State Auto Financial (STFC) Misses Q3 EPS by 29c, Revenues Beat

State Auto Financial (NASDAQ: STFC) reported Q3 EPS of ($0.10), $0.29 worse than the analyst estimate of $0.19. Revenue for the quarter came in at $391.6 million versus the consensus estimate of $360.23 million.

• Quarterly income of $0.26 per share
• Quarterly net loss from operations1 of $0.10 per share
• Quarterly GAAP combined ratio of 106.0
• Quarterly SAP personal and commercial segments' combined ratio2 of 102.2
• Return on equity of (3.8)%
• Book value per share of $21.57

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

"While catastrophes had a significant impact on our third quarter 2020 results, we continue to feel very good about our continued progress toward consistent profitability and growth. Our digital transformation continued, with ongoing improvements to our State Auto Connect technology, including last month’s launch of our 15th and final product, workers’ compensation, on the platform. In five years we were able to transform all of our products onto an industry leading digital platform, a monumental achievement.

"I’m proud of the work of our Claims and Risk Engineering (CARE) professionals and customer service teams who continued to support our policyholders through some of the most difficult times in their lives. From the ongoing COVID-19 pandemic to civil unrest and severe weather, our CARE and Customer Service professionals once again delivered exceptional service.

"The SAP personal and commercial segments produced 9.2% net written premium growth during the third quarter, with a combined ratio of 102.2 that included 13.1 points of catastrophe losses. Personal lines produced 9.7% net written premium growth and a combined ratio of 111.5, including 15.8 points of catastrophe losses. Commercial lines’ 88.9 combined ratio included 9.3 points of catastrophe losses, and produced 8.3% net written premium growth.

"Due to catastrophic weather, our third quarter results fell short of expectations, but the passion and determination that fueled our turnaround still delivered an excellent quarter and will drive us toward growth and profitability in the quarters ahead."

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

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