State Auto Financial (STFC) Tops Q2 EPS by 17c, Revenues Beat

State Auto Financial (NASDAQ: STFC) reported Q2 EPS of ($0.59), $0.17 better than the analyst estimate of ($0.76). Revenue for the quarter came in at $434.8 million versus the consensus estimate of $342.93 million.

• Quarterly income of $0.74 per share
• Quarterly net loss from operations1 of $0.59 per share
• Quarterly GAAP combined ratio of 114.7
• Quarterly SAP personal and commercial segments' combined ratio2 of 111.5
• Return on equity of (3.9)%
• Book value per share of $21.26

STFC’s Chairman, President and CEO Mike LaRocco commented on the quarter as follows:

"During the second quarter, the State Auto team once again demonstrated our critical role in supporting our customers in their greatest times of need. From the ongoing COVID-19 pandemic to civil unrest and severe weather, our Claims and Risk Engineering (CARE) and Customer Service professionals once again delivered exceptional service.

"In personal lines, overall net written premium growth of 10% included 24% growth in our homeowners business. In personal auto, we continued the rollout of new rates that are being very well received by agents and customers. In commercial lines, every line other than workers’ compensation grew, with overall net written premium growth of 14.7%.

"The combined ratio for our ongoing lines of business of 111.5, which included an unusually high level of catastrophe losses of 26.5 points, was disappointing, but reflects the nature of our business. I’m pleased that our non-cat performance showed good improvement at a 44.7. While we continue to see validation of our strategy through strong written premium growth of 11.9%, we know we must deliver consistent profitability. That remains our focus."

For earnings history and earnings-related data on State Auto Financial (STFC) click here.

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