|
|
|
ý
|
Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|
¨
|
Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|
Ohio
|
|
31-1324304
|
(State or other jurisdiction of
incorporation or organization)
|
|
(I.R.S. Employer
Identification No.)
|
|
|
|
518 East Broad Street, Columbus, Ohio
|
|
43215-3976
|
(Address of principal executive offices)
|
|
(Zip Code)
|
Large accelerated filer
¨
|
Accelerated filer
ý
|
Non-accelerated filer
¨
|
|
|
|
|
|
|
|
Item 1.
|
|
|
|
||
|
||
|
||
|
||
|
||
|
||
|
||
Item 2.
|
||
Item 3.
|
||
Item 4.
|
||
|
|
|
|
|
|
Item 1.
|
||
Item 1A.
|
||
Item 2.
|
||
Item 4.
|
||
Item 5.
|
||
Item 6.
|
||
|
|
($ and shares in millions, except per share amounts)
|
September 30, 2015
|
|
December 31, 2014
|
||||
|
(unaudited)
|
|
|
||||
Assets
|
|
|
|
||||
Fixed maturities, available-for-sale, at fair value
(amortized cost $1,938.9 and $1,831.3, respectively)
|
$
|
1,979.6
|
|
|
$
|
1,891.9
|
|
Equity securities, available-for-sale, at fair value
(cost $266.1 and $235.5, respectively)
|
298.0
|
|
|
310.4
|
|
||
Other invested assets, available-for-sale, at fair value
(cost $56.6 and $50.5, respectively)
|
82.8
|
|
|
80.3
|
|
||
Other invested assets
|
5.3
|
|
|
5.3
|
|
||
Notes receivable from affiliate
|
70.0
|
|
|
70.0
|
|
||
Total investments
|
2,435.7
|
|
|
2,357.9
|
|
||
Cash and cash equivalents
|
50.9
|
|
|
86.3
|
|
||
Accrued investment income and other assets
|
38.7
|
|
|
33.8
|
|
||
Deferred policy acquisition costs (affiliated net assumed $51.8 and $46.8, respectively)
|
134.0
|
|
|
126.5
|
|
||
Reinsurance recoverable on losses and loss expenses payable
|
7.7
|
|
|
9.6
|
|
||
Prepaid reinsurance premiums
|
6.8
|
|
|
6.1
|
|
||
Due from affiliate
|
21.9
|
|
|
40.1
|
|
||
Current federal income taxes
|
0.3
|
|
|
1.1
|
|
||
Net deferred federal income taxes
|
104.0
|
|
|
97.4
|
|
||
Property and equipment, at cost
|
7.7
|
|
|
8.1
|
|
||
Total assets
|
$
|
2,807.7
|
|
|
$
|
2,766.9
|
|
Liabilities and Stockholders’ Equity
|
|
|
|
||||
Losses and loss expenses payable (affiliated net assumed $506.5 and $494.3, respectively)
|
$
|
1,021.5
|
|
|
$
|
983.2
|
|
Unearned premiums (affiliated net assumed $220.4 and $201.7, respectively)
|
637.5
|
|
|
612.4
|
|
||
Notes payable (affiliates $15.5 and $15.5, respectively)
|
100.8
|
|
|
100.8
|
|
||
Postretirement and pension benefits (affiliated net ceded $58.4 and $63.2, respectively)
|
108.6
|
|
|
117.3
|
|
||
Other liabilities (affiliated net ceded $6.8 and $5.1, respectively)
|
64.0
|
|
|
80.3
|
|
||
Total liabilities
|
1,932.4
|
|
|
1,894.0
|
|
||
Stockholders’ equity:
|
|
|
|
||||
Class A Preferred stock (nonvoting), without par value. Authorized 2.5 shares; none issued
|
—
|
|
|
—
|
|
||
Class B Preferred stock, without par value. Authorized 2.5 shares; none issued
|
—
|
|
|
—
|
|
||
Common stock, without par value. Authorized 100.0 shares; 47.9 and 47.7 shares issued, respectively, at stated value of $2.50 per share
|
119.9
|
|
|
119.3
|
|
||
Treasury stock, 6.8 and 6.8 shares, respectively, at cost
|
(116.3
|
)
|
|
(116.0
|
)
|
||
Additional paid-in capital
|
149.8
|
|
|
143.2
|
|
||
Accumulated other comprehensive income (affiliated net ceded $61.0 and $65.1, respectively)
|
31.4
|
|
|
71.7
|
|
||
Retained earnings
|
690.5
|
|
|
654.7
|
|
||
Total stockholders’ equity
|
875.3
|
|
|
872.9
|
|
||
Total liabilities and stockholders’ equity
|
$
|
2,807.7
|
|
|
$
|
2,766.9
|
|
|
|
|
|
|
($ in millions, except per share amounts)
|
Three months ended September 30
|
||||||
(unaudited)
|
2015
|
|
2014
|
||||
Earned premiums (affiliated net assumed $112.2 and $55.0, respectively)
|
$
|
319.7
|
|
|
$
|
270.2
|
|
Net investment income (affiliated $1.3 and $1.3, respectively)
|
18.7
|
|
|
18.9
|
|
||
Net realized gains on investments:
|
|
|
|
||||
Total other-than-temporary impairment losses
|
(3.5
|
)
|
|
(1.1
|
)
|
||
Portion of loss recognized in other comprehensive income
|
—
|
|
|
—
|
|
||
Other net realized investment gains
|
14.3
|
|
|
2.7
|
|
||
Total net realized gains on investments
|
10.8
|
|
|
1.6
|
|
||
Other income from affiliates
|
0.5
|
|
|
0.6
|
|
||
Total revenues
|
349.7
|
|
|
291.3
|
|
||
|
|
|
|
||||
Losses and loss expenses (affiliated net assumed $67.4 and $53.6, respectively)
|
207.5
|
|
|
184.4
|
|
||
Acquisition and operating expenses (affiliated net assumed $52.8 and $36.3, respectively)
|
109.4
|
|
|
91.4
|
|
||
Interest expense (affiliated $0.1 and $0.2, respectively)
|
1.3
|
|
|
1.4
|
|
||
Other expenses
|
1.6
|
|
|
1.0
|
|
||
Total expenses
|
319.8
|
|
|
278.2
|
|
||
Income before federal income taxes
|
29.9
|
|
|
13.1
|
|
||
Federal income tax expense:
|
|
|
|
||||
Current
|
2.7
|
|
|
1.2
|
|
||
Deferred
|
6.5
|
|
|
—
|
|
||
Total federal income tax expense
|
9.2
|
|
|
1.2
|
|
||
Net income
|
$
|
20.7
|
|
|
$
|
11.9
|
|
Earnings per common share:
|
|
|
|
||||
Basic
|
$
|
0.50
|
|
|
$
|
0.29
|
|
Diluted
|
$
|
0.50
|
|
|
$
|
0.28
|
|
Dividends paid per common share
|
$
|
0.10
|
|
|
$
|
0.10
|
|
|
|
|
|
|
($ in millions, except per share amounts)
|
Nine months ended September 30
|
||||||
(unaudited)
|
2015
|
|
2014
|
||||
Earned premiums (affiliated net assumed $320.5 and $153.6, respectively)
|
$
|
946.5
|
|
|
$
|
801.0
|
|
Net investment income (affiliate $3.7 and $3.7, respectively)
|
53.9
|
|
|
57.0
|
|
||
Net realized gains on investments:
|
|
|
|
||||
Total other-than-temporary impairment losses
|
(4.8
|
)
|
|
(2.3
|
)
|
||
Portion of loss recognized in other comprehensive income
|
—
|
|
|
—
|
|
||
Other net realized investment gains
|
24.8
|
|
|
19.9
|
|
||
Total net realized gains on investments
|
20.0
|
|
|
17.6
|
|
||
Other income from affiliates
|
1.6
|
|
|
1.4
|
|
||
Total revenues
|
1,022.0
|
|
|
877.0
|
|
||
|
|
|
|
||||
Losses and loss expenses (affiliated net assumed $200.9 and $131.6, respectively)
|
627.1
|
|
|
546.6
|
|
||
Acquisition and operating expenses (affiliated net assumed $188.9 and $117.5, respectively)
|
318.7
|
|
|
277.2
|
|
||
Interest expense (affiliates $0.5 and $0.5, respectively)
|
4.0
|
|
|
4.0
|
|
||
Other expenses
|
5.7
|
|
|
5.3
|
|
||
Total expenses
|
955.5
|
|
|
833.1
|
|
||
Income before federal income taxes
|
66.5
|
|
|
43.9
|
|
||
Federal income tax expense:
|
|
|
|
||||
Current
|
3.3
|
|
|
1.9
|
|
||
Deferred
|
15.1
|
|
|
—
|
|
||
Total federal income tax expense
|
18.4
|
|
|
1.9
|
|
||
Net income
|
$
|
48.1
|
|
|
$
|
42.0
|
|
Earnings per common share:
|
|
|
|
||||
Basic
|
$
|
1.17
|
|
|
$
|
1.03
|
|
Diluted
|
$
|
1.16
|
|
|
$
|
1.02
|
|
Dividends paid per common share
|
$
|
0.30
|
|
|
$
|
0.30
|
|
|
|
|
|
|
($ in millions, except per share amounts)
|
Three months ended September 30
|
||||||
(unaudited)
|
2015
|
|
2014
|
||||
Net income
|
$
|
20.7
|
|
|
$
|
11.9
|
|
Other comprehensive (loss) income, net of tax:
|
|
|
|
||||
Net unrealized holding (losses) gains on investments:
|
|
|
|
||||
Unrealized holding (losses) gains
|
(24.5
|
)
|
|
(16.3
|
)
|
||
Reclassification adjustments for gains realized in net income
|
(10.8
|
)
|
|
(1.6
|
)
|
||
Income tax benefit (expense)
|
12.4
|
|
|
(0.6
|
)
|
||
Total net unrealized holding losses on investments
|
(22.9
|
)
|
|
(18.5
|
)
|
||
Net unrecognized benefit plan obligations:
|
|
|
|
||||
Reclassification adjustments for amortization to statements of income:
|
|
|
|
||||
Negative prior service cost
|
(1.3
|
)
|
|
(1.3
|
)
|
||
Net actuarial loss
|
2.8
|
|
|
1.6
|
|
||
Income tax expense
|
(0.6
|
)
|
|
—
|
|
||
Total net unrecognized benefit plan obligations
|
0.9
|
|
|
0.3
|
|
||
Other comprehensive loss
|
(22.0
|
)
|
|
(18.2
|
)
|
||
Comprehensive loss
|
$
|
(1.3
|
)
|
|
$
|
(6.3
|
)
|
|
|
|
|
|
($ in millions, except per share amounts)
|
Nine months ended September 30
|
||||||
(unaudited)
|
2015
|
|
2014
|
||||
Net income
|
$
|
48.1
|
|
|
$
|
42.0
|
|
Other comprehensive (loss) income, net of tax:
|
|
|
|
||||
Net unrealized holding (losses) gains on investments:
|
|
|
|
||||
Unrealized holding (losses) gains
|
(46.1
|
)
|
|
41.6
|
|
||
Reclassification adjustments for gains realized in net income
|
(20.4
|
)
|
|
(17.6
|
)
|
||
Income tax benefit (expense)
|
23.3
|
|
|
(8.3
|
)
|
||
Total net unrealized holding (losses) gains on investments
|
(43.2
|
)
|
|
15.7
|
|
||
Net unrecognized benefit plan obligations:
|
|
|
|
||||
Net actuarial loss arising during period
|
—
|
|
|
(1.6
|
)
|
||
Reclassification adjustments for amortization to statements of income:
|
|
|
|
||||
Negative prior service cost
|
(4.1
|
)
|
|
(4.1
|
)
|
||
Net actuarial loss
|
8.6
|
|
|
5.4
|
|
||
Income tax expense
|
(1.6
|
)
|
|
—
|
|
||
Total net unrecognized benefit plan obligations
|
2.9
|
|
|
(0.3
|
)
|
||
Other comprehensive (loss) income
|
(40.3
|
)
|
|
15.4
|
|
||
Comprehensive income
|
$
|
7.8
|
|
|
$
|
57.4
|
|
|
|
|
|
|
($ in millions)
|
Nine months ended September 30
|
||||||
(unaudited)
|
2015
|
|
2014
|
||||
Cash flows from operating activities:
|
|
|
|
||||
Net income
|
$
|
48.1
|
|
|
$
|
42.0
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Depreciation and amortization, net
|
10.8
|
|
|
6.6
|
|
||
Share-based compensation
|
5.1
|
|
|
2.7
|
|
||
Net realized gains on investments
|
(20.0
|
)
|
|
(17.6
|
)
|
||
Changes in operating assets and liabilities:
|
|
|
|
||||
Deferred policy acquisition costs
|
(7.5
|
)
|
|
(12.6
|
)
|
||
Accrued investment income and other assets
|
(4.5
|
)
|
|
0.7
|
|
||
Postretirement and pension benefits
|
(5.8
|
)
|
|
(8.0
|
)
|
||
Other liabilities and due to/from affiliates, net
|
(63.5
|
)
|
|
(11.1
|
)
|
||
Reinsurance recoverable on losses and loss expenses payable and prepaid reinsurance premiums
|
1.2
|
|
|
(1.3
|
)
|
||
Losses and loss expenses payable
|
38.3
|
|
|
1.4
|
|
||
Unearned premiums
|
25.1
|
|
|
37.8
|
|
||
Excess tax benefits on share-based awards
|
0.1
|
|
|
—
|
|
||
Federal income taxes
|
17.6
|
|
|
1.0
|
|
||
Cash provided from December 31, 2014 unearned premium transfer related to the homeowners quota share arrangement
|
63.5
|
|
|
—
|
|
||
Net cash provided by operating activities
|
108.5
|
|
|
41.6
|
|
||
Cash flows from investing activities:
|
|
|
|
||||
Purchases of fixed maturities available-for-sale
|
(459.8
|
)
