State Auto Financial Corporation said their net income for 2009 is $14.0 million in 2009. Their old net income was $12.9 million.
The new health care act now prevents companies from giving Medicare Part D subsidies to employees as prescription medication. The STFC imposed a one time tax fee of $4.5 million towards the health care act.
STFC’s nominal values of shares were $21.65 per share on March 31, 2010 and saw an increase on 0.6% from 2009.
STFC Chairman Bob Restrepo said “Our story for the quarter is one of underwriting profit, strong growth and improving return on equity. Underwriting results were helped by normal first quarter catastrophe results and improved performance in personal auto and commercial lines. Homeowners loss ratios remain stubbornly high, but we’re confident we have the pricing and underwriting actions in place to improve results and achieve profitability,”
“Over the past two months, I’ve met with more than 1,000 of our agencies. These meetings provide a unique forum for us to listen, learn and respond. We’re getting high marks for the products, systems, and claim service we’re providing and continuing to enhance. Pricing is a concern for agents, both in terms of the significant increases we’re taking in homeowners and our rates in the weak commercial lines environment. I remain impressed by the quality, depth and positive relationships our people have built over the years with our agency partners. Relationships are a core value for State Auto and a competitive strength — one that we seek to earn every day,” stated Restrepo.
“Personal Insurance led our first quarter growth, largely on the strength of price increases in standard personal auto and homeowners, excellent policy retention, and strong sales in four expansion states. Business Insurance growth remains constrained by continued pricing competition and a weak economy.” Restrepo said.
Ohio’s State Auto Financial Corporation is a company which is related with home and accident insurance policies. The SAFC is involved Trusted Choice(R) and is involved in 34 states with their own insurance agencies to promote sell and market polices with good effect. STFC stock is marketed on the NASDAQ Global Select Market which makes it one of the biggest companies in the country.
STFC will soon be talking about their performance in the first quarter this year with investor on April 29, 2010 on www.StateAuto.com. The call can also be heard at 1-800-765-7014 the following day onwards.