|
|
|
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)
|
March 31, 2016
|
|
December 31, 2015
|
||||
|
(unaudited)
|
|
|
||||
Assets
|
|
|
|
||||
Fixed maturities, available-for-sale, at fair value (amortized cost $1,991.5 and $1,972.9, respectively)
|
$
|
2,055.5
|
|
|
$
|
2,000.7
|
|
Equity securities, available-for-sale, at fair value (cost $274.5 and $265.2, respectively)
|
318.9
|
|
|
310.6
|
|
||
Other invested assets, available-for-sale, at fair value (cost $57.1 and $56.9, respectively)
|
85.8
|
|
|
85.1
|
|
||
Other invested assets
|
5.3
|
|
|
5.3
|
|
||
Notes receivable from affiliate
|
70.0
|
|
|
70.0
|
|
||
Total investments
|
2,535.5
|
|
|
2,471.7
|
|
||
Cash and cash equivalents
|
47.7
|
|
|
58.1
|
|
||
Accrued investment income and other assets
|
39.3
|
|
|
35.7
|
|
||
Deferred policy acquisition costs (affiliated net assumed $50.2 and $49.3, respectively)
|
127.5
|
|
|
129.1
|
|
||
Reinsurance recoverable on losses and loss expenses payable
|
6.5
|
|
|
5.9
|
|
||
Prepaid reinsurance premiums
|
6.3
|
|
|
6.8
|
|
||
Due from affiliate
|
4.3
|
|
|
5.9
|
|
||
Current federal income taxes
|
4.9
|
|
|
4.9
|
|
||
Net deferred federal income taxes
|
89.0
|
|
|
102.5
|
|
||
Property and equipment, at cost
|
7.5
|
|
|
7.6
|
|
||
Total assets
|
$
|
2,868.5
|
|
|
$
|
2,828.2
|
|
Liabilities and Stockholders’ Equity
|
|
|
|
||||
Losses and loss expenses payable (affiliated net assumed $554.3 and $532.4, respectively)
|
$
|
1,083.5
|
|
|
$
|
1,053.0
|
|
Unearned premiums (affiliated net assumed $212.1 and $214.2, respectively)
|
600.8
|
|
|
616.3
|
|
||
Notes payable (affiliates $15.2 and $15.2, respectively)
|
100.5
|
|
|
100.5
|
|
||
Postretirement and pension benefits (affiliated net ceded $54.6 and $56.0, respectively)
|
101.5
|
|
|
104.0
|
|
||
Other liabilities (affiliated net assumed $7.1 and affiliated net ceded $8.4, respectively)
|
73.3
|
|
|
69.8
|
|
||
Total liabilities
|
1,959.6
|
|
|
1,943.6
|
|
||
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; 48.2 and 48.1 shares issued, respectively, at stated value of $2.50 per share
|
120.6
|
|
|
120.4
|
|
||
Treasury stock, 6.8 and 6.8 shares, respectively, at cost
|
(116.5
|
)
|
|
(116.3
|
)
|
||
Additional paid-in capital
|
155.1
|
|
|
153.5
|
|
||
Accumulated other comprehensive income (affiliated net ceded $55.6 and $56.7, respectively)
|
61.4
|
|
|
37.6
|
|
||
Retained earnings
|
688.3
|
|
|
689.4
|
|
||
Total stockholders’ equity
|
908.9
|
|
|
884.6
|
|
||
Total liabilities and stockholders’ equity
|
$
|
2,868.5
|
|
|
$
|
2,828.2
|
|
|
|
|
|
|
($ in millions, except per share amounts)
|
Three months ended March 31
|
||||||
(unaudited)
|
2016
|
|
2015
|
||||
Earned premiums (affiliated net assumed $113.4 and $105.4, respectively)
|
$
|
319.9
|
|
|
$
|
315.3
|
|
Net investment income (affiliated $1.2 and $1.2, respectively)
|
17.4
|
|
|
15.4
|
|
||
Net realized gains on investments:
|
|
|
|
||||
Total other-than-temporary impairment losses
|
(3.7
|
)
|
|
(0.5
|
)
|
||
Portion of loss recognized in other comprehensive income
|
—
|
|
|
—
|
|
||
Other net realized investment gains
|
5.0
|
|
|
4.3
|
|
||
Total net realized gains on investments
|
1.3
|
|
|
3.8
|
|
||
Other income from affiliates
|
0.6
|
|
|
0.4
|
|
||
Total revenues
|
339.2
|
|
|
334.9
|
|
||
|
|
|
|
||||
Losses and loss expenses (affiliated net assumed $93.7 and $74.1, respectively)
|
225.0
|
|
|
195.0
|
|
||
Acquisition and operating expenses (affiliated net assumed $70.6 and $77.3, respectively)
|
107.5
|
|
|
103.4
|
|
||
Interest expense (affiliated $0.2 and $0.2, respectively)
|
1.3
|
|
|
1.3
|
|
||
Other expenses
|
1.6
|
|
|
2.0
|
|
||
Total expenses
|
335.4
|
|
|
301.7
|
|
||
Income before federal income taxes
|
3.8
|
|
|
33.2
|
|
||
Federal income tax expense:
|
|
|
|
||||
Current
|
—
|
|
|
0.4
|
|
||
Deferred
|
0.8
|
|
|
8.1
|
|
||
Total federal income tax expense
|
0.8
|
|
|
8.5
|
|
||
Net income
|
$
|
3.0
|
|
|
$
|
24.7
|
|
Earnings per common share:
|
|
|
|
||||
Basic
|
$
|
0.07
|
|
|
$
|
0.60
|
|
Diluted
|
$
|
0.07
|
|
|
$
|
0.60
|
|
Dividends paid per common share
|
$
|
0.10
|
|
|
$
|
0.10
|
|
|
|
|
|
|
($ in millions, except per share amounts)
|
Three months ended March 31
|
||||||
(unaudited)
|
2016
|
|
2015
|
||||
Net income
|
$
|
3.0
|
|
|
$
|
24.7
|
|
Other comprehensive income, net of tax:
|
|
|
|
||||
Net unrealized holding gains on investments:
|
|
|
|
||||
Unrealized holding gains
|
37.0
|
|
|
17.0
|
|
||
Reclassification adjustments for gains realized in net income
|
(1.3
|
)
|
|
(4.2
|
)
|
||
Income tax expense
|
(12.5
|
)
|
|
(4.5
|
)
|
||
Total net unrealized holding gains on investments
|
23.2
|
|
|
8.3
|
|
||
Net unrecognized benefit plan obligations:
|
|
|
|
||||
Reclassification adjustments for amortization to statements of income:
|
|
|
|
||||
Negative prior service cost
|
(1.4
|
)
|
|
(1.4
|
)
|
||
Net actuarial loss
|
2.4
|
|
|
2.9
|
|
||
Income tax expense
|
(0.4
|
)
|
|
(0.5
|
)
|
||
Total net unrecognized benefit plan obligations
|
0.6
|
|
|
1.0
|
|
||
Other comprehensive income
|
23.8
|
|
|
9.3
|
|
||
Comprehensive income
|
$
|
26.8
|
|
|
$
|
34.0
|
|
|
|
|
|
|
($ in millions)
|
Three months ended March 31
|
||||||
(unaudited)
|
2016
|
|
2015
|
||||
Cash flows from operating activities:
|
|
|
|
||||
Net income
|
$
|
3.0
|
|
|
$
|
24.7
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Depreciation and amortization, net
|
4.4
|
|
|
5.5
|
|
||
Share-based compensation
|
1.4
|
|
|
1.0
|
|
||
Net realized gains on investments
|
(1.3
|
)
|
|
(3.8
|
)
|
||
Changes in operating assets and liabilities:
|
|
|
|
||||
Deferred policy acquisition costs (benefits)
|
1.6
|
|
|
(0.9
|
)
|
||
Accrued investment income and other assets
|
(3.7
|
)
|
|
(2.0
|
)
|
||
Postretirement and pension benefits