|
|
(325.8
|
)
|
||
Purchases of equity securities available-for-sale
|
(131.8
|
)
|
|
(95.7
|
)
|
||
Purchases of other invested assets
|
(6.5
|
)
|
|
(1.5
|
)
|
||
Maturities, calls and pay downs of fixed maturities available-for-sale
|
203.4
|
|
|
180.8
|
|
||
Sales of fixed maturities available-for-sale
|
142.7
|
|
|
135.4
|
|
||
Sales of equity securities available-for-sale
|
117.4
|
|
|
76.6
|
|
||
Sales of other invested assets available-for-sale
|
0.5
|
|
|
0.5
|
|
||
Net additions of property and equipment
|
(0.1
|
)
|
|
—
|
|
||
Net cash used in investing activities
|
(134.2
|
)
|
|
(29.7
|
)
|
||
Cash flows from financing activities:
|
|
|
|
||||
Proceeds from issuance of common stock
|
2.9
|
|
|
2.4
|
|
||
Payments to acquire treasury stock
|
(0.3
|
)
|
|
(0.1
|
)
|
||
Payment of dividends
|
(12.3
|
)
|
|
(12.3
|
)
|
||
Net cash used in financing activities
|
(9.7
|
)
|
|
(10.0
|
)
|
||
Net decrease in cash and cash equivalents
|
(35.4
|
)
|
|
1.9
|
|
||
Cash and cash equivalents at beginning of period
|
86.3
|
|
|
80.3
|
|
||
Cash and cash equivalents at end of period
|
$
|
50.9
|
|
|
$
|
82.2
|
|
Supplemental disclosures:
|
|
|
|
||||
Interest paid (affiliates $0.5 and $0.5, respectively)
|
$
|
3.9
|
|
|
$
|
3.9
|
|
Federal income taxes paid
|
$
|
2.4
|
|
|
$
|
1.0
|
|
|
|
|
|
|
|
($ millions)
|
Cost or amortized cost
|
|
Gross unrealized holding gains
|
|
Gross unrealized holding losses
|
|
Fair value
|
||||||||
September 30, 2015
|
|||||||||||||||
Fixed maturities:
|
|
|
|
|
|
|
|
||||||||
U.S. treasury securities and obligations of U.S. government agencies
|
$
|
235.0
|
|
|
$
|
7.8
|
|
|
$
|
(1.7
|
)
|
|
$
|
241.1
|
|
Obligations of states and political subdivisions
|
840.6
|
|
|
20.8
|
|
|
(4.3
|
)
|
|
857.1
|
|
||||
Corporate securities
|
409.0
|
|
|
8.4
|
|
|
(5.7
|
)
|
|
411.7
|
|
||||
U.S. government agencies mortgage-backed securities
|
454.3
|
|
|
16.9
|
|
|
(1.5
|
)
|
|
469.7
|
|
||||
Total fixed maturities
|
1,938.9
|
|
|
53.9
|
|
|
(13.2
|
)
|
|
1,979.6
|
|
||||
Equity securities:
|
|
|
|
|
|
|
|
||||||||
Large-cap securities
|
213.0
|
|
|
27.0
|
|
|
(9.1
|
)
|
|
230.9
|
|
||||
Small-cap securities
|
53.1
|
|
|
14.3
|
|
|
(0.3
|
)
|
|
67.1
|
|
||||
Total equity securities
|
266.1
|
|
|
41.3
|
|
|
(9.4
|
)
|
|
298.0
|
|
||||
Other invested assets
|
56.6
|
|
|
26.2
|
|
|
—
|
|
|
82.8
|
|
||||
Total available-for-sale securities
|
$
|
2,261.6
|
|
|
$
|
121.4
|
|
|
$
|
(22.6
|
)
|
|
$
|
2,360.4
|
|
|
|
|
|
|
|
|
|
||||||||
($ millions)
|
Cost or amortized cost
|
|
Gross unrealized holding gains
|
|
Gross unrealized holding losses
|
|
Fair value
|
||||||||
December 31, 2014
|
|||||||||||||||
Fixed maturities:
|
|
|
|
|
|
|
|
||||||||
U.S. treasury securities and obligations of U.S. government agencies
|
$
|
296.7
|
|
|
$
|
14.1
|
|
|
$
|
(1.5
|
)
|
|
$
|
309.3
|
|
Obligations of states and political subdivisions
|
742.5
|
|
|
27.4
|
|
|
(0.4
|
)
|
|
769.5
|
|
||||
Corporate securities
|
333.4
|
|
|
10.2
|
|
|
(3.0
|
)
|
|
340.6
|
|
||||
U.S. government agencies mortgage-backed securities
|
458.7
|
|
|
15.6
|
|
|
(1.8
|
)
|
|
472.5
|
|
||||
Total fixed maturities
|
1,831.3
|
|
|
67.3
|
|
|
(6.7
|
)
|
|
1,891.9
|
|
||||
Equity securities:
|
|
|
|
|
|
|
|
||||||||
Large-cap securities
|
185.5
|
|
|
57.3
|
|
|
(0.6
|
)
|
|
242.2
|
|
||||
Small-cap securities
|
50.0
|
|
|
18.2
|
|
|
—
|
|
|
68.2
|
|
||||
Total equity securities
|
235.5
|
|
|
75.5
|
|
|
(0.6
|
)
|
|
310.4
|
|
||||
Other invested assets
|
50.5
|
|
|
29.8
|
|
|
—
|
|
|
80.3
|
|
||||
Total available-for-sale securities
|
$
|
2,117.3
|
|
|
$
|
172.6
|
|
|
$
|
(7.3
|
)
|
|
$
|
2,282.6
|
|
|
|
|
|
|
|
|
|
|
($ millions, except # of positions)
|
Less than 12 months
|
|
12 months or more
|
|
Total
|
|||||||||||||||||||||||||||
|
Fair value
|
|
Unrealized losses
|
|
Number of positions
|
|
Fair value
|
|
Unrealized losses
|
|
Number of positions
|
|
Fair value
|
|
Unrealized losses
|
|
Number of positions
|
|||||||||||||||
September 30, 2015
|
||||||||||||||||||||||||||||||||
Fixed maturities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
U.S. treasury securities and obligations of U.S. government agencies
|
$
|
62.8
|
|
|
$
|
(1.1
|
)
|
|
12
|
|
|
$
|
18.7
|
|
|
$
|
(0.6
|
)
|
|
4
|
|
|
$
|
81.5
|
|
|
$
|
(1.7
|
)
|
|
16
|
|
Obligations of states and political subdivisions
|
195.1
|
|
|
(4.3
|
)
|
|
27
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
195.1
|
|
|
(4.3
|
)
|
|
27
|
|
||||||
Corporate securities
|
70.3
|
|
|
(4.3
|
)
|
|
12
|
|
|
49.6
|
|
|
(1.4
|
)
|
|
9
|
|
|
119.9
|
|
|
(5.7
|
)
|
|
21
|
|
||||||
U.S. government agencies mortgage-backed securities
|
60.1
|
|
|
(0.9
|
)
|
|
7
|
|
|
34.2
|
|
|
(0.6
|
)
|
|
13
|
|
|
94.3
|
|
|
(1.5
|
)
|
|
20
|
|
||||||
Total fixed maturities
|
388.3
|
|
|
(10.6
|
)
|
|
58
|
|
|
102.5
|
|
|
(2.6
|
)
|
|
26
|
|
|
490.8
|
|
|
(13.2
|
)
|
|
84
|
|
||||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Large-cap equity securities
|
91.7
|
|
|
(9.1
|
)
|
|
35
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
91.7
|
|
|
(9.1
|
)
|
|
35
|
|
||||||
Small-cap equity securities
|
4.3
|
|
|
(0.3
|
)
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4.3
|
|
|
(0.3
|
)
|
|
1
|
|
||||||
Total equity securities
|
96.0
|
|
|
(9.4
|
)
|
|
36
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
96.0
|
|
|
(9.4
|
)
|
|
36
|
|
||||||
Total temporarily impaired securities
|
$
|
484.3
|
|
|
$
|
(20.0
|
)
|
|
94
|
|
|
$
|
102.5
|
|
|
$
|
(2.6
|
)
|
|
26
|
|
|
$
|
586.8
|
|
|
$
|
(22.6
|
)
|
|
120
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
($ millions, except # of positions)
|
Less than 12 months
|
|
12 months or more
|
|
Total
|
|||||||||||||||||||||||||||
|
Fair value
|
|
Unrealized losses
|
|
Number of positions
|
|
Fair value
|
|
Unrealized losses
|
|
Number of positions
|
|
Fair value
|
|
Unrealized losses
|
|
Number of positions
|
|||||||||||||||
December 31, 2014
|
||||||||||||||||||||||||||||||||
Fixed maturities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
U.S. treasury securities and obligations of U.S. government agencies
|
$
|
19.9
|
|
|
$
|
(0.3
|
)
|
|
4
|
|
|
$
|
52.0
|
|
|
$
|
(1.2
|
)
|
|
17
|
|
|
$
|
71.9
|
|
|
$
|
(1.5
|
)
|
|
21
|
|
Obligations of states and political subdivisions
|
6.1
|
|
|
—
|
|
|
5
|
|
|
30.9
|
|
|
(0.4
|
)
|
|
9
|
|
|
37.0
|
|
|
(0.4
|
)
|
|
14
|
|
||||||
Corporate securities
|
43.5
|
|
|
(0.9
|
)
|
|
8
|
|
|
56.1
|
|
|
(2.1
|
)
|
|
11
|
|
|
99.6
|
|
|
(3.0
|
)
|
|
19
|
|
||||||
U.S. government agencies mortgage-backed securities
|
44.0
|
|
|
(0.3
|
)
|
|
8
|
|
|
37.5
|
|
|
(1.5
|
)
|
|
13
|
|
|
81.5
|
|
|
(1.8
|
)
|
|
21
|
|
||||||
Total fixed maturities
|
113.5
|
|
|
(1.5
|
)
|
|
25
|
|
|
176.5
|
|
|
(5.2
|
)
|
|
50
|
|
|
290.0
|
|
|
(6.7
|
)
|
|
75
|
|
||||||
Large-cap equity securities
|
7.2
|
|
|
(0.6
|
)
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7.2
|
|
|
(0.6
|
)
|
|
2
|
|
||||||
Total temporarily impaired securities
|
$
|
120.7
|
|
|
$
|
(2.1
|
)
|
|
27
|
|
|
$
|
176.5
|
|
|
$
|
(5.2
|
)
|
|
50
|
|
|
$
|
297.2
|
|
|
$
|
(7.3
|
)
|
|
77
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ millions)
|
Three months ended September 30
|
|
Nine months ended September 30
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Equity securities:
|
|
|
|
|
|
|
|
||||||||
Large-cap securities
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(0.3
|
)
|
Small-cap securities
|
(3.5
|
)
|
|
(1.1
|
)
|
|
(4.8
|
)
|
|
(2.0
|
)
|
||||
Total other-than-temporary impairments
|
$
|
(3.5
|
)
|
|
$
|
(1.1
|
)
|
|
$
|
(4.8
|
)
|
|
$
|
(2.3
|
)
|
|
|
|
|
|
|
|
|
|
($ millions)
|
Amortized cost
|
|
Fair
value
|
||||
Due in 1 year or less
|
$
|
34.1
|
|
|
$
|
34.5
|
|
Due after 1 year through 5 years
|
427.7
|
|
|
439.2
|
|
||
Due after 5 years through 10 years
|
288.1
|
|
|
294.4
|
|
||
Due after 10 years
|
734.7
|
|
|
741.8
|
|
||
U.S. government agencies mortgage-backed securities
|
454.3
|
|
|
469.7
|
|
||
Total
|
$
|
1,938.9
|
|
|
$
|
1,979.6
|
|
|
|
|
|
|
($ millions)
|
Three months ended September 30
|
|
Nine months ended September 30
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Fixed maturities
|
$
|
16.1
|
|
|
$
|
16.1
|
|
|
$
|
46.4
|
|
|
$
|
49.4
|
|
Equity securities
|
1.4
|
|
|
1.6
|
|
|
4.7
|
|
|
4.7
|
|
||||
Cash and cash equivalents, and other
|
1.6
|
|
|
1.7
|
|
|
4.3
|
|
|
4.4
|
|
||||
Investment income
|
19.1
|
|
|
19.4
|
|
|
55.4
|
|
|
58.5
|
|
||||
Investment expenses
|
0.4
|
|
|
0.5
|
|
|
1.5
|
|
|
1.5
|
|
||||
Net investment income
|
$
|
18.7
|
|
|
$
|
18.9
|
|
|
$
|
53.9
|
|
|
$
|
57.0
|
|
|
|
|
|
|
|
|
|
($ millions)
|
Three months ended September 30
|
|
Nine months ended September 30
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Realized gains:
|
|
|
|
|
|
|
|
||||||||
Fixed maturities
|
$
|
2.9
|
|
|
$
|
0.1
|
|
|
$
|
4.4
|
|
|
$
|
2.6
|
|
Equity securities
|
11.8
|
|
|
3.2
|
|
|
21.8
|
|
|
17.9
|
|
||||
Other invested assets
|
—
|
|
|
—
|
|
|
0.1
|
|
|
0.1
|
|
||||
Total realized gains
|
14.7
|
|
|
3.3
|
|
|
26.3
|
|
|
20.6
|
|
||||
Realized losses:
|
|
|
|
|
|
|
|
||||||||
Equity securities:
|
|
|
|
|
|
|
|
||||||||
Sales
|
(0.4
|
)
|
|
(0.6
|
)
|
|
(1.1
|
)
|
|
(0.7
|
)
|
||||
OTTI
|
(3.5
|
)
|
|
(1.1
|
)
|
|
(4.8
|
)
|
|
(2.3
|
)
|
||||
Total realized losses
|
(3.9
|
)
|
|
(1.7
|
)
|
|
(5.9
|
)
|
|
(3.0
|
)
|
||||
Net realized gains on investments
|
$
|
10.8
|
|
|
$
|
1.6
|
|
|
$
|
20.4
|
|
|
$
|
17.6
|
|
Change in unrealized holding gains, net of tax:
|
|
|
|
|
|
|
|
||||||||
Fixed maturities
|
$
|
8.7
|
|
|
$
|
(8.6
|
)
|
|
$
|
(19.9
|
)
|
|
$
|
25.4
|
|
Equity securities
|
(35.5
|
)
|
|
(4.7
|
)
|
|
(43.0
|
)
|
|
(3.0
|
)
|
||||
Other invested assets
|
(8.5
|
)
|
|
(4.6
|
)
|
|
(3.6
|
)
|
|
1.6
|
|
||||
Deferred federal income tax liability
|
12.4
|
|
|
6.2
|
|
|
23.3
|
|
|
(8.4
|
)
|
||||
Valuation allowance
|
—
|
|
|
(6.8
|
)
|
|
—
|
|
|
0.1
|
|
||||
Change in net unrealized holding gains, net of tax
|
$
|
(22.9
|
)
|
|
$
|
(18.5
|
)
|
|
$
|
(43.2
|
)
|
|
$
|
15.7
|
|
|
|
|
|
|
|
|
|
|
•
|
Level 1 includes observable inputs which reflect quoted prices for identical assets or liabilities in active markets at the measurement date.
