses and LAE incurred:
Cat loss and ALAE
0.1
5.0
5.2
—
2.1
—
12.4
Non-cat loss and ALAE
Prior accident years non-cat loss and
ALAE
(2.5
)
(7.7
)
(6.0
)
(9.0
)
(1.2
)
0.2
(26.2
)
Current accident year non-cat loss and
ALAE
26.0
33.4
42.5
28.4
11.8
4.5
146.6
Total non-cat loss and ALAE
23.5
25.7
36.5
19.4
10.6
4.7
120.4
Total Loss and ALAE
23.6
30.7
41.7
19.4
12.7
4.7
132.8
ULAE
2.6
3.5
3.0
3.6
1.1
0.4
14.2
Total Loss and LAE
26.2
34.2
44.7
23.0
13.8
5.1
147.0
Underwriting expenses
21.7
24.3
30.1
13.0
12.7
3.9
105.7
Net underwriting (loss) gain
$
(6.4
)
$
0.5
$
(11.6
)
$
2.6
$
(2.7
)
$
(0.7
)
$
(18.3
)
Cat loss and ALAE ratio
0.3
%
8.5
%
8.2
%
—
%
8.7
%
—
%
5.3
%
Non-cat loss and ALAE ratio
Prior accident years non-cat loss and ALAE
ratio
(6.1
)%
(13.1
)%
(9.4
)%
(23.2
)%
(4.9
)%
2.8
%
(11.1
)%
Current accident year non-cat loss and
ALAE ratio
62.6
%
56.5
%
67.3
%
73.4
%
49.6
%
54.2
%
62.5
%
Total non-cat loss and ALAE ratio
56.5
%
43.4
%
57.9
%
50.2
%
44.7
%
57.0
%
51.4
%
Total Loss and ALAE ratio
56.8
%
51.9
%
66.1
%
50.2
%
53.4
%
57.0
%
56.7
%
ULAE ratio
6.3
%
6.0
%
4.7
%
9.3
%
4.6
%
4.4
%
6.1
%
Total Loss and LAE ratio
63.1
%
57.9
%
70.8
%
59.5
%
58.0
%
61.4
%
62.8
%
Expense ratio
40.5
%
39.1
%
39.9
%
37.4
%
48.7
%
41.5
%
40.4
%
Combined ratio
103.6
%
97.0
%
110.7
%
96.9
%
106.7
%
102.9
%
103.2
%
($ in millions)
Six months ended June 30, 2018
Commercial Auto
Small Commercial Package
Middle Market Commercial
Workers' Comp
Farm & Ranch
Other Commercial
Total
Net written premiums
$
40.0
$
62.0
$
61.9
$
42.0
$
24.2
$
8.8
$
238.9
Net earned premiums
37.1
60.7
57.3
45.4
22.1
7.9
230.5
Losses and LAE incurred:
Cat loss and ALAE
0.6
7.7
5.3
—
1.6
—
15.2
Non-cat loss and ALAE
Prior accident years non-cat loss and
ALAE
(4.6
)
(4.7
)
(0.8
)
(5.9
)
(1.2
)
(2.1
)
(19.3
)
Current accident year non-cat loss and
ALAE
23.4
36.8
37.2
29.0
10.6
3.7
140.7
Total non-cat loss and ALAE
18.8
32.1
36.4
23.1
9.4
1.6
121.4
Total Loss and ALAE
19.4
39.8
41.7
23.1
11.0
1.6
136.6
ULAE
2.3
3.0
3.0
3.8
1.0
0.6
13.7
Total Loss and LAE
21.7
42.8
44.7
26.9
12.0
2.2
150.3
Underwriting expenses
17.6
27.7
23.6
14.4
10.2
3.8
97.3
Net underwriting (loss) gain
$
(2.2
)
$
(9.8
)
$
(11.0
)
$
4.1
$
(0.1
)
$
1.9
$
(17.1
)
Cat loss and ALAE ratio
1.5
%
12.7
%
9.2
%
—
%
7.2
%
—
%
6.6
%
Non-cat loss and ALAE ratio
Prior accident years non-cat loss and ALAE
ratio
(12.3
)%
(7.8
)%
(1.3
)%
(12.9
)%
(5.5
)%
(27.1
)%
(8.4
)%
Current accident year non-cat loss and
ALAE ratio
63.3
%
60.6
%
64.9
%
63.6
%
47.7
%
46.5
%
61.0
%
Total non-cat loss and ALAE ratio
51.0
%
52.8
%
63.6
%
50.7
%
42.2
%
19.4
%
52.6
%
Total Loss and ALAE ratio
52.5
%
65.5
%
72.8
%
50.7
%
49.4
%
19.4
%
59.2
%
ULAE ratio
6.1
%
5.0
%
5.3
%
8.6
%
4.8
%
6.9
%
6.0
%
Total Loss and LAE ratio
58.6
%
70.5
%
78.1
%
59.3
%
54.2
%
26.3
%
65.2
%
Expense ratio
43.9
%
44.7
%
38.2
%
34.3
%
42.1
%
43.5
%
40.7
%
Combined ratio