|
(1.8
|
)
|
|
(0.7
|
)
|
||
Other liabilities and due to/from affiliates, net
|
4.9
|
|
|
(49.6
|
)
|
||
Reinsurance recoverable on losses and loss expenses payable and prepaid reinsurance premiums
|
(0.1
|
)
|
|
1.6
|
|
||
Losses and loss expenses payable
|
30.5
|
|
|
14.5
|
|
||
Unearned premiums
|
(15.5
|
)
|
|
(8.2
|
)
|
||
Federal income taxes
|
1.1
|
|
|
9.0
|
|
||
Cash provided from December 31, 2014 unearned premium transfer related to the homeowners quota share arrangement
|
—
|
|
|
63.5
|
|
||
Net cash provided by operating activities
|
24.5
|
|
|
54.6
|
|
||
Cash flows from investing activities:
|
|
|
|
||||
Purchases of fixed maturities available-for-sale
|
(160.6
|
)
|
|
(212.8
|
)
|
||
Purchases of equity securities available-for-sale
|
(30.8
|
)
|
|
(19.7
|
)
|
||
Purchases of other invested assets
|
(0.4
|
)
|
|
(3.9
|
)
|
||
Maturities, calls and pay downs of fixed maturities available-for-sale
|
60.8
|
|
|
83.2
|
|
||
Sales of fixed maturities available-for-sale
|
75.8
|
|
|
62.5
|
|
||
Sales of equity securities available-for-sale
|
23.6
|
|
|
21.5
|
|
||
Sales of other invested assets available-for-sale
|
0.2
|
|
|
0.2
|
|
||
Net cash used in investing activities
|
(31.4
|
)
|
|
(69.0
|
)
|
||
Cash flows from financing activities:
|
|
|
|
||||
Proceeds from issuance of common stock
|
0.8
|
|
|
0.7
|
|
||
Payments to acquire treasury stock
|
(0.2
|
)
|
|
(0.1
|
)
|
||
Payment of dividends
|
(4.1
|
)
|
|
(4.1
|
)
|
||
Net cash used in financing activities
|
(3.5
|
)
|
|
(3.5
|
)
|
||
Net decrease in cash and cash equivalents
|
(10.4
|
)
|
|
(17.9
|
)
|
||
Cash and cash equivalents at beginning of period
|
58.1
|
|
|
86.3
|
|
||
Cash and cash equivalents at end of period
|
$
|
47.7
|
|
|
$
|
68.4
|
|
Supplemental disclosures:
|
|
|
|
||||
Interest paid (affiliates $0.2 and $0.2, respectively)
|
$
|
1.3
|
|
|
$
|
1.3
|
|
|
|
|
|
|
|
($ millions)
|
Cost or amortized cost
|
|
Gross unrealized holding gains
|
|
Gross unrealized holding losses
|
|
Fair value
|
||||||||
March 31, 2016
|
|||||||||||||||
Fixed maturities:
|
|
|
|
|
|
|
|
||||||||
U.S. treasury securities and obligations of U.S. government agencies
|
$
|
223.6
|
|
|
$
|
13.0
|
|
|
$
|
(0.5
|
)
|
|
$
|
236.1
|
|
Obligations of states and political subdivisions
|
730.7
|
|
|
28.6
|
|
|
(0.6
|
)
|
|
758.7
|
|
||||
Corporate securities
|
575.3
|
|
|
11.1
|
|
|
(6.7
|
)
|
|
579.7
|
|
||||
U.S. government agencies mortgage-backed securities
|
461.9
|
|
|
19.8
|
|
|
(0.7
|
)
|
|
481.0
|
|
||||
Total fixed maturities
|
1,991.5
|
|
|
72.5
|
|
|
(8.5
|
)
|
|
2,055.5
|
|
||||
Equity securities:
|
|
|
|
|
|
|
|
||||||||
Large-cap securities
|
221.1
|
|
|
33.5
|
|
|
(4.8
|
)
|
|
249.8
|
|
||||
Small-cap securities
|
53.4
|
|
|
15.9
|
|
|
(0.2
|
)
|
|
69.1
|
|
||||
Total equity securities
|
274.5
|
|
|
49.4
|
|
|
(5.0
|
)
|
|
318.9
|
|
||||
Other invested assets
|
57.1
|
|
|
28.7
|
|
|
—
|
|
|
85.8
|
|
||||
Total available-for-sale securities
|
$
|
2,323.1
|
|
|
$
|
150.6
|
|
|
$
|
(13.5
|
)
|
|
$
|
2,460.2
|
|
|
|
|
|
|
|
|
|
||||||||
($ millions)
|
Cost or amortized cost
|
|
Gross unrealized holding gains
|
|
Gross unrealized holding losses
|
|
Fair value
|
||||||||
December 31, 2015
|
|||||||||||||||
Fixed maturities:
|
|
|
|
|
|
|
|
||||||||
U.S. treasury securities and obligations of U.S. government agencies
|
$
|
219.8
|
|
|
$
|
6.6
|
|
|
$
|
(2.0
|
)
|
|
$
|
224.4
|
|
Obligations of states and political subdivisions
|
804.0
|
|
|
22.5
|
|
|
(1.7
|
)
|
|
824.8
|
|
||||
Corporate securities
|
500.3
|
|
|
5.8
|
|
|
(11.7
|
)
|
|
494.4
|
|
||||
U.S. government agencies mortgage-backed securities
|
448.8
|
|
|
11.5
|
|
|
(3.2
|
)
|
|
457.1
|
|
||||
Total fixed maturities
|
1,972.9
|
|
|
46.4
|
|
|
(18.6
|
)
|
|
2,000.7
|
|
||||
Equity securities:
|
|
|
|
|
|
|
|
||||||||
Large-cap securities
|
211.9
|
|
|
34.2
|
|
|
(5.1
|
)
|
|
241.0
|
|
||||
Small-cap securities
|
53.3
|
|
|
16.5
|
|
|
(0.2
|
)
|
|
69.6
|
|
||||
Total equity securities
|
265.2
|
|
|
50.7
|
|
|
(5.3
|
)
|
|
310.6
|
|
||||
Other invested assets
|
56.9
|
|
|
28.3
|
|
|
(0.1
|
)
|
|
85.1
|
|
||||
Total available-for-sale securities
|
$
|
2,295.0
|
|
|
$
|
125.4
|
|
|
$
|
(24.0
|
)
|
|
$
|
2,396.4
|
|
|
|
|
|
|
|
|
|
|
($ 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
|
|||||||||||||||
March 31, 2016
|
||||||||||||||||||||||||||||||||
Fixed maturities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
U.S. treasury securities and obligations of U.S. government agencies
|
$
|
7.7
|
|
|
$
|
(0.1
|
)
|
|
4
|
|
|
$
|
9.2
|
|
|
$
|
(0.4
|
)
|
|
2
|
|
|
$
|
16.9
|
|
|
$
|
(0.5
|
)
|
|
6
|
|
Obligations of states and political subdivisions
|
6.6
|
|
|
(0.1
|
)
|
|
1
|
|
|
33.1
|
|
|
(0.5
|
)
|
|
3
|
|
|
39.7
|
|
|
(0.6
|
)
|
|
4
|
|
||||||
Corporate securities
|
73.5
|
|
|
(3.0
|
)
|
|
11
|
|
|
64.9
|
|
|
(3.7
|
)
|
|
10
|
|
|
138.4
|
|
|
(6.7
|
)
|
|
21
|
|
||||||
U.S. government agencies mortgage-backed securities
|
47.9
|
|
|
(0.1
|
)
|
|
5
|
|
|
40.0
|
|
|
(0.6
|
)
|
|
12
|
|
|
87.9
|
|
|
(0.7
|
)
|
|
17
|
|
||||||
Total fixed maturities
|
135.7
|
|
|
(3.3
|
)
|
|
21
|
|
|
147.2
|
|
|
(5.2
|
)
|
|
27
|
|
|
282.9
|
|
|
(8.5
|
)
|
|
48
|
|
||||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Large-cap equity securities
|
62.5
|
|
|
(4.4
|
)
|
|
23
|
|
|
3.0
|
|
|
(0.4
|
)
|
|
1
|
|
|
65.5
|
|
|
(4.8
|
)
|
|
24
|
|
||||||
Small-cap equity securities
|
4.4
|
|
|
(0.2
|
)
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4.4
|
|
|
(0.2
|
)
|
|
1
|
|
||||||
Total equity securities
|
66.9
|
|
|
(4.6
|
)
|
|
24
|
|
|
3.0
|
|
|
(0.4
|
)
|
|
1
|
|
|
69.9
|
|
|
(5.0
|
)
|
|
25
|
|
||||||
Total temporarily impaired securities
|
$
|
202.6
|
|
|
$
|
(7.9
|
)
|
|
45
|
|
|
$
|
150.2
|
|
|
$
|
(5.6
|