|
•
|
Level 2 includes observable inputs for assets or liabilities other than quoted prices included in Level 1, and it includes valuation techniques which use prices for similar assets and liabilities.
|
•
|
Level 3 includes unobservable inputs which reflect the reporting entity’s estimates of the assumptions that market participants would use in pricing the asset or liability (including assumptions about risk).
|
|
|
($ millions)
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
September 30, 2015
|
|||||||||||||||
Fixed maturities:
|
|
|
|
|
|
|
|
||||||||
U.S. treasury securities and obligations of U.S. government agencies
|
$
|
241.1
|
|
|
$
|
—
|
|
|
$
|
241.1
|
|
|
$
|
—
|
|
Obligations of states and political subdivisions
|
857.1
|
|
|
—
|
|
|
857.1
|
|
|
—
|
|
||||
Corporate securities
|
411.7
|
|
|
—
|
|
|
408.1
|
|
|
3.6
|
|
||||
U.S. government agencies mortgage-backed securities
|
469.7
|
|
|
—
|
|
|
469.7
|
|
|
—
|
|
||||
Total fixed maturities
|
1,979.6
|
|
|
—
|
|
|
1,976.0
|
|
|
3.6
|
|
||||
Equity securities:
|
|
|
|
|
|
|
|
||||||||
Large-cap securities
|
230.9
|
|
|
230.9
|
|
|
—
|
|
|
—
|
|
||||
Small-cap securities
|
67.1
|
|
|
67.1
|
|
|
—
|
|
|
—
|
|
||||
Total equity securities
|
298.0
|
|
|
298.0
|
|
|
—
|
|
|
—
|
|
||||
Other invested assets
|
82.8
|
|
|
7.9
|
|
|
74.9
|
|
|
—
|
|
||||
Total available-for-sale investments
|
$
|
2,360.4
|
|
|
$
|
305.9
|
|
|
$
|
2,050.9
|
|
|
$
|
3.6
|
|
|
|
|
|
|
|
|
|
||||||||
($ millions)
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
December 31, 2014
|
|||||||||||||||
Fixed maturities:
|
|
|
|
|
|
|
|
||||||||
U.S. treasury securities and obligations of U.S. government agencies
|
$
|
309.3
|
|
|
$
|
—
|
|
|
$
|
309.3
|
|
|
$
|
—
|
|
Obligations of states and political subdivisions
|
769.5
|
|
|
—
|
|
|
769.5
|
|
|
—
|
|
||||
Corporate securities
|
340.6
|
|
|
—
|
|
|
331.2
|
|
|
9.4
|
|
||||
U.S. government agencies mortgage-backed securities
|
472.5
|
|
|
—
|
|
|
472.5
|
|
|
—
|
|
||||
Total fixed maturities
|
1,891.9
|
|
|
—
|
|
|
1,882.5
|
|
|
9.4
|
|
||||
Equity securities:
|
|
|
|
|
|
|
|
||||||||
Large-cap securities
|
242.2
|
|
|
242.2
|
|
|
—
|
|
|
—
|
|
||||
Small-cap securities
|
68.2
|
|
|
68.2
|
|
|
—
|
|
|
—
|
|
||||
Total equity securities
|
310.4
|
|
|
310.4
|
|
|
—
|
|
|
—
|
|
||||
Other invested assets
|
80.3
|
|
|
7.4
|
|
|
72.9
|
|
|
—
|
|
||||
Total available-for-sale investments
|
$
|
2,282.6
|
|
|
$
|
317.8
|
|
|
$
|
1,955.4
|
|
|
$
|
9.4
|
|
|
|
|
|
|
|
|
|
|
($ millions)
|
Fixed maturities
|
||
Balance at January 1, 2015
|
$
|
9.4
|
|
Total realized gains – included in earnings
|
0.2
|
|
|
Total unrealized losses – included in other comprehensive income
|
(0.2
|
)
|
|
Purchases
|
—
|
|
|
Sales
|
(5.9
|
)
|
|
Transfers into Level 3
|
—
|
|
|
Transfers out of Level 3
|
—
|
|
|
Balance at March 31, 2015
|
$
|
3.5
|
|
Total realized gains – included in earnings
|
—
|
|
|
Total unrealized losses – included in other comprehensive income
|
(0.1
|
)
|
|
Purchases
|
0.1
|
|
|
Sales
|
—
|
|
|
Transfers into Level 3
|
—
|
|
|
Transfers out of Level 3
|
—
|
|
|
Balance at June 30, 2015
|
$
|
3.5
|
|
Total realized gains – included in earnings
|
—
|
|
|
Total unrealized gains – included in other comprehensive income
|
—
|
|
|
Purchases
|
0.1
|
|
|
Sales
|
—
|
|
|
Transfers into Level 3
|
—
|
|
|
Transfers out of Level 3
|
—
|
|
|
Balance at September 30, 2015
|
$
|
3.6
|
|
|
|
||
($ millions)
|
Fixed maturities
|
||
Balance at January 1, 2014
|
$
|
8.9
|
|
Total realized gains – included in earnings
|
—
|
|
|
Total unrealized gains – included in other comprehensive income
|
0.2
|
|
|
Purchases
|
0.3
|
|
|
Sales
|
—
|
|
|
Transfers into Level 3
|
—
|
|
|
Transfers out of Level 3
|
—
|
|
|
Balance at December 31, 2014
|
$
|
9.4
|
|
|
|
|
($ millions, except interest rates)
|
September 30, 2015
|
|
December 31, 2014
|
||||||||||||||||||
|
Carrying value
|
|
Fair value
|
|
Interest rate
|
|
Carrying value
|
|
Fair
value
|
|
Interest rate
|
||||||||||
Notes receivable from affiliate
|
$
|
70.0
|
|
|
$
|
76.2
|
|
|
7.00
|
%
|
|
$
|
70.0
|
|
|
$
|
74.6
|
|
|
7.00
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
($ millions, except interest rates)
|
September 30, 2015
|
|
December 31, 2014
|
||||||||||||||||||
|
Carrying value
|
|
Fair Value
|
|
Interest rate
|
|
Carrying value
|
|
Fair value
|
|
Interest rate
|
||||||||||
FHLB Loan due 2033: issued $85.0, July 2013 with fixed interest
|
$
|
85.3
|
|
|
$
|
85.8
|
|
|
5.03
|
%
|
|
$
|
85.3
|
|
|
$
|
86.4
|
|
|
5.03
|
%
|
Affiliate Subordinated Debentures due 2033: issued $15.5, May 2003 with variable interest
|
15.5
|
|
|
15.5
|
|
|
4.53
|
%
|
|
15.5
|
|
|
15.5
|
|
|
4.44
|
%
|
||||
Total notes payable
|
$
|
100.8
|
|
|
$
|
101.3
|
|
|
|
|
$
|
100.8
|
|
|
$
|
101.9
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
($ millions)
|
Three months ended September 30
|
|
Nine months ended September 30
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Premiums earned:
|
|
|
|
|
|
|
|
||||||||
Assumed from external insurers and reinsurers
|
$
|
1.1
|
|
|
$
|
1.2
|
|
|
$
|
3.2
|
|
|
$
|
3.3
|
|
Assumed under Pooling Arrangement
|
319.7
|
|
|
270.2
|
|
|
946.5
|
|
|
801.0
|
|
||||
Ceded to external insurers and reinsurers
|
(8.7
|
)
|
|
(6.5
|
)
|
|
(26.1
|
)
|
|
(18.5
|
)
|
||||
Ceded under Pooling Arrangement
|
(207.5
|
)
|
|
(215.2
|
)
|
|
(626.0
|
)
|
|
(647.4
|
)
|
||||
Net assumed premiums earned
|
$
|
104.6
|
|
|
$
|
49.7
|
|
|
$
|
297.6
|
|
|
$
|
138.4
|
|
Losses and loss expenses incurred:
|
|
|
|
|
|
|
|
||||||||
Assumed from external insurers and reinsurers
|
$
|
0.8
|
|
|
$
|
0.8
|
|
|
$
|
2.2
|
|
|
$
|
2.3
|
|
Assumed under Pooling Arrangement
|
207.8
|
|
|
185.2
|
|
|
628.1
|
|
|
548.9
|
|
||||
Ceded to external insurers and reinsurers
|
(1.2
|
)
|
|
(2.7
|
)
|
|
(3.6
|
)
|
|
(6.4
|
)
|
||||
Ceded under Pooling Arrangement
|
(140.4
|
)
|
|
(131.6
|
)
|
|
(427.2
|
)
|
|
(417.3
|
)
|
||||
Net assumed losses and loss expenses incurred
|
$
|
67.0
|
|
|
$
|
51.7
|
|
|
$
|
199.5
|
|
|
$
|
127.5
|
|
|
|
|
|
|
|
|
|
($ millions)
|
Three months ended September 30
|
|
Nine months ended September 30
|
||||||||||||||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||||||||||||||
Amount at statutory rate
|
$
|
10.5
|
|
|
35.0
|
%
|
|
$
|
4.6
|
|
|
35.0
|
%
|
|
$
|
23.3
|
|
|
35.0
|
%
|
|
$
|
15.4
|
|
|
35.0
|
%
|
Tax-exempt interest and dividends received deduction
|
(2.1
|
)
|
|
(7.0
|
)
|
|
(2.1
|
)
|
|
(16.2
|
)
|
|
(6.6
|
)
|
|
(9.9
|
)
|
|
(6.3
|
)
|
|
(14.4
|
)
|
||||
Other, net
|
0.8
|
|
|
2.8
|
|
|
0.1
|
|
|
0.3
|
|
|
1.7
|
|
|
2.6
|
|
|
1.0
|
|
|
2.3
|
|
||||
Valuation allowance
|
—
|
|
|
—
|
|
|
(1.4
|
)
|
|
(10.1
|
)
|
|
—
|
|
|
—
|
|
|
(8.2
|
)
|
|
(18.6
|
)
|
||||
Federal income tax expense and effective rate
|
$
|
9.2
|
|
|
30.8
|
%
|
|
$
|
1.2
|
|
|
9.0
|
%
|
|
$
|
18.4
|
|
|
27.7
|
%
|
|
$
|
1.9
|
|
|
4.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ millions)
|
Pension
|
|
Postretirement
|
|
Pension
|
|
Postretirement
|
||||||||||||||||||||||||
|
Three months ended September 30
|
|
Nine months ended September 30
|
||||||||||||||||||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||||||||||
Service cost
|
$
|
2.0
|
|
|
$
|
1.3
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5.9
|
|
|
$
|
3.9
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Interest cost
|
2.8
|
|
|
2.8
|
|
|
0.3
|
|
|
0.3
|
|
|
8.5
|
|
|
8.4
|
|
|
0.7
|
|
|
0.8
|
|
||||||||
Expected return on plan assets
|
(3.5
|
)
|
|
(3.2
|
)
|
|
—
|
|
|
—
|
|
|
(10.4
|
)
|
|
(9.5
|
)
|
|
—
|
|
|
—
|
|
||||||||
Amortization of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Negative prior service cost
|
—
|
|
|
—
|
|
|
(1.3
|
)
|
|
(1.3
|
)
|
|
—
|
|
|
—
|
|
|
(4.1
|
)
|
|
(4.1
|
)
|
||||||||
Net actuarial loss
|
2.7
|
|
|
1.4
|
|
|
0.1
|
|
|
0.2
|
|
|
8.2
|
|
|
4.9
|
|
|
0.4
|
|
|
0.5
|
|
||||||||
Net periodic cost (benefit)
|
$
|
4.0
|
|
|
$
|
2.3
|
|
|
$
|
(0.9
|
)
|
|
$
|
(0.8
|
)
|
|
$
|
12.2
|
|
|
$
|
7.7
|
|
|
$
|
(3.0
|
)
|
|
$
|
(2.8
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ millions)
|
Unrealized Gains
and Losses on
Available-for-Sale
Securities
|
|
Benefit Plan Items
|
|
Total
|
|||||||
Beginning balance at July 1, 2015
|
$
|
89.7
|
|
|
$
|
(36.3
|
)
|
|
$
|
53.4
|
|
|
|
|
|
|
|
|
|||||||
Other comprehensive income before reclassifications
|
(15.8
|
)
|
|
—
|
|
|
(15.8
|
)
|
||||
Amounts reclassified from AOCI
(a)
|
(7.1
|
)
|
|
0.9
|
|
|
(6.2
|
)
|
||||
Net current period other comprehensive (loss) income
|
(22.9
|
)
|
|
0.9
|
|
|
(22.0
|
)
|
||||
Ending balance at September 30, 2015
|
$
|
66.8
|
|
|
$
|
(35.4
|
)
|
|
$
|
31.4
|
|
|
|
|
|
|
|
|
|||||||
Beginning balance at July 1, 2014
|
$
|
118.8
|
|
|
$
|
(4.4
|
)
|
|
$
|
114.4
|
|
|
|
|
|
|
|
|
|||||||
Other comprehensive income before reclassifications
|
(16.9
|
)
|
|
—
|
|
|
(16.9
|
)
|
||||
Amounts reclassified from AOCI
(a)
|
(1.6
|
)
|
|
0.3
|
|
|
(1.3
|
)
|
||||
Net current period other comprehensive (loss) income
|
(18.5
|
)
|
|
0.3
|
|
|
(18.2
|
)
|
||||
Ending balance at September 30, 2014
|
$
|
100.3
|
|
|
$
|
(4.1
|
)
|
|
$
|
96.2
|
|
|
|
|
|
|
|
|
