State Auto Financial Reports First Quarter 2007 Results

State Auto Financial Reports First Quarter 2007 Results

State Auto Financial Corporation (NASDAQ:STFC) today reported first quarter 2007 net income of $30.8 million, or $0.74 per diluted share, versus $40.2 million, or $0.97 per diluted share, for the first quarter of 2006. Net income from operations(a) per diluted share for the first quarter 2007 was $0.72, versus $0.98 for the same 2006 period.

STFC’s GAAP combined ratio for the quarter was 91.3 versus 83.9 for the first quarter of 2006. Catastrophe losses accounted for 3.2 points of the total 56.8 loss ratio points, or $8.1 million, during the first quarter this year, compared to 3.7 points of the total 49.7 loss ratio points, or $9.6 million, for the same period in 2006. STFC’s first quarter 2007 revenue was $275.5 million versus $276.8 million for the same period in 2006. STFC’s book value per share increased to a new high of $20.94 per share as of March 31, 2007. Return on stockholders’ equity for the twelve months ended March 31, 2007 was 13.4% compared to 17.0% for the twelve months ended March 31, 2006.

“I am pleased to report another strong quarter of performance to our shareholders. Both personal and business insurance segments produced solid results during the first quarter of 2007 and contributed to our fine 91.3 combined ratio,” said STFC Chairman, President and CEO Bob Restrepo.

“In this very competitive market, our auto policies in force have increased since year end 2006 and our overall production numbers are trending upward. We continue to roll out products, systems and services that are consistent with our commitment to make it easier for our agents to do business with us. These advancements are designed to grow the company, and grow it profitably. We are hopeful the momentum we have seen, through the first quarter, will continue throughout the remainder of 2007,” added Restrepo.

State Auto Financial Corporation, headquartered in Columbus, Ohio, is a super regional property and casualty insurance holding company. STFC stock is traded on the NASDAQ Global Select Market, which represents the top third of all NASDAQ-listed companies. The company markets its personal and business insurance products exclusively through independent insurance agencies in 29 states and is proud to be a Trusted Choice(R) company partner. The company is one of just 3 percent of publicly listed companies to earn the 2006 Mergent Dividend Achiever Award for having increased its dividends for ten or more years in succession.