)
|
|
28
|
|
|
$
|
352.8
|
|
|
$
|
(13.5
|
)
|
|
73
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
($ 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, 2015
|
||||||||||||||||||||||||||||||||
Fixed maturities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
U.S. treasury securities and obligations of U.S. government agencies
|
$
|
68.6
|
|
|
$
|
(1.6
|
)
|
|
15
|
|
|
$
|
13.5
|
|
|
$
|
(0.4
|
)
|
|
4
|
|
|
$
|
82.1
|
|
|
$
|
(2.0
|
)
|
|
19
|
|
Obligations of states and political subdivisions
|
137.5
|
|
|
(1.7
|
)
|
|
16
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
137.5
|
|
|
(1.7
|
)
|
|
16
|
|
||||||
Corporate securities
|
246.9
|
|
|
(5.3
|
)
|
|
36
|
|
|
63.9
|
|
|
(6.4
|
)
|
|
11
|
|
|
310.8
|
|
|
(11.7
|
)
|
|
47
|
|
||||||
U.S. government agencies mortgage-backed securities
|
132.2
|
|
|
(2.3
|
)
|
|
18
|
|
|
33.0
|
|
|
(0.9
|
)
|
|
11
|
|
|
165.2
|
|
|
(3.2
|
)
|
|
29
|
|
||||||
Total fixed maturities
|
585.2
|
|
|
(10.9
|
)
|
|
85
|
|
|
110.4
|
|
|
(7.7
|
)
|
|
26
|
|
|
695.6
|
|
|
(18.6
|
)
|
|
111
|
|
||||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Large-cap equity securities
|
65.8
|
|
|
(5.1
|
)
|
|
24
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
65.8
|
|
|
(5.1
|
)
|
|
24
|
|
||||||
Small-cap equity securities
|
3.4
|
|
|
(0.2
|
)
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3.4
|
|
|
(0.2
|
)
|
|
1
|
|
||||||
Total equity securities
|
69.2
|
|
|
(5.3
|
)
|
|
25
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
69.2
|
|
|
(5.3
|
)
|
|
25
|
|
||||||
Other invested assets
|
8.1
|
|
|
(0.1
|
)
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8.1
|
|
|
(0.1
|
)
|
|
1
|
|
||||||
Total temporarily impaired securities
|
$
|
662.5
|
|
|
$
|
(16.3
|
)
|
|
111
|
|
|
$
|
110.4
|
|
|
$
|
(7.7
|
)
|
|
26
|
|
|
$
|
772.9
|
|
|
$
|
(24.0
|
)
|
|
137
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ millions)
|
2016
|
|
2015
|
||||
Equity securities:
|
|
|
|
||||
Large-cap securities
|
$
|
(0.2
|
)
|
|
$
|
—
|
|
Small-cap securities
|
(1.2
|
)
|
|
(0.5
|
)
|
||
Fixed maturities:
|
(2.3
|
)
|
|
—
|
|
||
Total other-than-temporary impairments
|
$
|
(3.7
|
)
|
|
$
|
(0.5
|
)
|
|
|
|
|
($ millions)
|
Amortized cost
|
|
Fair
value
|
||||
Due in 1 year or less
|
$
|
39.5
|
|
|
$
|
40.2
|
|
Due after 1 year through 5 years
|
532.1
|
|
|
545.7
|
|
||
Due after 5 years through 10 years
|
292.7
|
|
|
299.5
|
|
||
Due after 10 years
|
665.3
|
|
|
689.1
|
|
||
U.S. government agencies mortgage-backed securities
|
461.9
|
|
|
481.0
|
|
||
Total
|
$
|
1,991.5
|
|
|
$
|
2,055.5
|
|
|
|
|
|
|
($ millions)
|
2016
|
|
2015
|
||||
Fixed maturities
|
$
|
14.9
|
|
|
$
|
12.9
|
|
Equity securities
|
1.5
|
|
|
1.6
|
|
||
Cash and cash equivalents, and other
|
1.4
|
|
|
1.4
|
|
||
Investment income
|
17.8
|
|
|
15.9
|
|
||
Investment expenses
|
0.4
|
|
|
0.5
|
|
||
Net investment income
|
$
|
17.4
|
|
|
$
|
15.4
|
|
|
|
|
|
($ millions)
|
2016
|
|
2015
|
||||
Realized gains:
|
|
|
|
||||
Fixed maturities
|
$
|
1.5
|
|
|
$
|
1.1
|
|
Equity securities
|
4.1
|
|
|
4.1
|
|
||
Total realized gains
|
5.6
|
|
|
5.2
|
|
||
Realized losses:
|
|
|
|
||||
Equity securities:
|
|
|
|
||||
Sales
|
(0.6
|
)
|
|
(0.5
|
)
|
||
OTTI
|
(1.4
|
)
|
|
(0.5
|
)
|
||
Fixed maturities:
|
|
|
|
||||
OTTI
|
(2.3
|
)
|
|
—
|
|
||
Total realized losses
|
(4.3
|
)
|
|
(1.0
|
)
|
||
Net realized gains on investments
|
$
|
1.3
|
|
|
$
|
4.2
|
|
Change in unrealized holding gains, net of tax:
|
|
|
|
||||
Fixed maturities
|
$
|
36.2
|
|
|
$
|
9.4
|
|
Equity securities
|
(1.0
|
)
|
|
(1.0
|
)
|
||
Other invested assets
|
0.5
|
|
|
4.4
|
|
||
Deferred federal income tax liability
|
(12.5
|
)
|
|
(4.5
|
)
|
||
Change in net unrealized holding gains, net of tax
|
$
|
23.2
|
|
|
$
|
8.3
|
|
|
|
|
|
|
•
|
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
|
||||||||
March 31, 2016
|
|||||||||||||||
Fixed maturities:
|
|
|
|
|
|
|
|
||||||||
U.S. treasury securities and obligations of U.S. government agencies
|
$
|
236.1
|
|
|
$
|
—
|
|
|
$
|
236.1
|
|
|
$
|
—
|
|
Obligations of states and political subdivisions
|
758.7
|
|
|
—
|
|
|
758.7
|
|
|
—
|
|
||||
Corporate securities
|
579.7
|
|
|
—
|
|
|
576.3
|
|
|
3.4
|
|
||||
U.S. government agencies mortgage-backed securities
|
481.0
|
|
|
—
|
|
|
481.0
|
|
|
—
|
|
||||
Total fixed maturities
|
2,055.5
|
|
|
—
|
|
|
2,052.1
|
|
|
3.4
|
|
||||
Equity securities:
|
|
|
|
|
|
|
|
||||||||
Large-cap securities
|
249.8
|
|
|
249.8
|
|
|
—
|
|
|
—
|
|
||||
Small-cap securities
|
69.1
|
|
|
69.1
|
|
|
—
|
|
|
—
|
|
||||
Total equity securities
|
318.9
|
|
|
318.9
|
|
|
—
|
|
|
—
|
|
||||
Other invested assets
|
8.4
|
|
|
8.4
|
|
|
—
|
|
|
—
|
|
||||
Total available-for-sale investments
|
$
|
2,382.8
|
|
|
$
|
327.3
|
|
|
$
|
2,052.1
|
|
|
$
|
3.4
|
|
|
|
|
|
|
|
|
|
||||||||
($ millions)
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
December 31, 2015
|
|||||||||||||||
Fixed maturities:
|
|
|
|
|
|
|
|
||||||||
U.S. treasury securities and obligations of U.S. government agencies
|
$
|
224.4
|
|
|
$
|
—
|
|
|
$
|
224.4
|
|
|
$
|
—
|
|
Obligations of states and political subdivisions
|
824.8
|
|
|
—
|
|
|
824.8
|
|
|
—
|
|
||||
Corporate securities
|
494.4
|
|
|
—
|
|
|
491.1
|
|
|
3.3
|
|
||||
U.S. government agencies mortgage-backed securities
|
457.1
|
|
|
—
|
|
|
457.1
|
|
|
—
|
|
||||
Total fixed maturities
|
2,000.7
|
|
|
—
|
|
|
1,997.4
|
|
|
3.3
|
|
||||
Equity securities:
|
|
|
|
|
|
|
|
||||||||
Large-cap securities
|
241.0
|
|
|
241.0
|
|
|
—
|
|
|
—
|
|
||||
Small-cap securities
|
69.6
|
|
|
69.6
|
|
|
—
|
|
|
—
|
|
||||
Total equity securities
|
310.6
|
|
|
310.6
|
|
|
—
|
|
|
—
|
|
||||
Other invested assets
|
8.1
|
|
|
8.1
|
|
|
—
|
|
|
—
|
|
||||
Total available-for-sale investments
