This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

State Auto Financial Reports Fourth Quarter And Year 2011 Results

State Auto Financial Corporation (NASDAQ: STFC) today reported fourth quarter 2011 net income of $100.6 million, or $2.49 per diluted share, versus $37.6 million, or $0.94 per diluted share, for the fourth quarter of 2010. Net income from operations* per diluted share for the fourth quarter 2011 was $2.30, versus $0.78 for the same 2010 period.

STFC’s GAAP combined ratio for the fourth quarter 2011 was 94.0 versus 97.6 for the fourth quarter of 2010. Catastrophe losses during the fourth quarter of 2011, including prior accident period development, favorably impacted the 59.7 loss ratio by 0.5 points, or $1.8 million. For the same 2010 period, catastrophe losses accounted for 2.3 points of the total 62.6 loss ratio points, or $7.7 million.

As previously reported, the State Auto Group implemented capital management actions at the end of 2011 to improve and better manage the capital position of STFC. First, the intercompany reinsurance pooling agreement was amended to reduce the overall participation percentage of the STFC insurance subsidiaries from 80% to 65% including pooling other comprehensive income related to employee benefit plans. Second, the State Auto Group entered into a three-year quota share reinsurance agreement with a syndicate of reinsurers covering its homeowners’ book of business. Third, retiree health care benefits for most active employees and certain retirees were terminated.

STFC’s book value was $18.81 per share as of Dec. 31, 2011, an increase of $3.87 per share from STFC’s book value on Sept. 30, 2011, and a decrease of $2.42 per share from Dec. 31, 2010. Net income combined with other comprehensive income for the quarter significantly impacted the book value per share increase. Other comprehensive income benefited from improved investment valuations, termination of retiree health care benefits and pooling of other comprehensive income for employee benefit plans, offset by the annual remeasurement of employee benefit plan obligations at Dec. 31. Book value per share as of Dec. 31, 2011, is reduced by $2.26 for a deferred tax asset valuation allowance. Return on stockholders’ equity for the year ended Dec. 31, 2011, was negative 18.2% compared to 2.9% for same period in 2010.

1 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $95.03 0.21%
FB $116.73 0.00%
GOOG $691.02 0.00%
TSLA $247.54 -0.07%
YHOO $36.59 0.00%


Chart of I:DJI
DOW 17,830.76 -210.79 -1.17%
S&P 500 2,075.81 -19.34 -0.92%
NASDAQ 4,805.2910 -57.85 -1.19%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs