State Auto Financial Q3 Net Falls, Despite 57.6% Rise in Operating Revenue

Ohio’s State Auto Financial Corporation (STFC) reported third quarter net earnings of $5,885,000, a decrease of between 3 and 5 cents per share.

“Net reported earnings per share were $0.15, basic and diluted, versus $0.19 basic and $0.18 diluted for the same period 2001. Net operating earnings per share were $0.14, basic and diluted, versus $0.18 basic and $0.17 diluted for the same period 2001,” said the bulletin.

“For the first nine months of 2002, net reported earnings were $17,664,000, or $0.45 per share, $0.44 diluted, compared with $31,249,000 or $0.80 per share, $0.78 diluted for the same 2001 period. STFC’s GAAP combined ratio for the third quarter was 103.8 versus 105.2 for the third quarter 2001,” it continued.

Revenues, however, jumped sharply to $246,962,000, up 57.6% from $156,671.000 over the same period last year, while the company said that its written premium for the period increased 69.8% over the third quarter 2001, and “revenue for the first nine months 2002 was $713,144,000, up 79.3% from $397,705,000.”

Commenting on the results, STFC Chairman and CEO Bob Moone stated that “At State Auto we are very serious about creating and achieving objectives. Our primary goal — every quarter — is to post an underwriting profit. Thus, any quarter in which this doesn’t happen, for whatever reason, is considered by management to be unsuccessful. We are making great progress in reunderwriting and re-pricing the Meridian book and, at the same time, garnering rate nourishment in the ‘historic State Auto’ segment. These actions are expected to produce profitable underwriting results. In terms of our other goals, we are pleased with a controlled growth strategy that yielded ‘same store’ written premium increases of 23% in the third quarter.”

Topics Auto Profit Loss