102.5
%
115.2
%
116.3
%
93.6
%
96.3
%
69.8
%
105.9
%
SAP Insurance Segment Results
(unaudited)
($ in millions)
Three months ended June 30,
2019
Personal & Commercial
Specialty run-off
Total
Net written premiums
$
341.2
$
0.5
$
341.7
Net earned premiums
306.3
1.4
307.7
Losses and LAE incurred:
Cat loss and ALAE
44.2
3.2
47.4
Non-cat loss and ALAE
Prior accident years non-cat loss and
ALAE
(14.3
)
(2.8
)
(17.1
)
Current accident year non-cat loss and
ALAE
183.9
0.8
184.7
Total non-cat loss and ALAE
169.6
(2.0
)
167.6
Total Loss and ALAE
213.8
1.2
215.0
ULAE
20.9
(0.3
)
20.6
Total Loss and LAE
234.7
0.9
235.6
Underwriting expenses
113.9
(0.2
)
113.7
Net underwriting (loss) gain
$
(42.3
)
$
0.7
$
(41.6
)
Cat loss and ALAE ratio
14.4
%
N/M(1)
15.4
%
Non-cat loss and ALAE ratio
Prior accident years non-cat loss and ALAE
ratio
(4.7
)%
N/M
(5.5
)%
Current accident year non-cat loss and
ALAE ratio
60.0
%
N/M
60.0
%
Total non-cat loss and ALAE ratio
55.3
%
N/M
54.5
%
Total Loss and ALAE ratio
69.7
%
N/M
69.9
%
ULAE ratio
6.8
%
N/M
6.7
%
Total Loss and LAE ratio
76.5
%
N/M
76.6
%
Expense ratio
33.4
%
N/M
33.3
%
Combined ratio
109.9
%
N/M
109.9
%
(1) N/M = Not Meaningful
($ in millions)
Three months ended June 30, 2018
Personal & Commercial
Specialty run-off
Total
Net written premiums
$
305.7
$
2.4
$
308.1
Net earned premiums
280.5
27.0
307.5
Losses and LAE incurred:
Cat loss and ALAE
37.7
(0.2
)
37.5
Non-cat loss and ALAE
Prior accident years non-cat loss and
ALAE
(20.2
)
2.1
(18.1
)
Current accident year non-cat loss and
ALAE
161.6
18.0
179.6
Total non-cat loss and ALAE
141.4
20.1
161.5
Total Loss and ALAE
179.1
19.9
199.0
ULAE
17.5
1.5
19.0
Total Loss and LAE
196.6
21.4
218.0
Underwriting expenses
105.9
4.6
110.5
Net underwriting (loss) gain
$
(22.0
)
$
1.0
$
(21.0
)
Cat loss and ALAE ratio
13.4
%
(0.7
)%
12.2
%
Non-cat loss and ALAE ratio
Prior accident years non-cat loss and ALAE
ratio
(7.2
)%
7.8
%
(5.9
)%
Current accident year non-cat loss and
ALAE ratio
57.6
%
66.4
%
58.3
%
Total non-cat loss and ALAE ratio
50.4
%
74.2
%
52.4
%
Total Loss and ALAE ratio
63.8
%
73.5
%
64.6
%
ULAE ratio
6.3
%
5.6
%
6.3
%
Total Loss and LAE ratio
70.1
%
79.1
%
70.9
%
Expense ratio
34.6
%
192.2
%
35.8
%
Combined ratio
104.7
%
271.3
%
106.7
%
($ in millions)
Six months ended June 30, 2019
Personal & Commercial
Specialty run-off
Total
Net written premiums
$
646.8
$
0.9
$
647.7
Net earned premiums
604.2
6.2
610.4
Losses and LAE incurred:
Cat loss and ALAE
61.4
3.7
65.1
Non-cat loss and ALAE
Prior accident years non-cat loss and
ALAE
(36.5
)
(1.5
)
(38.0
)
Current accident year non-cat loss and
ALAE
358.6
4.8
363.4
Total non-cat loss and ALAE
322.1
3.3
325.4
Total Loss and ALAE
383.5
7.0
390.5
ULAE
40.4
(0.7
)
39.7
Total Loss and LAE
423.9
6.3
430.2
Underwriting expenses
224.3
0.6
224.9
Net underwriting loss
$
(44.0
)
$
(0.7
)
$
(44.7
)
Cat loss and ALAE ratio