|
$
|
2,319.4
|
|
|
$
|
318.7
|
|
|
$
|
1,997.4
|
|
|
$
|
3.3
|
|
|
|
|
|
|
|
|
|
|
($ millions)
|
Fixed maturities
|
||
Balance at January 1, 2016
|
$
|
3.3
|
|
Total realized gains – included in earnings
|
—
|
|
|
Total unrealized losses – included in other comprehensive income
|
—
|
|
|
Purchases
|
0.1
|
|
|
Sales
|
—
|
|
|
Transfers into Level 3
|
—
|
|
|
Transfers out of Level 3
|
—
|
|
|
Balance at March 31, 2016
|
$
|
3.4
|
|
|
|
||
($ millions)
|
Fixed maturities
|
||
Balance at January 1, 2015
|
$
|
9.4
|
|
Total realized gains – included in earnings
|
—
|
|
|
Total unrealized gains – included in other comprehensive income
|
(0.2
|
)
|
|
Purchases
|
—
|
|
|
Sales
|
(5.9
|
)
|
|
Transfers into Level 3
|
—
|
|
|
Transfers out of Level 3
|
—
|
|
|
Balance at December 31, 2015
|
$
|
3.3
|
|
|
|
|
($ millions, except interest rates)
|
March 31, 2016
|
|
December 31, 2015
|
||||||||||||||||||
|
Carrying value
|
|
Fair value
|
|
Interest rate
|
|
Carrying value
|
|
Fair
value
|
|
Interest rate
|
||||||||||
Notes receivable from affiliate
|
$
|
70.0
|
|
|
$
|
76.2
|
|
|
7.00
|
%
|
|
$
|
70.0
|
|
|
$
|
74.1
|
|
|
7.00
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
($ millions, except interest rates)
|
March 31, 2016
|
|
December 31, 2015
|
||||||||||||||||||
|
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
|
|
|
$
|
85.4
|
|
|
5.03
|
%
|
|
$
|
85.3
|
|
|
$
|
85.5
|
|
|
5.03
|
%
|
Affiliate Subordinated Debentures due 2033: issued $15.5, May 2003 with variable interest
|
15.2
|
|
|
15.2
|
|
|
4.61
|
%
|
|
15.2
|
|
|
15.2
|
|
|
4.61
|
%
|
||||
Total notes payable
|
$
|
100.5
|
|
|
$
|
100.6
|
|
|
|
|
$
|
100.5
|
|
|
$
|
100.7
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
($ millions)
|
2016
|
|
2015
|
||||
Premiums earned:
|
|
|
|
||||
Assumed from external insurers and reinsurers
|
$
|
1.4
|
|
|
$
|
1.1
|
|
Assumed under Pooling Arrangement
|
319.9
|
|
|
315.3
|
|
||
Ceded to external insurers and reinsurers
|
(6.8
|
)
|
|
(8.9
|
)
|
||
Ceded under Pooling Arrangement
|
(206.5
|
)
|
|
(209.9
|
)
|
||
Net assumed premiums earned
|
$
|
108.0
|
|
|
$
|
97.6
|
|
Losses and loss expenses incurred:
|
|
|
|
||||
Assumed from external insurers and reinsurers
|
$
|
1.1
|
|
|
$
|
0.8
|
|
Assumed under Pooling Arrangement
|
225.4
|
|
|
195.3
|
|
||
Ceded to external insurers and reinsurers
|
(1.9
|
)
|
|
0.1
|
|
||
Ceded under Pooling Arrangement
|
(131.7
|
)
|
|
(121.2
|
)
|
||
Net assumed losses and loss expenses incurred
|
$
|
92.9
|
|
|
$
|
75.0
|
|
|
|
|
|
($ millions)
|
2016
|
|
2015
|
||||||||||
Amount at statutory rate
|
$
|
1.3
|
|
|
35.0
|
%
|
|
$
|
11.6
|
|
|
35.0
|
%
|
Tax-exempt interest and dividends received deduction
|
(2.0
|
)
|
|
(52.8
|
)
|
|
(2.2
|
)
|
|
(6.7
|
)
|
||
Other, net
|
1.5
|
|
|
37.8
|
|
|
(0.9
|
)
|
|
(2.7
|
)
|
||
Federal income tax expense and effective rate
|
$
|
0.8
|
|
|
20.0
|
%
|
|
$
|
8.5
|
|
|
25.6
|
%
|
|
|
|
|
|
|
|
|
($ millions)
|
Pension
|
|
Postretirement
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Service cost
|
$
|
1.6
|
|
|
$
|
2.0
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Interest cost
|
2.9
|
|
|
2.8
|
|
|
0.2
|
|
|
0.2
|
|
||||
Expected return on plan assets
|
(3.7
|
)
|
|
(3.4
|
)
|
|
—
|
|
|
—
|
|
||||
Amortization of:
|
|
|
|
|
|
|
|
||||||||
Negative prior service cost
|
—
|
|
|
—
|
|
|
(1.4
|
)
|
|
(1.4
|
)
|
||||
Net actuarial loss
|
2.3
|
|
|
2.7
|
|
|
0.1
|
|
|
0.2
|
|
||||
Net periodic cost (benefit)
|
$
|
3.1
|
|
|
$
|
4.1
|
|
|
$
|
(1.1
|
)
|
|
$
|
(1.0
|
)
|
|
|
|
|
|
|
|
|
|
($ millions)
|
Unrealized Gains
and Losses on
Available-for-Sale
Securities
|
|
Benefit Plan Items
|
|
Total
|
|||||||
Beginning balance at January 1, 2016
|
$
|
68.5
|
|
|
$
|
(30.9
|
)
|
|
$
|
37.6
|
|
|
|
|
|
|
|
|
|||||||
Other comprehensive income before reclassifications
|
24.0
|
|
|
—
|
|
|
24.0
|
|
||||
Amounts reclassified from AOCI
(a)
|
(0.8
|
)
|
|
0.6
|
|
|
(0.2
|
)
|
||||
Net current period other comprehensive income
|
23.2
|
|
|
0.6
|
|
|
23.8
|
|
||||
Ending balance at March 31, 2016
|
$
|
91.7
|
|
|
$
|
(30.3
|
)
|
|
$
|
61.4
|
|
|
|
|
|
|
|
|
|||||||
Beginning balance at January 1, 2015
|
$
|
110.0
|
|
|
$
|
(38.3
|
)
|
|
$
|
71.7
|
|
|
|
|
|
|
|
|
|||||||
Other comprehensive income before reclassifications
|
11.0
|
|
|
—
|
|
|
11.0
|
|
||||
Amounts reclassified from AOCI
(a)
|
(2.7
|
)
|
|
1.0
|
|
|
(1.7
|
)
|
||||
Net current period other comprehensive income
|
8.3
|
|
|
1.0
|
|
|
9.3
|
|
||||
Ending balance at March 31, 2015
|
$
|
118.3
|
|
|
$
|
(37.3
|
)
|
|
$
|
81.0
|
|
|
|
|
|
|
|
|
|
||||||
(a)
|
See separate table below for details about these reclassifications
|
|
($ millions)
|
|
|
|
|
|
|
|||||
Details about Accumulated Other
|
|
Three months ended
|
|
Affected line item in the Condensed
|
|||||||
Comprehensive Income Components
|
|
March 31
|
|
Consolidated Statements of Income
|
|||||||
|
|
2016
|
|
2015
|
|
|
|||||
Unrealized gains on available for sale securities
|
|
$
|
1.3
|
|
|
$
|
4.2
|
|
|
Realized gain on sale of securities
|
|
|
|
1.3
|
|
|
4.2
|
|
|
Total before tax
|
|||
|
|
(0.5
|
)
|
|
(1.5
|
)
|
|
Tax expense
|
|||
|
|
0.8
|
|
|
2.7
|
|
|
Net of tax
|
|||
Amortization of benefit plan items
|
|
|
|
|
|
|
|||||
Negative prior service cost
|
|
1.4
|
|
|
1.4
|
|
|
(a)
|
|||
Net actuarial loss
|
|
(2.4
|
)
|
|
(2.9
|
)
|
|
(a)
|
|||
|
|
(1.0
|
)
|
|
(1.5
|
)
|
|
Total before tax
|
|||
|
|
0.4
|
|
|
0.5
|
|
|
Tax benefit
|
|||
|
|
(0.6
|
)
|
|
(1.0
|
)
|
|
Net of tax
|
|||
Total reclassifications for the period
|
|
$
|
0.2
|
|
|
$
|
1.7
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
(a)
|
These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see pension and postretirement benefit plans footnote for additional details).
