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ý
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Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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¨
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Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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Ohio
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31-1324304
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(State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer
Identification No.)
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518 East Broad Street, Columbus, Ohio
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43215-3976
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(Address of principal executive offices)
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(Zip Code)
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Large accelerated filer ¨
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Accelerated filer ý
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Non-accelerated filer ¨
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Smaller reporting company ¨
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(Do not check if a smaller reporting company)
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Emerging growth company ¨
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Item 1.
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Item 2.
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Item 3.
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Item 4.
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Item 1.
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Item 1A.
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Item 2.
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Item 4.
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Item 5.
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Item 6.
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||
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($ and shares in millions, except per share amounts)
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March 31, 2018
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December 31, 2017
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||||
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(unaudited)
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||||
Assets
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|
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||||
Fixed maturities, available-for-sale, at fair value (amortized cost $2,199.0 and $2,173.1, respectively)
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$
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2,181.6
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|
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$
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2,192.8
|
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Equity securities
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350.2
|
|
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365.3
|
|
||
Other invested assets
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55.5
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|
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56.0
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|
||
Other invested assets, at cost
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5.6
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5.6
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|
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Notes receivable from affiliate
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70.0
|
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70.0
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Total investments
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2,662.9
|
|
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2,689.7
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||
Cash and cash equivalents
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60.9
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91.5
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|
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Accrued investment income and other assets
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40.4
|
|
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36.5
|
|
||
Deferred policy acquisition costs (affiliated net assumed $55.5 and $57.2, respectively)
|
105.1
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|
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110.3
|
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||
Reinsurance recoverable on losses and loss expenses payable
|
2.1
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|
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3.1
|
|
||
Prepaid reinsurance premiums
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6.4
|
|
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6.4
|
|
||
Current federal income taxes
|
5.7
|
|
|
4.8
|
|
||
Net deferred federal income taxes
|
66.6
|
|
|
58.8
|
|
||
Property and equipment, at cost
|
7.2
|
|
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7.3
|
|
||
Total assets
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$
|
2,957.3
|
|
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$
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3,008.4
|
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Liabilities and Stockholders’ Equity
|
|
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||||
Losses and loss expenses payable (affiliated net assumed $677.6 and $711.4, respectively)
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$
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1,247.6
|
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$
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1,255.6
|
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Unearned premiums (affiliated net assumed $157.3 and $187.9, respectively)
|
589.2
|
|
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611.8
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|
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Notes payable (affiliates $15.2 and $15.2, respectively)
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122.1
|
|
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122.1
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|
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Pension and postretirement benefits (affiliated net ceded $34.5 and $34.8, respectively)
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63.6
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64.5
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|
||
Due to affiliate
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11.8
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|
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2.7
|
|
||
Other liabilities (affiliated net assumed $17.6 and $15.5, respectively)
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73.9
|
|
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76.7
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|
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Total liabilities
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2,108.2
|
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2,133.4
|
|
||
Stockholders’ equity:
|
|
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|
||||
Class A Preferred stock (nonvoting), without par value. Authorized 2.5 shares; none issued
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—
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—
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Class B Preferred stock, without par value. Authorized 2.5 shares; none issued
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—
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—
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Common stock, without par value. Authorized 100.0 shares; 49.5 and 49.2 shares issued, respectively, at stated value of $2.50 per share
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123.8
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123.0
|
|
||
Treasury stock, 6.8 and 6.8 shares, respectively, at cost
|
(116.9
|
)
|
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(116.8
|
)
|
||
Additional paid-in capital
|
180.3
|
|
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171.8
|
|
||
Accumulated other comprehensive (loss) income (affiliated net ceded $51.0 and $50.7, respectively)
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(48.8
|
)
|