|
||||||
(a)
|
See separate table below for details about these reclassifications
|
|||||||||||
|
|
|
|
|
|
|
||||||
($ millions)
|
Unrealized Gains
and Losses on
Available-for-Sale
Securities
|
|
Benefit Plan Items
|
|
Total
|
|||||||
Beginning balance at January 1, 2015
|
$
|
110.0
|
|
|
$
|
(38.3
|
)
|
|
$
|
71.7
|
|
|
|
|
|
|
|
|
|||||||
Other comprehensive income before reclassifications
|
(29.9
|
)
|
|
—
|
|
|
(29.9
|
)
|
||||
Amounts reclassified from AOCI
(a)
|
(13.3
|
)
|
|
2.9
|
|
|
(10.4
|
)
|
||||
Net current period other comprehensive (loss) income
|
(43.2
|
)
|
|
2.9
|
|
|
(40.3
|
)
|
||||
Ending balance at September 30, 2015
|
$
|
66.8
|
|
|
$
|
(35.4
|
)
|
|
$
|
31.4
|
|
|
|
|
|
|
|
|
|||||||
Beginning balance at January 1, 2014
|
$
|
84.6
|
|
|
$
|
(3.8
|
)
|
|
$
|
80.8
|
|
|
|
|
|
|
|
|
|||||||
Other comprehensive income before reclassifications
|
33.3
|
|
|
(1.6
|
)
|
|
31.7
|
|
||||
Amounts reclassified from AOCI
(a)
|
(17.6
|
)
|
|
1.3
|
|
|
(16.3
|
)
|
||||
Net current period other comprehensive income (loss)
|
15.7
|
|
|
(0.3
|
)
|
|
15.4
|
|
||||
Ending balance at September 30, 2014
|
$
|
100.3
|
|
|
$
|
(4.1
|
)
|
|
$
|
96.2
|
|
|
|
|
|
|
|
|
|
||||||
(a)
|
See separate table below for details about these reclassifications
|
|
|
($ and shares in millions, except per share amounts)
|
Three months ended September 30
|
|
Nine months ended September 30
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Numerator:
|
|
|
|
|
|
|
|
||||||||
Net income for basic earnings per common share
|
$
|
20.7
|
|
|
$
|
11.9
|
|
|
$
|
48.1
|
|
|
$
|
42.0
|
|
Denominator:
|
|
|
|
|
|
|
|
||||||||
Weighted average shares for basic net earnings per common share
|
41.1
|
|
|
40.9
|
|
|
41.1
|
|
|
40.8
|
|
||||
Effect of dilutive share-based awards
|
0.8
|
|
|
0.6
|
|
|
0.4
|
|
|
0.4
|
|
||||
Adjusted weighted average shares for diluted net earnings per common share
|
41.9
|
|
|
41.5
|
|
|
41.5
|
|
|
41.2
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Basic net earnings per common share
|
$
|
0.50
|
|
|
$
|
0.29
|
|
|
$
|
1.17
|
|
|
$
|
1.03
|
|
Diluted net earnings per common share
|
$
|
0.50
|
|
|
$
|
0.28
|
|
|
$
|
1.16
|
|
|
$
|
1.02
|
|
|
|
|
|
|
|
|
|
(shares in millions)
|
Three months ended September 30
|
|
Nine months ended September 30
|
||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||
Total number of antidilutive options and awards
|
1.1
|
|
|
1.5
|
|
|
1.7
|
|
|
1.8
|
|
|
|
|
|
|
|
|
|
|
|
($ millions)
|
Three months ended September 30
|
|
Nine months ended September 30
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Revenue from external sources:
|
|
|
|
|
|
|
|
||||||||
Insurance segments
|
|
|
|
|
|
|
|
||||||||
Personal insurance
|
$
|
147.2
|
|
|
$
|
112.3
|
|
|
$
|
445.4
|
|
|
$
|
340.3
|
|
Business insurance
|
96.8
|
|
|
96.0
|
|
|
289.4
|
|
|
285.4
|
|
||||
Specialty insurance
|
75.7
|
|
|
61.9
|
|
|
211.7
|
|
|
175.3
|
|
||||
Total insurance segments
|
319.7
|
|
|
270.2
|
|
|
946.5
|
|
|
801.0
|
|
||||
Investment operations segment
|
|
|
|
|
|
|
|
||||||||
Net investment income
|
18.7
|
|
|
18.9
|
|
|
53.9
|
|
|
57.0
|
|
||||
Net realized capital gains
|
10.8
|
|
|
1.6
|
|
|
20.4
|
|
|
17.6
|
|
||||
Total investment operations segment
|
29.5
|
|
|
20.5
|
|
|
74.3
|
|
|
74.6
|
|
||||
All other
|
0.5
|
|
|
0.6
|
|
|
1.2
|
|
|
1.4
|
|
||||
Total revenue from external sources
|
349.7
|
|
|
291.3
|
|
|
1,022.0
|
|
|
877.0
|
|
||||
Intersegment revenue
|
1.4
|
|
|
1.3
|
|
|
4.2
|
|
|
3.9
|
|
||||
Total revenue
|
351.1
|
|
|
292.6
|
|
|
1,026.2
|
|
|
880.9
|
|
||||
Reconciling items:
|
|
|
|
|
|
|
|
||||||||
Eliminate intersegment revenues
|
(1.4
|
)
|
|
(1.3
|
)
|
|
(4.2
|
)
|
|
(3.9
|
)
|
||||
Total consolidated revenues
|
$
|
349.7
|
|
|
$
|
291.3
|
|
|
$
|
1,022.0
|
|
|
$
|
877.0
|
|
Segment income before federal income tax:
|
|
|
|
|
|
|
|
||||||||
Insurance segments SAP underwriting income (loss)
|
|
|
|
|
|
|
|
||||||||
Personal insurance
|
$
|
6.9
|
|
|
$
|
4.5
|
|
|
$
|
14.1
|
|
|
$
|
(0.1
|
)
|
Business insurance
|
(6.8
|
)
|
|
(3.3
|
)
|
|
(23.0
|
)
|
|
(18.6
|
)
|
||||
Specialty insurance
|
1.2
|
|
|
(11.4
|
)
|
|
(0.6
|
)
|
|
(24.1
|
)
|
||||
Total insurance segments
|
1.3
|
|
|
(10.2
|
)
|
|
(9.5
|
)
|
|
(42.8
|
)
|
||||
Investment operations segment
|
|
|
|
|
|
|
|
||||||||
Net investment income
|
18.7
|
|
|
18.9
|
|
|
53.9
|
|
|
57.0
|
|
||||
Net realized capital gains
|
10.8
|
|
|
1.6
|
|
|
20.4
|
|
|
17.6
|
|
||||
Total investment operations segment
|
29.5
|
|
|
20.5
|
|
|
74.3
|
|
|
74.6
|
|
||||
All other
|
0.1
|
|
|
—
|
|
|
(0.2
|
)
|
|
—
|
|
||||
Total segment income before tax expense
|
30.9
|
|
|
10.3
|
|
|
64.6
|
|
|
31.8
|
|
||||
Reconciling items:
|
|
|
|
|
|
|
|
||||||||
GAAP expense adjustments
|
0.9
|
|
|
4.2
|
|
|
8.6
|
|
|
18.4
|
|
||||
Interest expense on corporate debt
|
(1.3
|
)
|
|
(1.4
|
)
|
|
(4.0
|
)
|
|
(4.0
|
)
|
||||
Corporate expenses
|
(0.6
|
)
|
|
—
|
|
|
(2.7
|
)
|
|
(2.3
|
)
|
||||
Total reconciling items
|
(1.0
|
)
|
|
2.8
|
|
|
1.9
|
|
|
12.1
|
|
||||
Total consolidated income before federal income tax expense
|
$
|
29.9
|
|
|
$
|
13.1
|
|
|
$
|
66.5
|
|
|
$
|
43.9
|
|
|
|
|
|
|
|
|
|
|
|
|
STFC Pooled Companies:
|
|
||
State Auto P&C
|
51.0
|
%
|
|
Milbank
|
14.0
|
|
|
SA Ohio
|
—
|
|
|
Total STFC Pooled Companies
|
65.0
|
%
|
|
State Auto Mutual Pooled Companies:
|
|
||
State Auto Mutual
|
34.5
|
%
|
|
SA Wisconsin
|
—
|
|
|
Meridian Security
|
—
|
|
|
Patrons Mutual
|
0.5
|
|
|
RIC
|
—
|
|
|
Plaza
|
—
|
|
|
American Compensation
|
—
|
|
|
Bloomington Compensation
|
—
|
|
|
Total State Auto Mutual Pooled Companies
|
35.0
|
%
|
|
|
|
|
|
($ millions, except per share amounts)
|
Three months ended September 30
|
|
Nine months ended September 30
|
|||||||||||
GAAP Basis:
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|||||||
Total revenues
|
$
|
349.7
|
|
|
$
|
291.3
|
|
|
$
|
1,022.0
|
|
|
877.0
|
|
Net income
|
$
|
20.7
|
|
|
$
|
11.9
|
|
|
$
|
48.1
|
|
|
42.0
|
|
Basic earnings per share
|
$
|
0.50
|
|
|
$
|
0.29
|
|
|
$
|
1.17
|
|
|
1.03
|
|
Diluted earnings per share
|
$
|
0.50
|
|
|
$
|
0.28
|
|
|
$
|
1.16
|
|
|
1.02
|
|
Stockholders’ equity
|
$
|
875.3
|
|
|
$
|
834.5
|
|
|
|
|
|
|||
Return on average equity (LTM)
|
13.3
|
%
|
|
7.5
|
%
|
|
|
|
|
|||||
Book value per share
|
$
|
21.28
|
|
|
$
|
20.41
|
|
|
|
|
|
|||
Debt to capital ratio
|
10.3
|
%
|
|
10.8
|
%
|
|
|
|
|
|||||
Cat loss and ALAE ratio
|
2.1
|
%
|
|
0.9
|
%
|
|
4.9
|
%
|
|
3.7
|
%
|
|||
Non-cat loss and LAE ratio
|
62.8
|
%
|
|
67.3
|
%
|
|
61.4
|
%
|
|
64.5
|
%
|
|||
Loss and LAE ratio
|
64.9
|
%
|
|
68.2
|
%
|
|
66.3
|
%
|
|
68.2
|
%
|
|||
Expense ratio
|
34.2
|
%
|
|
33.8
|
%
|
|
33.7
|
%
|
|
34.6
|
%
|
|||
Combined ratio
|
99.1
|
%
|
|
102.0
|
%
|
|
100.0
|
%
|
|
102.8
|
%
|
|||
Premium written growth
|
17.1
|
%
|
|
6.6
|
%
|
|
15.9
|
%
|
|
3.6
|
%
|
|||
Investment yield
|
3.2
|
%
|
|
3.5
|
%
|
|
3.2
|
%
|
|
3.5
|
%
|
|||
|
|
|
|
|
|
|
|
|||||||
SAP Basis:
|
|
|
|
|
|
|
|
|||||||
Cat loss and ALAE ratio
|
2.1
|
%
|
|
0.9
|
%
|
|
4.9
|
%
|
|
3.7
|
%
|
|||
Non-cat loss and ALAE ratio
|
56.8
|
%
|
|
60.9
|
%
|
|
55.1
|
%
|
|
58.4
|
%
|
|||
ULAE ratio
|
6.1
|
%
|
|
6.7
|
%
|
|
6.4
|
%
|
|
6.4
|
%
|
|||
Loss and LAE ratio
|
65.0
|
%
|
|
68.5
|
%
|
|
66.4
|
%
|
|
68.5
|
%
|
|||
Expense ratio
|
34.1
|
%
|
|
34.4
|
%
|
|
33.8
|
%
|
|
35.2
|
%
|
|||
Combined ratio
|
99.1
|
%
|
|
102.9
|
%
|
|
100.2
|
%
|
|
103.7
|
%
|
($ millions)
|
Twelve months ended September 30
|
||||
|
2015
|
|
2014
|
||
Net premiums written to surplus
|
1.7
|
|
|
1.4
|
|
|
|
($ millions)
|
GAAP HO QS Arrangement Cession - Overall Results
|
||||||||||
|
|
|
|
|
Pro-Forma
|
||||||
|
|
|
|
|
without HO QS
|
||||||
Three months ended September 30, 2014
|
As Reported
|
|
HO QS Cession
|
|
Cession
|
||||||
Net written premiums
|
$
|
277.0
|
|
|
$
|
47.1
|
|
|
$
|
324.1
|
|
|
|
|
|
|
|
||||||
Earned premiums
|
270.2
|
|
|
43.9
|
|
|
314.1
|
|
|||
Losses and LAE incurred:
|
|
|
|
|
|
||||||
Cat loss and ALAE
|
2.4
|
|
|
1.2
|
|
|
3.6
|
|
|||
Non-cat loss and LAE
|
182.0
|
|
|
17.0
|
|
|
199.0
|
|
|||
Total Loss and LAE incurred
|
184.4
|
|
|
18.2
|
|
|
202.6
|
|
|||
Acquisition and operating expenses
|
91.4
|
|
|
15.7
|
|
|
107.1
|
|
|||
Net underwriting (loss) gain
|
$
|
(5.6
|
)
|
|
$
|
10.0
|
|
|
$
|
4.4
|
|
|
|
|
|
|
|
||||||
Cat loss and ALAE ratio
|
0.9
|
%
|
|
2.8
|
%
|
|
1.1
|
%
|
|||
Non-cat loss and LAE ratio
|
67.3
|
%
|
|
38.7
|
%
|
|
63.4
|
%
|
|||
Total Loss and LAE ratio
|
68.2
|
%
|
|
41.5
|
%
|
|
64.5
|
%
|
|||
Expense ratio
|
33.8
|
%
|
|
35.7
|
%
|
|
34.1
|
%
|
|||
Combined ratio
|
102.0
|
%
|
|
77.2
|
%
|
|
98.6
|
%
|
|||
|
|
|
|
|
|
($ millions)
|
GAAP HO QS Arrangement Cession - Overall Results
|
||||||||||
|
|
|
|
|
Pro-Forma
|
||||||
|
|
|
|
|
without HO QS
|
||||||
Nine months ended September 30, 2014
|
As Reported
|
|
HO QS Cession
|
|
Cession
|
||||||
Net written premiums
|
$
|
837.5
|
|
|
$
|
133.6
|
|
|
$
|
971.1
|
|
|
|
|
|
|
|
||||||
Earned premiums
|
801.0
|
|
|
132.2
|
|
|
933.2
|
|
|||
Losses and LAE incurred:
|
|
|
|
|
|
||||||
Cat loss and ALAE
|
29.9
|
|
|
19.2
|
|
|
49.1
|
|
|||
Non-cat loss and LAE
|
