State Auto Financial Corp.’s latest financial results appear to be a step in the right direction. The Columbus, Ohio-based super regional insurer reported 2017 second quarter net income of $8.7 million, or $0.21 per diluted share, versus a net loss of $24.6 million, or $0.59 per diluted share, from the same period in 2016.
While State Auto’s combined ratio was 106.2 for the quarter, it represents an improvement over the 114.7 combined ratio booked in 2016 second quarter. Also, catastrophe losses improved, coming in at $25.2 million for the 2017 second quarter, versus $42.3 million through the same period in 2016.
State Auto Chairman, President and CEO Mike LaRocco said that the results represent a “solid step forward” for the insurer in all of its business lines after “two years of rebuilding and replacing the foundation.”
“We’re now on a patch toward profitable growth,” LaRocco said in prepared remarks. He said the company’s turnaround “is incomplete, but on track,” fueled in part by initiatives such as State Auto’s new digital-only policy platform for personal auto and homeowners, which rolled out during Q2 and is now in 12 states.
He said that the insurer has taken “aggressive action” on its personal auto rates, and is focusing hard on improving its commercial auto risk profile. Specialty lines are also improving significantly, he said.
More of State Auto’s Q2 result highlights:
- Net premiums written were $341.3 million in Q2, down from $345.6 million in the 2016 second quarter. Net premiums earned reached $320.1 million during the quarter, compared to $322.4 million in the 2016 second quarter.
- Net investment income in Q2 was flat, year-over-year, coming at $19.1 million. But State Auto’s net realized gain on investments was $15.8 million during the quarter, up significantly from $6.5 million in the 2016 second quarter.
Source: State Auto