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36.7
|
|
||
Retained earnings
|
710.7
|
|
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660.3
|
|
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Total stockholders’ equity
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849.1
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|
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875.0
|
|
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Total liabilities and stockholders’ equity
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$
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2,957.3
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$
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3,008.4
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|
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($ in millions, except per share amounts)
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Three months ended March 31
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||||||
(unaudited)
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2018
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2017
|
||||
Earned premiums (affiliated net assumed $98.0 and $114.8, respectively)
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$
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314.9
|
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$
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318.1
|
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Net investment income (affiliates $1.2 and $1.2, respectively)
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19.9
|
|
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18.7
|
|
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Net investment (loss) gain
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(11.7
|
)
|
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7.8
|
|
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Other income from affiliates
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0.6
|
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0.5
|
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Total revenues
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323.7
|
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345.1
|
|
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||||
Losses and loss expenses (affiliated net assumed $46.2 and $86.2, respectively)
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212.3
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|
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234.3
|
|
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Acquisition and operating expenses (affiliated net assumed $43.6 and $80.3, respectively)
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110.8
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111.5
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|
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Interest expense (affiliates $0.2 and $0.2, respectively)
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1.6
|
|
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1.4
|
|
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Other expenses
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2.3
|
|
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1.9
|
|
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Total expenses
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327.0
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|
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349.1
|
|
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Loss before federal income taxes
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(3.3
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)
|
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(4.0
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)
|
||
Federal income tax benefit:
|
|
|
|
||||
Current
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(1.0
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)
|
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(0.1
|
)
|
||
Deferred
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(0.2
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)
|
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(0.6
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)
|
||
Total federal income tax benefit
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(1.2
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)
|
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(0.7
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)
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Net loss
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$
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(2.1
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)
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$
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(3.3
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)
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Loss per common share:
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||||
Basic
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$
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(0.05
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)
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$
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(0.08
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)
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Diluted
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$
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(0.05
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)
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$
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(0.08
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)
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Dividends paid per common share
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$
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0.10
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$
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0.10
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($ in millions, except per share amounts)
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Three months ended March 31
|
||
(unaudited)
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2018
|
||
Net loss
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$
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(2.1
|
)
|
Other comprehensive income, net of tax:
|
|
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Net unrealized holding losses on fixed maturities:
|
|
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Unrealized holding losses
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(36.7
|
)
|
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Reclassification adjustments for gains realized in net income
|
(0.4
|
)
|
|
Income tax benefit
|
7.8
|
|
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Total net unrealized holding losses on fixed maturities
|
(29.3
|
)
|
|
Net unrecognized benefit plan obligations:
|
|
||
Reclassification adjustments for amortization to statements of income:
|
|
||
Negative prior service cost
|
(1.4
|
)
|
|
Net actuarial loss
|
2.2
|
|
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Income tax expense
|
(0.2
|
)
|
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Total net unrecognized benefit plan obligations
|
0.6
|
|
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Other comprehensive loss
|
(28.7
|
)
|
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Comprehensive loss
|
$
|
(30.8
|
)
|
|
|
($ in millions, except per share amounts)
|
Three months ended March 31
|
||
(unaudited)
|
2017
|
||
Net loss
|
$
|
(3.3
|
)
|
Other comprehensive income, net of tax:
|
|
||
Net unrealized holding gains on investments:
|
|
||
Unrealized holding gains
|
30.8
|
|
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Reclassification adjustments for gains realized in net income
|
(7.8
|
)
|
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Income tax expense
|
(8.0
|
)
|
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Total net unrealized holding gains on investments
|
15.0
|
|
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Net unrecognized benefit plan obligations:
|
|
||
Reclassification adjustments for amortization to statements of income:
|
|
||
Negative prior service cost
|
(1.4
|
)
|
|
Net actuarial loss
|
2.1
|
|
|
Income tax expense
|
(0.3
|
)
|
|
Total net unrecognized benefit plan obligations
|
0.4
|
|
|
Other comprehensive income
|
15.4
|
|
|
Comprehensive income
|
$
|
12.1
|
|
|
