First-quarter 2009 earnings for State Auto Financial Corporation (STFC) will include "larger than normal" catastrophe losses of between $38 million and $42 million, due to Jan. and Feb. storm activity, the company said.
Bob Restrepo, chairman, president and CEO of the Columbus, Ohio, super-regional property-casualty insurer, said, "Ice and wind storms that hit our Midwest operating states in late January and early February have contributed significantly larger than normal losses to STFC's first-quarter results. These storms include events that qualify toward our new catastrophe aggregate reinsurance program.
"Over the past five years, we have experienced an average of $12.4 million in pre-tax catastrophe losses during the first quarter and reported $35 million in the first quarter of 2008."
Mr. Restrepo added, "While the scope of loss does not equal what we saw with Hurricane Ike, more than 10,000 claims have been attributed to these storms."
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