COLUMBUS, Ohio -- June 27, 2001 -- State Auto Financial Corporation (Nasdaq:STFC) today announced that it anticipates Midwest storms during April will contribute $6 to $7 million in losses to the second quarter.
These claims are expected to reduce second quarter earnings per basic share by $0.10 to $0.12.
State Auto Chairman Robert H. Moone stated, "These April storms involved wind and water damage, but were primarily the result of hail. As is typical, hail damage claims are relatively slow to be reported, but we now feel comfortable with our assessment of the ultimate loss.
"While these storm losses will negatively impact our second quarter results, it is important to note that our non-property lines, such as private passenger auto and commercial coverages continue to perform at or above expected levels.
"We are also proud to report that, despite the widespread geographic area of these storms, our claims associates continue to provide the prompt, courteous service for which State Auto is known."
State Auto Financial Corporation is a regional property and casualty insurance holding company engaged primarily in writing personal and commercial automobile, homeowners, commercial multi-peril, workers' compensation and fire insurance. The company currently markets its products through more than 14,000 agents associated with approximately 2,200 agencies in 26 states. Products are marketed primarily in the Midwest and Eastern United States, excluding New York, New Jersey and the New England states.
Except for historical information, all other information in this news release consists of forward-looking statements within the meaning of the Private Securities Litigation Reform act of 1995. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected, anticipated or implied. The most significant of these uncertainties are described in State Auto Financial's Form 10-K and Form 10-Q reports and exhibits to those reports, and include (but are not limited to) legislative changes at both the state and federal level, state and federal regulatory rule making promulgations and adjudications, class action litigation involving the insurance industry and judicial decisions affecting claims, policy coverage and the general costs of doing business, the impact of competition on products and pricing, inflation in the costs of the products and services insurance pays for, product development, geographic spread of risk, weather and weather-related events, and other types of catastrophic events. State Auto Financial undertakes no obligation to update or revise any forward-looking statements.