State Auto 3Q Profit Up 165% Over Year-Earlier

October 28, 2003

Columbus, Ohio-based insurer State Auto Financial Corp. (STFC) reported third-quarter net income increased to $15.5 million, or 38 cents per diluted share, versus $5.8 million, or 15 cents per diluted share for the same period 2002 — an increase of 165 percent. Net operating earnings per share were 36 cents diluted, versus 14 cents diluted, for the same period 2002.

STFC’s GAAP combined ratio for the third quarter was 97.6 versus 103.8 for the third quarter of 2002. Catastrophe losses contributed a total of 6.9 points to the loss ratio during the quarter. STFC’s third quarter revenue was $265.1 million, up 7.3 percent from $246.9 million. Third- quarter net premiums written increased 5.1 percent over the third quarter of 2002.

Revenue for the first nine months 2003 was $781.6 million, up 9.6 percent from $713.1 million. For the first nine months of 2003, net income was $44.9 million, or $1.12 per diluted share, compared with $17.6 million, or 44 cents per diluted share for the same 2002 period. Year to date GAAP combined ratio for 2003 stands at 98.9 compared to 103.7 for 2002. STFC shareholders’ book value per share has increased by 10.3 percent during the first nine months of 2003 to $13.12 per share.

STFC offers both personal and commercial lines through more than 3,400 agencies in 26 central and eastern states.

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