516.7
|
|
|
55.8
|
|
|
572.5
|
|
|||
Total Loss and LAE incurred
|
546.6
|
|
|
75.0
|
|
|
621.6
|
|
|||
Acquisition and operating expenses
|
277.2
|
|
|
41.3
|
|
|
318.5
|
|
|||
Net underwriting (loss) gain
|
$
|
(22.8
|
)
|
|
$
|
15.9
|
|
|
$
|
(6.9
|
)
|
|
|
|
|
|
|
||||||
Cat loss and ALAE ratio
|
3.7
|
%
|
|
14.5
|
%
|
|
5.3
|
%
|
|||
Non-cat loss and LAE ratio
|
64.5
|
%
|
|
42.3
|
%
|
|
61.3
|
%
|
|||
Total Loss and LAE ratio
|
68.2
|
%
|
|
56.8
|
%
|
|
66.6
|
%
|
|||
Expense ratio
|
34.6
|
%
|
|
31.2
|
%
|
|
34.1
|
%
|
|||
Combined ratio
|
102.8
|
%
|
|
88.0
|
%
|
|
100.7
|
%
|
|||
|
|
|
|
|
|
|
($ millions)
|
SAP HO QS Arrangement Cession - Overall Results
|
||||||||||
|
|
|
|
|
Pro-Forma
|
||||||
|
|
|
|
|
without HO QS
|
||||||
Three months ended September 30, 2014
|
As Reported
|
|
HO QS Cession
|
|
Cession
|
||||||
Net written premiums
|
$
|
277.0
|
|
|
$
|
47.1
|
|
|
$
|
324.1
|
|
|
|
|
|
|
|
||||||
Earned premiums
|
270.2
|
|
|
43.9
|
|
|
314.1
|
|
|||
Losses and LAE incurred:
|
|
|
|
|
|
||||||
Cat loss and ALAE
|
2.4
|
|
|
1.2
|
|
|
3.6
|
|
|||
Non-cat loss and ALAE
|
164.5
|
|
|
17.0
|
|
|
181.5
|
|
|||
Total Loss and ALAE
|
166.9
|
|
|
18.2
|
|
|
185.1
|
|
|||
ULAE
|
18.3
|
|
|
—
|
|
|
18.3
|
|
|||
Total Loss and ALAE incurred
|
185.2
|
|
|
18.2
|
|
|
203.4
|
|
|||
Underwriting expenses
|
95.2
|
|
|
16.6
|
|
|
111.8
|
|
|||
Net underwriting (loss) gain
|
$
|
(10.2
|
)
|
|
$
|
9.1
|
|
|
$
|
(1.1
|
)
|
|
|
|
|
|
|
||||||
Cat loss and ALAE ratio
|
0.9
|
%
|
|
2.8
|
%
|
|
1.1
|
%
|
|||
Non-cat loss and ALAE ratio
|
60.9
|
%
|
|
38.7
|
%
|
|
57.8
|
%
|
|||
Total loss and ALAE ratio
|
61.8
|
%
|
|
41.5
|
%
|
|
58.9
|
%
|
|||
ULAE ratio
|
6.7
|
%
|
|
—
|
|
|
5.8
|
%
|
|||
Total loss and LAE ratio
|
68.5
|
%
|
|
41.5
|
%
|
|
64.7
|
%
|
|||
Expense ratio
|
34.4
|
%
|
|
35.2
|
%
|
|
34.5
|
%
|
|||
Combined ratio
|
102.9
|
%
|
|
76.7
|
%
|
|
99.2
|
%
|
|||
|
|
|
|
|
|
($ millions)
|
SAP HO QS Arrangement Cession - Overall Results
|
||||||||||
|
|
|
|
|
Pro-Forma
|
||||||
|
|
|
|
|
without HO QS
|
||||||
Nine months ended September 30, 2014
|
As Reported
|
|
HO QS Cession
|
|
Cession
|
||||||
Net written premiums
|
$
|
837.5
|
|
|
$
|
133.6
|
|
|
$
|
971.1
|
|
|
|
|
|
|
|
||||||
Earned premiums
|
801.0
|
|
|
132.2
|
|
|
933.2
|
|
|||
Losses and LAE incurred:
|
|
|
|
|
|
||||||
Cat loss and ALAE
|
29.9
|
|
|
19.2
|
|
|
49.1
|
|
|||
Non-cat loss and ALAE
|
467.4
|
|
|
55.8
|
|
|
523.2
|
|
|||
Total Loss and ALAE
|
497.3
|
|
|
75.0
|
|
|
572.3
|
|
|||
ULAE
|
51.7
|
|
|
—
|
|
|
51.7
|
|
|||
Total Loss and ALAE incurred
|
549.0
|
|
|
75.0
|
|
|
624.0
|
|
|||
Underwriting expenses
|
294.8
|
|
|
41.7
|
|
|
336.5
|
|
|||
Net underwriting (loss) gain
|
$
|
(42.8
|
)
|
|
$
|
15.5
|
|
|
$
|
(27.3
|
)
|
|
|
|
|
|
|
||||||
Cat loss and ALAE ratio
|
3.7
|
%
|
|
14.5
|
%
|
|
5.3
|
%
|
|||
Non-cat loss and ALAE ratio
|
58.4
|
%
|
|
42.3
|
%
|
|
56.0
|
%
|
|||
Total loss and ALAE ratio
|
62.1
|
%
|
|
56.8
|
%
|
|
61.3
|
%
|
|||
ULAE ratio
|
6.4
|
%
|
|
—
|
|
|
5.5
|
%
|
|||
Total loss and LAE ratio
|
68.5
|
%
|
|
56.8
|
%
|
|
66.8
|
%
|
|||
Expense ratio
|
35.2
|
%
|
|
31.2
|
%
|
|
34.7
|
%
|
|||
Combined ratio
|
103.7
|
%
|
|
88.0
|
%
|
|
101.5
|
%
|
|||
|
|
|
|
|
|
|
|
($ millions)
|
Three months ended
|
|||||||||||||||||||||||
|
September 30, 2015
|
|||||||||||||||||||||||
|
Personal
|
|
%
Ratio
|
|
Business
|
|
%
Ratio
|
|
Specialty
|
|
%
Ratio
|
|
Total
|
|
%
Ratio
|
|||||||||
Net written premiums
|
$
|
152.4
|
|
|
|
|
$
|
97.4
|
|
|
|
|
$
|
74.7
|
|
|
|
|
$
|
324.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Earned premiums
|
147.2
|
|
|
|
|
96.8
|
|
|
|
|
75.7
|
|
|
|
|
319.7
|
|
|
|
|||||
Cat loss and ALAE
|
5.7
|
|
|
3.9
|
|
1.1
|
|
|
1.1
|
|
—
|
|
|
0.1
|
|
|
6.8
|
|
|
2.1
|
||||
Non-cat loss and ALAE
|
78.7
|
|
|
53.5
|
|
56.9
|
|
|
58.8
|
|
45.8
|
|
|
60.3
|
|
|
181.4
|
|
|
56.8
|
||||
ULAE
|
10.7
|
|
|
7.2
|
|
5.3
|
|
|
5.5
|
|
3.6
|
|
|
4.8
|
|
|
19.6
|
|
|
6.1
|
||||
Underwriting expenses
|
45.2
|
|
|
29.7
|
|
40.3
|
|
|
41.4
|
|
25.1
|
|
|
33.6
|
|
|
110.6
|
|
|
34.1
|
||||
SAP underwriting gain (loss)
and SAP combined ratio
|
$
|
6.9
|
|
|
94.3
|
|
$
|
(6.8
|
)
|
|
106.8
|
|
$
|
1.2
|
|
|
98.8
|
|
|
$
|
1.3
|
|
|
99.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
($ millions)
|
Three months ended
|
|||||||||||||||||||||||
|
September 30, 2014
|
|||||||||||||||||||||||
|
Personal
|
|
%
Ratio
|
|
Business
|
|
%
Ratio
|
|
Specialty
|
|
%
Ratio
|
|
Total
|
|
%
Ratio
|
|||||||||
Net written premiums
|
$
|
113.1
|
|
|
|
|
$
|
96.1
|
|
|
|
|
$
|
67.8
|
|
|
|
|
$
|
277.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Earned premiums
|
112.3
|
|
|
|
|
96.0
|
|
|
|
|
61.9
|
|
|
|
|
270.2
|
|
|
|
|||||
Cat loss and ALAE
|
0.6
|
|
|
0.6
|
|
1.8
|
|
|
1.9
|
|
—
|
|
|
(0.1
|
)
|
|
2.4
|
|
|
0.9
|
||||
Non-cat loss and ALAE
|
64.9
|
|
|
57.7
|
|
53.2
|
|
|
55.4
|
|
46.4
|
|
|
75.1
|
|
|
164.5
|
|
|
60.9
|
||||
ULAE
|
11.2
|
|
|
9.9
|
|
4.9
|
|
|
5.2
|
|
2.2
|
|
|
3.4
|
|
|
18.3
|
|
|
6.7
|
||||
Underwriting expenses
|
31.1
|
|
|
27.5
|
|
39.4
|
|
|
41.1
|
|
24.7
|
|
|
36.4
|
|
|
95.2
|
|
|
34.4
|
||||
SAP underwriting gain (loss)
and SAP combined ratio
|
$
|
4.5
|
|
|
95.7
|
|
$
|
(3.3
|
)
|
|
103.6
|
|
$
|
(11.4
|
)
|
|
114.8
|
|
|
$
|
(10.2
|
)
|
|
102.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ millions)
|
Nine months ended
|
||||||||||||||||||||||
|
September 30, 2015
|
||||||||||||||||||||||
|
Personal
|
|
%
Ratio
|
|
Business
|
|
%
Ratio
|
|
Specialty
|
|
%
Ratio
|
|
Total
|
|
%
Ratio
|
||||||||
Net written premiums
|
$
|
445.4
|
|
|
|
|
$
|
297.8
|
|
|
|
|
$
|
227.6
|
|
|
|
|
$
|
970.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Earned premiums
|
445.4
|
|
|
|
|
289.4
|
|
|
|
|
211.7
|
|
|
|
|
946.5
|
|
|
|
||||
Cat loss and ALAE
|
33.2
|
|
|
7.5
|
|
13.4
|
|
|
4.6
|
|
0.2
|
|
|
0.1
|
|
46.8
|
|
|
4.9
|
||||
Non-cat loss and ALAE
|
233.8
|
|
|
52.5
|
|
164.5
|
|
|
56.9
|
|
123.0
|
|
|
58.1
|
|
521.3
|
|
|
55.1
|
||||
ULAE
|
34.7
|
|
|
7.7
|
|
15.9
|
|
|
5.5
|
|
9.4
|
|
|
4.4
|
|
60.0
|
|
|
6.4
|
||||
Underwriting expenses
|
129.6
|
|
|
29.1
|
|
118.6
|
|
|
39.8
|
|
79.7
|
|
|
35.0
|
|
327.9
|
|
|
33.8
|
||||
SAP underwriting gain (loss)
and SAP combined ratio
|
$
|
14.1
|
|
|
96.8
|
|
$
|
(23.0
|
)
|
|
106.8
|
|
$
|
(0.6
|
)
|
|
97.6
|
|
$
|
(9.5
|
)
|
|
100.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
($ millions)
|
Nine months ended
|
||||||||||||||||||||||
|
September 30, 2014
|
||||||||||||||||||||||
|
Personal
|
|
%
Ratio
|
|
Business
|
|
%
Ratio
|
|
Specialty
|
|
%
Ratio
|
|
Total
|
|
%
Ratio
|
||||||||
Net written premiums
|
$
|
339.0
|
|
|
|
|
$
|
297.7
|
|
|
|
|
$
|
200.8
|
|
|
|
|
$
|
837.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Earned premiums
|
340.3
|
|
|
|
|
285.4
|
|
|
|
|
175.3
|
|
|
|
|
801.0
|
|
|
|
||||
Cat loss and ALAE
|
13.0
|
|
|
3.8
|
|
15.2
|
|
|
5.3
|
|
1.7
|
|
|
1.0
|
|
29.9
|
|
|
3.7
|
||||
Non-cat loss and ALAE
|
194.6
|
|
|
57.2
|
|
156.1
|
|
|
54.7
|
|
116.7
|
|
|
66.6
|
|
467.4
|
|
|
58.4
|
||||
ULAE
|
32.5
|
|
|
9.6
|
|
13.5
|
|
|
4.7
|
|
5.7
|
|
|
3.2
|
|
51.7
|
|
|
6.4
|
||||
Underwriting expenses
|
100.3
|
|
|
29.6
|
|
119.2
|
|
|
40.1
|
|
75.3
|
|
|
37.5
|
|
294.8
|
|
|
35.2
|
||||
SAP underwriting loss
and SAP combined ratio
|
$
|
(0.1
|
)
|
|
100.2
|
|
$
|
(18.6
|
)
|
|
104.8
|
|
$
|
(24.1
|
)
|
|
108.3
|
|
$
|
(42.8
|
)
|
|
103.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ millions)
|
|
Net Written Premiums
|
||||||||||||||||||||
|
|
Three months ended September 30
|
|
Nine months ended September 30
|
||||||||||||||||||
Personal insurance segment:
|
|
2015
|
|
2014
|
|
%
Change
|
|
2015
|
|
2014
|
|
%
Change
|
||||||||||
Personal auto
|
|
$
|
85.4
|
|
|
$
|
89.8
|
|
|
(4.9
|
)
|
|
$
|
254.1
|
|
|
$
|
271.3
|
|
|
(6.3
|
)
|
Homeowners
|
|
59.3
|
|
|
15.9
|
|
|
273.0
|
|
|
166.6
|
|
|
44.7
|
|
|
272.7
|
|
||||
Other personal
|
|
7.7
|
|
|
7.4
|
|
|
4.1
|
|
|
24.7
|
|
|
23.0
|
|
|
7.4
|
|
||||
Total personal
|
|
$
|
152.4
|
|
|
$
|
113.1
|
|
|
34.7
|
|
|
$
|
445.4
|
|
|
$
|
339.0
|
|
|
31.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Statutory Loss and LAE Ratios
|
($ millions)
|
%
|
|||||||||||||||||||
Three months ended September 30
|
Earned Premium
|
|
Cat Loss & ALAE
|
|
Non-Cat Loss & ALAE
|
|
Statutory Loss & LAE
|
Cat loss Ratio
|
|
Non-Cat Loss & ALAE Ratio
|
|
Total Loss and LAE Ratio
|
|||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Personal insurance segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Personal auto
|
$
|
84.2
|
|
|
$
|
0.7
|
|
|
$
|
55.2
|
|
|
$
|
55.9
|
|
0.9
|
|
|
65.5
|
|
66.4
|
Homeowners
|
55.0
|
|
|
4.5
|
|
|
19.4
|
|
|
23.9
|
|
8.3
|
|
|
35.3
|
|
43.6
|
||||
Other personal
|
8.0
|
|
|
0.5
|
|
|
4.1
|
|
|
4.6
|
|
5.4
|
|
|
52.1
|
|
57.5
|
||||
Total personal
|
147.2
|
|
|
5.7
|
|
|
78.7
|
|
|
84.4
|
|
3.9
|
|
|
53.5
|
|
57.4
|
||||
ULAE
|
—
|
|
|
—
|
|
|
—
|
|
|
10.7
|
|
—
|
|
|
—
|
|
7.2
|
||||
Total Loss and LAE
|
$
|
147.2
|
|
|
$
|
5.7
|
|
|
$
|
78.7
|
|
|
$
|
95.1
|
|
3.9
|
|
|
53.5
|
|
64.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Personal insurance segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Personal auto
