State Auto Reports 54% Rise In Quarterly Income
NU Online News Service, April 27, 4:20 p.m. EDT? State Auto Financial Corporation, a Columbus, Ohio-based regional property-casualty insurance holding company, reported $32.4 million for its first-quarter profit, a 54 percent rise from $21.1 million reported during the corresponding period in 2003.[@@]
State Auto, which offers personal and commercial auto, homeowners, commercial multiperil, and workers' compensation insurance, reported net premiums written of $252.8 million for the quarter, up from $236.5 million reported one year earlier.
Earned premiums improved to $248.8 million, from $232.4 million reported one year ago. Net investment income rose to $17.5 million, from $15.7 reported one year earlier.
The company said its GAAP combined ratio for the quarter improved to 89.6, down from 95.2 reported one year earlier. State Auto noted that catastrophe losses were light during the first quarter, contributing only a single point to the loss ratio in the quarter, compared with 2.6 points in the period last year.
State Auto Chief Executive Officer Bob Moone commented that the company's first-quarter results continued the trend of profitable results for State Auto Financial, for both the standard and nonstandard business segments. "We have now achieved record net operating earnings per share for five of the last six quarters," Mr. Moone said.
Mr. Moone also noted the continued improvement in the loss ratio of homeowners line, to 53.6 from 67.7 one year ago. This improved result for homeowners, he explained, arises from relatively light catastrophe loss experience, a drop in large-loss frequency, and improvement in the core loss ratio due to continuing underwriting diligence and greater rate adequacy.
State Auto Financial is a regional p-c insurance holding company offering both personal and commercial lines of insurance. The company markets its policies through more than 22,500 independent insurance agents associated with over 3,300 agencies in 26 central and eastern states.
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