|
($ and shares in millions, except per share amounts)
|
2016
|
|
2015
|
||||
Numerator:
|
|
|
|
||||
Net income for basic earnings per common share
|
$
|
3.0
|
|
|
$
|
24.7
|
|
Denominator:
|
|
|
|
||||
Weighted average shares for basic net earnings per common share
|
41.4
|
|
|
41.0
|
|
||
Effect of dilutive share-based awards
|
0.4
|
|
|
0.4
|
|
||
Adjusted weighted average shares for diluted net earnings per common share
|
41.8
|
|
|
41.4
|
|
||
|
|
|
|
||||
Basic net earnings per common share
|
$
|
0.07
|
|
|
$
|
0.60
|
|
Diluted net earnings per common share
|
$
|
0.07
|
|
|
$
|
0.60
|
|
|
|
|
|
(shares in millions)
|
2016
|
|
2015
|
||
Total number of antidilutive options and awards
|
1.7
|
|
|
1.7
|
|
|
|
|
|
|
|
($ millions)
|
2016
|
|
2015
|
||||
Revenue from external sources:
|
|
|
|
||||
Insurance segments
|
|
|
|
||||
Personal insurance
|
$
|
145.6
|
|
|
$
|
150.0
|
|
Business insurance
|
119.3
|
|
|
117.3
|
|
||
Specialty insurance
|
55.0
|
|
|
48.0
|
|
||
Total insurance segments
|
319.9
|
|
|
315.3
|
|
||
Investment operations segment
|
|
|
|
||||
Net investment income
|
17.4
|
|
|
15.4
|
|
||
Net realized capital gains
|
1.3
|
|
|
4.2
|
|
||
Total investment operations segment
|
18.7
|
|
|
19.6
|
|
||
All other
|
0.6
|
|
|
—
|
|
||
Total revenue from external sources
|
339.2
|
|
|
334.9
|
|
||
Intersegment revenue
|
1.4
|
|
|
1.4
|
|
||
Total revenue
|
340.6
|
|
|
336.3
|
|
||
Reconciling items:
|
|
|
|
||||
Eliminate intersegment revenues
|
(1.4
|
)
|
|
(1.4
|
)
|
||
Total consolidated revenues
|
$
|
339.2
|
|
|
$
|
334.9
|
|
Segment income before federal income tax:
|
|
|
|
||||
Insurance segments SAP underwriting income (loss)
|
|
|
|
||||
Personal insurance
|
$
|
3.9
|
|
|
$
|
17.4
|
|
Business insurance
|
(7.7
|
)
|
|
(0.3
|
)
|
||
Specialty insurance
|
(7.9
|
)
|
|
(1.9
|
)
|
||
Total insurance segments
|
(11.7
|
)
|
|
15.2
|
|
||
Investment operations segment
|
|
|
|
||||
Net investment income
|
17.4
|
|
|
15.4
|
|
||
Net realized capital gains
|
1.3
|
|
|
4.2
|
|
||
Total investment operations segment
|
18.7
|
|
|
19.6
|
|
||
All other
|
0.1
|
|
|
(0.4
|
)
|
||
Total segment income before tax expense
|
7.1
|
|
|
34.4
|
|
||
Reconciling items:
|
|
|
|
||||
GAAP expense adjustments
|
(1.2
|
)
|
|
1.2
|
|
||
Interest expense on corporate debt
|
(1.3
|
)
|
|
(1.3
|
)
|
||
Corporate expenses
|
(0.8
|
)
|
|
(1.1
|
)
|
||
Total reconciling items
|
(3.3
|
)
|
|
(1.2
|
)
|
||
Total consolidated income before federal income tax expense
|
$
|
3.8
|
|
|
$
|
33.2
|
|
|
|
|
|
|
|
|
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)
|
2016
|
|
2015
|
||||
GAAP Basis:
|
|
|
|
||||
Total revenues
|
$
|
339.2
|
|
|
$
|
334.9
|
|
Income before federal income taxes
|
$
|
3.8
|
|
|
$
|
33.2
|
|
Net income
|
$
|
3.0
|
|
|
$
|
24.7
|
|
Basic earnings per share
|
$
|
0.07
|
|
|
$
|
0.60
|
|
Diluted earnings per share
|
$
|
0.07
|
|
|
$
|
0.60
|
|
Stockholders’ equity
|
$
|
908.9
|
|
|
$
|
904.2
|
|
Return on average equity (LTM)
|
3.3
|
%
|
|
12.2
|
%
|
||
Book value per share
|
$
|
21.95
|
|
|
$
|
22.05
|
|
Debt to capital ratio
|
10.0
|
%
|
|
10.0
|
%
|
||
Cat loss and ALAE ratio
|
4.7
|
%
|
|
1.4
|
%
|
||
Non-cat loss and LAE ratio
|
65.6
|
%
|
|
60.4
|
%
|
||
Loss and LAE ratio
|
70.3
|
%
|
|
61.8
|
%
|
||
Expense ratio
|
33.6
|
%
|
|
32.8
|
%
|
||
Combined ratio
|
103.9
|
%
|
|
94.6
|
%
|
||
Premium written growth
|
(0.7
|
)%
|
|
15.7
|
%
|
||
Investment yield
|
2.9
|
%
|
|
2.8
|
%
|
||
|
|
|
|
||||
SAP Basis:
|
|
|
|
||||
Cat loss and ALAE ratio
|
4.7
|
%
|
|
1.4
|
%
|
||
Non-cat loss and ALAE ratio
|
59.2
|
%
|
|
54.2
|
%
|
||
ULAE ratio
|
6.6
|
%
|
|
6.4
|
%
|
||
Loss and LAE ratio
|
70.5
|
%
|
|
62.0
|
%
|
||
Expense ratio
|
34.8
|
%
|
|
34.1
|
%
|
||
Combined ratio
|
105.3
|
%
|
|
96.1
|
%
|
($ millions)
|
Twelve months ended March 31
|
||||
|
2016
|
|
2015
|
||
Net premiums written to surplus
|
1.6
|
|
|
1.5
|
|
|
($ millions)
|
Three months ended
|
||||||||||||||||||||||
|
March 31, 2016
|
||||||||||||||||||||||
|
Personal
|
|
%
Ratio
|
|
Business
|
|
%
Ratio
|
|
Specialty
|
|
%
Ratio
|
|
Total
|
|
%
Ratio
|
||||||||
Net written premiums
|
$
|
135.0
|
|
|
|
|
$
|
109.4
|
|
|
|
|
$
|
60.4
|
|
|
|
|
$
|
304.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Earned premiums
|
145.6
|
|
|
|
|
119.3
|
|
|
|
|
55.0
|
|
|
|
|
319.9
|
|
|
|
||||
Cat loss and ALAE
|
12.3
|
|
|
8.5
|
|
2.2
|
|
|
1.9
|
|
0.5
|
|
|
0.9
|
|
15.0
|
|
|
4.7
|
||||
Non-cat loss and ALAE
|
77.2
|
|
|
53.0
|
|
74.5
|
|
|
62.3
|
|
37.8
|
|
|
68.9
|
|
189.5
|
|
|
59.2
|
||||
ULAE
|
10.5
|
|
|
7.2
|
|
8.0
|
|
|
6.7
|
|
2.4
|
|
|
4.4
|
|
20.9
|
|
|
6.6
|
||||
Underwriting expenses
|
41.7
|
|
|
30.9
|
|
42.3
|
|
|
38.6
|
|
22.2
|
|
|
36.8
|
|
106.2
|
|
|
34.8
|
||||
SAP underwriting gain (loss)
and SAP combined ratio
|
$
|
3.9
|
|
|
99.6
|
|
$
|
(7.7
|
)
|
|
109.5
|
|
$
|
(7.9
|
)
|
|
111.0
|
|
$
|
(11.7
|
)
|
|
105.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
($ millions)
|
Three months ended
|
||||||||||||||||||||||
|
March 31, 2015
|
||||||||||||||||||||||
|
Personal
|
|
%
Ratio
|
|
Business
|
|
%
Ratio
|
|
Specialty
|
|
%
Ratio
|
|
Total
|
|
%
Ratio
|
||||||||
Net written premiums
|
$
|
137.1
|
|
|
|
|
$
|
115.5
|
|
|
|
|
$
|
54.4
|
|
|
|
|
$
|
307.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Earned premiums
|
150.0
|
|
|
|
|
117.3
|
|
|
|
|
48.0
|
|
|
|
|
315.3
|
|
|
|
||||
Cat loss and ALAE
|
3.1
|
|
|
2.1
|
|
1.4
|
|
|
1.2
|
|
—
|
|
|
—
|
|
4.5
|
|
|
1.4
|
||||
Non-cat loss and ALAE
|
77.4
|
|
|
51.6
|
|
66.9
|
|
|
57.1
|
|
26.6
|
|
|
55.4
|
|
170.9
|
|
|
54.2
|
||||
ULAE
|
12.7
|
|
|
8.5
|
|
5.4
|
|
|
4.6
|
|
1.8
|
|
|
3.7
|
|
19.9
|
|
|
6.4
|
||||
Underwriting expenses
|
39.4
|
|
|
28.7
|
|
43.9
|
|
|
38.0
|
|
21.5
|
|
|
39.5
|
|
104.8
|
|
|
34.1
|
||||
SAP underwriting gain (loss)
