STFC State Auto Financial

State Auto Financial Corp. is a property and casualty insurance holding company, which engages in the provision of insurance services. It operates through the following segments: Personal Insurance, Commercial Insurance, and Investment Operations. The Personal Insurance segment comprises personal auto, homeowners, and other personal insurance. The Commercial Insurance segment covers commercial auto, small commercial package, middle market commercial, workers compensation, farm and ranch, and other commercial. The Investment Operations segment provides investment services and is evaluated based on investment returns of assets. The company was founded in 1990 and is headquartered in Columbus, OH.
Company profile
Ticker
STFC
Exchange
Website
CEO
Michael E. LaRocco
Employees
Incorporated
Location
Fiscal year end
Industry (SIC)
SEC CIK
Corporate docs
IRS number
311324304
STFC stock data
()
Press releases
State Auto Financial Reports Impact of Storm Activity
8 Apr 21
State Auto Financial Announces First Quarter 2021 Earnings Conference Call
7 Apr 21
State Auto Financial Declares 119th Consecutive Quarterly Dividend
5 Mar 21
State Auto Financial Corp. to Host Earnings Call
18 Feb 21
State Auto Financial Reports Fourth Quarter and Year End 2020 Results
18 Feb 21
Calendar
10 Mar 21
13 Apr 21
31 Dec 21
Financial summary
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Dec 20 | Sep 20 | Jun 20 | Mar 20 | |
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Annual (USD) |
Dec 20 | Dec 19 | Dec 18 | Dec 17 | |
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Financial data from company earnings reports.
Cash burn rate (estimated) | Burn method: Change in cash | Burn method: Operating income/loss | Burn method: FCF (opex + capex) | Last Q | Avg 4Q | Last Q | Avg 4Q | Last Q | Avg 4Q |
---|---|---|---|---|---|---|
Cash on hand (at last report) | 90.7M | 90.7M | 90.7M | 90.7M | 90.7M | 90.7M |
Cash burn (monthly) | 13.57M | (positive/no burn) | (positive/no burn) | (positive/no burn) | (positive/no burn) | (positive/no burn) |
Cash used (since last report) | 46.62M | n/a | n/a | n/a | n/a | n/a |
Cash remaining | 44.08M | n/a | n/a | n/a | n/a | n/a |
Runway (months of cash) | 3.2 | n/a | n/a | n/a | n/a | n/a |
Recent insider trades
Date | Owner | Security | Transaction | Code | Indirect | 10b5-1 | $Price | #Shares | $Value | #Remaining |
---|---|---|---|---|---|---|---|---|---|---|
4 Mar 21 | Michael Larocco | Common Shares without Par Value | Grant | Aquire A | No | No | 17.48 | 8,200 | 143.34K | 190,039.15 |
2 Mar 21 | Melissa A Centers | Common Shares without Par Value | Sell | Dispose S | No | No | 17.39 | 1,586 | 27.58K | - |
2 Mar 21 | Melissa A Centers | Common Shares without Par Value | Option exercise | Aquire M | No | No | 17.03 | 1,586 | 27.01K | - |
2 Mar 21 | Melissa A Centers | Employee Stock Option Right to Buy (NQ) Common Shares | Option exercise | Dispose M | No | No | 17.03 | 1,586 | 27.01K | 0 |
24 Feb 21 | Melissa A Centers | Common Shares without Par Value | Payment of exercise | Dispose F | No | No | 17.01 | 1,047 | 17.81K | 22,243.844 |
24 Feb 21 | Melissa A Centers | Common Shares without Par Value | Grant | Aquire A | No | No | 17.01 | 3,126 | 53.17K | 23,290.844 |
24 Feb 21 | Jason Earl Berkey | Common Shares without par value | Grant | Aquire A | No | No | 17.01 | 3,417 | 58.12K | 23,352.45 |
Institutional ownership Q4 2020
Data for the last complete 13F reporting period. To see the most recent changes to ownership, click the ownership history button above.
33.6% owned by funds/institutions
13F holders |
Current |
---|---|
Total holders | 93 |
Opened positions | 14 |
Closed positions | 11 |
Increased positions | 29 |
Reduced positions | 32 |
13F shares |
Current |
---|---|
Total value | 342.5M |
Total shares | 14.72M |
Total puts | 0 |
Total calls | 0 |
Total put/call ratio | – |
Largest owners |
Shares | Value |
---|---|---|
TROW T. Rowe Price | 3.68M | $65.22M |
Dimensional Fund Advisors | 2.11M | $37.45M |
Victory Capital Management | 2.01M | $35.63M |
Vanguard | 1.5M | $26.55M |
BLK Blackrock | 1.29M | $22.83M |
STT State Street | 358.75K | $6.36M |
Geode Capital Management | 277.87K | $4.93M |
Norges Bank | 258.46K | $4.59M |
Heartland Advisors | 250K | $4.44M |
WFC Wells Fargo & Co. | 234.34K | $4.16M |
Financial report summary
?Risks
- A downgrade in our financial strength ratings may negatively affect our business and reputation and a downgrade in our credit rating could negatively affect the cost and availability of debt financing.