|
|
($ in millions)
|
Three months ended March 31
|
||||||
(unaudited)
|
2018
|
|
2017
|
||||
Cash flows from operating activities:
|
|
|
|
||||
Net loss
|
$
|
(2.1
|
)
|
|
$
|
(3.3
|
)
|
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
|
|
|
|
||||
Depreciation and amortization, net
|
2.9
|
|
|
3.1
|
|
||
Share-based compensation
|
—
|
|
|
1.7
|
|
||
Net investment (loss) gain
|
11.7
|
|
|
(7.8
|
)
|
||
Changes in operating assets and liabilities:
|
|
|
|
||||
Deferred policy acquisition costs
|
5.2
|
|
|
5.8
|
|
||
Accrued investment income and other assets
|
(3.8
|
)
|
|
(0.5
|
)
|
||
Postretirement and pension benefits
|
(0.3
|
)
|
|
(2.9
|
)
|
||
Other liabilities and due to/from affiliates, net
|
6.3
|
|
|
(14.0
|
)
|
||
Reinsurance recoverable on losses and loss expenses payable and prepaid reinsurance premiums
|
1.0
|
|
|
(1.1
|
)
|
||
Losses and loss expenses payable
|
(8.0
|
)
|
|
35.7
|
|
||
Unearned premiums
|
(22.6
|
)
|
|
(11.3
|
)
|
||
Federal income taxes
|
(1.0
|
)
|
|
(0.9
|
)
|
||
Net cash (used in) provided by operating activities
|
(10.7
|
)
|
|
4.5
|
|
||
Cash flows from investing activities:
|
|
|
|
||||
Purchases of fixed maturities available-for-sale
|
(99.0
|
)
|
|
(120.5
|
)
|
||
Purchases of equity securities
|
(61.5
|
)
|
|
(39.0
|
)
|
||
Purchases of other invested assets
|
(0.5
|
)
|
|
(0.2
|
)
|
||
Maturities, calls and pay downs of fixed maturities available-for-sale
|
55.5
|
|
|
54.1
|
|
||
Sales of fixed maturities available-for-sale
|
15.3
|
|
|
50.7
|
|
||
Sales of equity securities
|
65.1
|
|
|
47.6
|
|
||
Sales of other invested assets
|
0.3
|
|
|
0.3
|
|
||
Net cash used in investing activities
|
(24.8
|
)
|
|
(7.0
|
)
|
||
Cash flows from financing activities:
|
|
|
|
||||
Proceeds from issuance of common stock
|
9.3
|
|
|
1.5
|
|
||
Payments to acquire treasury stock
|
(0.1
|
)
|
|
(0.2
|
)
|
||
Payment of dividends
|
(4.3
|
)
|
|
(4.3
|
)
|
||
Net cash provided by (used in) financing activities
|
4.9
|
|
|
(3.0
|
)
|
||
Net decrease in cash and cash equivalents
|
(30.6
|
)
|
|
(5.5
|
)
|
||
Cash and cash equivalents at beginning of period
|
91.5
|
|
|
51.1
|
|
||
Cash and cash equivalents at end of period
|
$
|
60.9
|
|
|
$
|
45.6
|
|
Supplemental disclosures:
|
|
|
|
||||
Interest paid (affiliates $0.2 and $0.2, respectively)
|
$
|
1.6
|
|
|
$
|
1.4
|
|
|
|
|
|
|
|
|
|
Revised Condensed Consolidated Statements of Income (Loss)
|
||||||||||||||||||
($ in millions, except per share amounts)
|
Year Ended December 31, 2017
|
Year Ended December 31, 2016
|
||||||||||||||||
|
As Reported
|
Adjustment
|
As Revised
|
As Reported
|
Adjustment
|
As Revised
|
||||||||||||
Earned premiums
|
$
|
1,275.1
|
|
$
|
1.0
|
|
$
|
1,276.1
|
|
$
|
1,291.9
|
|
$
|
(0.8
|
)
|
$
|
1,291.1
|
|
Total revenues
|
1,421.3
|
|
1.0
|
|
1,422.3
|
|
1,405.4
|
|
(0.8
|
)
|
1,404.6
|
|
||||||
Losses and loss expenses
|
918.3
|
|
—
|
|
918.3
|
|
942.4
|
|
(0.1
|
)
|
942.3
|
|
||||||
Acquisition and operating expenses
|
455.8
|
|
(0.6
|
)
|
455.2
|
|
430.4
|
|
(0.3
|
)
|
430.1
|
|
||||||
Total expenses
|
1,387.9
|
|
(0.6
|
)
|
1,387.3
|
|
1,386.2
|
|
(0.4
|
)
|
1,385.8
|
|
||||||
Income before federal income taxes
|
33.4
|
|
1.6
|
|
35.0
|
|
19.2
|
|
(0.4
|
)
|
18.8
|
|
||||||
Deferred income tax expense
|
43.7
|
|
1.6
|
|
45.3
|
|
(0.1
|
)
|
1.4
|
|
1.3
|
|
||||||
Total federal income tax expense
|
44.1
|
|
1.6
|
|
45.7
|
|
(1.8
|
)
|
1.4
|
|
(0.4
|
)
|
||||||
Net (loss) income
|
$
|
(10.7
|
)
|
$
|
—
|
|
$
|
(10.7
|
)
|
$
|
21.0
|
|
$
|
(1.8
|
)
|
$
|
19.2
|
|
Earnings per common share:
|
|
|
|
|
|
|
||||||||||||
Basic
|
$
|
(0.25
|
)
|
$
|
—
|
|
$
|
(0.25
|
)
|
$
|
0.50
|
|
$
|
(0.04
|
)
|
$
|
0.46
|
|
Diluted
|
$
|
(0.25
|
)
|
$
|
—
|
|
$
|
(0.25
|
)
|
$
|
0.50
|
|
$
|
(0.04
|
)
|
$
|
0.46
|
|
|
|
|
|
|
|
|
||||||||||||
Revised Comprehensive Income
|
$
|
(6.5
|
)
|
$
|
—
|
|
$
|
(6.5
|
)
|
$
|
15.9
|
|
$
|
(1.8
|
)
|
$
|
14.1
|
|
|
Revised Consolidated Statements of Cash Flows
|
|
|
|
|||||||||||||||
($ in millions)
|
Year Ended December 31, 2017
|
Year Ended December 31, 2016
|
||||||||||||||||
|
As Reported
|
Adjustment
|
As Revised
|
As Reported
|
Adjustment
|
As Revised
|
||||||||||||
Cash flows from operating activities:
|
|
|
|
|
|
|
||||||||||||
Net (loss) income
|
$
|
(10.7
|
)
|
$
|
—
|
|
$
|
(10.7
|
)
|
$
|
21.0
|
|
$
|
(1.8
|
)
|
$
|
19.2
|
|
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
|
|
|
|
|
|
|
||||||||||||
Deferred policy acquisition costs
|
12.0
|
|
(0.5
|
)
|
11.5
|
|
(0.7
|
)
|
(0.7
|
)
|
(1.4
|
)
|
||||||
Other liabilities and due to/from affiliate, net
|
6.0
|
|
0.2
|
|
6.2
|
|
7.3
|
|
0.7
|
|
8.0
|
|
||||||
Federal income taxes
|
46.3
|
|
0.3
|
|
46.6
|
|
4.5
|
|
1.8
|
|
6.3
|
|
||||||
Net cash provided by operating activities
|
$
|
67.9
|
|
$
|
—
|
|
$
|
67.9
|
|
$
|
113.5
|
|
$
|
—
|
|
$
|
113.5
|
|
($ millions)
|
Cost or amortized cost
|
|
Gross unrealized holding gains
|
|
Gross unrealized holding losses
|
|
Fair value
|
||||||||
March 31, 2018
|
|||||||||||||||
Available-for-sale fixed maturities:
|
|
|
|
|
|
|
|
||||||||
U.S. treasury securities and obligations of U.S. government agencies
|
$
|
413.2
|
|
|
$
|
6.9
|
|
|
$
|
(9.2
|
)
|
|
$
|
410.9
|
|
Obligations of states and political subdivisions
|
497.6
|
|
|
10.7
|
|
|
(1.1
|
)
|
|
507.2
|
|
||||
Corporate securities
|
516.4
|
|
|
1.9
|
|
|
(8.5
|
)
|
|
509.8
|
|
||||
U.S. government agencies mortgage-backed securities
|
771.8
|
|
|
3.3
|
|
|
(21.4
|
)
|
|
753.7
|
|
||||
Total available-for-sale fixed maturities
|
$
|
2,199.0
|
|
|
$
|
22.8
|
|
|
$
|
(40.2
|
)
|
|
$
|
2,181.6
|
|
|
|
|
|
|
|
|
|
||||||||
($ millions)
|
Cost or amortized cost
|
|
Gross unrealized holding gains
|
|
Gross unrealized holding losses
|
|
Fair value
|
||||||||
December 31, 2017
|
|||||||||||||||
Fixed maturities:
|
|
|
|
|
|
|
|
||||||||
U.S. treasury securities and obligations of U.S. government agencies
|
$
|
433.8
|
|
|
$
|
9.3
|
|
|
$
|
(6.2
|
)
|
|
$
|
436.9
|
|
Obligations of states and political subdivisions
|
507.1
|
|
|
19.1
|
|
|
(0.4
|
)
|
|
525.8
|
|
||||
Corporate securities
|
527.5
|
|
|
4.5
|
|
|
(2.3
|
)
|
|
529.7
|
|
||||
U.S. government agencies mortgage-backed securities
|
704.7
|
|
|
7.1
|
|
|
(11.4
|
)
|
|
700.4
|
|
||||
Total fixed maturities
|
2,173.1
|
|
|
40.0
|
|
|
(20.3
|
)
|
|
2,192.8
|
|
||||
Equity securities:
|
|
|
|
|
|
|
|
||||||||
Large-cap securities
|
62.4
|
|
|
35.1
|
|
|
(0.7
|
)
|
|
96.8
|
|
||||
Mutual and exchange traded funds
|
256.2
|
|
|
21.6
|
|
|
(9.3
|
)
|
|
268.5
|
|
||||
Total equity securities
|
318.6
|
|
|
56.7
|
|
|
(10.0
|
)
|
|
365.3
|
|
||||
Other invested assets
|
25.8
|
|
|
30.2
|
|
|
—
|
|
|
56.0
|
|
||||
Total available-for-sale securities
|
$
|
2,517.5
|
|
|
$
|
126.9
|
|
|
$
|
(30.3
|
)
|
|
$
|
2,614.1
|
|
|
|
|
|
|
|
|
|
|
($ 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, 2018
|
||||||||||||||||||||||||||||||||
Fixed maturities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
U.S. treasury securities and obligations of U.S. government agencies
|
$
|
97.7
|
|
|
$
|
(1.5
|
)
|
|
20
|
|
|
$
|
192.7
|
|
|
$
|
(7.6
|
)
|
|
21
|
|
|
$
|
290.4
|
|
|
$
|
(9.2
|
)
|
|
41
|
|
Obligations of states and political subdivisions
|
129.3
|
|
|
(1.1
|
)
|
|
19
|
|
|
3.1
|
|
|
—
|
|
|
1
|
|
|
132.4
|
|
|
(1.1
|
)
|
|
20
|
|
||||||
Corporate securities
|
383.2
|
|
|
(7.0
|
)
|
|
61
|
|
|
66.6
|
|
|
(1.6
|
)
|
|
6
|
|
|
449.8
|
|
|
(8.5
|
)
|
|
67
|
|
||||||
U.S. government agencies mortgage-backed securities
|
345.0
|
|
|
(8.5
|
)
|
|
74
|
|
|
243.3
|
|
|
(12.9
|
)
|
|
15
|
|
|
588.3
|
|
|
(21.4
|
)
|
|
89
|
|
||||||
Total temporarily impaired securities
|
$
|
955.2
|
|
|
$
|
(18.1
|
)
|
|
174
|
|
|
$
|
505.7
|
|
|
$
|
(22.1
|
)
|
|
43
|
|
|
$
|
1,460.9
|
|
|
$
|
(40.2
|
)
|
|
217
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
($ 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, 2017
|
||||||||||||||||||||||||||||||||
Fixed maturities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
U.S. treasury securities and obligations of U.S. government agencies
|
$
|
102.4
|
|
|
$
|
(0.6
|
)
|
|
18
|
|
|
$
|
196.1
|
|
|
$
|
(5.6
|
)
|
|
22
|
|
|
$
|
298.5
|
|
|
$
|
(6.2
|
)
|
|
40
|
|
Obligations of states and political subdivisions
|
58.6
|
|
|
(0.4
|
)
|
|
10
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
58.6
|
|
|
(0.4
|
)
|
|
10
|
|
||||||
Corporate securities
|
153.2
|
|
|
(1.3
|
)
|
|
23
|
|
|
67.3
|
|
|
(1.0
|
)
|
|
10
|
|
|
220.5
|
|
|
(2.3
|
)
|
|
33
|
|
||||||
U.S. government agencies mortgage-backed securities
|
188.6
|
|
|
(2.9
|
)
|
|
31
|
|
|
252.2
|
|
|
(8.5
|
)
|
|
41
|
|
|
440.8
|
|
|
(11.4
|
)
|
|
72
|
|
||||||
Total fixed maturities
|
502.8
|
|
|
(5.2
|
)
|
|
82
|
|
|
515.6
|
|
|
(15.1
|
)
|
|
73
|
|
|
1,018.4
|
|
|
(20.3
|
)
|
|
155
|
|
