State Auto Financial Announces Strong First Quarter Earnings
27 April 2000
State Auto Financial Announces Strong First Quarter Earnings
COLUMBUS, Ohio--April 27, 2000--State Auto Financial Corporation (Nasdaq:STFC) announced net reported earnings per share of $0.35 ($0.35 diluted) for the first quarter ending March 31, 2000, compared to $0.25 ($0.25 diluted) per share for the same period last year. Net operating earnings per share were $0.30 ($0.30 diluted), compared to $0.24 per share ($0.24 diluted) for the same 1999 period.For the quarter ending March 31, 2000, net earnings were $13,683,000, an increase of 25.8% over the $10,880,000 reported for the same period last year. The company's total revenue for the first quarter was $116,461,000, an increase of 5% over the previous year's first quarter revenue of $110,931,000. The company's combined ratio for the period ending March 31, 2000 was 96.3, compared to 96.1 for the quarter ending March 31, 1999.
"The first quarter numbers are gratifying," said Robert L. Bailey, chairman, "especially in view of the industry's profitability struggles. As in the past, we do not intend to sacrifice profitability for market growth."
State Auto Financial Corporation is a regional property and casualty insurance holding company engaged primarily in writing personal and commercial automobile, homeowners, commercial multi-peril, workers' compensation and fire insurance. The Company currently markets its products through more than 13,100 agents associated with approximately 2,200 agencies in 26 states. Products are marketed primarily in the Midwest and Eastern United States, excluding New York, New Jersey and the New England states.
STFC has scheduled a conference call with industry analysts for Thursday, April 27, 10 AM to discuss the company's 2000 first quarter performance. A replay of this conversation, in its entirety, can be heard beginning at noon today by dialing 800-570-8790, pass code 8840. The replay will be available through May 11, 2000.
STATE AUTO FINANCIAL CORPORATION AND SUBSIDIARIES
Consolidated Statements of Income
(Figures in thousands, except per-share amounts)
(unaudited)
Quarter Ended
March 31
2000 1999
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Net premiums written $101,925 (a) $102,377 (a)
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Earned premiums 98,811 98,477
Net investment income 9,374 8,451
Management services income 4,404 2,184
Net realized gains (losses)
on investments 3,139 1,054
Other income 733 765
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Total revenue 116,461 110,931
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Income before federal
income taxes 18,584 14,661
Federal income taxes 4,901 3,781
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Net income $13,683 $10,880
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Net earnings per share:
- basic $0.35 $0.25
- diluted $0.35 $0.25
Net earnings per share
from operations (b):
- basic $0.30 $0.24
- diluted $0.30 $0.24
Weighted average shares
outstanding:
- basic 38,352 42,054
- diluted 38,837 42,850
Book value per share $8.72 $8.30
Dividends paid per share $0.028 $0.025
Total shares outstanding 38,369 42,058
GAAP ratios:
Loss ratio 65.0 67.5
Expense ratio 31.3 28.6
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Combined ratio 96.3 96.1
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(a) Net premiums written for the three months ended March 31,
2000 and 1999 includes $7,289,000 and $5,816,000 of unearned
premiums transferred in connection with the 1/1/2000 and
1/1/1999 pooling changes, respectively.
(b) Excludes net realized gains on investments, less applicable
federal income taxes.