State Auto Financial Announces Strong Earnings and Sales Results for Q1
COLUMBUS, Ohio--April 26, 2001--State Auto Financial Corporation announced net reported earnings per share of $0.37 ($0.36 diluted) for the first quarter ending March 31, 2001, compared to $0.35 ($0.35 diluted) per share for the same period last year.Net operating earnings per share were $0.37 ($0.36 diluted), compared to $0.30 per share ($0.30 diluted) for the same 2000 period. The service fee paid by State Automobile Mutual Insurance Company (Mutual) contributed $0.07 per share and, as discussed in STFC's April 2, 2001 press announcement, the fee remains subject to review by the Ohio Department of Insurance (ODI). The company intends to deliver its justification to the ODI, which will include input from independent experts, as soon as practicable.
For the quarter ending March 31, 2001, net earnings were $14,540,000, an increase of 6.3% over the $13,683,000 reported for the same period last year. The company's total revenue for the first quarter was $118,001,000, an increase of 1.3% over the previous year's first quarter total revenue of $116,461,000. The company's GAAP combined ratio for the period ending March 31, 2001 was 94.9, compared to 96.3 for the quarter ending March 31, 2000.
STFC's net written premium for the first quarter 2001 was $105,050,000, an increase of 11.0% over the same period last year. "Producing an underwriting profit is our primary objective," said Robert H. Moone, chairman, president and C.E.O. "And, as the current quarter demonstrates, profit and growth are not mutually exclusive in a rational market environment. We are very pleased with the outstanding quarter and committed to sustaining our performance."
STATE AUTO FINANCIAL CORPORATION AND SUBSIDIARIES Consolidated Statements of Income (Figures in thousands, except per-share amounts) (unaudited) Quarter Ended March 31 2001 2000 ---- ---- Net premiums written $105,050 $101,925 (a) ----------- ----------- Earned premiums 101,561 98,811 Net investment income 10,304 9,374 Management services income 4,920 4,404 Net realized gains (losses) on investments 401 3,139 Other income 815 733 ----------- ----------- Total revenue 118,001 116,461 ----------- ----------- Income before federal income taxes 19,199 18,584 Federal income taxes 4,659 4,901 ----------- ----------- Net income $14,540 $13,683 =========== =========== Net earnings per share: - basic $0.37 $0.35 - diluted $0.36 $0.35 Net earnings per share from operations (b): - basic $0.37 $0.30 - diluted $0.36 $0.30 Weighted average shares outstanding: - basic 38,619 38,352 - diluted 39,608 38,837 Book value per share $10.38 $8.72 Dividends paid per share $0.030 $0.028 Total shares outstanding 38,696 38,369 GAAP ratios: Loss ratio 64.8 65.0 Expense ratio 30.1 31.3 ----------- ----------- Combined ratio 94.9 96.3 =========== =========== (a) Net premiums written for the three months ended March 31, 2000 includes $7,289,000 of unearned premiums transferred in connection with the with the 1/1/00 pooling change, respectively. (b) Excludes net realized gains on investments, less applicable federal income taxes.