||||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Large-cap equity securities
|
4.4
|
|
|
(0.7
|
)
|
|
4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4.4
|
|
|
(0.7
|
)
|
|
4
|
|
||||||
Mutual and exchange traded funds
|
66.9
|
|
|
(9.3
|
)
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
66.9
|
|
|
(9.3
|
)
|
|
1
|
|
||||||
Total equity securities
|
71.3
|
|
|
(10.0
|
)
|
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
71.3
|
|
|
(10.0
|
)
|
|
5
|
|
||||||
Total temporarily impaired securities
|
$
|
574.1
|
|
|
$
|
(15.2
|
)
|
|
87
|
|
|
$
|
515.6
|
|
|
$
|
(15.1
|
)
|
|
73
|
|
|
$
|
1,089.7
|
|
|
$
|
(30.3
|
)
|
|
160
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ millions)
|
Amortized cost
|
|
Fair
value
|
||||
Due in 1 year or less
|
$
|
80.6
|
|
|
$
|
80.6
|
|
Due after 1 year through 5 years
|
580.1
|
|
|
572.3
|
|
||
Due after 5 years through 10 years
|
308.2
|
|
|
306.7
|
|
||
Due after 10 years
|
458.3
|
|
|
468.3
|
|
||
U.S. government agencies mortgage-backed securities
|
771.8
|
|
|
753.7
|
|
||
Total
|
$
|
2,199.0
|
|
|
$
|
2,181.6
|
|
|
|
|
|
($ millions)
|
Three months ended March 31
|
||||||
|
2018
|
|
2017
|
||||
Fixed maturities
|
$
|
16.1
|
|
|
$
|
15.8
|
|
Equity securities
|
2.5
|
|
|
1.7
|
|
||
Cash and cash equivalents, and other
|
1.7
|
|
|
1.5
|
|
||
Investment income
|
20.3
|
|
|
19.0
|
|
||
Investment expenses
|
0.4
|
|
|
0.3
|
|
||
Net investment income
|
$
|
19.9
|
|
|
$
|
18.7
|
|
|
|
|
|
|
($ millions)
|
Three months ended March 31
|
||||||
|
2018
|
|
2017
|
||||
Realized gains:
|
|
|
|
||||
Fixed maturities
|
$
|
0.4
|
|
|
$
|
0.3
|
|
Equity securities
|
3.3
|
|
|
9.7
|
|
||
Other invested assets
|
0.1
|
|
|
—
|
|
||
Total realized gains
|
3.8
|
|
|
10.0
|
|
||
Realized losses on sales of securities:
|
|
|
|
||||
Sales of equity securities
|
(0.2
|
)
|
|
(0.1
|
)
|
||
Net realized gain on investments
|
$
|
3.6
|
|
|
$
|
7.8
|
|
|
|
|
|
||||
Net unrealized loss on investments(1)
|
|
|
|
||||
Equity securities
|
$
|
(14.6
|
)
|
|
$
|
—
|
|
Other invested assets
|
(0.7
|
)
|
|
—
|
|
||
Net unrealized loss on investments
|
(15.3
|
)
|
|
—
|
|
||
Net investment (loss) gain
|
$
|
(11.7
|
)
|
|
$
|
7.8
|
|
|
|
|
|
||||
Change in unrealized holding (losses) gains, net of tax:
|
|
|
|
||||
Fixed maturities
|
$
|
(37.1
|
)
|
|
$
|
5.4
|
|
Equity securities
|
—
|
|
|
14.6
|
|
||
Other invested assets
|
—
|
|
|
3.0
|
|
||
Deferred federal income tax liability
|
7.8
|
|
|
(8.0
|
)
|
||
Change in net unrealized holding (losses) gains, net of tax
|
$
|
(29.3
|
)
|
|
$
|
15.0
|
|
|
|
|
|
||||
(1)Unrealized holding losses recognized during the period on securities still held at the reporting date
|
|
•
|
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
|
||||||
March 31, 2018
|
|||||||||||
Available-for-sale fixed maturities:
|
|
|
|
|
|
||||||
U.S. treasury securities and obligations of U.S. government agencies
|
$
|
410.9
|
|
|
$
|
—
|
|
|
$
|
410.9
|
|
Obligations of states and political subdivisions
|
507.2
|
|
|
—
|
|
|
507.2
|
|
|||
Corporate securities
|
509.8
|
|
|
—
|
|
|
509.8
|
|
|||
U.S. government agencies mortgage-backed securities
|
753.7
|
|
|
—
|
|
|
753.7
|
|
|||
Total available-for-sale fixed maturities
|
2,181.6
|
|
|
—
|
|
|
2,181.6
|
|
|||
Equity securities:
|
|
|
|
|
|
||||||
Large-cap securities
|
92.8
|
|
|
92.8
|
|
|
—
|
|
|||
Mutual and exchange traded funds
|
257.4
|
|
|
257.4
|
|
|
—
|
|
|||
Total equity securities
|
350.2
|
|
|
350.2
|
|
|
—
|
|
|||
Other invested assets
|
10.8
|
|
|
10.8
|
|
|
—
|
|
|||
Total investments
|
$
|
2,542.6
|
|
|
$
|
361.0
|
|
|
$
|
2,181.6
|
|
|
|
|
|
|
|
||||||
($ millions)
|
Total
|
|
Level 1
|
|
Level 2
|
||||||
December 31, 2017
|
|||||||||||
Fixed maturities:
|
|
|
|
|
|
||||||
U.S. treasury securities and obligations of U.S. government agencies
|
$
|
436.9
|
|
|
$
|
—
|
|
|
$
|
436.9
|
|
Obligations of states and political subdivisions
|
525.8
|
|
|
—
|
|
|
525.8
|
|
|||
Corporate securities
|
529.7
|
|
|
—
|
|
|
529.7
|
|
|||
U.S. government agencies mortgage-backed securities
|
700.4
|
|
|
—
|
|
|
700.4
|
|
|||
Total fixed maturities
|
2,192.8
|
|
|
—
|
|
|
2,192.8
|
|
|||
Equity securities:
|
|
|
|
|
|
||||||
Large-cap securities
|
96.8
|
|
|
96.8
|
|
|
—
|
|
|||
Mutual and exchange traded funds
|
268.5
|
|
|
268.5
|
|
|
—
|
|
|||
Total equity securities
|
365.3
|
|
|
365.3
|
|
|
—
|
|
|||
Other invested assets
|
10.8
|
|
|
10.8
|
|
|
—
|
|
|||
Total available-for-sale investments
|
$
|
2,568.9
|
|
|
$
|
376.1
|
|
|
$
|
2,192.8
|
|
|
|
|
|
|
|
|
($ millions, except interest rates)
|
March 31, 2018
|
|
December 31, 2017
|
||||||||||||||||||
|
Carrying value
|
|
Fair value
|
|
Interest rate
|
|
Carrying value
|
|
Fair
value
|
|
Interest rate
|
||||||||||
Notes receivable from affiliate
|
$
|
70.0
|
|
|
$
|
73.4
|
|
|
7.00
|
%
|
|
$
|
70.0
|
|
|
$
|
72.6
|
|
|
7.00
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
($ millions, except interest rates)
|
March 31, 2018
|
|
December 31, 2017
|
||||||||||||||||||
|
Carrying value
|
|
Fair Value
|
|
Interest rate
|
|
Carrying value
|
|
Fair value
|
|
Interest rate
|
||||||||||
FHLB Loan due 2021: issued $21.5, September 2016 with fixed interest
|
$
|
21.5
|
|
|
$
|
20.7
|
|
|
1.73
|
%
|
|
$
|
21.5
|
|
|
$
|
20.9
|
|
|
1.73
|
%
|
FHLB Loan due 2033: issued $85.0, July 2013 with fixed interest
|
85.4
|
|
|
85.2
|
|
|
5.03
|
%
|
|
85.4
|
|
|
85.7
|
|
|
5.03
|
%
|
||||
Affiliate Subordinated Debentures due 2033: issued $15.5, May 2003 with variable interest
|
15.2
|
|
|
15.2
|
|
|
6.21
|
%
|
|
15.2
|
|
|
15.2
|
|
|
5.68
|
%
|
||||
Total notes payable
|
$
|
122.1
|
|
|
$
|
121.1
|
|
|
|
|
$
|
122.1
|
|
|
$
|
121.8
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
($ millions)
|
2018
|
|
2017
|
||||
Losses and loss expenses payable, at beginning of period
|
$
|
1,255.6
|
|
|
$
|
1,181.6
|
|
Less: reinsurance recoverable on losses and loss expenses payable
|
3.1
|
|
|
3.6
|
|
||
Net balance at beginning of period
|
1,252.5
|
|
|
1,178.0
|
|
||
Incurred related to:
|
|
|
|
||||
Current year
|
232.7
|
|
|
244.0
|
|
||
Prior years
|
(20.4
|
)
|
|
(9.7
|
)
|
||
Total incurred
|
212.3
|
|
|
234.3
|
|
||
Paid related to:
|
|
|
|
||||
Current year
|
63.0
|
|
|
60.1
|
|
||
Prior years
|
156.3
|
|
|
139.4
|
|
||
Total paid
|
219.3
|
|
|
199.5
|
|
||
Net balance at end of period
|
1,245.5
|
|
|
1,212.8
|
|
||
Plus: reinsurance recoverable on losses and loss expenses payable
|
2.1
|
|
|
4.8
|
|
||
Losses and loss expenses payable, at end of period
|
$
|
1,247.6
|
|
|
$
|
1,217.6
|
|
|
|
|
|
|
($ millions)
|
Three months ended March 31
|
||||||
|
2018
|
|
2017
|
||||
Premiums earned:
|
|
|
|
||||
Assumed from external insurers and reinsurers
|
$
|
10.4
|
|
|
$
|
1.1
|
|
Assumed under Pooling Arrangement
|
314.9
|
|
|
317.3
|
|
||
Ceded to external insurers and reinsurers
|
(5.4
|
)
|
|
(6.1
|
)
|
||
Ceded under Pooling Arrangement
|
(216.9
|
)
|
|
(202.5
|
)
|
||
Net assumed premiums earned
|
$
|
103.0
|
|
|
$
|
109.8
|
|
Losses and loss expenses incurred:
|
|
|
|
||||
Assumed from external insurers and reinsurers
|
$
|
10.9
|
|
|
$
|
1.6
|
|
Assumed under Pooling Arrangement
|
202.7
|
|
|
234.4
|
|
||
Ceded to external insurers and reinsurers
|
(1.3
|
)
|
|
(2.0
|
)
|
||
Ceded under Pooling Arrangement
|
(156.5
|
)
|
|
(148.2
|
)
|
||
Net assumed losses and loss expenses incurred
|
$
|
55.8
|
|
|
$
|
85.8
|
|
|
|
|
|
|
($ millions)
|
Three months ended March 31
|
||||||||||||
|
2018
|
|
2017
|
||||||||||
Amount at statutory rate
|
$
|
(0.7
|
)
|
|
21.0
|
%
|
|
$
|
(1.4
|
)
|
|
35.0
|
%
|
Tax-exempt interest and dividends received deduction
|
(0.7
|
)
|
|
20.8
|
|
|
(1.5
|
)
|
|
29.1
|
|
||
Other, net
|
0.2
|
|
|
(5.7
|
)
|
|
2.2
|
|
|
(42.4
|
)
|
||
Federal income tax benefit
|
$
|
(1.2
|
)
|
|
36.1
|
%
|
|
$
|
(0.7
|
)
|
|
21.7
|
%
|
|
|
|
|
|
|
|
|
($ millions)
|
Pension
|
|
Postretirement
|
||||||||||||
|
Three months ended March 31
|
||||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Service cost
|
$
|
1.3
|
|
|
$
|
1.7
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Interest cost
|
2.7
|
|
|
2.9
|
|
|
0.2
|
|
|
0.2
|
|
||||
Expected return on plan assets
|
(4.5
|
)
|
|
(4.2
|
)
|
|
—
|
|
|
—
|
|
||||
Amortization of:
|
|
|
|
|
|
|
|
||||||||
Negative prior service cost
|
—
|
|
|
—
|
|
|
(1.4
|
)
|
|
(1.4
|
)
|
||||
Net actuarial loss
|
2.1
|
|
|
2.0
|
|
|
0.1
|
|
|
0.1
|
|
||||
Net periodic cost (benefit)
|
$
|
1.6
|
|
|
$
|
2.4
|
|
|
$
|
(1.1
|
)
|
|
$
|
(1.1
|
)
|
|
|
|
|
|
|
|
|
|
($ millions)
|
Unrealized Gains
and Losses on
Available-for-Sale Fixed
Maturity Investments
|
|
Benefit Plan Items
|
|
Total
|
|||||||
Beginning balance at January 1, 2018
|
$
|
66.0
|
|
|
$
|
(29.3
|
)
|
|
$
|
36.7
|
|
|
