State Auto Financial Corp. (STFC) said Monday that it estimates third quarter results will include between $6.5 million and $7.5 million in pre-tax net catastrophe losses.
During the quarter ended September 30, six catastrophe events in the United States were identified by Property Claim Services.
The company also said that loss and loss expense reserves for prior periods will be increased between $19.0 million and $21.0 million on program business written by Risk Evaluation & Design LLC, a wholly owned subsidiary of State Automobile Mutual Insurance Co. The reserve increases relate mainly to a large commercial auto trucking program that was cancelled as of April 1, 2012.
State Auto Financial President and CEO Bob Restrepo said, "We're pleased that third quarter results will reflect significantly lower levels of property catastrophe losses compared both to last year and our average five-year, third quarter catastrophe loss ratio of 10.6%. At the same time, we're very disappointed in the performance of the program business underwritten by RED."
State Auto Financial expects to release its third quarter results on November 6.
For comments and feedback: editorial@rttnews.com