and SAP combined ratio
|
$
|
17.4
|
|
|
90.9
|
|
$
|
(0.3
|
)
|
|
100.9
|
|
$
|
(1.9
|
)
|
|
98.6
|
|
$
|
15.2
|
|
|
96.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ millions)
|
|
Net Written Premiums
|
|||||||||
Personal insurance segment:
|
|
2016
|
|
2015
|
|
%
Change
|
|||||
Personal auto
|
|
$
|
80.5
|
|
|
$
|
82.4
|
|
|
(2.3
|
)
|
Homeowners
|
|
46.2
|
|
|
46.5
|
|
|
(0.6
|
)
|
||
Other personal
|
|
8.3
|
|
|
8.2
|
|
|
1.2
|
|
||
Total personal
|
|
$
|
135.0
|
|
|
$
|
137.1
|
|
|
(1.5
|
)
|
|
|
|
|
|
|
|
Statutory Loss and LAE Ratios
|
($ millions)
|
%
|
||||||||||||||||||
Three months ended March 31
|
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
|
||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Personal insurance segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Personal auto
|
$
|
82.3
|
|
|
$
|
1.3
|
|
|
$
|
56.0
|
|
|
$
|
57.3
|
|
1.6
|
|
68.0
|
|
69.6
|
Homeowners
|
55.0
|
|
|
10.6
|
|
|
18.1
|
|
|
28.7
|
|
19.3
|
|
32.8
|
|
52.1
|
||||
Other personal
|
8.3
|
|
|
0.4
|
|
|
3.1
|
|
|
3.5
|
|
4.6
|
|
37.7
|
|
42.3
|
||||
Total personal
|
145.6
|
|
|
12.3
|
|
|
77.2
|
|
|
89.5
|
|
8.5
|
|
53.0
|
|
61.5
|
||||
ULAE
|
—
|
|
|
—
|
|
|
—
|
|
|
10.5
|
|
—
|
|
—
|
|
7.2
|
||||
Total Loss and LAE
|
$
|
145.6
|
|
|
$
|
12.3
|
|
|
$
|
77.2
|
|
|
$
|
100.0
|
|
8.5
|
|
53.0
|
|
68.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Personal insurance segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Personal auto
|
$
|
86.1
|
|
|
$
|
—
|
|
|
$
|
55.1
|
|
|
$
|
55.1
|
|
—
|
|
64.0
|
|
64.0
|
Homeowners
|
55.9
|
|
|
3.0
|
|
|
20.9
|
|
|
23.9
|
|
5.3
|
|
37.5
|
|
42.8
|
||||
Other personal
|
8.0
|
|
|
0.1
|
|
|
1.4
|
|
|
1.5
|
|
1.8
|
|
16.8
|
|
18.6
|
||||
Total personal
|
150.0
|
|
|
3.1
|
|
|
77.4
|
|
|
80.5
|
|
2.1
|
|
51.6
|
|
53.7
|
||||
ULAE
|
—
|
|
|
—
|
|
|
—
|
|
|
12.7
|
|
—
|
|
—
|
|
8.5
|
||||
Total Loss and LAE
|
$
|
150.0
|
|
|
$
|
3.1
|
|
|
$
|
77.4
|
|
|
$
|
93.2
|
|
2.1
|
|
51.6
|
|
62.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ millions)
|
|
Net Written Premiums
|
|||||||||
Business insurance segment:
|
|
2016
|
|
2015
|
|
%
Change
|
|||||
Commercial auto
|
|
$
|
21.5
|
|
|
$
|
23.4
|
|
|
(8.1
|
)
|
Commercial multi-peril
|
|
29.2
|
|
|
30.0
|
|
|
(2.7
|
)
|
||
Fire & allied lines
|
|
16.5
|
|
|
17.4
|
|
|
(5.2
|
)
|
||
Other & product liability
|
|
15.5
|
|
|
17.8
|
|
|
(12.9
|
)
|
||
Workers’ compensation
|
|
22.8
|
|
|
22.9
|
|
|
(0.4
|
)
|
||
Other commercial
|
|
3.9
|
|
|
4.0
|
|
|
(2.5
|
)
|
||
Total business
|
|
$
|
109.4
|
|
|
$
|
115.5
|
|
|
(5.3
|
)
|
|
|
|
|
|
|
|
|
Statutory Loss and LAE Ratios
|
($ millions)
|
%
|
|||||||||||||||||||
Three months ended March 31
|
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
|
|||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Business insurance segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Commercial auto
|
$
|
25.3
|
|
|
$
|
0.1
|
|
|
$
|
17.0
|
|
|
$
|
17.1
|
|
0.6
|
|
|
67.2
|
|
67.8
|
Commercial multi-peril
|
30.1
|
|
|
1.2
|
|
|
18.7
|
|
|
19.9
|
|
4.1
|
|
|
61.9
|
|
66.0
|
||||
Fire & allied lines
|
18.7
|
|
|
0.9
|
|
|
12.3
|
|
|
13.2
|
|
4.6
|
|
|
65.8
|
|
70.4
|
||||
Other & product liability
|
18.1
|
|
|
—
|
|
|
10.7
|
|
|
10.7
|
|
—
|
|
|
59.3
|
|
59.3
|
||||
Workers’ compensation
|
23.0
|
|
|
—
|
|
|
14.5
|
|
|
14.5
|
|
—
|
|
|
62.9
|
|
62.9
|
||||
Other commercial
|
4.1
|
|
|
—
|
|
|
1.3
|
|
|
1.3
|
|
(0.2
|
)
|
|
30.9
|
|
30.7
|
||||
Total business
|
119.3
|
|
|
2.2
|
|
|
74.5
|
|
|
76.7
|
|
1.9
|
|
|
62.3
|
|
64.2
|
||||
ULAE
|
—
|
|
|
—
|
|
|
—
|
|
|
8.0
|
|
—
|
|
|
—
|
|
6.7
|
||||
Total Loss and LAE
|
$
|
119.3
|
|
|
$
|
2.2
|
|
|
$
|
74.5
|
|
|
$
|
84.7
|
|
1.9
|
|
|
62.3
|
|
70.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Business insurance segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Commercial auto
|
$
|
25.3
|
|
|
$
|
—
|
|
|
$
|
16.6
|
|
|
$
|
16.6
|
|
—
|
|
|
65.6
|
|
65.6
|
Commercial multi-peril
|
29.9
|
|
|
0.7
|
|
|
15.7
|
|
|
16.4
|
|
2.5
|
|
|
52.2
|
|
54.7
|
||||
Fire & allied lines
|
18.8
|
|
|
0.7
|
|
|
10.4
|
|
|
11.1
|
|
3.6
|
|
|
55.5
|
|
59.1
|
||||
Other & product liability
|
17.8
|
|
|
—
|
|
|
9.7
|
|
|
9.7
|
|
—
|
|
|
54.7
|
|
54.7
|
||||
Workers’ compensation
|
21.2
|
|
|
—
|
|
|
13.4
|
|
|
13.4
|
|
—
|
|
|
63.3
|
|
63.3
|
||||
Other commercial
|
4.3
|
|
|
—
|
|
|
1.1
|
|
|
1.1
|
|
(0.1
|
)
|
|
26.6
|
|
26.5
|
||||
Total business
|
117.3
|
|
|
1.4
|
|
|
66.9
|
|
|
68.3
|
|
1.2
|
|
|
57.1
|
|
58.3
|
||||
ULAE
|
—
|
|
|
—
|
|
|
—
|
|
|
5.4
|
|
—
|
|
|
—
|
|
4.6
|
||||
Total Loss and LAE
|
$
|
117.3
|
|
|
$
|
1.4
|
|
|
$
|
66.9
|
|
|
$
|
73.7
|
|
1.2
|
|
|
57.1
|
|
62.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ millions)
|
|
Net Written Premiums
|
|||||||||
Specialty insurance segment:
|
|
2016
|
|
2015
|
|
%
Change
|
|||||
E&S property
|
|
$
|
6.3
|
|
|
$
|
12.4
|
|
|
(49.2
|
)
|
E&S casualty
|
|
22.1
|
|
|
17.4
|
|
|
27.0
|
|
||
Programs
|
|
32.0
|
|
|
24.6
|
|
|
30.1
|
|
||
Total specialty
|
|
$
|
60.4
|
|
|
$
|
54.4
|
|
|
11.0
|
|
|
|
|
|
|
|
|
Statutory Loss and LAE Ratios
|
($ millions)
|
%
|
|||||||||||||||||||
Three months ended March 31
|
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
|
|||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Specialty insurance segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
E&S property
|
$
|
9.8
|
|
|
$
|
0.4
|
|
|
$
|
3.0
|
|
|
$
|
3.4
|
|
4.4
|
|
|
30.5
|
|
34.9
|
E&S casualty
|
20.2
|
|
|
—
|
|
|
12.5
|
|
|
12.5
|
|
—
|
|
|
62.2
|
|
62.2
|
||||
Programs
|
25.0
|
|
|
0.1
|
|
|
22.3
|
|
|
22.4
|
|
0.2
|
|
|
89.6
|
|
89.8
|
||||
Total specialty
|
55.0
|
|
|
0.5
|
|
|
37.8
|
|
|
38.3
|
|
0.9
|
|
|
68.9
|
|
69.8
|
||||
ULAE
|
—
|
|
|
—
|
|
|
—
|
|
|
2.4
|
|
—
|
|
|
—
|
|
4.4
|
||||
Total Loss and LAE
|
$
|
55.0
|
|
|
$
|
0.5
|
|
|
$
|
37.8
|