Cumulative effect of change in accounting for equity securities and other invested assets and reclassification of stranded tax effects as of January 1, 2018
|
(47.9
|
)
|
|
(8.9
|
)
|
|
(56.8
|
)
|
||||
Adjusted beginning balance at January 1, 2018
|
18.1
|
|
|
(38.2
|
)
|
|
(20.1
|
)
|
||||
|
|
|
|
|
|
|||||||
Other comprehensive loss before reclassifications
|
(29.0
|
)
|
|
—
|
|
|
(29.0
|
)
|
||||
Amounts reclassified from AOC(L)I (a)
|
(0.3
|
)
|
|
0.6
|
|
|
0.3
|
|
||||
Net current period other comprehensive (loss) income
|
(29.3
|
)
|
|
0.6
|
|
|
(28.7
|
)
|
||||
Ending balance at March 31, 2018
|
$
|
(11.2
|
)
|
|
$
|
(37.6
|
)
|
|
$
|
(48.8
|
)
|
|
|
|
|
|
|
|
|
||||||
(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, 2017
|
$
|
62.8
|
|
|
$
|
(30.3
|
)
|
|
$
|
32.5
|
|
|
|
|
|
|
|
|
|||||||
Other comprehensive loss before reclassifications
|
20.1
|
|
|
—
|
|
|
20.1
|
|
||||
Amounts reclassified from AOCI (a)
|
(5.1
|
)
|
|
0.4
|
|
|
(4.7
|
)
|
||||
Net current period other comprehensive income
|
15.0
|
|
|
0.4
|
|
|
15.4
|
|
||||
Ending balance at March 31, 2017
|
$
|
77.8
|
|
|
$
|
(29.9
|
)
|
|
$
|
47.9
|
|
|
|
|
|
|
|
|
|
||||||
(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
|
|||
|
|
2018
|
|
|
|||
Unrealized gains on available-for-sale fixed maturity investments
|
|
$
|
0.4
|
|
|
Realized gains (losses) on sale of securities
|
|
|
|
0.4
|
|
|
Total before tax
|
||
|
|
(0.1
|
)
|
|
Tax expense
|
||
|
|
0.3
|
|
|
Net of tax
|
||
Amortization of benefit plan items
|
|
|
|
|
|||
Negative prior service cost
|
|
1.4
|
|
|
(b)
|
||
Net actuarial loss
|
|
(2.2
|
)
|
|
(b)
|
||
|
|
(0.8
|
)
|
|
Total before tax
|
||
|
|
0.2
|
|
|
Tax benefit
|
||
|
|
(0.6
|
)
|
|
Net of tax
|
||
Total reclassifications for the period
|
|
$
|
(0.3
|
)
|
|
|
|
|
|
|
|
|
|
||
(b)
|
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)
|
Three months ended March 31
|
||||||
|
2018
|
|
2017
|
||||
Numerator:
|
|
|
|
||||
Net loss for basic loss per common share
|
$
|
(2.1
|
)
|
|
$
|
(3.3
|
)
|
Denominator:
|
|
|
|
||||
Weighted average shares for basic loss per common share
|
42.6
|
|
|
41.9
|
|
||
Adjusted weighted average shares for diluted net loss per common share
|
42.6
|
|
|
41.9
|
|
||
|
|
|
|
||||
Basic net loss per common share
|
$
|
(0.05
|
)
|
|
$
|
(0.08
|
)
|
Diluted net loss per common share
|
$
|
(0.05
|
)
|
|
$
|
(0.08
|
)
|
|
|
|
|
(shares in millions)
|
Three months ended March 31
|
||||
|
2018
|
|
2017
|
||
Total number of antidilutive options and awards
|
0.7
|
|
|
0.6
|
|
|
|
|
|
|
|
($ millions)
|
Three months ended March 31
|
||||||
|
2018
|
|
2017
|
||||
Revenue from external sources:
|
|
|
|
||||
Insurance segments
|
|
|
|
||||
Personal insurance
|
$
|
156.3
|
|
|
$
|
143.6
|
|
Commercial insurance
|
114.9
|
|
|
113.0
|
|
||
Specialty insurance
|
43.7
|
|
|
61.5
|
|
||
Total insurance segments
|
314.9
|
|
|
318.1
|
|
||
Investment operations segment
|
|
|
|
||||
Net investment income
|
19.9
|
|
|
18.7
|
|
||
Net investment (loss) gain
|
(11.7
|
)
|
|
7.8
|
|
||
Total investment operations segment
|
8.2
|
|
|
26.5
|
|
||
All other
|
0.6
|
|
|
0.5
|
|
||
Total revenue from external sources
|
323.7
|
|
|
345.1
|
|
||
Intersegment revenue
|
1.6
|
|
|
1.5
|
|
||
Total revenue
|
325.3
|
|
|
346.6
|
|
||
Reconciling items:
|
|
|
|
||||
Eliminate intersegment revenue
|
(1.6
|
)
|
|
(1.5
|
)
|
||
Total consolidated revenues
|
$
|
323.7
|
|
|
$
|
345.1
|
|
Segment income (loss) before federal income tax:
|
|
|
|
||||
Insurance segments SAP underwriting gain (loss)
|
|
|
|
||||
Personal insurance
|
$
|
1.7
|
|
|
$
|
(9.5
|
)
|
Commercial insurance
|
(8.3
|
)
|
|
(5.7
|
)
|
||
Specialty insurance
|
1.6
|
|
|
(8.2
|
)
|
||
Total insurance segments loss
|
(5.0
|
)
|
|
(23.4
|
)
|
||
Investment operations segment
|
|
|
|
||||
Net investment income
|
19.9
|
|
|
18.7
|
|
||
Net investment (loss) gain
|
(11.7
|
)
|
|
7.8
|
|
||
Total investment operations segment
|
8.2
|
|
|
26.5
|
|
||
All other
|
0.1
|
|
|
0.1
|
|
||
Total segment income before reconciling items
|
3.3
|
|
|
3.2
|
|
||
Reconciling items:
|
|
|
|
||||
GAAP expense adjustments
|
(4.0
|
)
|
|
(4.9
|
)
|
||
Interest expense on corporate debt
|
(1.6
|
)
|
|
(1.4
|
)
|
||
Corporate expenses
|
(1.0
|
)
|
|
(0.9
|
)
|
||
Total reconciling items
|
(6.6
|
)
|
|
(7.2
|
)
|
||
Total consolidated loss before federal income tax benefit
|
$
|
(3.3
|
)
|
|
$
|
(4.0
|
)
|
|
|
|
|
|
|
•
|
Commercial Insurance Segment - commercial auto, small commercial package, middle market commercial, workers’ compensation and other commercial
|
|
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 March 31
|
||||||
|
2018
|
|
2017
|
||||
GAAP Basis:
|
|
|
|
||||
Total revenues
|
$
|
323.7
|
|
|
$
|
345.1
|
|
Loss before federal income taxes
|
$
|
(3.3
|
)
|
|
$
|
(4.0
|
)
|
Net loss
|
$
|
(2.1
|
)
|
|
$
|
(3.3
|
)
|
Basic loss per share
|
$
|
(0.05
|
)
|
|
$
|
(0.08
|
)
|
Diluted loss per share
|
$
|
(0.05
|
)
|
|
$
|
(0.08
|
)
|
Stockholders’ equity
|
$
|
849.1
|
|
|
$
|
875.0
|
|
Return on average equity (LTM)
|
(1.0
|
)%
|
|
1.7
|
%
|
||
Book value per share
|
$
|
19.90
|
|
|
$
|
21.38
|
|
Debt to capital ratio
|
12.6
|
%
|
|
12.0
|
%
|
||
Cat loss and ALAE ratio
|
3.1
|
%
|
|
10.8
|
%
|
||
Non-cat loss and LAE ratio
|
64.3
|
%
|
|
62.9
|
%
|
||
Loss and LAE ratio
|
67.4
|
%
|
|
73.7
|
%
|
||
Expense ratio
|
35.2
|
%
|
|
35.0
|
%
|
||
Combined ratio
|
102.6
|
%
|
|
108.7
|
%
|
||
Premium written growth
|
(4.8
|
)%
|
|
0.7
|
%
|
||
Investment yield
|
3.1
|
%
|
|
3.0
|
%
|
||
|
|
|
|
||||
SAP Basis:
|
|
|
|
||||
Cat loss and ALAE ratio
|
3.1
|
%
|
|
10.8
|
%
|
||
Non-cat loss and ALAE ratio
|
58.7
|
%
|
|
57.1
|
%
|
||
ULAE ratio
|
5.8
|
%
|
|
5.9
|
%
|
||
Loss and LAE ratio
|
67.6
|
%
|
|
73.8
|
%
|
||
Expense ratio
|
36.7
|
%
|
|
34.8
|
%
|
||
Combined ratio
|
104.3
|
%
|
|
108.6
|
%
|
||
|
|
|
|
|
Twelve months ended March 31
|
||||
|
2018
|
|
2017
|
||
Net premiums written to surplus
|
1.6
|
|
|
1.5
|
|
|
Revised Quarterly Results of Operations
|
|||||||||
|
Three Months Ended March 31, 2017
|
||||||||
($ in millions, except per share amounts)
|
As Reported
|
Adjustment
|
As Revised
|
||||||
GAAP Basis:
|
|
|
|
||||||
Total revenues
|
$
|
344.3
|
|
$
|
0.8
|
|
$
|
345.1
|
|
(Loss) income before federal income taxes
|
$
|
(5.2
|
)
|
$
|
1.2
|
|
$
|
(4.0
|
)
|
Net (loss) income
|
$
|
(4.1
|
)
|
$
|
0.8
|
|
$
|
(3.3
|
)
|
Book value per share
|
$
|
21.50
|
|
$
|
(0.12
|
)
|
$
|
21.38
|
|
Return on average equity (LTM)
|
1.5
|
%
|
0.2
|
%
|
1.7
|
%
|
|||
Debt to capital ratio
|
11.9
|
%
|
0.1
|
%
|
12.0
|
%
|
|||
Non-cat loss and LAE ratio
|
63.0
|
%
|
(0.1
|
)%
|
62.9
|
%
|
|||
Loss and LAE ratio
|
73.8
|
%
|
(0.1
|
)%
|
73.7
|
%
|
|||
Expense ratio
|
35.4
|
%
|
(0.4
|
)%
|
35.0
|
%
|
|||
Combined ratio
|
109.2
|
%
|
(0.5
|
)%
|
108.7
|
%
|
Revised Personal Insurance Segment Results
|
|
|
|
|||||||||||||||
|
Three Months Ended March 31, 2017
|
|||||||||||||||||
|
Personal Auto
|
Total Personal
|
||||||||||||||||
($ in millions, except per share amounts)
|
As Reported
|
Adjustment
|
As Revised
|
As Reported
|
Adjustment
|
As Revised
|
||||||||||||
Net written premiums
|
$
|
82.3
|
|
$
|
0.3
|
|
$
|
82.6
|
|
$
|
131.7
|
|
$
|
0.3
|
|
$
|
132.0
|
|
Net earned premiums
|
$
|
82.9
|
|
$
|
0.3
|
|
$
|
83.2
|
|
$
|
143.3
|
|
$
|
0.3
|
|
$
|
143.6
|
|
Net underwriting loss
|
$
|
(4.4
|
)
|
$
|
0.3
|
|
$
|
(4.1
|
)
|
$
|
(9.8
|
)
|
$
|
0.3
|
|
$
|
(9.5
|
)
|
|
|
|
|
|
|
|
||||||||||||
Total non-cat loss and ALAE ratio
|
67.4
|
%
|
(0.3
|
)%
|
67.1
|
%
|
56.1
|
%
|
(0.2
|
)%
|
55.9
|
%
|
||||||
Total Loss and ALAE ratio
|
71.3
|
%
|
(0.4
|
)%
|
70.9
|
%
|
71.6
|
%
|
(0.2
|
)%
|
71.4
|
%
|
||||||
Total Loss and LAE ratio
|
76.9
|
%
|
(0.3
|
)%
|
76.6
|
%
|
78.4
|
%
|
(0.2
|
)%
|
78.2
|
%
|
||||||
Combined ratio
|
105.6
|
%
|
(0.3
|
)%
|
105.3
|
%
|
109.3
|
%
|
(0.1
|
)%
|
109.2
|
%
|
|
Revised Specialty Insurance Segment Results
|
|
|
|
|
|
|
|||||||||||||||||||||
|
Three Months Ended March 31, 2017
|
||||||||||||||||||||||||||
|
E&S Property
|
Programs
|
Total Specialty
|
||||||||||||||||||||||||
($ in millions, except per share amounts)
|
As Reported
|
Adjustment
|
As Revised
|
As Reported
|
Adjustment
|
As Revised
|
As Reported
|
Adjustment
|
As Revised
|
||||||||||||||||||
Net written premiums
|
$
|
9.2
|
|
$
|
—
|
|
$
|
9.2
|
|
$
|
28.4
|
|
$
|
0.5
|
|
$
|
28.9
|
|
$
|
64.3
|
|
$
|
0.5
|
|
$
|
64.8
|
|
Net earned premiums
|
$
|
11.0
|
|
$
|
—
|
|
$
|
11.0
|
|
$
|
26.7
|
|
$
|
0.5
|
|
$
|
27.2
|
|
$
|
61.0
|
|
$
|
0.5
|
|
$
|
61.5
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Non-cat loss and ALAE
|
$
|
3.3
|
|
$
|
—
|
|
$
|
3.3
|
|
$
|
21.8
|
|
$
|
0.2
|
|
$
|
22.0
|
|
$
|
42.5
|
|
$
|
0.2
|
|
$
|
42.7
|
|
Total Loss and ALAE
|
$
|
5.4
|
|
$
|
—
|
|
$
|
5.4
|
|
$
|
21.9
|
|
$
|
0.2
|
|
$
|
22.1
|
|
$
|
44.7
|
|
$
|
0.2
|
|
$
|
44.9
|
|
Total Loss and LAE
