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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

STFC stock data

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Calendar

10 Mar 21
13 Apr 21
31 Dec 21
Quarter (USD)
Dec 20 Sep 20 Jun 20 Mar 20
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD)
Dec 20 Dec 19 Dec 18 Dec 17
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS

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

Beta Read what these cash burn values mean

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

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 Prev Q Change
Total holders 93 90 +3.3%
Opened positions 14 12 +16.7%
Closed positions 11 10 +10.0%
Increased positions 29 29
Reduced positions 32 25 +28.0%
13F shares
Current Prev Q Change
Total value 342.5M 406.09M -15.7%
Total shares 14.72M 14.66M +0.4%
Total puts 0 0
Total calls 0 0
Total put/call ratio
Largest owners
Shares Value Change
TROW T. Rowe Price 3.68M $65.22M +7.5%
Dimensional Fund Advisors 2.11M $37.45M -1.7%
Victory Capital Management 2.01M $35.63M +28.1%
Vanguard 1.5M $26.55M -0.1%
BLK Blackrock 1.29M $22.83M -3.7%
STT State Street 358.75K $6.36M -0.3%
Geode Capital Management 277.87K $4.93M -6.7%
Norges Bank 258.46K $4.59M NEW
Heartland Advisors 250K $4.44M NEW
WFC Wells Fargo & Co. 234.34K $4.16M +5.4%
Largest transactions
Shares Bought/sold Change
Deprince Race & Zollo 0 -484.48K EXIT
Alliancebernstein 15.93K -463.66K -96.7%
Victory Capital Management 2.01M +440.71K +28.1%
Norges Bank 258.46K +258.46K NEW
TROW T. Rowe Price 3.68M +256.37K +7.5%
Heartland Advisors 250K +250K NEW
Thrivent Financial For Lutherans 0 -185.44K EXIT
Philadelphia Financial Management of San Francisco 153.17K +153.17K NEW
Russell Investments 0 -134.71K EXIT
FHI Federated Hermes 0 -129.2K EXIT

Financial report summary

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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
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