State Auto Financial Corporation (Nasdaq:STFC) today reported a second quarter 2013 net income of $6.2 million, or $0.15 per diluted share, versus a net loss of $2.7 million, or $0.07 per diluted share, for the second quarter of 2012. Net income from operations 1 per diluted share for the second quarter 2013 was $0.13 versus net loss from operations 1 of $0.18 for the same 2012 period. STFC’s GAAP combined ratio for the second quarter 2013 was 103.6 versus 110.4 for the second quarter of 2012. Catastrophe losses, net of reinsurance recoveries, for the second quarter 2013 accounted for 8.1 points of the 70.6 total loss ratio points, or $21.2 million, versus 13.2 points of the total 78.1 loss ratio points, or $34.0 million, for the same period in 2012. The State Auto Group’s homeowners quota share reinsurance arrangement reduced STFC’s underwriting loss by $3.3 million or 0.6 points on the combined ratio. Pursuant to the arrangement, STFC ceded $49.4 million of written premium, $43.5 million of earned premium, $12.2 million of catastrophe losses and $22.0 million of non-catastrophe losses, and recognized $12.6 million of ceded commissions. This cession reduced STFC’s overall catastrophe loss ratio 2.8 points, increased the overall non-catastrophe loss ratio 1.6 points and increased the overall expense ratio 0.6 points. Net written premium for the second quarter of 2013 increased 5.8% over the same period in 2012. By segment, net written premium for the second quarter of 2013 increased 0.4% for personal insurance, 10.5% for business insurance and 9.9% for specialty insurance from the same period in 2012. Personal insurance segment growth was driven by price. Business insurance segment growth was principally driven by higher average new business premium, increased renewal pricing and a recovering economy. Specialty insurance segment growth was driven by the growth in our Excess & Surplus property and casualty units.