|
$
|
5.0
|
|
$
|
—
|
|
$
|
5.0
|
|
$
|
23.3
|
|
$
|
0.2
|
|
$
|
23.5
|
|
$
|
46.7
|
|
$
|
0.2
|
|
$
|
46.9
|
|
Underwriting expenses
|
$
|
5.1
|
|
$
|
(0.3
|
)
|
$
|
4.8
|
|
$
|
8.2
|
|
$
|
0.2
|
|
$
|
8.4
|
|
$
|
22.9
|
|
$
|
(0.1
|
)
|
$
|
22.8
|
|
Net underwriting gain (loss)
|
$
|
0.9
|
|
$
|
0.3
|
|
$
|
1.2
|
|
$
|
(4.8
|
)
|
$
|
0.1
|
|
$
|
(4.7
|
)
|
$
|
(8.6
|
)
|
$
|
0.4
|
|
$
|
(8.2
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Non-Cat Ratio
|
29.7
|
%
|
—
|
|
29.7
|
%
|
81.6
|
%
|
(0.7
|
)%
|
80.9
|
%
|
69.6
|
%
|
(0.2
|
)%
|
69.4
|
%
|
|||||||||
Total Loss and ALAE
|
49.2
|
%
|
—
|
|
49.2
|
%
|
82.0
|
%
|
(0.7
|
)%
|
81.3
|
%
|
73.2
|
%
|
(0.2
|
)%
|
73.0
|
%
|
|||||||||
ULAE Ratio
|
(3.4
|
)%
|
—
|
|
(3.4
|
)%
|
5.5
|
%
|
(0.1
|
)%
|
5.4
|
%
|
3.5
|
%
|
(0.1
|
)%
|
3.4
|
%
|
|||||||||
Total Loss and LAE
|
45.8
|
%
|
—
|
|
45.8
|
%
|
87.5
|
%
|
(0.8
|
)%
|
86.7
|
%
|
76.7
|
%
|
(0.3
|
)%
|
76.4
|
%
|
|||||||||
Expense ratio
|
54.9
|
%
|
(2.8
|
)%
|
52.1
|
%
|
28.8
|
%
|
—
|
%
|
28.8
|
%
|
35.5
|
%
|
(0.5
|
)%
|
35.0
|
%
|
|||||||||
Combined ratio
|
100.7
|
%
|
(2.8
|
)%
|
97.9
|
%
|
116.3
|
%
|
(0.8
|
)%
|
115.5
|
%
|
112.2
|
%
|
(0.8
|
)%
|
111.4
|
%
|
Revised Insurance Segment Results
|
|||||||||
|
Three Months Ended March 31, 2017
|
||||||||
($ in millions, except per share amounts)
|
As Reported
|
Adjustment
|
As Revised
|
||||||
Net written premiums
|
$
|
306.1
|
|
$
|
0.8
|
|
$
|
306.9
|
|
Net earned premiums
|
$
|
317.3
|
|
$
|
0.8
|
|
$
|
318.1
|
|
|
|
|
|
||||||
Non-cat loss and ALAE
|
181.5
|
|
$
|
0.2
|
|
181.7
|
|
||
Total Loss and ALAE
|
215.8
|
|
$
|
0.2
|
|
216.0
|
|
||
Total Loss and LAE
|
234.4
|
|
$
|
0.2
|
|
234.6
|
|
||
Underwriting expenses
|
107.0
|
|
(0.1
|
)
|
106.9
|
|
|||
Net underwriting (loss) gain
|
$
|
(24.1
|
)
|
$
|
0.7
|
|
$
|
(23.4
|
)
|
|
|
|
|
||||||
Cat loss and ALAE ratio
|
10.8
|
%
|
—
|
%
|
10.8
|
%
|
|||
Total non-cat loss and ALAE ratio
|
57.2
|
%
|
(0.1
|
)%
|
57.1
|
%
|
|||
Total Loss and ALAE ratio
|
68.0
|
%
|
(0.1
|
)%
|
67.9
|
%
|
|||
ULAE ratio
|
5.9
|
%
|
—
|
%
|
5.9
|
%
|
|||
Total Loss and LAE ratio
|
73.9
|
%
|
(0.1
|
)%
|
73.8
|
%
|
|||
Expense ratio
|
34.9
|
%
|
(0.1
|
)%
|
34.8
|
%
|
|||
Combined ratio
|
108.8
|
%
|
(0.2
|
)%
|
108.6
|
%
|
|
|
($ in millions)
|
|
|
|
|
|
|
|
|
||||||||
Three months ended March 31, 2017
|
|
Personal
|
|
Commercial
|
|
Specialty
|
|
Total
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Net written premiums
|
|
$
|
132.0
|
|
|
$
|
110.1
|
|
|
$
|
64.8
|
|
|
$
|
306.9
|
|
Net earned premiums
|
|
143.6
|
|
|
113.0
|
|
|
61.5
|
|
|
318.1
|
|
||||
Losses and LAE incurred:
|
|
|
|
|
|
|
|
|
||||||||
Cat loss and ALAE
|
|
22.2
|
|
|
9.9
|
|
|
2.2
|
|
|
34.3
|
|
||||
Non-cat loss and ALAE
|
|
|
|
|
|
|
|
|
||||||||
Prior accident years non-cat loss and ALAE
|
|
2.3
|
|
|
(7.6
|
)
|
|
0.5
|
|
|
(4.8
|
)
|
||||
Current accident year non-cat loss and ALAE
|
|
78.0
|
|
|
66.3
|
|
|
42.2
|
|
|
186.5
|
|
||||
Total non-cat loss and ALAE
|
|
80.3
|
|
|
58.7
|
|
|
42.7
|
|
|
181.7
|
|
||||
Total Loss and ALAE
|
|
102.5
|
|
|
68.6
|
|
|
44.9
|
|
|
216.0
|
|
||||
ULAE
|
|
9.9
|
|
|
6.7
|
|
|
2.0
|
|
|
18.6
|
|
||||
Total Loss and LAE
|
|
112.4
|
|
|
75.3
|
|
|
46.9
|
|
|
234.6
|
|
||||
Underwriting expenses
|
|
40.7
|
|
|
43.4
|
|
|
22.8
|
|
|
106.9
|
|
||||
Net underwriting loss
|
|
$
|
(9.5
|
)
|
|
$
|
(5.7
|
)
|
|
$
|
(8.2
|
)
|
|
$
|
(23.4
|
)
|
|
|
|
|
|
|
|
|
|
||||||||
Cat loss and ALAE ratio
|
|
15.4
|
%
|
|
8.8
|
%
|
|
3.6
|
%
|
|
10.8
|
%
|
||||
Non-cat loss and ALAE ratio
|
|
|
|
|
|
|
|
|
||||||||
Prior accident years non-cat loss and ALAE ratio
|
|
1.6
|
%
|
|
(6.7
|
)%
|
|
0.9
|
%
|
|
(1.5
|
)%
|
||||
Current accident year non-cat loss and ALAE ratio
|
|
54.3
|
%
|
|
58.6
|
%
|
|
68.5
|
%
|
|
58.6
|
%
|
||||
Total non-cat loss and ALAE ratio
|
|
55.9
|
%
|
|
51.9
|
%
|
|
69.4
|
%
|
|
57.1
|
%
|
||||
Total Loss and ALAE ratio
|
|
71.4
|
%
|
|
60.7
|
%
|
|
73.0
|
%
|
|
67.9
|
%
|
||||
ULAE ratio
|
|
6.9
|
%
|
|
6.0
|
%
|
|
3.4
|
%
|
|
5.9
|
%
|
||||
Total Loss and LAE ratio
|
|
78.2
|
%
|
|
66.7
|
%
|
|
76.4
|
%
|
|
73.8
|
%
|
||||
Expense ratio
|
|
30.9
|
%
|
|
39.3
|
%
|
|
35.0
|
%
|
|
34.8
|
%
|
||||
Combined ratio
|
|
109.2
|
%
|
|
106.0
|
%
|
|
111.4
|
%
|
|
108.6
|
%
|
||||
|
|
|
|
|
|
|
|
|
|
($ in millions)
|
|
|
|
|
|
|
|
|
||||||||
Three months ended March 31, 2018
|
|
Personal Auto
|
|
Homeowners
|
|
Other Personal
|
|
Total
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Net written premiums
|
|
$
|
101.9
|
|
|
$
|
54.3
|
|
|
$
|
5.5
|
|
|
$
|
161.7
|
|
Net earned premiums
|
|
93.5
|
|
|
57.9
|
|
|
4.9
|
|
|
156.3
|
|
||||
Losses and LAE incurred:
|
|
|
|
|
|
|
|
|
||||||||
Cat loss and ALAE
|
|
0.1
|
|
|
4.7
|
|
|
0.4
|
|
|
5.2
|
|
||||
Non-cat loss and ALAE
|
|
|
|
|
|
|
|
|
||||||||
Prior accident years non-cat loss and ALAE
|
|
(4.0
|
)
|
|
(2.8
|
)
|
|
0.2
|
|
|
(6.6
|
)
|
||||
Current accident year non-cat loss and ALAE
|
|
66.9
|
|
|
28.4
|
|
|
2.0
|
|
|
97.3
|
|
||||
Total non-cat loss and ALAE
|
|
62.9
|
|
|
25.6
|
|
|
2.2
|
|
|
90.7
|
|
||||
Total Loss and ALAE
|
|
63.0
|
|
|
30.3
|
|
|
2.6
|
|
|
95.9
|
|
||||
ULAE
|
|
5.0
|
|
|
4.0
|
|
|
0.3
|
|
|
9.3
|
|
||||
Total Loss and LAE
|
|
68.0
|
|
|
34.3
|
|
|
2.9
|
|
|
105.2
|
|
||||
Underwriting expenses
|
|
28.9
|
|
|
18.2
|
|
|
2.3
|
|
|
49.4
|
|
||||
Net underwriting (loss) gain
|
|
$
|
(3.4
|
)
|
|
$
|
5.4
|
|
|
$
|
(0.3
|
)
|
|
$
|
1.7
|
|
|
|
|
|
|
|
|
|
|
||||||||
Cat loss and ALAE ratio
|
|
0.1
|
%
|
|
8.2
|
%
|
|
7.9
|
%
|
|
3.4
|
%
|
||||
Non-cat loss and ALAE ratio
|
|
|
|
|
|
|
|
|
||||||||
Prior accident years non-cat loss and ALAE ratio
|
|
(4.3
|
)%
|
|
(4.8
|
)%
|
|
4.8
|
%
|
|
(4.2
|
)%
|
||||
Current accident year non-cat loss and ALAE ratio
|
|
71.6
|
%
|
|
49.0
|
%
|
|
40.9
|
%
|
|
62.2
|
%
|
||||
Total non-cat loss and ALAE ratio
|
|
67.3
|
%
|
|
44.2
|
%
|
|
45.7
|
%
|
|
58.0
|
%
|
||||
Total Loss and ALAE ratio
|
|
67.4
|
%
|
|
52.4
|
%
|
|
53.6
|
%
|
|
61.4
|
%
|
||||
ULAE ratio
|
|
5.2
|
%
|
|
6.9
|
%
|
|
5.2
|
%
|
|
5.9
|
%
|
||||
Total Loss and LAE ratio
|
|
72.6
|
%
|
|
59.3
|
%
|
|
58.8
|
%
|
|
67.3
|
%
|
||||
Expense ratio
|
|
28.4
|
%
|
|
33.6
|
%
|
|
42.5
|
%
|
|
30.6
|
%
|
||||
Combined ratio
|
|
101.0
|
%
|
|
92.9
|
%
|
|
101.3
|
%
|
|
97.9
|
%
|
||||
|
|
|
|
|
|
|
|
|
|
($ in millions)
|
|
|
|
|
|
|
|
|
||||||||
Three months ended March 31, 2017
|
|
Personal Auto
|
|
Homeowners
|
|
Other Personal
|
|
Total
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Net written premiums
|
|
$
|
82.6
|
|
|
$
|
45.2
|
|
|
$
|
4.2
|
|
|
$
|
132.0
|
|
Net earned premiums
|
|
83.2
|
|
|
55.5
|
|
|
4.9
|
|
|
143.6
|
|
||||
Losses and LAE incurred:
|
|
|
|
|
|
|
|
|
||||||||
Cat loss and ALAE
|
|
3.2
|
|
|
18.0
|
|
|
1.0
|
|
|
22.2
|
|
||||
Non-cat loss and ALAE
|
|
|
|
|
|
|
|
|
||||||||
Prior accident years non-cat loss and ALAE
|
|
(0.6
|
)
|
|
2.8
|
|
|
0.1
|
|
|
2.3
|
|
||||
Current accident year non-cat loss and ALAE
|
|
56.4
|
|
|
20.1
|
|
|
1.5
|
|
|
78.0
|
|
||||
Total non-cat loss and ALAE
|
|
55.8
|
|
|
22.9
|
|
|
1.6
|
|
|
80.3
|
|
||||
Total Loss and ALAE
|
|
59.0
|
|
|
40.9
|
|
|
2.6
|
|
|
102.5
|
|
||||
ULAE
|
|
4.7
|
|
|
4.7
|
|
|
0.5
|
|
|
9.9
|
|
||||
Total Loss and LAE
|
|
63.7
|
|
|
45.6
|
|
|
3.1
|
|
|
112.4
|
|
||||
Underwriting expenses
|
|
23.6
|
|
|
15.5
|
|
|
1.6
|
|
|
40.7
|
|
||||
Net underwriting (loss) gain
|
|
$
|
(4.1
|
)
|
|
$
|
(5.6
|
)
|
|
$
|
0.2
|
|
|
$
|
(9.5
|
)
|
|
|
|
|
|
|
|
|
|
||||||||
Cat loss and ALAE ratio
|
|
3.9
|
%
|
|
32.5
|
%
|
|
18.9
|
%
|
|
15.4
|
%
|
||||
Non-cat loss and ALAE ratio
|
|
|
|
|
|
|
|
|
||||||||
Prior accident years non-cat loss and ALAE ratio
|
|
(0.7
|
)%
|
|
5.1
|
%
|
|
1.0
|
%
|
|
1.6
|
%
|
||||
Current accident year non-cat loss and ALAE ratio
|
|
67.8
|
%
|
|
36.1
|
%
|
|
33.0
|
%
|
|
54.3
|
%
|
||||
Total non-cat loss and ALAE ratio
|
|
67.1
|
%
|
|
41.2
|
%
|
|
34.0
|
%
|
|
55.9
|
%
|
||||
Total Loss and ALAE ratio
|
|
70.9
|
%
|
|
73.7
|
%
|
|
52.9
|
%
|
|
71.4
|
%
|
||||
ULAE ratio
|
|
5.6
|
%
|
|
8.5
|
%
|
|
9.0
|
%
|
|
6.9
|
%
|
||||
Total Loss and LAE ratio
|
|
76.6
|
%
|
|
82.2
|
%
|
|
61.9
|
%
|
|
78.2
|
%
|
||||
Expense ratio
|
|
28.7
|
%
|
|
34.3
|
%
|
|
38.6
|
%
|
|
30.9
|
%
|
||||
Combined ratio
|
|
105.3
|
%
|
|
116.5
|
%
|
|
100.5
|
%
|
|
109.2
|
%
|
||||
|
|
|
|
|
|
|
|
|
($ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Three months ended March 31, 2018
|
|
Commercial Auto
|
|
Small Commercial Package
|
|
Middle Market Commercial
|
|
Workers' Comp
|
|
Farm & Ranch
|
|
Other Commercial
|
|
Total
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net written premiums
|
|
$
|
18.6
|
|
|
$
|
30.4
|
|
|
$
|
28.7
|
|
|
$
|
24.4
|
|
|
$
|
11.5
|
|
|
$
|
4.5
|
|
|
$
|
118.1
|
|
Net earned premiums
|
|
18.4
|
|
|
30.4
|
|
|
28.1
|
|
|