- There can be no assurance that we will continue to pay cash dividends consistent with current or past levels.
- TECHNOLOGY AND TELECOMMUNICATION SYSTEMS
- Our business success and profitability depend, in part, on effective information technology and telecommunication systems. If we are unable to keep pace with the rapidly developing technological advancements in the insurance industry, our ability to compete effectively could be impaired.
- If we experience difficulties with outsourcing or other third party relationships, our ability to conduct business might be negatively impacted.
- Our independent agents, who are part of the independent agency distribution channel, are our sole distribution method for our personal and commercial insurance products. Our exclusive use of such distribution may constrain our ability to grow at a comparable pace to our competitors that utilize multiple distribution channels. In addition, consumers may prefer to purchase insurance products through other means, such as the internet, rather than through agents.
- The insurance marketplace is evolving and independent insurance agency distribution systems are growing rapidly. Our success depends on our ability and our independent agents’ ability to react to these changes.
- CONTROL BY OUR PARENT COMPANY
- State Auto Mutual owns a significant interest in us and may exercise its control in a manner detrimental to the interests of other STFC shareholders.
- If our estimated liability for losses and loss expenses is incorrect, our loss reserves may be inadequate to cover our ultimate liability for losses and loss expenses and may have to be increased.
- CATASTROPHE LOSSES AND GEOGRAPHIC CONCENTRATIONS
- The occurrence of catastrophic events could cause volatility in our results of operations and could materially reduce our level of profitability and adversely affect our liquidity and financial position.
- Our financial results depend primarily on our ability to underwrite risks effectively and to charge adequate rates to policyholders.
- Loss of key vendor relationships or failure of a vendor to perform as anticipated or to protect personal information of our customers, claimants or employees could negatively affect our operations.
- Our highly automated and networked organization is subject to cyberterrorism and a variety of other cybersecurity threats. These threats come in a variety of forms, such as viruses and malicious software. Such threats can be difficult to prevent or detect, and if experienced, could interrupt or damage our operations, harm our reputation or have a material adverse effect on our operations.
- Privacy protection requirements for consumers are expanding from simply protecting personal information to a more consumer-driven model that allows individuals in some respects to control a company's ongoing storage and use of their personal information. Our failure to comply with such privacy laws could have an adverse effect on our business.
- Our business depends on the uninterrupted operation of our facilities, systems and business functions, including our information technology, telecommunications and other business systems. Our business continuity and disaster recovery plans may not sufficiently address all contingencies.
- Reinsurance may not be available, collectible or adequate to protect us against losses, or may cause us to constrain the amount of business we underwrite in certain lines of business and locations.
- CYCLICAL NATURE OF THE INDUSTRY
- The property and casualty insurance industry is cyclical, which may cause fluctuations in our operating results.
- Economic conditions may adversely affect our business.
- Adverse capital and credit market conditions may negatively affect our ability to meet unexpected liquidity needs or to obtain credit on acceptable terms.
- Our business is heavily regulated, and changes in regulation may reduce our profitability and limit our growth.
- Tax legislation initiatives or challenges to our tax positions could adversely affect our results of operations and financial condition.
- CLAIM AND COVERAGE DEVELOPMENTS
- Developing claim and coverage issues in our industry are uncertain and may adversely affect our insurance operations.
- We may suffer losses from litigation, which could materially and adversely affect our operating results or cash flows and financial condition.
- Terrorist attacks, and the threat of terrorist attacks, and ensuing events could have an adverse effect on us.
- The performance of our investment portfolios is subject to various investment risks, such as market, credit, concentration, liquidity, and interest rate risks. Such risks could result in material adverse effects to our results of operations, cash flows and financial position.
- Our ability to attract, develop and retain talented employees, managers and executives, and to maintain appropriate staffing levels, is critical to our success, as is our ability to effectively plan for the succession and transition of key executives and subject matter experts.
- Changes in U.S. immigration policies and laws could impact our ability to hire and retain foreign national employees working under visas, which could adversely affect our operations.
- Our industry is highly competitive, which could adversely affect our sales and profitability.
- CHANGES IN ACCOUNTING STANDARDS
- Changes in accounting standards issued by the FASB or other standard-setting bodies may adversely affect our results of operations and financial condition.
Management Discussion
- Beginning in March 2020, the global COVID-19 pandemic has impacted our results of operations. For the year ended December 31, 2020, the impact on the non-cat loss and ALAE current accident year included:
- •Increased legal defense costs in small commercial package and middle market commercial due to litigation involving business interruption insurance claims.
