State Auto Financial (NASDAQ:STFC)
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From Oct 2019 to Oct 2024
State Auto Financial Corporation (NASDAQ:STFC) today reported record
third quarter net income of $31.2 million, or $0.75 per diluted share,
versus $16.8 million or $0.41 per diluted share for the same period in
2005. Net income from operations(a) per diluted share for the third
quarter of 2006 was $0.72, versus $0.34 for the same period in 2005.
STFC’s GAAP combined ratio for the third
quarter of 2006 was 90.9, versus 100.2 for the third quarter of 2005.
Catastrophe losses accounted for 8.0 points of the total 56.7 loss ratio
points or $20.4 million in the third quarter 2006, compared to 16.0
points of the total 69.3 loss ratio points, or $42.1 million for the
same period in 2005. STFC’s third quarter 2006
revenue was $279.6 million, versus $288.5 million for the same period in
2005.
Revenue for the first nine months of 2006 was $836.4 million, versus
$858.6 million for the same 2005 period. For the first nine months of
2006, net income was $75.5 million, or $1.82 per diluted share, compared
to $96.4 million or $2.35 per diluted share, for the same 2005 period.
The GAAP combined ratio for the first nine months of 2006 was 94.0, as
compared to 90.0 for the same period in 2005. STFC’s
book value per share rose to an all-time high of $20.63, as of September
30, 2006.
“I am pleased to report record third quarter
earnings following a second quarter that was heavily impacted by record
catastrophe losses. Our core book of business continues to perform
exceptionally well and losses from catastrophes in the third quarter
were relatively low,” said STFC Chairman,
President and CEO Bob Restrepo.
“We are encouraged by the market’s
acceptance of our newest personal auto product CustomFit™.
In states where CustomFit™ has been
introduced, new business is up between 24% and 69% depending on the
state. We’re preparing to roll out our next
generation CustomFit™ model to additional
states. The success of CustomFit™, which was
the first of several technology driven initiatives begun in 2006, fuels
our confidence that State Auto will remain a strong player in a very
competitive insurance market,” added Restrepo.
State Auto Financial Corporation, headquartered in Columbus, Ohio, is a
super regional property and casualty insurance holding company. The
company markets its personal and commercial insurance products through
more than 22,800 independent insurance agents associated with nearly
3,000 agencies in 27 states. The company has been named Forbes Magazine’s
“Best Managed Insurance Company in America”
for 2006 and is one of just 3% of publicly listed companies to earn the
Mergent Dividend Achiever Award for having increased its dividends for
ten or more years in succession. The State Auto Insurance Companies are
rated A+ (Superior) by the A.M. Best Company. Additional information on
the company can be found on its web site at www.STFC.com.
(a) Net income from operations, a non-GAAP financial measure which
management believes is informative to Company management and investors,
differs from GAAP net income only by the exclusion of realized capital
gains or losses, net of applicable taxes, on investment activity for the
periods being reported. For STFC, this amounts to $0.03 for the quarter
and $0.04 for 2006 year to date compared to $0.07 and $0.11 for the same
periods in 2005.
STFC has scheduled a conference call with interested investors for
Tuesday, October 24, 10:00 a.m. Eastern Time to discuss the company’s
third quarter 2006 performance. Live and archived broadcasts of
the call can be accessed via links on www.STFC.com.
A replay of the call can be heard beginning at noon October 24, by
calling 1-866-454-9172. Supplemental schedules detailing the
company’s third quarter 2006 financial, sales
and underwriting results are made available on www.STFC.com
prior to the conference call.
Except for historical information, all other information in this news
release consists of forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. These forward-looking
statements are subject to risks and uncertainties that could cause
actual results to differ materially from those projected, anticipated or
implied. The most significant of these uncertainties are described in
State Auto Financial's Form 10-K and Form 10-Q reports and exhibits to
those reports, and include (but are not limited to) legislative changes
at both the state and federal level, state and federal regulatory rule
making promulgations and adjudications, class action litigation
involving the insurance industry and judicial decisions affecting
claims, policy coverages and the general costs of doing business, the
impact of competition on products and pricing, inflation in the costs of
the products and services insurance pays for, product development,
geographic spread of risk, weather-related events, and other types of
catastrophic events. State Auto Financial undertakes no obligation to
update or revise any forward-looking statements.