|
$
|
90.2
|
|
|
$
|
1.0
|
|
|
$
|
56.2
|
|
|
$
|
57.2
|
|
1.1
|
|
|
62.4
|
|
63.5
|
Homeowners
|
14.6
|
|
|
0.1
|
|
|
5.9
|
|
|
6.0
|
|
1.3
|
|
|
39.5
|
|
40.8
|
||||
Other personal
|
7.5
|
|
|
(0.5
|
)
|
|
2.8
|
|
|
2.3
|
|
(7.0
|
)
|
|
36.7
|
|
29.7
|
||||
Total personal
|
112.3
|
|
|
0.6
|
|
|
64.9
|
|
|
65.5
|
|
0.6
|
|
|
57.7
|
|
58.3
|
||||
ULAE
|
—
|
|
|
—
|
|
|
—
|
|
|
11.2
|
|
—
|
|
|
—
|
|
9.9
|
||||
Total Loss and LAE
|
$
|
112.3
|
|
|
$
|
0.6
|
|
|
$
|
64.9
|
|
|
$
|
76.7
|
|
0.6
|
|
|
57.7
|
|
68.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Statutory Loss and LAE Ratios
|
($ millions)
|
%
|
||||||||||||||||||
Nine months ended September 30
|
Earned Premium
|
|
Cat Loss & ALAE
|
|
Non-Cat Loss & ALAE
|
|
Statutory Loss & LAE
|
Cat loss Ratio
|
|
Non-Cat Loss & ALAE Ratio
|
|
Total Loss and LAE Ratio
|
||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Personal insurance segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Personal auto
|
$
|
255.2
|
|
|
$
|
4.4
|
|
|
$
|
166.7
|
|
|
$
|
171.1
|
|
1.7
|
|
65.3
|
|
67.0
|
Homeowners
|
166.1
|
|
|
26.9
|
|
|
59.5
|
|
|
86.4
|
|
16.2
|
|
35.8
|
|
52.0
|
||||
Other personal
|
24.1
|
|
|
1.9
|
|
|
7.6
|
|
|
9.5
|
|
7.8
|
|
31.8
|
|
39.6
|
||||
Total personal
|
445.4
|
|
|
33.2
|
|
|
233.8
|
|
|
267.0
|
|
7.5
|
|
52.5
|
|
60.0
|
||||
ULAE
|
—
|
|
|
—
|
|
|
—
|
|
|
34.7
|
|
—
|
|
—
|
|
7.7
|
||||
Total Loss and LAE
|
$
|
445.4
|
|
|
$
|
33.2
|
|
|
$
|
233.8
|
|
|
$
|
301.7
|
|
7.5
|
|
52.5
|
|
67.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Personal insurance segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Personal auto
|
$
|
274.0
|
|
|
$
|
6.2
|
|
|
$
|
168.3
|
|
|
$
|
174.5
|
|
2.3
|
|
61.4
|
|
63.7
|
Homeowners
|
44.0
|
|
|
5.5
|
|
|
17.3
|
|
|
22.8
|
|
12.6
|
|
39.2
|
|
51.8
|
||||
Other personal
|
22.3
|
|
|
1.3
|
|
|
9.0
|
|
|
10.3
|
|
5.7
|
|
40.1
|
|
45.8
|
||||
Total personal
|
340.3
|
|
|
13.0
|
|
|
194.6
|
|
|
207.6
|
|
3.8
|
|
57.2
|
|
61.0
|
||||
ULAE
|
—
|
|
|
—
|
|
|
—
|
|
|
32.5
|
|
—
|
|
—
|
|
9.6
|
||||
Total Loss and LAE
|
$
|
340.3
|
|
|
$
|
13.0
|
|
|
$
|
194.6
|
|
|
$
|
240.1
|
|
3.8
|
|
57.2
|
|
70.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
For the three and nine months ended September 30, 2015 and 2014, respectively, the following table sets forth the reconciliation of as reported net written premiums to 2014 pro forma net written premiums after excluding the impact of the net written premium cession under the expired HO QS Arrangement:
|
($ millions)
|
|
Three months ended September 30
|
|
Nine months ended September 30
|
||||||||||||||||||
|
|
2015
|
|
2014
|
|
%
Change |
|
2015
|
|
2014
|
|
%
Change |
||||||||||
Net written premiums:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Personal insurance segment
|
|
$
|
152.4
|
|
|
$
|
113.1
|
|
|
34.7
|
|
|
$
|
445.4
|
|
|
$
|
339.0
|
|
|
31.4
|
|
HO QS cession
|
|
—
|
|
|
47.1
|
|
|
(100.0
|
)
|
|
—
|
|
|
133.6
|
|
|
(100.0
|
)
|
||||
Pro forma net written premiums
|
|
$
|
152.4
|
|
|
$
|
160.2
|
|
|
(4.9
|
)
|
|
$
|
445.4
|
|
|
$
|
472.6
|
|
|
(5.8
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ millions)
|
SAP HO QS Arrangement Cession - Homeowners
|
||||||||||
Three months ended September 30, 2014
|
As Reported
|
|
HO QS Cession
|
|
Pro-Forma
without
HO QS
Cession
|
||||||
Net written premiums
|
$
|
15.9
|
|
|
$
|
47.1
|
|
|
$
|
63.0
|
|
|
|
|
|
|
|
||||||
Earned premiums
|
14.6
|
|
|
43.9
|
|
|
58.5
|
|
|||
Losses and ALAE incurred:
|
|
|
|
|
|
||||||
Cat loss and ALAE
|
0.1
|
|
|
1.2
|
|
|
1.3
|
|
|||
Non-cat loss and ALAE
|
5.9
|
|
|
17.0
|
|
|
22.9
|
|
|||
Total Loss and ALAE incurred
|
$
|
6.0
|
|
|
$
|
18.2
|
|
|
$
|
24.2
|
|
|
|
|
|
|
|
||||||
Cat loss and ALAE ratio
|
1.3
|
%
|
|
2.8
|
%
|
|
2.4
|
%
|
|||
Non-cat loss and ALAE ratio
|
39.5
|
%
|
|
38.7
|
%
|
|
38.9
|
%
|
|||
Total Loss and ALAE ratio
|
40.8
|
%
|
|
41.5
|
%
|
|
41.3
|
%
|
|||
|
|
|
|
|
|
($ millions)
|
SAP HO QS Arrangement Cession - Homeowners
|
||||||||||
Nine months ended September 30, 2014
|
As Reported
|
|
HO QS Cession
|
|
Pro-Forma
without
HO QS
Cession
|
||||||
Net written premiums
|
$
|
44.7
|
|
|
$
|
133.6
|
|
|
$
|
178.3
|
|
|
|
|
|
|
|
||||||
Earned premiums
|
44.0
|
|
|
132.2
|
|
|
176.2
|
|
|||
Losses and ALAE incurred:
|
|
|
|
|
|
||||||
Cat loss and ALAE
|
5.5
|
|
|
19.2
|
|
|
24.7
|
|
|||
Non-cat loss and ALAE
|
17.3
|
|
|
55.8
|
|
|
73.1
|
|
|||
Total Loss and ALAE incurred
|
$
|
22.8
|
|
|
$
|
75.0
|
|
|
$
|
97.8
|
|
|
|
|
|
|
|
||||||
Cat loss and ALAE ratio
|
12.6
|
%
|
|
14.5
|
%
|
|
14.0
|
%
|
|||
Non-cat loss and ALAE ratio
|
39.2
|
%
|
|
42.3
|
%
|
|
41.5
|
%
|
|||
Total Loss and ALAE ratio
|
51.8
|
%
|
|
56.8
|
%
|
|
55.5
|
%
|
|||
|
|
|
|
|
|
|
($ millions)
|
SAP HO QS Arrangement Cession - Personal Insurance Segment
|
||||||||||
Three months ended September 30, 2014
|
As Reported
|
|
HO QS Cession
|
|
Pro-Forma
without
HO QS
Cession
|
||||||
Net written premiums
|
$
|
113.1
|
|
|
$
|
47.1
|
|
|
$
|
160.2
|
|
|
|
|
|
|
|
||||||
Earned premiums
|
112.3
|
|
|
43.9
|
|
|
156.2
|
|
|||
Losses and ALAE incurred:
|
|
|
|
|
|
||||||
Cat loss and ALAE
|
0.6
|
|
|
1.2
|
|
|
1.8
|
|
|||
Non-cat loss and ALAE
|
64.9
|
|
|
17.0
|
|
|
81.9
|
|
|||
Total Loss and ALAE incurred
|
$
|
65.5
|
|
|
$
|
18.2
|
|
|
$
|
83.7
|
|
|
|
|
|
|
|
||||||
Cat loss and ALAE ratio
|
0.6
|
%
|
|
2.8
|
%
|
|
1.2
|
%
|
|||
Non-cat loss and ALAE ratio
|
57.7
|
%
|
|
38.7
|
%
|
|
52.4
|
%
|
|||
Total Loss and ALAE ratio
|
58.3
|
%
|
|
41.5
|
%
|
|
53.6
|
%
|
|||
|
|
|
|
|
|
($ millions)
|
SAP HO QS Arrangement Cession - Personal Insurance Segment
|
||||||||||
Nine months ended September 30, 2014
|
As Reported
|
|
HO QS Cession
|
|
Pro-Forma
without
HO QS
Cession
|
||||||
Net written premiums
|
$
|
339.0
|
|
|
$
|
133.6
|
|
|
$
|
472.6
|
|
|
|
|
|
|
|
||||||
Earned premiums
|
340.3
|
|
|
132.2
|
|
|
472.5
|
|
|||
Losses and ALAE incurred:
|
|
|
|
|
|
||||||
Cat loss and ALAE
|
13.0
|
|
|
19.2
|
|
|
32.2
|
|
|||
Non-cat loss and ALAE
|
194.6
|
|
|
55.8
|
|
|
250.4
|
|
|||
Total Loss and ALAE incurred
|
$
|
207.6
|
|
|
$
|
75.0
|
|
|
$
|
282.6
|
|
|
|
|
|
|
|
||||||
Cat loss and ALAE ratio
|
3.8
|
%
|
|
14.5
|
%
|
|
6.8
|
%
|
|||
Non-cat loss and ALAE ratio
|
57.2
|
%
|
|
42.3
|
%
|
|
53.0
|
%
|
|||
Total Loss and ALAE ratio
|
61.0
|
%
|
|
56.8
|
%
|
|
59.8
|
%
|
|||
|
|
|
|
|
|
|
($ millions)
|
|
Net Written Premiums
|
||||||||||||||||||||
|
|
Three months ended September 30
|
|
Nine months ended September 30
|
||||||||||||||||||
Business insurance segment:
|
|
2015
|
|
2014
|
|
%
Change
|
|
2015
|
|
2014
|
|
%
Change
|
||||||||||
Commercial auto
|
|
$
|
26.6
|
|
|
$
|
25.4
|
|
|
4.7
|
|
|
$
|
79.6
|
|
|
$
|
78.5
|
|
|
1.4
|
|
Commercial multi-peril
|
|
30.4
|
|
|
30.7
|
|
|
(1.0
|
)
|
|
91.4
|
|
|
92.4
|
|
|
(1.1
|
)
|
||||
Fire & allied lines
|
|
19.0
|
|
|
19.5
|
|
|
(2.6
|
)
|
|
56.1
|
|
|
58.1
|
|
|
(3.4
|
)
|
||||
Other & product liability
|
|
17.2
|
|
|
16.1
|
|
|
6.8
|
|
|
57.7
|
|
|
54.9
|
|
|
5.1
|
|
||||
Other commercial
|
|
4.2
|
|
|
4.4
|
|
|
(4.5
|
)
|
|
13.0
|
|
|
13.8
|
|
|
(5.8
|
)
|
||||
Total business
|
|
$
|
97.4
|
|
|
$
|
96.1
|
|
|
1.4
|
|
|
$
|
297.8
|
|
|
$
|
297.7
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Statutory Loss and LAE Ratios
|
($ millions)
|
%
|
|||||||||||||||||||
Three months ended September 30
|
Earned Premium
|
|
Cat Loss & ALAE
|
|
Non-Cat Loss & ALAE
|
|
Statutory Loss & LAE
|
Cat loss Ratio
|
|
Non-Cat Loss & ALAE Ratio
|
|
Total Loss and LAE Ratio
|
|||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Business insurance segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Commercial auto
|
$
|
25.6
|
|
|
$
|
0.1
|
|
|
$
|
22.2
|
|
|
$
|
22.3
|
|
0.2
|
|
|
87.1
|
|
87.3
|
Commercial multi-peril
|
29.9
|
|
|
1.4
|
|
|
21.3
|
|
|
22.7
|
|
4.7
|
|
|
71.3
|
|
76.0
|
||||
Fire & allied lines
|
18.7
|
|
|
(0.4
|
)
|
|
2.2
|
|
|
1.8
|
|
(1.8
|
)
|
|
11.2
|
|
9.4
|
||||
Other & product liability
|
18.4
|
|
|
—
|
|
|
9.8
|
|
|
9.8
|
|
(0.1
|
)
|
|
53.3
|
|
53.2
|
||||
Other commercial
|
4.2
|
|
|
—
|
|
|
1.4
|
|
|
1.4
|
|
(0.3
|
)
|
|
32.6
|
|
32.3
|
||||
Total business
|
96.8
|
|
|
1.1
|
|
|
56.9
|
|
|
58.0
|
|
1.1
|
|
|
58.8
|
|
59.9
|
||||
ULAE
|
—
|
|
|
—
|
|
|
—
|
|
|
5.3
|
|
—
|
|
|
—
|
|
5.5
|
||||
Total Loss and LAE
|
$
|
96.8
|
|
|
$
|
1.1
|
|
|
$
|
56.9
|
|
|
$
|
63.3
|
|
1.1
|
|
|
58.8
|
|
65.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Business insurance segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Commercial auto
|
$
|
24.8
|
|
|
$
|
0.4
|
|
|
$
|
14.7
|
|
|
$
|
15.1
|
|
1.6
|
|
|
59.3
|
|
60.9
|
Commercial multi-peril
|
29.8
|
|
|
0.3
|
|
|
20.8
|
|
|
21.1
|
|
1.3
|
|
|
69.3
|
|
70.6
|
||||
Fire & allied lines
|
19.4
|
|
|
1.0
|
|
|
5.9
|
|
|
6.9
|
|
5.1
|
|
|
30.7
|
|
35.8
|
||||
Other & product liability
|
17.6
|
|
|
—
|
|
|
10.0
|
|
|
10.0
|
|
—
|
|
|
57.0
|
|
57.0
|
||||
Other commercial
|
4.4
|
|
|
0.1
|
|
|
1.8
|
|
|
1.9
|
|
1.5
|
|
|
42.5
|
|
44.0
|
||||
Total business
|
96.0
|
|
|
1.8
|
|
|
53.2
|
|
|
55.0
|
|
1.9
|
|
|
55.4
|
|
57.3
|
||||
ULAE
|
—
|
|
|
—
|
|
|
—
|
|
|
4.9
|
|
—
|
|
|
—
|
|
5.2
|