|
|
$
|
40.7
|
|
0.9
|
|
|
68.9
|
|
74.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Specialty insurance segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
E&S property
|
$
|
13.0
|
|
|
$
|
—
|
|
|
$
|
3.7
|
|
|
$
|
3.7
|
|
0.1
|
|
|
28.5
|
|
28.6
|
E&S casualty
|
15.6
|
|
|
—
|
|
|
9.0
|
|
|
9.0
|
|
—
|
|
|
57.8
|
|
57.8
|
||||
Programs
|
19.4
|
|
|
—
|
|
|
13.9
|
|
|
13.9
|
|
(0.1
|
)
|
|
71.5
|
|
71.4
|
||||
Total specialty
|
48.0
|
|
|
—
|
|
|
26.6
|
|
|
26.6
|
|
—
|
|
|
55.4
|
|
55.4
|
||||
ULAE
|
—
|
|
|
—
|
|
|
—
|
|
|
1.8
|
|
—
|
|
|
—
|
|
3.7
|
||||
Total Loss and LAE
|
$
|
48.0
|
|
|
$
|
—
|
|
|
$
|
26.6
|
|
|
$
|
28.4
|
|
—
|
|
|
55.4
|
|
59.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ millions)
|
|
2016
|
|
2015
|
|
$ Change
|
||||||
|
|
Redundancy /(Deficiency)
|
|
|
||||||||
Non-cat loss and ALAE:
|
|
|
|
|
|
|
||||||
Personal insurance segment:
|
|
|
|
|
|
|
||||||
Personal auto
|
|
$
|
(3.2
|
)
|
|
$
|
0.9
|
|
|
$
|
(4.1
|
)
|
Homeowners
|
|
0.1
|
|
|
1.2
|
|
|
(1.1
|
)
|
|||
Other personal
|
|
(0.4
|
)
|
|
0.6
|
|
|
(1.0
|
)
|
|||
Personal segment
|
|
(3.5
|
)
|
|
2.7
|
|
|
(6.2
|
)
|
|||
|
|
|
|
|
|
|
||||||
Business insurance segment:
|
|
|
|
|
|
|
||||||
Commercial auto
|
|
0.2
|
|
|
(0.6
|
)
|
|
0.8
|
|
|||
Commercial multi-peril
|
|
(1.5
|
)
|
|
2.1
|
|
|
(3.6
|
)
|
|||
Fire & allied lines
|
|
(1.8
|
)
|
|
(0.2
|
)
|
|
(1.6
|
)
|
|||
Other & product liability
|
|
1.7
|
|
|
1.6
|
|
|
0.1
|
|
|||
Workers' compensation
|
|
0.9
|
|
|
0.9
|
|
|
—
|
|
|||
Other commercial
|
|
0.2
|
|
|
0.6
|
|
|
(0.4
|
)
|
|||
Business segment
|
|
(0.3
|
)
|
|
4.4
|
|
|
(4.7
|
)
|
|||
|
|
|
|
|
|
|
||||||
Specialty insurance segment:
|
|
|
|
|
|
|
||||||
E&S property
|
|
(0.3
|
)
|
|
(0.1
|
)
|
|
(0.2
|
)
|
|||
E&S casualty
|
|
(0.7
|
)
|
|
(0.6
|
)
|
|
(0.1
|
)
|
|||
Programs
|
|
(3.9
|
)
|
|
(1.7
|
)
|
|
(2.2
|
)
|
|||
Specialty segment
|
|
(4.9
|
)
|
|
(2.4
|
)
|
|
(2.5
|
)
|
|||
|
|
|
|
|
|
|
||||||
Cat loss and ALAE
|
|
0.7
|
|
|
0.2
|
|
|
0.5
|
|
|||
ULAE
|
|
(1.6
|
)
|
|
(0.3
|
)
|
|
(1.3
|
)
|
|||
Total
|
|
$
|
(9.6
|
)
|
|
$
|
4.6
|
|
|
$
|
(14.2
|
)
|
|
|
|
|
|
|
|
|
($ millions)
|
March 31, 2016
|
|
December 31, 2015
|
|
$ Change
|
||||||
Personal insurance segment:
|
|
|
|
|
|
||||||
Personal auto
|
$
|
180.5
|
|
|
$
|
182.1
|
|
|
$
|
(1.6
|
)
|
Homeowners
|
46.6
|
|
|
37.2
|
|
|
9.4
|
|
|||
Other personal
|
9.1
|
|
|
7.7
|
|
|
1.4
|
|
|||
Total personal
|
236.2
|
|
|
227.0
|
|
|
9.2
|
|
|||
Business insurance segment:
|
|
|
|
|
|
||||||
Commercial auto
|
93.4
|
|
|
97.1
|
|
|
(3.7
|
)
|
|||
Commercial multi-peril
|
114.5
|
|
|
109.1
|
|
|
5.4
|
|
|||
Fire & allied lines
|
23.2
|
|
|
17.4
|
|
|
5.8
|
|
|||
Other & product liability
|
163.4
|
|
|
161.2
|
|
|
2.2
|
|
|||
Workers’ compensation
|
171.8
|
|
|
167.3
|
|
|
4.5
|
|
|||
Other commercial
|
1.9
|
|
|
1.5
|
|
|
0.4
|
|
|||
Total business
|
568.2
|
|
|
553.6
|
|
|
14.6
|
|
|||
Specialty insurance segment:
|
|
|
|
|
|
||||||
E&S property
|
21.9
|
|
|
21.4
|
|
|
0.5
|
|
|||
E&S casualty
|
104.5
|
|
|
96.6
|
|
|
7.9
|
|
|||
Programs
|
146.2
|
|
|
148.5
|
|
|
(2.3
|
)
|
|||
Total specialty
|
272.6
|
|
|
266.5
|
|
|
6.1
|
|
|||
Total losses and loss expenses payable, net of reinsurance
recoverable on losses and loss expenses payable
|
$
|
1,077.0
|
|
|
$
|
1,047.1
|
|
|
$
|
29.9
|
|
|
|
|
|
|
|
|
|
($ millions)
|
Amortized cost
|
|
Fair
value
|
||||
Due in 1 year or less
|
$
|
39.5
|
|
|
$
|
40.2
|
|
Due after 1 year through 5 years
|
532.1
|
|
|
545.7
|
|
||
Due after 5 years through 10 years
|
292.7
|
|
|
299.5
|
|
||
Due after 10 years
|
665.3
|
|
|
689.1
|
|
||
U.S. government agencies mortgage-backed securities
|
461.9
|
|
|
481.0
|
|
||
Total
|
$
|
1,991.5
|
|
|
$
|
2,055.5
|
|
|
|
|
|
($ millions)
|
2016
|
|
2015
|
||||
Gross investment income:
|
|
|
|
||||
Fixed maturities
|
$
|
14.9
|
|
|
$
|
12.9
|
|
Equity securities
|
1.5
|
|
|
1.6
|
|
||
Other
|
1.4
|
|
|
1.4
|
|
||
Total gross investment income
|
17.8
|
|
|
15.9
|
|
||
Less: Investment expenses
|
0.4
|
|
|
0.5
|
|
||
Net investment income
|
$
|
17.4
|
|
|
$
|
15.4
|
|
|
|
|
|
||||
Average invested assets (at cost)
|
$
|
2,384.1
|
|
|
$
|
2,226.0
|
|
Annualized investment yield
|
2.9
|
%
|
|
2.8
|
%
|
||
Annualized investment yield, after tax
|
2.2
|
%
|
|
2.2
|
%
|
||
Net investment income, after tax
|
$
|
13.3
|
|
|
$
|
12.2
|
|
Effective tax rate
|
23.5
|
%
|
|
20.5
|
%
|
|
($ in millions)
|
2016
|
|
2015
|
||||||||||||
|
Realized gains (losses)
|
|
Proceeds received on sale
|
|
Realized gains (losses)
|
|
Proceeds received on sale
|
||||||||
Realized gains:
|
|
|
|
|
|
|
|
||||||||
Fixed maturities
|
$
|
1.5
|
|
|
$
|
75.8
|
|
|
$
|
1.1
|
|
|
$
|
62.5
|
|
Equity securities
|
4.1
|
|
|
20.4
|
|
|
4.1
|
|
|
19.0
|
|
||||
Other invested assets
|
—
|
|
|
0.2
|
|
|
—
|
|
|
0.2
|
|
||||
Total realized gains
|
5.6
|
|
|
96.4
|
|
|
5.2
|
|
|
81.7
|
|
||||
Realized losses:
|
|
|
|
|
|
|
|
||||||||
Equity securities:
|
|
|
|
|
|
|
|
||||||||
Sales
|
(0.6
|
)
|
|
3.2
|
|
|
(0.5
|
)
|
|
2.5
|
|
||||
OTTI
|
(1.4
|
)
|
|
—
|
|
|
(0.5
|
)
|
|
—
|
|
||||
Fixed maturities
|
|
|
|
|
|
|
|
||||||||
OTTI
|
(2.3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total realized losses
|
(4.3
|
)
|
|
3.2
|
|
|
(1.0
|
)
|
|
2.5
|
|
||||
Net realized gain on investments
|
$
|
1.3
|
|
|
$
|
99.6
|
|
|
$
|
4.2
|
|
|
$
|
84.2
|
|
|
|
|
|
|
|
|
|
($ millions, except # of positions)
|
2016
|
|
2015
|
||||||||||
|
Number of positions
|
|
Total impairment
|
|
Number of positions
|
|
Total impairment
|
||||||
Equity securities:
|
|
|
|
|
|
||||||||
Large-cap securities
|
1
|
|
|
$
|
(0.2
|
)
|
|
—
|
|
|
$
|
—
|
|
Small-cap securities
|
10
|
|
|
(1.2
|
)
|
|
7
|
|
|
(0.5
|
)
|
||
Fixed maturities
|
1
|
|
|
(2.3
|
)
|
|
—
|
|
|
—
|
|
||
Total other-than-temporary impairments
