State Auto Financial Reports First Quarter 2006 Results
April 25 2006 - 5:00AM
Business Wire
State Auto Financial Corporation (NASDAQ:STFC): -- Quarterly
earnings of $0.97 per share -- Quarterly GAAP combined ratio of
83.9 -- Return on Equity of 17.0% -- Book value per share increased
to $19.57 State Auto Financial Corporation (NASDAQ:STFC) today
reported first quarter 2006 net income of $40.2 million or $0.97
per diluted share, versus $40.8 million or $1.00 per diluted share
for the first quarter of 2005. Net income from operations(a) per
diluted share for the first quarter 2006 was a quarterly record of
$0.98, versus $0.96 for the same 2005 period. STFC's GAAP combined
ratio for the quarter was 83.9 versus 84.6 for the first quarter of
2005. Catastrophe losses contributed 3.7 points to the loss ratio
during the first quarter this year, compared to 2.7 points for the
same period in 2005. STFC's first quarter 2006 revenue was $276.8
million versus $285.9 million for the same period in 2005. STFC's
book value per share increased to a new high of $19.57 per share as
of March 31, 2006. Return on stockholders' equity for the twelve
months ended March 31, 2006 was 17.0%. "The outstanding performance
in the first quarter is a validation of our commitment to maintain
responsible pricing and disciplined underwriting fundamentals in a
very competitive insurance market. The biggest challenge we face
now is organic growth. We are continually refining our products,
marketing initiatives and pricing models to meet this challenge and
will continue to do so," said STFC Chairman, President and CEO Bob
Restrepo. "One example is our new personal auto product known as
CustomFit(TM). We are pleased with the positive market response to
this product and we expect that it will produce profitable growth
in the future. Personal auto remains the largest segment of our
business and State Auto is committed to working with our
independent agency partners to grow our personal lines segment in
addition to our profitable commercial lines business," added
Restrepo. State Auto Financial Corporation, headquartered in
Columbus, Ohio, is a property and casualty insurance holding
company. The company markets its personal and commercial insurance
products through more than 22,300 independent insurance agents
associated with approximately 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 and
(losses), net of applicable taxes, on investment activity for the
periods being reported. For STFC, this amounts to ($0.01) per
diluted share for the first quarter 2006 versus $0.04 for the same
2005 period. STFC has scheduled a conference call with interested
investors for Tuesday, April 25, 10:00 a.m. Eastern time to discuss
the company's first quarter 2006 performance. Live and archived
broadcasts of the call can be accessed on www.STFC.com. A replay of
the call can be heard beginning at noon, April 25, by calling
1-800-308-7859. Supplemental schedules detailing the company's
first 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 and 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 March 31 (In millions, except per share amounts)
2006 2005 ----------- ----------- Net premiums written $249.1
$282.0 (B) ----------- ----------- Earned premiums 256.1 263.1 Net
investment income 20.4 19.0 Net realized gain (loss) on investments
(0.9) 2.4 Other income 1.2 1.4 ----------- ----------- Total
revenue 276.8 285.9 ----------- ----------- Income before federal
income taxes 56.7 57.8 Federal income tax expense 16.5 17.0
----------- ----------- Net income $40.2 $40.8 ===========
=========== Earnings per share: - basic $0.99 $1.02 - diluted $0.97
$1.00 Earnings per share from operations (A): - basic $1.00 $0.98 -
diluted $0.98 $0.96 Weighted average shares outstanding: - basic
40.6 40.2 - diluted 41.5 40.9 Book value per share $19.57 $16.89
Dividends paid per share $0.090 $0.045 Total shares outstanding
40.7 40.2 GAAP ratios: Loss and LAE ratio 49.7 52.7 Expense ratio
34.2 31.9 ----------- ----------- Combined ratio 83.9 84.6
=========== =========== (A) Net income from operations: Net income
$40.2 $40.8 Less net realized gains on investments, less applicable
federal income taxes (0.6) 1.6 ----------- ----------- Net income
from operations $40.8 $39.2 =========== =========== (B) Net
premiums written for the three months ended March 31, 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
State Auto Financial (NASDAQ:STFC)
Historical Stock Chart
From Jun 2024 to Jul 2024
State Auto Financial (NASDAQ:STFC)
Historical Stock Chart
From Jul 2023 to Jul 2024
Real-Time news about State Auto Financial Corporation (NASDAQ): 0 recent articles
More State Auto Financial Corporation News Articles