STATE AUTO FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
Three Months Ended
Nine Months Ended
September 30
September 30
(In millions, except per share amounts)
2006
2005
2006
2005
Net premiums written
$ 264.0
$ 268.5
$ 780.8
$ 824.7
(B)
Earned premiums
255.8
262.9
768.6
789.7
Net investment income
20.6
20.1
61.6
58.4
Net realized gain on investments
2.0
4.4
2.5
6.8
Other income
1.2
1.1
3.7
3.7
Total revenue
279.6
288.5
836.4
858.6
Income before federal income taxes
42.4
20.2
98.9
132.4
Federal income tax expense
11.2
3.4
23.4
36.0
Net income
$ 31.2
$ 16.8
$ 75.5
$ 96.4
Earnings per share:
- basic
$ 0.76
$ 0.41
$ 1.85
$ 2.39
- diluted
$ 0.75
$ 0.41
$ 1.82
$ 2.35
Earnings per share from operations (A):
- basic
$ 0.73
$ 0.34
$ 1.81
$ 2.28
- diluted
$ 0.72
$ 0.34
$ 1.78
$ 2.24
Weighted average shares outstanding:
- basic
41.0
40.4
40.8
40.3
- diluted
41.6
41.2
41.6
41.0
Book value per share
$ 20.63
$ 18.20
Dividends paid per share
$ 0.10
$ 0.09
$ 0.28
$ 0.18
Total shares outstanding
41.0
40.4
GAAP ratios:
Loss and LAE ratio
56.7
69.3
60.7
58.5
Expense ratio
34.2
30.9
33.3
31.5
Combined ratio
90.9
100.2
94.0
90.0
(A) Net income from operations:
Net income
$ 31.2
$ 16.8
$ 75.5
$ 96.4
Less net realized gains on investments, less applicable federal
income taxes
1.3
2.9
1.6
4.4
Net income from operations
$ 29.9
$ 13.9
$ 73.9
$ 92.0
(B) Net premiums written for the nine
months ended September 30, 2005, includes $23.9 million of unearned
premiums transferred to STFC in connection with the addition of
Meridian Security Insurance Company and Meridian Citizens Mutual
Insurance Company to the State Auto Pool, effective January 1, 2005.
State Auto Financial Corporation (NASDAQ:STFC) today reported
record third quarter net income of $31.2 million, or $0.75 per diluted
share, versus $16.8 million or $0.41 per diluted share for the same
period in 2005. Net income from operations(a) per diluted share for
the third quarter of 2006 was $0.72, versus $0.34 for the same period
in 2005.
STFC's GAAP combined ratio for the third quarter of 2006 was 90.9,
versus 100.2 for the third quarter of 2005. Catastrophe losses
accounted for 8.0 points of the total 56.7 loss ratio points or $20.4
million in the third quarter 2006, compared to 16.0 points of the
total 69.3 loss ratio points, or $42.1 million for the same period in
2005. STFC's third quarter 2006 revenue was $279.6 million, versus
$288.5 million for the same period in 2005.
Revenue for the first nine months of 2006 was $836.4 million,
versus $858.6 million for the same 2005 period. For the first nine
months of 2006, net income was $75.5 million, or $1.82 per diluted
share, compared to $96.4 million or $2.35 per diluted share, for the
same 2005 period. The GAAP combined ratio for the first nine months of
2006 was 94.0, as compared to 90.0 for the same period in 2005. STFC's
book value per share rose to an all-time high of $20.63, as of
September 30, 2006.
"I am pleased to report record third quarter earnings following a
second quarter that was heavily impacted by record catastrophe losses.
Our core book of business continues to perform exceptionally well and
losses from catastrophes in the third quarter were relatively low,"
said STFC Chairman, President and CEO Bob Restrepo.
"We are encouraged by the market's acceptance of our newest
personal auto product CustomFit(TM). In states where CustomFit(TM) has
been introduced, new business is up between 24% and 69% depending on
the state. We're preparing to roll out our next generation
CustomFit(TM) model to additional states. The success of
CustomFit(TM), which was the first of several technology driven
initiatives begun in 2006, fuels our confidence that State Auto will
remain a strong player in a very competitive insurance market," added
Restrepo.
State Auto Financial Corporation, headquartered in Columbus, Ohio,
is a super regional property and casualty insurance holding company.
