State Auto Financial Corp., based in Columbus, Ohio, announced that the State Auto Group has entered into a quota share reinsurance agreement with a syndicate of reinsurers covering its homeowners book of business.
The three-year agreement was effective Dec. 31, 2011. Under this quota share arrangement, the State Auto Group will cede to the reinsurers 75 percent of its unearned premiums in force at the effective date and 75 percent of its net liability under policies issued or renewed on or after the effective date and classified by the State Auto Group as homeowners business.
The State Auto Group will retain the balance of its homeowners book of business, with the STFC Pooled Companies and the SAM Pooled Companies participating 65 percent and 35 percent, respectively, in such retained business in accordance with the previously announced pooling changes that were effective Dec. 31, 2011.
Source: State Auto Financial Corp.
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