Current Report Filing (8-k)
January 26 2015 - 12:27PM
Edgar (US Regulatory)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant
to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): January 26, 2015 (January 20, 2015)
STATE AUTO FINANCIAL CORPORATION
(Exact name of registrant as specified in its charter)
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Ohio |
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000-19289 |
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31-1324304 |
(State or other jurisdiction
of incorporation) |
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(Commission
File Number) |
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(IRS Employer
Identification No.) |
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518 East Broad Street, Columbus, Ohio |
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43215-3976 |
(Address of principal executive offices) |
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(Zip Code) |
Registrants telephone number, including area code: (614) 464-5000
Not Applicable
(Former
name or former address, if changed since last report.)
Check the appropriate box below
if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Section 2. |
Financial Information |
Item 2.02 |
Results of Operations and Financial Condition. |
On January 20, 2015, State Auto Financial
Corporation (the Company) issued a press release disclosing fourth quarter 2014 reserve strengthening on program business in run-off (the Release). The full text of the Release is furnished as Exhibit 99.1 to
this Current Report on Form 8-K.
Section 9. |
Financial Statements and Exhibits |
Item 9.01. |
Financial Statements and Exhibits. |
(c) Exhibits.
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Exhibit No. |
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Description |
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99.1 |
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Press release issued by State Auto Financial Corporation on January 20, 2015. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned
hereunto duly authorized.
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STATE AUTO FINANCIAL CORPORATION |
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Date: January 26, 2015 |
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By |
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/s/ James A. Yano |
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Senior Vice President and General Counsel |
EXHIBIT INDEX
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Exhibit No. |
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Description |
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99.1 |
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Press release issued by State Auto Financial Corporation on January 20, 2015. |
Exhibit 99.1
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State Auto Financial Reports Reserve Strengthening on Program Business in Run-off and Entering into Adverse Development Cover Reinsurance
Agreement COLUMBUS, Ohio January 20, 2015 State Auto
Financial Corporation (Nasdaq:STFC) today announced that prior year loss and loss expense reserves will be strengthened by approximately $72 million pre-tax to be reflected in the fourth quarter of 2014 on program business written through Risk
Evaluation & Design LLC (RED), a wholly owned subsidiary of State Automobile Mutual Insurance Company. The increase relates primarily to the two largest RED programs, the terminated restaurant and commercial trucking programs, both of which
are in run off. The RED reserve strengthening reflects revised estimates upon completion of the previously disclosed ground up analysis of outstanding RED case reserves. STFCs RED carried loss reserves as of Dec. 31, 2014 were approximately
$127 million. In addition, the State Auto Group has entered into an Adverse
Development Cover reinsurance agreement with Munich Reinsurance America, Inc. This agreement, effective as of Dec. 31, 2014, provides $40 million of coverage for adverse development in excess of carried reserves for the terminated RED restaurant
program, which represents approximately 59% of carried RED reserves. The net cost of the adverse development cover is included in the amount disclosed above.
As announced on Jan. 6, 2015, the State Auto Group has entered into a one year property aggregate excess catastrophe reinsurance agreement covering property
business underwritten by its personal insurance and business insurance segments. In addition, management is currently evaluating the need for an allowance against the companys net deferred tax assets. The reversal of any portion of the
deferred tax asset valuation allowance would apply to the companys 2014 results.
State Auto Financial Corporation, headquartered in Columbus, Ohio, is a super regional property and casualty insurance holding company and is proud to be a
Trusted Choice® company partner. STFC stock is traded on the NASDAQ Global Select Market, which represents the top third of all NASDAQ listed companies.
CONTINUED |
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News Release
Contact
Tara Shull Investor Relations and Finance Director
614.917.4478 F 614.887.1793 Tara.Shull@StateAuto.com
Kyle Anderson
AVP/Director of Corporate Communication 614.917.5497 M
614.477.5301 Kyle.Anderson@StateAuto.com
Corporate Headquarters 518 E. Broad St.
Columbus, OH 43215 614.464.5000
800.444.9950
For additional information:
StateAuto.com/STFC |
State Auto Financial Corporation news release, Page 2
January 20, 2015
The insurance subsidiaries
of State Auto Financial Corporation are part of the State Auto Group. The State Auto Group markets its insurance products throughout the United States, through independent insurance agencies, which include retail agencies and wholesale brokers. The
State Auto Group is rated A (Excellent) by the A.M. Best Company and includes State Automobile Mutual, State Auto Property & Casualty, State Auto Ohio, State Auto Wisconsin, Milbank, Meridian Security, Patrons Mutual, Rockhill Insurance,
Plaza Insurance, American Compensation and Bloomington Compensation. Additional information on State Auto Financial Corporation and the State Auto Insurance Companies can be found online at http://www.StateAuto.com/STFC.
* * * * * *
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 Financials 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.
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