22.8
|
|
|
11.0
|
|
|
4.2
|
|
|
114.9
|
|
|||||||
Losses and LAE incurred:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Cat loss and ALAE
|
|
—
|
|
|
3.2
|
|
|
1.5
|
|
|
—
|
|
|
(0.1
|
)
|
|
—
|
|
|
4.6
|
|
|||||||
Non-cat loss and ALAE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Prior accident years non-cat loss and ALAE
|
|
(3.5
|
)
|
|
(0.5
|
)
|
|
(5.5
|
)
|
|
(2.3
|
)
|
|
0.3
|
|
|
1.8
|
|
|
(9.7
|
)
|
|||||||
Current accident year non-cat loss and ALAE
|
|
12.4
|
|
|
18.2
|
|
|
21.5
|
|
|
15.1
|
|
|
4.2
|
|
|
2.0
|
|
|
73.4
|
|
|||||||
Total non-cat loss and ALAE
|
|
8.9
|
|
|
17.7
|
|
|
16.0
|
|
|
12.8
|
|
|
4.5
|
|
|
3.8
|
|
|
63.7
|
|
|||||||
Total Loss and ALAE
|
|
8.9
|
|
|
20.9
|
|
|
17.5
|
|
|
12.8
|
|
|
4.4
|
|
|
3.8
|
|
|
68.3
|
|
|||||||
ULAE
|
|
1.2
|
|
|
1.3
|
|
|
1.5
|
|
|
2.3
|
|
|
0.3
|
|
|
0.3
|
|
|
6.9
|
|
|||||||
Total Loss and LAE
|
|
10.1
|
|
|
22.2
|
|
|
19.0
|
|
|
15.1
|
|
|
4.7
|
|
|
4.1
|
|
|
75.2
|
|
|||||||
Underwriting expenses
|
|
8.1
|
|
|
13.8
|
|
|
11.3
|
|
|
8.0
|
|
|
4.8
|
|
|
2.0
|
|
|
48.0
|
|
|||||||
Net underwriting gain (loss)
|
|
$
|
0.2
|
|
|
$
|
(5.6
|
)
|
|
$
|
(2.2
|
)
|
|
$
|
(0.3
|
)
|
|
$
|
1.5
|
|
|
$
|
(1.9
|
)
|
|
$
|
(8.3
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Cat loss and ALAE ratio
|
|
—
|
%
|
|
10.7
|
%
|
|
5.2
|
%
|
|
—
|
%
|
|
(0.5
|
)%
|
|
(0.1
|
)%
|
|
4.1
|
%
|
|||||||
Non-cat loss and ALAE ratio
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Prior accident years non-cat loss and ALAE ratio
|
|
(18.9
|
)%
|
|
(1.5
|
)%
|
|
(19.7
|
)%
|
|
(10.0
|
)%
|
|
2.9
|
%
|
|
42.0
|
%
|
|
(8.4
|
)%
|
|||||||
Current accident year non-cat loss and ALAE ratio
|
|
67.2
|
%
|
|
59.4
|
%
|
|
76.9
|
%
|
|
66.2
|
%
|
|
37.4
|
%
|
|
49.7
|
%
|
|
63.7
|
%
|
|||||||
Total non-cat loss and ALAE ratio
|
|
48.3
|
%
|
|
57.9
|
%
|
|
57.2
|
%
|
|
56.2
|
%
|
|
40.3
|
%
|
|
91.7
|
%
|
|
55.3
|
%
|
|||||||
Total Loss and ALAE ratio
|
|
48.3
|
%
|
|
68.6
|
%
|
|
62.4
|
%
|
|
56.2
|
%
|
|
39.8
|
%
|
|
91.6
|
%
|
|
59.4
|
%
|
|||||||
ULAE ratio
|
|
6.3
|
%
|
|
4.2
|
%
|
|
5.3
|
%
|
|
9.8
|
%
|
|
3.0
|
%
|
|
7.2
|
%
|
|
6.0
|
%
|
|||||||
Total Loss and LAE ratio
|
|
54.6
|
%
|
|
72.8
|
%
|
|
67.7
|
%
|
|
66.0
|
%
|
|
42.8
|
%
|
|
98.8
|
%
|
|
65.4
|
%
|
|||||||
Expense ratio
|
|
43.8
|
%
|
|
45.4
|
%
|
|
39.6
|
%
|
|
33.1
|
%
|
|
41.7
|
%
|
|
42.8
|
%
|
|
40.7
|
%
|
|||||||
Combined ratio
|
|
98.4
|
%
|
|
118.2
|
%
|
|
107.3
|
%
|
|
99.1
|
%
|
|
84.5
|
%
|
|
141.6
|
%
|
|
106.1
|
%
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Three months ended March 31, 2017
|
|
Commercial Auto
|
|
Small Commercial Package
|
|
Middle Market Commercial
|
|
Workers' Comp
|
|
Farm & Ranch
|
|
Other Commercial
|
|
Total
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net written premiums
|
|
$
|
18.4
|
|
|
$
|
30.5
|
|
|
$
|
25.8
|
|
|
$
|
21.7
|
|
|
$
|
9.9
|
|
|
$
|
3.8
|
|
|
$
|
110.1
|
|
Net earned premiums
|
|
19.5
|
|
|
31.3
|
|
|
27.0
|
|
|
21.5
|
|
|
9.4
|
|
|
4.3
|
|
|
113.0
|
|
|||||||
Losses and LAE incurred:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Cat loss and ALAE
|
|
0.3
|
|
|
4.1
|
|
|
3.1
|
|
|
—
|
|
|
2.4
|
|
|
—
|
|
|
9.9
|
|
|||||||
Non-cat loss and ALAE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Prior accident years non-cat loss and ALAE
|
|
(1.5
|
)
|
|
(2.0
|
)
|
|
1.0
|
|
|
(1.9
|
)
|
|
—
|
|
|
(3.2
|
)
|
|
(7.6
|
)
|
|||||||
Current accident year non-cat loss and ALAE
|
|
14.4
|
|
|
15.7
|
|
|
16.0
|
|
|
14.6
|
|
|
3.5
|
|
|
2.1
|
|
|
66.3
|
|
|||||||
Total non-cat loss and ALAE
|
|
12.9
|
|
|
13.7
|
|
|
17.0
|
|
|
12.7
|
|
|
3.5
|
|
|
(1.1
|
)
|
|
58.7
|
|
|||||||
Total Loss and ALAE
|
|
13.2
|
|
|
17.8
|
|
|
20.1
|
|
|
12.7
|
|
|
5.9
|
|
|
(1.1
|
)
|
|
68.6
|
|
|||||||
ULAE
|
|
1.1
|
|
|
0.9
|
|
|
1.6
|
|
|
2.2
|
|
|
0.7
|
|
|
0.2
|
|
|
6.7
|
|
|||||||
Total Loss and LAE
|
|
14.3
|
|
|
18.7
|
|
|
21.7
|
|
|
14.9
|
|
|
6.6
|
|
|
(0.9
|
)
|
|
75.3
|
|
|||||||
Underwriting expenses
|
|
7.6
|
|
|
13.3
|
|
|
10.0
|
|
|
6.9
|
|
|
3.6
|
|
|
2.0
|
|
|
43.4
|
|
|||||||
Net underwriting (loss) gain
|
|
$
|
(2.4
|
)
|
|
$
|
(0.7
|
)
|
|
$
|
(4.7
|
)
|
|
$
|
(0.3
|
)
|
|
$
|
(0.8
|
)
|
|
$
|
3.2
|
|
|
$
|
(5.7
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Cat loss and ALAE ratio
|
|
1.6
|
%
|
|
13.0
|
%
|
|
11.6
|
%
|
|
—
|
%
|
|
25.6
|
%
|
|
—
|
%
|
|
8.8
|
%
|
|||||||
Non-cat loss and ALAE ratio
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Prior accident years non-cat loss and ALAE ratio
|
|
(7.8
|
)%
|
|
(6.5
|
)%
|
|
3.8
|
%
|
|
(8.7
|
)%
|
|
(0.3
|
)%
|
|
(72.7
|
)%
|
|
(6.7
|
)%
|
|||||||
Current accident year non-cat loss and ALAE ratio
|
|
73.8
|
%
|
|
50.5
|
%
|
|
59.3
|
%
|
|
67.6
|
%
|
|
37.7
|
%
|
|
47.2
|
%
|
|
58.6
|
%
|
|||||||
Total non-cat loss and ALAE ratio
|
|
66.0
|
%
|
|
44.0
|
%
|
|
63.1
|
%
|
|
58.9
|
%
|
|
37.4
|
%
|
|
(25.5
|
)%
|
|
51.9
|
%
|
|||||||
Total Loss and ALAE ratio
|
|
67.6
|
%
|
|
57.0
|
%
|
|
74.7
|
%
|
|
58.9
|
%
|
|
63.0
|
%
|
|
(25.5
|
)%
|
|
60.7
|
%
|
|||||||
ULAE ratio
|
|
6.1
|
%
|
|
2.8
|
%
|
|
5.7
|
%
|
|
10.3
|
%
|
|
7.1
|
%
|
|
4.8
|
%
|
|
6.0
|
%
|
|||||||
Total Loss and LAE ratio
|
|
73.7
|
%
|
|
59.8
|
%
|
|
80.4
|
%
|
|
69.2
|
%
|
|
70.1
|
%
|
|
(20.7
|
)%
|
|
66.7
|
%
|
|||||||
Expense ratio
|
|
41.2
|
%
|
|
43.5
|
%
|
|
38.5
|
%
|
|
31.9
|
%
|
|
36.6
|
%
|
|
51.7
|
%
|
|
39.3
|
%
|
|||||||
Combined ratio
|
|
114.9
|
%
|
|
103.3
|
%
|
|
118.9
|
%
|
|
101.1
|
%
|
|
106.7
|
%
|
|
31.0
|
%
|
|
106.0
|
%
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in millions)
|
|
|
|
|
|
|
|
|
||||||||
Three months ended March 31, 2018
|
|
E&S Property
|
|
E&S Casualty
|
|
Programs
|
|
Total
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Net written premiums
|
|
$
|
(2.7
|
)
|
|
$
|
15.3
|
|
|
$
|
(0.2
|
)
|
|
$
|
12.4
|
|
Net earned premiums
|
|
6.2
|
|
|
25.4
|
|
|
12.1
|
|
|
43.7
|
|
||||
Losses and LAE incurred:
|
|
|
|
|
|
|
|
|
||||||||
Cat loss and ALAE
|
|
0.2
|
|
|
—
|
|
|
(0.2
|
)
|
|
—
|
|
||||
Non-cat loss and ALAE
|
|
|
|
|
|
|
|
|
||||||||
Prior accident years non-cat loss and ALAE
|
|
(0.2
|
)
|
|
1.9
|
|
|
(1.4
|
)
|
|
0.3
|
|
||||
Current accident year non-cat loss and ALAE
|
|
2.5
|
|
|
18.6
|
|
|
8.9
|
|
|
30.0
|
|
||||
Total non-cat loss and ALAE
|
|
2.3
|
|
|
20.5
|
|
|
7.5
|
|
|
30.3
|
|
||||
Total Loss and ALAE
|
|
2.5
|
|
|
20.5
|
|
|
7.3
|
|
|
30.3
|
|
||||
ULAE
|
|
0.1
|
|
|
1.1
|
|
|
1.0
|
|
|
2.2
|
|
||||
Total Loss and LAE
|
|
2.6
|
|
|
21.6
|
|
|
8.3
|
|
|
32.5
|
|
||||
Underwriting expenses
|
|
2.0
|
|
|
6.3
|
|
|
1.3
|
|
|
9.6
|
|
||||
Net underwriting gain (loss)
|
|
$
|
1.6
|
|
|
$
|
(2.5
|
)
|
|
$
|
2.5
|
|
|
$
|
1.6
|
|
|
|
|
|
|
|
|
|
|
||||||||
Cat loss and ALAE ratio
|
|
2.8
|
%
|
|
—
|
%
|
|
(1.6
|
)%
|
|
(0.1
|
)%
|
||||
Non-cat loss and ALAE ratio
|
|
|
|
|
|
|
|
|
||||||||
Prior accident years non-cat loss and ALAE ratio
|
|
(4.0
|
)%
|
|
7.6
|
%
|
|
(11.7
|
)%
|
|
0.7
|
%
|
||||
Current accident year non-cat loss and ALAE ratio
|
|
41.7
|
%
|
|
73.1
|
%
|
|
73.5
|
%
|
|
68.7
|
%
|
||||
Total non-cat loss and ALAE ratio
|
|
37.7
|
%
|
|
80.7
|
%
|
|
61.8
|
%
|
|
69.4
|
%
|
||||
Total Loss and ALAE ratio
|
|
40.5
|
%
|
|
80.7
|
%
|
|
60.2
|
%
|
|
69.3
|
%
|
||||
ULAE ratio
|
|
1.2
|
%
|
|
4.1
|
%
|
|
8.8
|
%
|
|
5.0
|
%
|
||||
Total Loss and LAE ratio
|
|
41.7
|
%
|
|
84.8
|
%
|
|
69.0
|
%
|
|
74.3
|
%
|
||||
Expense ratio
|
|
(73.9
|
)%
|
|
41.1
|
%
|
|
(508.0
|
)%
|
|
77.2
|
%
|
||||
Combined ratio
|
|
(32.2
|
)%
|
|
125.9
|
%
|
|
(439.0
|
)%
|
|
151.5
|
%
|
|
($ in millions)
|
|
|
|
|
|
|
|
|
||||||||
Three months ended March 31, 2017
|
|
E&S Property
|
|
E&S Casualty
|
|
Programs
|
|
Total
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Net written premiums
|
|
$
|
9.2
|
|
|
$
|
26.7
|
|
|
$
|
28.9
|
|
|
$
|
64.8
|
|
Net earned premiums
|
|
11.0
|
|
|
23.3
|
|
|
27.2
|
|
|
61.5
|
|
||||
Losses and LAE incurred:
|
|
|
|
|
|
|
|
|
||||||||
Cat loss and ALAE
|
|
2.1
|
|
|
—
|
|
|
0.1
|
|
|
2.2
|
|
||||
Non-cat loss and ALAE
|
|
|
|
|
|
|
|
|
||||||||
Prior accident years non-cat loss and ALAE
|
|
0.4
|
|
|
(0.2
|
)
|
|
0.3
|
|
|
0.5
|
|
||||
Current accident year non-cat loss and ALAE
|
|
2.9
|
|
|
17.6
|
|
|
21.7
|
|
|
42.2
|
|
||||
Total non-cat loss and ALAE
|
|
3.3
|
|
|
17.4
|
|
|
22.0
|
|
|
42.7
|
|
||||
Total Loss and ALAE
|
|
5.4
|
|
|
17.4
|
|
|
22.1
|
|
|
44.9
|
|
||||
ULAE
|
|
(0.4
|
)
|
|
1.0
|
|
|
1.4
|
|
|
2.0
|
|
||||
Total Loss and LAE
|
|
5.0
|
|
|
18.4
|
|
|
23.5
|
|
|
46.9
|
|
||||
Underwriting expenses
|
|
4.8
|
|
|
9.6
|
|
|
8.4
|
|
|
22.8
|
|
||||
Net underwriting gain (loss)
|
|
$
|
1.2
|
|
|
$
|
(4.7
|
)
|
|
$
|
(4.7
|
)
|
|
$
|
(8.2
|
)
|
|
|
|
|
|
|
|
|
|
||||||||
Cat loss and ALAE ratio
|
|
19.5
|
%
|
|
(0.1
|
)%
|
|
0.4
|
%
|
|
3.6
|
%
|
||||
Non-cat loss and ALAE ratio
|
|
|
|
|
|
|
|
|
||||||||