10.2
%
N/M
10.7
%
Non-cat loss and ALAE ratio
Prior accident years non-cat loss and ALAE
ratio
(6.0
)%
N/M
(6.2
)%
Current accident year non-cat loss and
ALAE ratio
59.3
%
N/M
59.6
%
Total non-cat loss and ALAE ratio
53.3
%
N/M
53.4
%
Total Loss and ALAE ratio
63.5
%
N/M
64.1
%
ULAE ratio
6.7
%
N/M
6.5
%
Total Loss and LAE ratio
70.2
%
N/M
70.6
%
Expense ratio
34.7
%
N/M
34.7
%
Combined ratio
104.9
%
N/M
105.3
%
($ in millions)
Six months ended June 30, 2018
Personal & Commercial
Specialty run-off
Total
Net written premiums
$
585.5
$
14.8
$
600.3
Net earned premiums
551.7
70.7
622.4
Losses and LAE incurred:
Cat loss and ALAE
47.5
(0.2
)
47.3
Non-cat loss and ALAE
Prior accident years non-cat loss and
ALAE
(36.5
)
2.4
(34.1
)
Current accident year non-cat loss and
ALAE
332.3
48.0
380.3
Total non-cat loss and ALAE
295.8
50.4
346.2
Total Loss and ALAE
343.3
50.2
393.5
ULAE
33.7
3.7
37.4
Total Loss and LAE
377.0
53.9
430.9
Underwriting expenses
203.3
14.2
217.5
Net underwriting (loss) gain
$
(28.6
)
$
2.6
$
(26.0
)
Cat loss and ALAE ratio
8.6
%
(0.3
)%
7.6
%
Non-cat loss and ALAE ratio
Prior accident years non-cat loss and ALAE
ratio
(6.6
)%
3.4
%
(5.5
)%
Current accident year non-cat loss and
ALAE ratio
60.2
%
67.8
%
61.1
%
Total non-cat loss and ALAE ratio
53.6
%
71.2
%
55.6
%
Total Loss and ALAE ratio
62.2
%
70.9
%
63.2
%
ULAE ratio
6.1
%
5.2
%
6.0
%
Total Loss and LAE ratio
68.3
%
76.1
%
69.2
%
Expense ratio
34.7
%
96.2
%
36.2
%
Combined ratio
103.0
%
172.3
%
105.4
%
The following table provides a reconciliation of our statutory
underwriting results to GAAP consolidated income before federal
income taxes for the three and six months ended June 30, 2019 and
2018:
($ millions)
2Q 2019
2Q 2018
YTD 2019
YTD 2018
Segment (loss) income before federal
income taxes:
Insurance operations:
Personal insurance SAP underwriting
loss
$
(29.9
)
$
(13.2
)
$
(25.7
)
$
(11.5
)
Commercial insurance SAP underwriting
loss
(12.4
)
(8.8
)
(18.3
)
(17.1
)
Specialty run-off
0.7
1.0
(0.7
)
2.6
Total insurance operations
(41.6
)
(21.0
)
(44.7
)
(26.0
)
Investment operations:
Net investment income
21.7
21.5
41.1
41.4
Net investment gain
10.3
12.1
55.2
0.4
Total investment operations
32.0
33.6
96.3
41.8
All other segments income
0.1
0.1
0.2
0.2
Reconciling items:
GAAP adjustments
6.1
0.6
10.1
(3.4
)
Interest expense on corporate debt
(1.3
)
(1.7
)
(2.5
)
(3.3
)
Corporate expenses
(2.9
)
(3.9
)
(5.4
)
(4.9
)
Total reconciling items
1.9
(5.0
)
2.2
(11.6
)
Total consolidated (loss) income before
federal income taxes
$
(7.6
)
$
7.7
$
54.0
$
4.4
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190801005212/en/
State Auto Financial Corporation Media contact: Kyle Anderson,
614-917-5497 Kyle.Anderson@StateAuto.com Investor contact: Natalie
Schoolcraft, 614-917-4341 Natalie.Schoolcraft@StateAuto.com
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