|
12
|
|
|
$
|
(3.7
|
)
|
|
7
|
|
|
$
|
(0.5
|
)
|
|
|
|
|
|
|
|
|
|
($ 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
|
$
|
223.6
|
|
|
$
|
13.0
|
|
|
33
|
|
|
$
|
(0.5
|
)
|
|
6
|
|
|
$
|
236.1
|
|
Obligations of states and political subdivisions
|
730.7
|
|
|
28.6
|
|
|
208
|
|
|
(0.6
|
)
|
|
4
|
|
|
758.7
|
|
||||
Corporate securities
|
575.3
|
|
|
11.1
|
|
|
79
|
|
|
(6.7
|
)
|
|
21
|
|
|
579.7
|
|
||||
U.S. government agencies mortgage-backed securities
|
461.9
|
|
|
19.8
|
|
|
65
|
|
|
(0.7
|
)
|
|
17
|
|
|
481.0
|
|
||||
Total fixed maturities
|
1,991.5
|
|
|
72.5
|
|
|
385
|
|
|
(8.5
|
)
|
|
48
|
|
|
2,055.5
|
|
||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Large-cap securities
|
221.1
|
|
|
33.5
|
|
|
40
|
|
|
(4.8
|
)
|
|
24
|
|
|
249.8
|
|
||||
Small-cap securities
|
53.4
|
|
|
15.9
|
|
|
69
|
|
|
(0.2
|
)
|
|
1
|
|
|
69.1
|
|
||||
Total equity securities
|
274.5
|
|
|
49.4
|
|
|
109
|
|
|
(5.0
|
)
|
|
25
|
|
|
318.9
|
|
||||
Other invested assets
|
57.1
|
|
|
28.7
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
85.8
|
|
||||
Total available-for-sale investments
|
$
|
2,323.1
|
|
|
$
|
150.6
|
|
|
496
|
|
|
$
|
(13.5
|
)
|
|
73
|
|
|
$
|
2,460.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ millions)
|
March 31, 2016
|
|
December 31, 2015
|
|
$
Change
|
||||||
Available-for-sale investments:
|
|
|
|
|
|
||||||
Unrealized holding gains:
|
|
|
|
|
|
||||||
Fixed maturities
|
$
|
64.0
|
|
|
$
|
27.8
|
|
|
$
|
36.2
|
|
Equity securities
|
44.4
|
|
|
45.4
|
|
|
(1.0
|
)
|
|||
Other invested assets
|
28.7
|
|
|
28.2
|
|
|
0.5
|
|
|||
Unrealized gains
|
137.1
|
|
|
101.4
|
|
|
35.7
|
|
|||
Net deferred federal income tax liability
|
(45.4
|
)
|
|
(32.9
|
)
|
|
(12.5
|
)
|
|||
Unrealized gains, net of tax
|
$
|
91.7
|
|
|
$
|
68.5
|
|
|
$
|
23.2
|
|
|
|
|
|
|
|
|
($ millions)
|
2016
|
|
2015
|
||||
Income before federal income taxes
|
$
|
3.8
|
|
|
$
|
33.2
|
|
|
|
|
|
||||
Current tax expense
|
—
|
|
|
0.4
|
|
||
Deferred tax expense
|
0.8
|
|
|
8.1
|
|
||
Total federal income tax expense
|
0.8
|
|
|
8.5
|
|
||
|
|
|
|
||||
Net income
|
$
|
3.0
|
|
|
$
|
24.7
|
|
|
|
|
|
|
|
|
|
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
|
|
|
Restricted Stock Agreement under the 2009 Equity Incentive Compensation Plan dated March 3, 2016, between State Auto Financial Corporation and Michael E. LaRocco
|
|
|
|
|
10.02
|
|
|
Restricted Stock Agreement under the 2009 Equity Incentive Compensation Plan dated March 3, 2016, between State Auto Financial Corporation and Steven E. English
|
|
|
|
|
10.03
|
|
|
Restricted Stock Agreement under the 2009 Equity Incentive Compensation Plan dated March 3, 2016, between State Auto Financial Corporation and Jessica E. Clark
|
|
|
|
|
10.04
|
|
|
Restricted Stock Agreement under the 2009 Equity Incentive Compensation Plan dated August 24, 2015, between State Auto Financial Corporation and Kim B. Garland
|
|
|
|
|
10.05
|
|
|
Restricted Stock Agreement under the 2009 Equity Incentive Compensation Plan dated August 24, 2015, between State Auto Financial Corporation and Kim B. Garland
|
|
|
|
|
10.06
|
|
|
Restricted Stock Agreement under the 2009 Equity Incentive Compensation Plan dated March 3, 2016, between State Auto Financial Corporation and Kim B. Garland
|
|
|
|
|
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: May 4, 2016
|
/s/ Steven E. English
|
|
Steven E. English
|
|
Chief Financial Officer
|
|
(Duly Authorized Officer and
|
|
Principal Financial Officer)
|
STATE AUTO FINANCIAL CORPORATION
|
|
By: /s/ Melissa Centers
|
Melissa Centers, Senior Vice President, Secretary and General
|
Counsel
(as authorized and approved by the Compensation
|
Committee of the Board of Directors)
|
/s/ Michael E. LaRocco
|
Michael E. LaRocco
|
|
Accepted as of: March 29, 2016
|
STATE AUTO FINANCIAL CORPORATION
|
|
By: /s/ Melissa Centers
|
Melissa Centers, Senior Vice President, Secretary and General
|
Counsel
(as authorized and approved by the Compensation
|
Committee of the Board of Directors)
|
/s/Steven E. English
|
Steven E. English
|
|
Accepted as of: March 15, 2016
|
STATE AUTO FINANCIAL CORPORATION
|
|
By: /s/ Melissa Centers
|
Melissa Centers, Senior Vice President, Secretary and General
|
Counsel
(as authorized and approved by the Compensation
|
Committee of the Board of Directors)
|
/s/ Jessica E. Clark
|
Jessica E. Clark
|
|
Accepted as of: March 17, 2016
|
STATE AUTO FINANCIAL CORPORATION
|
|
By: /s/ Lorraine M. Siegworth
|
Lori Siegworth, Senior Vice President and Chief Strategy and
|
Organization Effectiveness Officer
(as authorized and approved
|
by the Compensation Committee of the Board of Directors)
|
/s/ Kim B. Garland
|
Kim B. Garland
|
|
Accepted as of: September 21, 2015
|
STATE AUTO FINANCIAL CORPORATION
|
|
By: /s/ Lorraine M. Siegworth
|
Lori Siegworth, Senior Vice President and Chief Strategy and
|
Organization Effectiveness Officer
(as authorized and approved
|
by the Compensation Committee of the Board of Directors)
|
/s/ Kim B. Garland
|
Kim B. Garland
|
|
Accepted as of: September 21, 2015
|
STATE AUTO FINANCIAL CORPORATION
|
|
By: /s/ Melissa Centers
|
Melissa Centers, Senior Vice President, Secretary and General
|
Counsel
(as authorized and approved by the Compensation
|
Committee of the Board of Directors)
|
/s/ Kim B. Garland
|
Kim B. Garland
|
|
Accepted as of: March 27, 2016
|
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: May 4, 2016
|
/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: May 4, 2016
|
/s/ Steven E. English
|
|
Steven E. English, Chief Financial Officer
|
|
(Principal financial officer)
|
|
/s/ Michael E. LaRocco
|
|
Michael E. LaRocco
|
|
Chief Executive Officer
|
|
May 4, 2016
|
|
/s/ Steven E. English
|
|
Steven E. English
|
|
Chief Financial Officer
|
|
May 4, 2016
|