The company reported a 2012 net income of
The company's personal automobile business showed modest improvement in the quarter because of better weather and lower cat losses, State Auto President, Chairman and Chief Executive Officer
"Production for personal auto was slightly negative," Restrepo said. "A result of agency terminations in unprofitable property territories, flat new business and a 3% reduction in policies in force."
The homeowners line benefitted from lower non-cat claims and non-cat non-weather losses during the year and the quarter, Restrepo said. He expressed confidence at the line's potential for profitability barring a repeat of 2011's cat experience.
"This is a direct result of aggressive actions we've been taking to achieve price adequacy, proper insurance-to-value, better spread of geographic risk, higher deductibles and prudent use of reinsurance."
The 2012 combined ratio was 107.9, compared with 116.5 in 2011, and 101.7 in the fourth quarter, compared with 94.3.
Lower catastrophe losses in 2012 helped State Auto's results, even with Hurricane Sandy striking the
State Auto's return to profitability comes at the same time its net premiums written decreased 17.9% for the year to
"As the final [
State Auto previously said it planned to increase by up to
Homeowners premiums increased because of the company's pricing actions. Restrepo said homeowners prices in 2012 increased by about 23% and the company is planning for comparable increases in 2013. He said the homeowners policy-in-force count is down about 4.3% for the year, almost exclusively from cat-prone states.
Restrepo said the company's business insurance segment had improved results during the quarter and year over the prior year periods because of "changes to our umbrella reinsurance program, improved retention, more new business, a slowly recovering economy and price increases of 5% for the quarter and 3.5% for the year."