The company markets its personal and commercial insurance products
through more than 22,800 independent insurance agents associated with
nearly 3,000 agencies in 27 states. The company has been named Forbes
Magazine's "Best Managed Insurance Company in America" for 2006 and is
one of just 3% of publicly listed companies to earn the Mergent
Dividend Achiever Award for having increased its dividends for ten or
more years in succession. The State Auto Insurance Companies are rated
A+ (Superior) by the A.M. Best Company. Additional information on the
company can be found on its web site at www.STFC.com.
(a) Net income from operations, a non-GAAP financial measure which
management believes is informative to Company management and
investors, differs from GAAP net income only by the exclusion of
realized capital gains or losses, net of applicable taxes, on
investment activity for the periods being reported. For STFC, this
amounts to $0.03 for the quarter and $0.04 for 2006 year to date
compared to $0.07 and $0.11 for the same periods in 2005.
STFC has scheduled a conference call with interested investors for
Tuesday, October 24, 10:00 a.m. Eastern Time to discuss the company's
third quarter 2006 performance. Live and archived broadcasts of the
call can be accessed via links on www.STFC.com. A replay of the call
can be heard beginning at noon October 24, by calling 1-866-454-9172.
Supplemental schedules detailing the company's third quarter 2006
financial, sales and underwriting results are made available on
www.STFC.com prior to the conference call.
Except for historical information, all other information in this
news release consists of forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. These
forward-looking statements are subject to risks and uncertainties that
could cause actual results to differ materially from those projected,
anticipated or implied. The most significant of these uncertainties
are described in State Auto Financial's Form 10-K and Form 10-Q
reports and exhibits to those reports, and include (but are not
limited to) legislative changes at both the state and federal level,
state and federal regulatory rule making promulgations and
adjudications, class action litigation involving the insurance
industry and judicial decisions affecting claims, policy coverages and
the general costs of doing business, the impact of competition on
products and pricing, inflation in the costs of the products and
services insurance pays for, product development, geographic spread of
risk, weather-related events, and other types of catastrophic events.
State Auto Financial undertakes no obligation to update or revise any
forward-looking statements.
-0-
*T
STATE AUTO FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
Three Months Ended Nine Months Ended
September 30 September 30
(In millions, except per share
amounts) 2006 2005 2006 2005
--------- -------- -------- --------
Net premiums written $264.0 $268.5 $780.8 $824.7 (B)
--------- -------- -------- --------
Earned premiums 255.8 262.9 768.6 789.7
Net investment income 20.6 20.1 61.6 58.4
Net realized gain on
investments 2.0 4.4 2.5 6.8
Other income 1.2 1.1 3.7 3.7
--------- -------- -------- --------
Total revenue 279.6 288.5 836.4 858.6
--------- -------- -------- --------
Income before federal income
taxes 42.4 20.2 98.9 132.4
Federal income tax expense 11.2 3.4 23.4 36.0
--------- -------- -------- --------
Net income $31.2 $16.8 $75.5 $96.4
========= ======== ======== ========
Earnings per share:
- basic $0.76 $0.41 $1.85 $2.39
- diluted $0.75 $0.41 $1.82 $2.35
Earnings per share from
operations (A):
- basic $0.73 $0.34 $1.81 $2.28
- diluted $0.72 $0.34 $1.78 $2.24
Weighted average shares
outstanding:
- basic 41.0 40.4 40.8 40.3
- diluted 41.6 41.2 41.6 41.0
Book value per share $20.63 $18.20
Dividends paid per share $0.10 $0.09 $0.28 $0.18
Total shares outstanding 41.0 40.4
GAAP ratios:
Loss and LAE ratio 56.7 69.3 60.7 58.5
Expense ratio 34.2 30.9 33.3 31.5
--------- -------- -------- --------
Combined ratio 90.9 100.2 94.0 90.0
========= ======== ======== ========
(A) Net income from
operations:
Net income $31.2 $16.8 $75.5 $96.4
Less net realized gains on
investments, less applicable
federal income taxes 1.3 2.9 1.6 4.4
--------- -------- -------- --------
Net income from operations $29.9 $13.9 $73.9 $92.0
========= ======== ======== ========
(B) Net premiums written for the nine months ended September 30, 2005,
includes $23.9 million of unearned premiums transferred to STFC in
connection with the addition of Meridian Security Insurance Company
and Meridian Citizens Mutual Insurance Company to the State Auto
Pool, effective January 1, 2005.
*T