麻豆原创

Columbus, Ohio-based super regional insurer, State Auto Financial Corp. (STFC), has reported a second quarter 2016 net loss of $24.6 million, or $0.59 per diluted share, versus net income of $2.7 million, or $0.06 per diluted share, for the second quarter of 2015.

STFC’s GAAP combined ratio for the second quarter 2016 was 114.7 versus 106.1 for the second quarter of 2015.

Catastrophe losses during the second quarter 2016 accounted for 13.1 points of the 81.5 total loss ratio points, or $42.3 million, versus 11.4 points of the total 72.1 loss ratio points, or $35.5 million, for the same period in 2015.

Non-catastrophe losses during the second quarter 2016 included 6.5 points of adverse development relating to prior years, or $20.9 million, versus 2.0 points of favorable development, or $6.3 million, for the same period in 2015.

Net written premium for the second quarter of 2016 increased 1.9 percent compared to the same period in 2015. By insurance segment, net written premium decreased for personal and business by 0.4 percent and 7.3 percent, respectively, and specialty increased by 31.6 percent.

Personal auto and homeowners new business premium and new policy counts were up, while policies in force were lower, compared to the second quarter of 2015.

The decline in the business insurance segment was significantly driven by the company’s decision to exit its large account business, along with field restructuring and rate actions to improve profitability in commercial auto.

The growth in the specialty insurance segment was driven by an increase in new business for both E&S casualty and programs.

For the first six months of 2016, STFC had a net loss of $21.6 million, or $0.52 per diluted share, compared to net income of $27.4 million, or $0.66 per diluted share, for the same 2015 period.

STFC’s GAAP combined ratio for the first six months of 2016 was 109.4 compared to 100.3 for the same 2015 period.

Catastrophe losses increased the loss ratio for the first six months of 2016 by 8.9 points, or $57.3 million, compared to 6.4 points, or $40.0 million for the first six months of 2015.

Non-catastrophe losses for the first six months of 2016 included 4.9 points of adverse development relating to prior years, or $31.2 million, versus 1.7 points of favorable development, or $10.7 million, for the same period in 2015.

Net written premium for the first six months of 2016 increased 0.6 percent compared to the same 2015 period. By insurance segment, net written premium decreased for personal and business by 1.0 percent, and 6.4 percent, respectively, while specialty increased by 21.1 percent.

STFC Chairman, President and CEO Mike LaRocco stated: “Our results for the quarter were poor, driven by catastrophe losses and further adverse development across our automobile lines of business. Storms in Texas accounted for just over half of the catastrophe losses.”

He added that though the auto insurance sector has performed “worse than expected,” the company has “improved our operations and close the quarter with strong and appropriate reserves.”

Source: State Auto Financial Corp.

Topics Profit Loss Auto