- •Net investment gain was $27.3 million which included $31.8 million of recognized net losses on equity securities sold during the year. During the third quarter, we completed the exit of our investments in the Master Limited Partnership Exchange Traded Funds ("MLP ETF's") equity security asset class and recognized net investment losses of $35.1 million. The decline in the fair value of the investments in the MLP ETFs during 2020 was in part
Content analysis
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H.S. sophomore Avg
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New words:
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Financial reports
10-K
2020 FY
Annual report
10 Mar 21
10-Q
2020 Q3
Quarterly report
6 Nov 20
10-Q
2020 Q2
Quarterly report
7 Aug 20
10-Q
2020 Q1
Quarterly report
7 May 20
10-K
2019 FY
Annual report
27 Feb 20
10-Q
2019 Q3
Quarterly report
1 Nov 19
10-Q
2019 Q2
Quarterly report
2 Aug 19
10-Q
2019 Q1
Quarterly report
3 May 19
10-K
2018 FY
Annual report
15 Mar 19
10-Q
2018 Q3
Quarterly report
5 Nov 18
Current reports
8-K
Results of Operations and Financial Condition
9 Apr 21
8-K
Entry into a Material Definitive Agreement
6 Apr 21
8-K
Departure of Directors or Certain Officers
1 Mar 21
8-K
Results of Operations and Financial Condition
18 Feb 21
8-K
Departure of Directors or Certain Officers
25 Nov 20
8-K
Results of Operations and Financial Condition
5 Nov 20
8-K
Triggering Events That Accelerate or Increase a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement
7 Oct 20
8-K
Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant
4 Sep 20
8-K
Results of Operations and Financial Condition
6 Aug 20
8-K
Results of Operations and Financial Condition
21 Jul 20
Registration and prospectus
S-8
Registration of securities for employees
5 Aug 19
15-15D
Suspension of duty to report
19 Jun 18
S-8 POS
Registration of securities for employees (post-effective amendment)
19 Jun 18
S-8
Registration of securities for employees
27 Feb 18
S-8 POS
Registration of securities for employees (post-effective amendment)
27 Feb 18
S-8
Registration of securities for employees
6 Nov 16
S-8
Registration of securities for employees
6 Nov 16
424B2
Prospectus for primary offering
4 Apr 16
S-3/A
Shelf registration (amended)
27 Mar 16
S-3
Shelf registration
1 Mar 16
Proxies
DEFA14A
Additional proxy soliciting materials
1 Apr 21
DEF 14A
Definitive proxy
31 Mar 21
DEFA14A
Additional proxy soliciting materials
25 Mar 20
DEF 14A
Definitive proxy
24 Mar 20
DEFA14A
Additional proxy soliciting materials
22 Mar 19
DEF 14A
Definitive proxy
22 Mar 19
DEF 14A
Definitive proxy
25 Mar 18
DEFA14A
Additional proxy soliciting materials
25 Mar 18
DEF 14A
Definitive proxy
21 Mar 17
DEFA14A
Additional proxy soliciting materials
21 Mar 17
Other
CORRESP
Correspondence with SEC
3 Apr 16
EFFECT
Notice of effectiveness
3 Apr 16
CORRESP
Correspondence with SEC
27 Mar 16
UPLOAD
Letter from SEC
16 Mar 16
UPLOAD
Letter from SEC
18 Nov 14
CORRESP
Correspondence with SEC
30 Oct 14
CORRESP
Correspondence with SEC
2 Oct 14
UPLOAD
Letter from SEC
1 Oct 14
CORRESP
Correspondence with SEC
15 Sep 14
CORRESP
Correspondence with SEC
18 Aug 14
Ownership
11-K
Annual report of employee stock purchases
25 Mar 21
3
State Auto Financial / Peter B. Migliorato ownership change
18 Mar 21
4
State Auto Financial / MICHAEL LAROCCO ownership change
8 Mar 21
4
State Auto Financial / MELISSA A CENTERS ownership change
3 Mar 21
4
State Auto Financial / Paul M Stachura ownership change
25 Feb 21
4
State Auto Financial / Gregory A Tacchetti ownership change
25 Feb 21
4
State Auto Financial / Elise Marie Spriggs ownership change
25 Feb 21
4
State Auto Financial / Matthew Robert Pollak ownership change
25 Feb 21
4
State Auto Financial / Matthew Stanley Mrozek ownership change
25 Feb 21
4
State Auto Financial / MICHAEL LAROCCO ownership change
25 Feb 21
Transcripts
2020 Q4
Earnings call transcript
19 Feb 21
2020 Q3
Earnings call transcript
7 Nov 20
2020 Q2
Earnings call transcript
9 Aug 20
2020 Q1
Earnings call transcript
12 May 20
2019 Q4
Earnings call transcript
20 Feb 20
2019 Q3
Earnings call transcript
4 Nov 19
2019 Q2
Earnings call transcript
4 Aug 19
2019 Q1
Earnings call transcript
5 May 19
2018 Q4
Earnings call transcript
15 Feb 19
2018 Q3
Earnings call transcript
1 Nov 18
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