Prior accident years non-cat loss and ALAE ratio
|
|
4.0
|
%
|
|
(0.8
|
)%
|
|
1.1
|
%
|
|
0.9
|
%
|
||||
Current accident year non-cat loss and ALAE ratio
|
|
25.7
|
%
|
|
75.4
|
%
|
|
79.8
|
%
|
|
68.5
|
%
|
||||
Total non-cat loss and ALAE ratio
|
|
29.7
|
%
|
|
74.6
|
%
|
|
80.9
|
%
|
|
69.4
|
%
|
||||
Total Loss and ALAE ratio
|
|
49.2
|
%
|
|
74.5
|
%
|
|
81.3
|
%
|
|
73.0
|
%
|
||||
ULAE ratio
|
|
(3.4
|
)%
|
|
4.3
|
%
|
|
5.4
|
%
|
|
3.4
|
%
|
||||
Total Loss and LAE ratio
|
|
45.8
|
%
|
|
78.8
|
%
|
|
86.7
|
%
|
|
76.4
|
%
|
||||
Expense ratio
|
|
52.1
|
%
|
|
35.9
|
%
|
|
28.8
|
%
|
|
35.0
|
%
|
||||
Combined ratio
|
|
97.9
|
%
|
|
114.7
|
%
|
|
115.5
|
%
|
|
111.4
|
%
|
||||
|
|
|
|
|
|
|
|
|
($ millions)
|
|
Three months ended March 31
|
||||||||||
|
|
2018
|
|
2017
|
|
$ Change
|
||||||
|
|
(Redundancy)/Deficiency
|
|
|
||||||||
Non-cat loss and ALAE:
|
|
|
|
|
|
|
||||||
Personal Insurance Segment:
|
|
|
|
|
|
|
||||||
Personal Auto
|
|
$
|
(4.0
|
)
|
|
$
|
(0.6
|
)
|
|
$
|
(3.4
|
)
|
Homeowners
|
|
(2.8
|
)
|
|
2.8
|
|
|
(5.6
|
)
|
|||
Other Personal
|
|
0.2
|
|
|
0.1
|
|
|
0.1
|
|
|||
Total Personal Insurance Segment
|
|
(6.6
|
)
|
|
2.3
|
|
|
(8.9
|
)
|
|||
|
|
|
|
|
|
|
||||||
Commercial Insurance Segment:
|
|
|
|
|
|
|
||||||
Commercial Auto
|
|
(3.5
|
)
|
|
(1.5
|
)
|
|
(2.0
|
)
|
|||
Small Commercial Package
|
|
(0.5
|
)
|
|
(2.0
|
)
|
|
1.5
|
|
|||
Middle Market Commercial
|
|
(5.5
|
)
|
|
1.0
|
|
|
(6.5
|
)
|
|||
Workers' Compensation
|
|
(2.3
|
)
|
|
(1.9
|
)
|
|
(0.4
|
)
|
|||
Farm & Ranch
|
|
0.3
|
|
|
—
|
|
|
0.3
|
|
|||
Other Commercial
|
|
1.8
|
|
|
(3.2
|
)
|
|
5.0
|
|
|||
Total Commercial Insurance Segment
|
|
(9.7
|
)
|
|
(7.6
|
)
|
|
(2.1
|
)
|
|||
|
|
|
|
|
|
|
||||||
Specialty Insurance Segment:
|
|
|
|
|
|
|
||||||
E&S Property
|
|
(0.2
|
)
|
|
0.4
|
|
|
(0.6
|
)
|
|||
E&S Casualty
|
|
1.9
|
|
|
(0.2
|
)
|
|
2.1
|
|
|||
Programs
|
|
(1.4
|
)
|
|
0.3
|
|
|
(1.7
|
)
|
|||
Total Specialty Insurance Segment
|
|
0.3
|
|
|
0.5
|
|
|
(0.2
|
)
|
|||
|
|
|
|
|
|
|
||||||
Cat Loss and ALAE
|
|
(0.6
|
)
|
|
(2.2
|
)
|
|
1.6
|
|
|||
ULAE
|
|
(3.8
|
)
|
|
(2.7
|
)
|
|
(1.1
|
)
|
|||
Total
|
|
$
|
(20.4
|
)
|
|
$
|
(9.7
|
)
|
|
$
|
(10.7
|
)
|
|
|
|
|
|
|
|
|
($ millions)
|
March 31, 2018
|
|
December 31, 2017
|
|
$ Change
|
||||||
Personal Insurance Segment:
|
|
|
|
|
|
||||||
Personal Auto
|
$
|
189.9
|
|
|
$
|
191.8
|
|
|
$
|
(1.9
|
)
|
Homeowners
|
56.8
|
|
|
50.5
|
|
|
6.3
|
|
|||
Other Personal
|
14.9
|
|
|
13.8
|
|
|
1.1
|
|
|||
Total Personal Insurance Segment
|
261.6
|
|
|
256.1
|
|
|
5.5
|
|
|||
Commercial Insurance Segment:
|
|
|
|
|
|
||||||
Commercial Auto
|
84.1
|
|
|
92.1
|
|
|
(8.0
|
)
|
|||
Small Commercial Package
|
123.7
|
|
|
124.5
|
|
|
(0.8
|
)
|
|||
Middle Market Commercial
|
151.7
|
|
|
151.4
|
|
|
0.3
|
|
|||
Workers’ Compensation
|
195.4
|
|
|
193.4
|
|
|
2.0
|
|
|||
Farm & Ranch
|
18.9
|
|
|
16.4
|
|
|
2.5
|
|
|||
Other Commercial
|
28.8
|
|
|
26.5
|
|
|
2.3
|
|
|||
Total Commercial Insurance Segment
|
602.6
|
|
|
604.3
|
|
|
(1.7
|
)
|
|||
Specialty Insurance Segment:
|
|
|
|
|
|
||||||
E&S Property
|
53.8
|
|
|
64.8
|
|
|
(11.0
|
)
|
|||
E&S Casualty
|
185.9
|
|
|
176.8
|
|
|
9.1
|
|
|||
Programs
|
141.6
|
|
|
150.5
|
|
|
(8.9
|
)
|
|||
Total Specialty Insurance Segment
|
381.3
|
|
|
392.1
|
|
|
(10.8
|
)
|
|||
Total losses and loss expenses payable, net of reinsurance
recoverable on losses and loss expenses payable
|
$
|
1,245.5
|
|
|
$
|
1,252.5
|
|
|
$
|
(7.0
|
)
|
|
|
|
|
|
|
|
|
($ millions)
|
Amortized cost
|
|
Fair
value
|
||||
Due in 1 year or less
|
$
|
80.6
|
|
|
$
|
80.6
|
|
Due after 1 year through 5 years
|
580.1
|
|
|
572.3
|
|
||
Due after 5 years through 10 years
|
308.2
|
|
|
306.7
|
|
||
Due after 10 years
|
458.3
|
|
|
468.3
|
|
||
U.S. government agencies mortgage-backed securities
|
771.8
|
|
|
753.7
|
|
||
Total
|
$
|
2,199.0
|
|
|
$
|
2,181.6
|
|
|
|
|
|
|
($ millions)
|
Three months ended March 31
|
||||||
|
2018
|
|
2017
|
||||
Gross investment income:
|
|
|
|
||||
Fixed maturities
|
$
|
16.1
|
|
|
$
|
15.8
|
|
Equity securities
|
2.5
|
|
|
1.7
|
|
||
Other
|
1.7
|
|
|
1.5
|
|
||
Total gross investment income
|
20.3
|
|
|
19.0
|
|
||
Less: Investment expenses
|
0.4
|
|
|
0.3
|
|
||
Net investment income
|
$
|
19.9
|
|
|
$
|
18.7
|
|
|
|
|
|
||||
Average invested assets (at cost)
|
$
|
2,603.2
|
|
|
$
|
2,405.7
|
|
Annualized investment yield
|
3.1
|
%
|
|
3.0
|
%
|
||
Annualized investment yield, after tax
|
2.5
|
%
|
|
2.3
|
%
|
||
Net investment income, after tax
|
$
|
16.4
|
|
|
$
|
13.7
|
|
Effective tax rate
|
17.5
|
%
|
|
26.8
|
%
|
||
|
|
|
|
($ in millions)
|
Three months ended March 31
|
||||||||||||||
|
2018
|
|
2017
|
||||||||||||
|
Realized gains (losses)
|
|
Proceeds received on sale
|
|
Realized gains (losses)
|
|
Proceeds received on sale
|
||||||||
Realized gains:
|
|
|
|
|
|
|
|
||||||||
Fixed maturities
|
$
|
0.4
|
|
|
$
|
15.3
|
|
|
$
|
0.3
|
|
|
$
|
50.7
|
|
Equity securities
|
3.3
|
|
|
62.7
|
|
|
9.7
|
|
|
45.1
|
|
||||
Other invested assets
|
0.1
|
|
|
0.3
|
|
|
—
|
|
|
0.3
|
|
||||
Total realized gains
|
3.8
|
|
|
78.3
|
|
|
10.0
|
|
|
96.1
|
|
||||
Realized losses:
|
|
|
|
|
|
|
|
||||||||
Equity securities:
|
|
|
|
|
|
|
|
||||||||
Sales
|
(0.2
|
)
|
|
2.4
|
|
|
(0.1
|
)
|
|
2.5
|
|
||||
OTTI
|
—
|
|
|
—
|
|
|
(2.1
|
)
|
|
—
|
|
||||
Total realized losses
|
(0.2
|
)
|
|
2.4
|
|
|
(2.2
|
)
|
|
2.5
|
|
||||
Net realized gains on investments
|
$
|
3.6
|
|
|
$
|
80.7
|
|
|
$
|
7.8
|
|
|
$
|
98.6
|
|
|
|
|
|
|
|
|
|
|
($ 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
|
||||||||||
Available-for-sale fixed maturities:
|
|
|
|
||||||||||||||||||
U.S. treasury securities and obligations of U.S. government agencies
|
$
|
413.2
|
|
|
$
|
6.9
|
|
|
14
|
|
|
$
|
(9.2
|
)
|
|
41
|
|
|
$
|
410.9
|
|
Obligations of states and political subdivisions
|
497.6
|
|
|
10.7
|
|
|
100
|
|
|
(1.1
|
)
|
|
20
|
|
|
507.2
|
|
||||
Corporate securities
|
516.4
|
|
|
1.9
|
|
|
18
|
|
|
(8.5
|
)
|
|
67
|
|
|
509.8
|
|
||||
U.S. government agencies mortgage-backed securities
|
771.8
|
|
|
3.3
|
|
|
33
|
|
|
(21.4
|
)
|
|
89
|
|
|
753.7
|
|
||||
Total available-for-sale fixed maturities
|
$
|
2,199.0
|
|
|
$
|
22.8
|
|
|
165
|
|
|
$
|
(40.2
|
)
|
|
217
|
|
|
$
|
2,181.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ millions)
|
Three months ended March 31
|
||||||
|
2018
|
|
2017
|
||||
Loss before federal income taxes
|
$
|
(3.3
|
)
|
|
$
|
(4.0
|
)
|
Federal income tax benefit:
|
|
|
|
||||
Current
|
(1.0
|
)
|
|
(0.1
|
)
|
||
Deferred
|
(0.2
|
)
|
|
(0.6
|
)
|
||
Total federal income tax benefit
|
(1.2
|
)
|
|
(0.7
|
)
|
||
Net loss
|
$
|
(2.1
|
)
|
|
$
|
(3.3
|
)
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
31.01
|
|
|
|
|
|
|
|
31.02
|
|
|
|
|
|
|
|
32.01
|
|
|
|
|
|
|
|
32.02
|
|
|
|
|
|
|
|
101.INS
|
|
|
The instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL 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 9, 2018
|
/s/ Steven E. English
|
|
Steven E. English
|
|
Chief Financial Officer
|
|
(Duly Authorized Officer and
|
|
Principal Financial Officer)
|
1.
|
Capitalized terms used in this Second Amendment (including the Background Information) which are not otherwise defined herein shall have the meanings ascribed to such terms in the 2015 Management Agreement.
|
4.
|
This document is an amendment to the 2015 Management Agreement. In the event of any inconsistencies between the provisions of the 2015 Management Agreement and this Second Amendment, the provisions of this Second Amendment shall control. Except as expressly amended hereby, the 2015 Management Agreement shall continue in full force and effect without change for the balance of the term thereof.
|
STATE AUTOMOBILE MUTUAL INSURANCE COMPANY
|
||
STATE AUTO FINANCIAL CORPORATION
|
||
STATE AUTO PROPERTY & CASUALTY INSURANCE COMPANY
|
||
STATE AUTO INSURANCE COMPANY OF OHIO
|
||
STATE AUTO HOLDINGS, INC.
|
||
STATECO FINANCIAL SERVICES, INC.
|
||
MERIDIAN SECURITY INSURANCE COMPANY
|
||
PATRONS MUTUAL INSURANCE COMPANY OF CONNECTICUT
|
||
MILBANK INSURANCE COMPANY
|
||
518 PROPERTY AND MANAGEMENT LEASING, LLC
|
||
FACILITATORS, INC.
|
||
STATE AUTO LABS CORP.
|
||
|
|
|
/s/ Michael E. LaRocco
|
|
|
Michael E. LaRocco, President
|
|
|
|
|
|
NETWORK E&S INSURANCE BROKERS, LLC
|
||
|
|
|
/s/ Steven E. English
|
|
|
Steven E. English, Manager
|
|
|
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 9, 2018
|
/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 9, 2018
|
/s/ Steven E. English
|
|
Steven E. English, Chief Financial Officer
|
|
(Principal financial officer)
|
|
/s/ Michael E. LaRocco
|
|
Michael E. LaRocco
|
|
Chief Executive Officer
|
|
May 9, 2018
|
|
/s/ Steven E. English
|
|
Steven E. English
|
|
Chief Financial Officer
|
|
May 9, 2018
|