State Auto Financial told the Securities and Exchange Commission its subsidiary, State Auto National Insurance Co., no longer needs a reinsurance agreement. The reinsurance agreement protected State Auto National from excessive claims while it built up its own reserves.
The reinsurance agreement was provided by State Auto Mutual Insurance Co., a privately held insurance company that owns about 65 percent of State Auto Financial’s shares, according to SEC documents.
State Auto National writes auto insurance policies to drivers with high-risk characteristics such as accidents or poor payment histories. It has about $60 million in premiums a year.
State Auto Financial, a Columbus-based property and casualty insurer, reported $1.1 billion in revenue in 2004.
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