||||
Total Loss and LAE
|
$
|
96.0
|
|
|
$
|
1.8
|
|
|
$
|
53.2
|
|
|
$
|
59.9
|
|
1.9
|
|
|
55.4
|
|
62.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Statutory Loss and LAE Ratios
|
($ millions)
|
%
|
|||||||||||||||||||
Nine months ended September 30
|
Earned Premium
|
|
Cat Loss & ALAE
|
|
Non-Cat Loss & ALAE
|
|
Statutory Loss & LAE
|
Cat loss Ratio
|
|
Non-Cat Loss & ALAE Ratio
|
|
Total Loss and LAE Ratio
|
|||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Business insurance segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Commercial auto
|
$
|
76.1
|
|
|
$
|
0.4
|
|
|
$
|
56.7
|
|
|
$
|
57.1
|
|
0.5
|
|
|
74.6
|
|
75.1
|
Commercial multi-peril
|
89.8
|
|
|
6.6
|
|
|
53.7
|
|
|
60.3
|
|
7.3
|
|
|
59.9
|
|
67.2
|
||||
Fire & allied lines
|
56.2
|
|
|
6.4
|
|
|
20.2
|
|
|
26.6
|
|
11.4
|
|
|
35.8
|
|
47.2
|
||||
Other & product liability
|
54.5
|
|
|
—
|
|
|
30.1
|
|
|
30.1
|
|
—
|
|
|
55.2
|
|
55.2
|
||||
Other commercial
|
12.8
|
|
|
—
|
|
|
3.8
|
|
|
3.8
|
|
0.1
|
|
|
30.0
|
|
30.1
|
||||
Total business
|
289.4
|
|
|
13.4
|
|
|
164.5
|
|
|
177.9
|
|
4.6
|
|
|
56.9
|
|
61.5
|
||||
ULAE
|
—
|
|
|
—
|
|
|
—
|
|
|
15.9
|
|
—
|
|
|
—
|
|
5.5
|
||||
Total Loss and LAE
|
$
|
289.4
|
|
|
$
|
13.4
|
|
|
$
|
164.5
|
|
|
$
|
193.8
|
|
4.6
|
|
|
56.9
|
|
67.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Business insurance segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Commercial auto
|
$
|
73.3
|
|
|
$
|
0.9
|
|
|
$
|
40.5
|
|
|
$
|
41.4
|
|
1.2
|
|
|
55.3
|
|
56.5
|
Commercial multi-peril
|
87.9
|
|
|
5.7
|
|
|
55.8
|
|
|
61.5
|
|
6.5
|
|
|
63.4
|
|
69.9
|
||||
Fire & allied lines
|
58.3
|
|
|
8.6
|
|
|
29.0
|
|
|
37.6
|
|
14.7
|
|
|
49.8
|
|
64.5
|
||||
Other & product liability
|
52.7
|
|
|
—
|
|
|
26.2
|
|
|
26.2
|
|
—
|
|
|
49.8
|
|
49.8
|
||||
Other commercial
|
13.2
|
|
|
—
|
|
|
4.6
|
|
|
4.6
|
|
(0.3
|
)
|
|
35.3
|
|
35.0
|
||||
Total business
|
285.4
|
|
|
15.2
|
|
|
156.1
|
|
|
171.3
|
|
5.3
|
|
|
54.7
|
|
60.0
|
||||
ULAE
|
—
|
|
|
—
|
|
|
—
|
|
|
13.5
|
|
—
|
|
|
—
|
|
4.7
|
||||
Total Loss and LAE
|
$
|
285.4
|
|
|
$
|
15.2
|
|
|
$
|
156.1
|
|
|
$
|
184.8
|
|
5.3
|
|
|
54.7
|
|
64.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ millions)
|
|
Net Written Premiums
|
||||||||||||||||||||
|
|
Three months ended September 30
|
|
Nine months ended September 30
|
||||||||||||||||||
Specialty insurance segment:
|
|
2015
|
|
2014
|
|
%
Change
|
|
2015
|
|
2014
|
|
%
Change
|
||||||||||
E&S property
|
|
$
|
4.8
|
|
|
$
|
6.2
|
|
|
(22.6
|
)
|
|
$
|
26.5
|
|
|
$
|
32.0
|
|
|
(17.2
|
)
|
E&S casualty
|
|
19.4
|
|
|
17.8
|
|
|
9.0
|
|
|
47.4
|
|
|
43.8
|
|
|
8.2
|
|
||||
Programs
|
|
25.7
|
|
|
21.5
|
|
|
19.5
|
|
|
82.9
|
|
|
61.2
|
|
|
35.5
|
|
||||
Workers’ compensation
|
|
24.8
|
|
|
22.3
|
|
|
11.2
|
|
|
70.8
|
|
|
63.8
|
|
|
11.0
|
|
||||
Total specialty
|
|
$
|
74.7
|
|
|
$
|
67.8
|
|
|
10.2
|
|
|
$
|
227.6
|
|
|
$
|
200.8
|
|
|
13.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Statutory Loss and LAE Ratios
|
($ millions)
|
%
|
|||||||||||||||||||
Three months ended September 30
|
Earned Premium
|
|
Cat Loss & ALAE
|
|
Non-Cat Loss & ALAE
|
|
Statutory Loss & LAE
|
Cat loss Ratio
|
|
Non-Cat Loss & ALAE Ratio
|
|
Total Loss and LAE Ratio
|
|||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Specialty insurance segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
E&S property
|
$
|
9.0
|
|
|
$
|
—
|
|
|
$
|
0.3
|
|
|
$
|
0.3
|
|
0.4
|
|
|
2.1
|
|
2.5
|
E&S casualty
|
17.5
|
|
|
—
|
|
|
12.3
|
|
|
12.3
|
|
—
|
|
|
70.1
|
|
70.1
|
||||
Programs
|
26.8
|
|
|
—
|
|
|
19.6
|
|
|
19.6
|
|
0.2
|
|
|
73.1
|
|
73.3
|
||||
Workers’ compensation
|
22.4
|
|
|
—
|
|
|
13.6
|
|
|
13.6
|
|
—
|
|
|
60.6
|
|
60.6
|
||||
Total specialty
|
75.7
|
|
|
—
|
|
|
45.8
|
|
|
45.8
|
|
0.1
|
|
|
60.3
|
|
60.4
|
||||
ULAE
|
—
|
|
|
—
|
|
|
—
|
|
|
3.6
|
|
—
|
|
|
—
|
|
4.8
|
||||
Total Loss and LAE
|
$
|
75.7
|
|
|
$
|
—
|
|
|
$
|
45.8
|
|
|
$
|
49.4
|
|
0.1
|
|
|
60.3
|
|
65.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Specialty insurance segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
E&S property
|
$
|
9.9
|
|
|
$
|
—
|
|
|
$
|
1.9
|
|
|
$
|
1.9
|
|
(0.8
|
)
|
|
20.4
|
|
19.6
|
E&S casualty
|
12.7
|
|
|
—
|
|
|
6.1
|
|
|
6.1
|
|
—
|
|
|
47.5
|
|
47.5
|
||||
Programs
|
19.1
|
|
|
—
|
|
|
26.2
|
|
|
26.2
|
|
—
|
|
|
137.6
|
|
137.6
|
||||
Workers’ compensation
|
20.2
|
|
|
—
|
|
|
12.2
|
|
|
12.2
|
|
—
|
|
|
60.4
|
|
60.4
|
||||
Total specialty
|
61.9
|
|
|
—
|
|
|
46.4
|
|
|
46.4
|
|
(0.1
|
)
|
|
75.1
|
|
75.0
|
||||
ULAE
|
—
|
|
|
—
|
|
|
—
|
|
|
2.2
|
|
—
|
|
|
—
|
|
3.4
|
||||
Total Loss and LAE
|
$
|
61.9
|
|
|
$
|
—
|
|
|
$
|
46.4
|
|
|
$
|
48.6
|
|
(0.1
|
)
|
|
75.1
|
|
78.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Statutory Loss and LAE Ratios
|
($ millions)
|
%
|
||||||||||||||||||
Nine months ended September 30
|
Earned Premium
|
|
Cat Loss & ALAE
|
|
Non-Cat Loss & ALAE
|
|
Statutory Loss & LAE
|
Cat loss Ratio
|
|
Non-Cat Loss & ALAE Ratio
|
|
Total Loss and LAE Ratio
|
||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Specialty insurance segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
E&S property
|
$
|
28.6
|
|
|
$
|
0.1
|
|
|
$
|
2.8
|
|
|
$
|
2.9
|
|
0.3
|
|
9.7
|
|
10.0
|
E&S casualty
|
43.5
|
|
|
—
|
|
|
28.4
|
|
|
28.4
|
|
—
|
|
65.2
|
|
65.2
|
||||
Programs
|
73.7
|
|
|
0.1
|
|
|
52.1
|
|
|
52.2
|
|
0.1
|
|
70.8
|
|
70.9
|
||||
Workers’ compensation
|
65.9
|
|
|
—
|
|
|
39.7
|
|
|
39.7
|
|
—
|
|
60.2
|
|
60.2
|
||||
Total specialty
|
211.7
|
|
|
0.2
|
|
|
123.0
|
|
|
123.2
|
|
0.1
|
|
58.1
|
|
58.2
|
||||
ULAE
|
—
|
|
|
—
|
|
|
—
|
|
|
9.4
|
|
—
|
|
—
|
|
4.4
|
||||
Total Loss and LAE
|
$
|
211.7
|
|
|
$
|
0.2
|
|
|
$
|
123.0
|
|
|
$
|
132.6
|
|
0.1
|
|
58.1
|
|
62.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Specialty insurance segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
E&S property
|
$
|
28.6
|
|
|
$
|
1.7
|
|
|
$
|
3.6
|
|
|
$
|
5.3
|
|
5.7
|
|
12.9
|
|
18.6
|
E&S casualty
|
34.3
|
|
|
—
|
|
|
16.3
|
|
|
16.3
|
|
—
|
|
47.4
|
|
47.4
|
||||
Programs
|
55.3
|
|
|
—
|
|
|
61.7
|
|
|
61.7
|
|
—
|
|
111.7
|
|
111.7
|
||||
Workers’ compensation
|
57.1
|
|
|
—
|
|
|
35.1
|
|
|
35.1
|
|
—
|
|
61.5
|
|
61.5
|
||||
Total specialty
|
175.3
|
|
|
1.7
|
|
|
116.7
|
|
|
118.4
|
|
1.0
|
|
66.6
|
|
67.6
|
||||
ULAE
|
—
|
|
|
—
|
|
|
—
|
|
|
5.7
|
|
—
|
|
—
|
|
3.2
|
||||
Total Loss and LAE
|
$
|
175.3
|
|
|
$
|
1.7
|
|
|
$
|
116.7
|
|
|
$
|
124.1
|
|
1.0
|
|
66.6
|
|
70.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ millions)
|
September 30, 2015
|
|
December 31, 2014
|
|
$ Change
|
||||||
Personal insurance segment:
|
|
|
|
|
|
||||||
Personal auto
|
$
|
171.8
|
|
|
$
|
176.0
|
|
|
$
|
(4.2
|
)
|
Homeowners
|
39.6
|
|
|
18.2
|
|
|
21.4
|
|
|||
Other personal
|
8.0
|
|
|
7.7
|
|
|
0.3
|
|
|||
Total personal
|
219.4
|
|
|
201.9
|
|
|
17.5
|
|
|||
Business insurance segment:
|
|
|
|
|
|
||||||
Commercial auto
|
91.2
|
|
|
79.0
|
|
|
12.2
|
|
|||
Commercial multi-peril
|
103.7
|
|
|
94.2
|
|
|
9.5
|
|
|||
Fire & allied lines
|
18.1
|
|
|
19.9
|
|
|
(1.8
|
)
|
|||
Other & product liability
|
156.0
|
|
|
154.2
|
|
|
1.8
|
|
|||
Other business
|
2.4
|
|
|
2.5
|
|
|
(0.1
|
)
|
|||
Total business
|
371.4
|
|
|
349.8
|
|
|
21.6
|
|
|||
Specialty insurance segment:
|
|
|
|
|
|
||||||
E&S property
|
9.7
|
|
|
8.3
|
|
|
1.4
|
|
|||
E&S casualty
|
86.4
|
|
|
69.9
|
|
|
16.5
|
|
|||
Programs
|
163.8
|
|
|
190.1
|
|
|
(26.3
|
)
|
|||
Workers’ compensation
|
163.1
|
|
|
153.6
|
|
|
9.5
|
|
|||
Total specialty
|
423.0
|
|
|
421.9
|
|
|
1.1
|
|
|||
Total losses and loss expenses payable, net of reinsurance
recoverable on losses and loss expenses payable
|
$
|
1,013.8
|
|
|
$
|
973.6
|
|
|
$
|
40.2
|
|
|
|
|
|
|
|
|
|
($ millions)
|
Amortized cost
|
|
Fair
value
|
||||
Due in 1 year or less
|
$
|
34.1
|
|
|
$
|
34.5
|
|
Due after 1 year through 5 years
|
427.7
|
|
|
439.2
|
|
||
Due after 5 years through 10 years
|
288.1
|
|
|
294.4
|
|
||
Due after 10 years
|
734.7
|
|
|
741.8
|
|
||
U.S. government agencies mortgage-backed securities
|
454.3
|
|
|
469.7
|
|
||
Total
|
$
|
1,938.9
|
|
|
$
|
1,979.6
|
|
|
|
|
|
($ millions)
|
Three months ended
|
|
Nine months ended
|
||||||||||||
|
September 30
|
|
September 30
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Gross investment income:
|
|
|
|
|
|
|
|
||||||||
Fixed maturities
|
$
|
16.1
|
|
|
$
|
16.1
|
|
|
$
|
46.4
|
|
|
$
|
49.4
|
|
Equity securities
|
1.4
|
|
|
1.6
|
|
|
4.7
|
|
|
4.7
|
|
||||
Other
|
1.6
|
|
|
1.7
|
|
|
4.3
|
|
|
4.4
|
|
||||
Total gross investment income
|
19.1
|
|
|
19.4
|
|
|
55.4
|
|
|
58.5
|
|
||||
Less: Investment expenses
|
0.4
|
|
|
0.5
|
|
|
1.5
|
|
|
1.5
|
|
||||
Net investment income
|
$
|
18.7
|
|
|
$
|
18.9
|
|
|
$
|
53.9
|
|
|
$
|
57.0
|
|
|
|
|
|
|
|
|
|
||||||||
Average invested assets (at cost)
|
$
|
2,311.5
|
|
|
$
|
2,158.0
|
|
|
$
|
2,268.7
|
|
|
$
|
2,144.1
|
|
Annualized investment yield
|
3.2
|
%
|
|
3.5
|
%
|
|
3.2
|
%
|
|
3.5
|
%
|
||||
Annualized investment yield, after tax
|
2.5
|
%
|
|
2.7
|
%
|
|
2.4
|
%
|
|
2.7
|
%
|
||||
Net investment income, after tax
|
$
|
14.3
|
|
|
$
|
14.4
|
|
|
$
|
41.6
|
|
|
$
|
43.4
|
|
Effective tax rate
|
23.7
|
%
|
|
23.8
|
%
|
|
22.8
|
%
|
|
23.9
|
%
|
|
($ in millions)
|
Three months ended September 30
|
|
Nine months ended September 30
|
||||||||||||||||||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||||||||||||||||||
|
Realized gains (losses)
|
|
Proceeds received on sale
|
|
Realized gains (losses)
|
|
Proceeds received on sale
|
|
Realized gains (losses)
|
|
Proceeds received on sale
|
|
Realized gains (losses)
|
|
Proceeds received on sale
|
||||||||||||||||
Realized gains:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Fixed maturities
|
$
|
2.9
|
|
|
$
|
73.8
|
|
|
$
|
0.1
|
|
|
$
|
33.6
|
|
|
$
|
4.4
|
|
|
$
|
142.7
|
|
|
$
|
2.6
|
|
|
$
|
135.4
|
|
Equity securities
|
11.8
|
|
|
76.2
|
|
|
3.2
|
|
|
9.2
|
|
|
21.8
|
|
|
111.3
|
|
|
17.9
|
|
|
71.8
|
|
||||||||
Other invested assets
|
—
|
|
|
0.2
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|
0.5
|
|
|
0.1
|
|
|
0.1
|
|
||||||||
Total realized gains
|
14.7
|
|
|
150.2
|
|
|
3.3
|
|
|
42.8
|
|
|
26.3
|
|
|
254.5
|
|
|
20.6
|
|
|
207.3
|
|
||||||||
Realized losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Sales
|
(0.4
|
)
|
|
1.4
|
|
|
(0.6
|
)
|
|
3.0
|
|
|
(1.1
|
)
|
|
6.1
|
|
|
(0.7
|
)
|
|
5.3
|
|
||||||||
OTTI
|
(3.5
|
)
|
|
—
|
|
|
(1.1
|
)
|
|
—
|
|
|
(4.8
|
)
|
|
—
|
|
|
(2.3
|
)
|
|
—
|
|
||||||||
Total realized losses
|
(3.9
|
)
|
|
1.4
|
|
|
(1.7
|
)
|
|
3.0
|
|
|
(5.9
|
)
|
|
6.1
|
|
|
(3.0
|
)
|
|
5.3
|
|
||||||||
Net realized gain on investments
|
$
|
10.8
|
|
|
$
|
151.6
|
|
|
$
|
1.6
|
|
|
$
|
45.8
|
|
|
$
|
20.4
|
|
|
$
|
260.6
|
|
|
$
|
17.6
|
|
|
$
|
212.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ millions, except # of positions)
|
Three months ended September 30
|
|
Nine months ended September 30
|
||||||||||
|
Number of positions
|
|
Total impairment
|
|
Number of positions
|
|
Total impairment
|
||||||
Equity securities:
|
|
|
|
||||||||||
Small-cap securities
|
22
|
|
|
$
|
(3.5
|
)
|
|
36
|
|
|
$
|
(4.8
|
)
|
|
|
|
|
|
|
|
|
|
($ millions, except # of positions)
|
Cost or amortized cost
|
|
Gross unrealized holding gains
|
|
Number of gain positions
|
|
Gross unrealized holding
losses
|
|
Number of loss positions
|
|
Fair value
|
||||||||||
Fixed maturities:
|
|
|
|
||||||||||||||||||
U.S. treasury securities and obligations of U.S. government agencies
|
$
|
235.0
|
|
|
$
|
7.8
|
|
|
24
|
|
|
$
|
(1.7
|
)
|
|
16
|
|
|
$
|
241.1
|
|
Obligations of states and political subdivisions
|
840.6
|
|
|
20.8
|
|
|
221
|
|
|
(4.3
|
)
|
|
27
|
|
|
857.1
|
|
||||
Corporate securities
|
409.0
|
|
|
8.4
|
|
|
66
|
|
|
(5.7
|
)
|
|
21
|
|
|
411.7
|
|
||||
U.S. government agencies mortgage-backed securities
|
454.3
|
|
|
16.9
|
|
|
67
|
|
|
(1.5
|
)
|
|
20
|
|
|
469.7
|
|
||||
Total fixed maturities
|
1,938.9
|
|
|
53.9
|
|
|
378
|
|
|
(13.2
|
)
|
|
84
|
|
|
1,979.6
|
|
||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Large-cap securities
|
213.0
|
|
|
27.0
|
|
|
30
|
|
|
(9.1
|
)
|
|
35
|
|
|
230.9
|
|
||||
Small-cap securities
|
53.1
|
|
|
14.3
|
|
|
72
|
|
|
(0.3
|
)
|
|
1
|
|
|
67.1
|
|
||||
Total equity securities
|
266.1
|
|
|
41.3
|
|
|
102
|
|
|
(9.4
|
)
|
|
36
|
|
|
298.0
|
|
||||
Other invested assets
|
56.6
|
|
|
26.2
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
82.8
|
|
||||
Total available-for-sale investments
|
$
|
2,261.6
|
|
|
$
|
121.4
|
|
|
483
|
|
|
$
|
(22.6
|
)
|
|
120
|
|
|
$
|
2,360.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ millions)
|
September 30, 2015
|
|
December 31, 2014
|
|
$
Change
|
||||||
Available-for-sale investments:
|
|
|
|
|
|
||||||
Unrealized holding gains:
|
|
|
|
|
|
||||||
Fixed maturities
|
$
|
40.7
|
|
|
$
|
60.6
|
|
|
$
|
(19.9
|
)
|
Equity securities
|
31.9
|
|
|
74.9
|
|
|
(43.0
|
)
|
|||
Other invested assets
|
26.2
|
|
|
29.8
|
|
|
(3.6
|
)
|
|||
Unrealized gains
|
98.8
|
|
|
165.3
|
|
|
(66.5
|
)
|
|||
Net deferred federal income tax liability
|
(32.0
|
)
|
|
(55.3
|
)
|
|
23.3
|
|
|||
Unrealized gains, net of tax
|
$
|
66.8
|
|
|
$
|
110.0
|
|
|
$
|
(43.2
|
)
|
|
|
|
|
|
|
|
($ millions)
|
Three months ended September 30
|
|
Nine months ended September 30
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Income before federal income taxes
|
$
|
29.9
|
|
|
$
|
13.1
|
|
|
$
|
66.5
|
|
|
$
|
43.9
|
|
Current tax expense
|
2.7
|
|
|
1.2
|
|
|
3.3
|
|
|
1.9
|
|
||||
Deferred tax expense
|
6.5
|
|
|
1.4
|
|
|
15.1
|
|
|
8.2
|
|
||||
|
9.2
|
|
|
2.6
|
|
|
18.4
|
|
|
10.1
|
|
||||
Valuation allowance
|
—
|
|
|
(1.4
|
)
|
|
—
|
|
|
(8.2
|
)
|
||||
Total federal income tax expense
|
9.2
|
|
|
1.2
|
|
|
18.4
|
|
|
1.9
|
|
||||
Net income
|
$
|
20.7
|
|
|
$
|
11.9
|
|
|
$
|
48.1
|
|
|
$
|
42.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1.
|
Information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission;
|
2.
|
Information required to be disclosed by us in the reports that we file or submit under the Exchange Act is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure; and
|
3.
|
Our disclosure controls and procedures are effective in timely making known to them material information required to be included in our periodic filings with the Securities and Exchange Commission.
|
|
|
Exhibit
No.
|
|
Description of Exhibits
|
|
|
|
|
|
10.01
|
|
|
Fourth Amendment to the State Auto Financial Corporation Long-Term Incentive Plan (amendment effective as of August 8, 2014)
|
|
|
|
|
10.02
|
|
|
Third Amendment to the State Auto Financial Corporation Leadership Bonus Plan (amendment effective as of January 1, 2015)
|
|
|
|
|
31.01
|
|
|
CEO certification required by Section 302 of Sarbanes Oxley Act of 2002
|
|
|
|
|
31.02
|
|
|
CFO certification required by Section 302 of Sarbanes Oxley Act of 2002
|
|
|
|
|
32.01
|
|
|
CEO certification required by Section 906 of Sarbanes Oxley Act of 2002
|
|
|
|
|
32.02
|
|
|
CFO certification required by Section 906 of Sarbanes Oxley Act of 2002
|
|
|
|
|
101.INS
|
|
|
XBRL Instance Document
|
|
|
|
|
101.SCH
|
|
|
XBRL Taxonomy Extension Schema Document
|
|
|
|
|
101.CAL
|
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
|
|
|
101.DEF
|
|
|
XBRL Taxonomy Definition Linkbase Document
|
|
|
|
|
101.LAB
|
|
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
|
|
|
101.PRE
|
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
|
State Auto Financial Corporation
|
|
|
Date: November 4, 2015
|
/s/ Steven E. English
|
|
Steven E. English
|
|
Chief Financial Officer
|
|
(Duly Authorized Officer and
|
|
Principal Financial Officer)
|
/s/
Susan Bowron-White
|
Susan Bowron-White, Assistant Secretary
|
A.
|
State Auto Financial Corporation ("STFC") previously adopted and maintains the State Auto Financial Corporation Long Tenn Incentive Plan (the "Plan") for the benefit of its executive officers and other key management employees, managers and professionals.
|
B.
|
STFC desires to amend the Plan to modify the Plan's definition of retirement.
|
C.
|
STFC also desires to amend the timing of payments of performance award units to participants who are subject to mandatory retirement at age 65 upon retirement.
|
D.
|
Article 9 of the Plan permits the Compensation Committee of the Board of Directors of STFC to amend the Plan.
|
1.
|
New second and third paragraphs are hereby added to Section 6.2 of the Plan to read as follows:
|
2.
|
All other provisions of the Plan shall remain in full force and effect.
|
STATE AUTO FINANCIAL CORPORATION
|
|
By:
Jay Yano
|
Its:
Senior Vice President, Secretary and General Counsel
|
Date:
November 11, 2014
|
A.
|
State Auto Financial Corporation (“STFC”) previously adopted and maintains the State Auto Financial Corporation Leadership Bonus Plan (the “Plan”) for the benefit of identified executive officers and other key management employees, managers and professionals.
|
B.
|
STFC desires to amend the Plan to include additional forfeiture events for awards made under the Plan.
|
C.
|
Article 9 of the Plan permits the Compensation Committee of the Board of Directors of STFC to amend the Plan.
|
1.
|
Section 6.4 of the Plan is hereby amended by adding a new third sentence to read as follows:
|
2.
|
All other provisions of the Plan shall remain in full force and effect.
|
STATE AUTO FINANCIAL CORPORATION
|
|
BY:
Jay Yano
|
TITLE:
Senior Vice President
|
DATE:
March 5, 2015
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting;
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors:
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
|
Date: November 4, 2015
|
/s/ Michael E. LaRocco
|
|
Michael E. LaRocco, Chief Executive Officer
|
|
(Principal executive officer)
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting;
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors:
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
|
Date: November 4, 2015
|
/s/ Steven E. English
|
|
Steven E. English, Chief Financial Officer
|
|
(Principal financial officer)
|
|
/s/ Michael E. LaRocco
|
|
Michael E. LaRocco
|
|
Chief Executive Officer
|
|
November 4, 2015
|
|
/s/ Steven E. English
|
|
Steven E. English
|
|
Chief Financial Officer
|
|
November 4, 2015
|