On March 19, 2020, State Auto Property & Casualty Insurance Company (\”SAPC\”), a wholly owned subsidiary of State Auto Financial Corporation (the \”Company\”), received a loan in the amount of $60.0 million from the Federal Home Loan Bank of Cincinnati (\”FHLB\”). Concurrently, State Automobile Mutual Insurance Company (“SAM”) received a loan in the amount of $40.0 million from the FHLB. The loans, known as REPO based advances, are each for general corporate purposes and are intended to provide additional liquidity for the State Auto Group. These advances can be drawn for a minimum of one day. At the Company\’s discretion, advances can be drawn for longer periods of time subject to the FHLB agreement attached as an Exhibit to this Form 8-K. The FHLB agreement is for a one-year term. The advances are each at an interest rate determined on the initial date of such advance. All principal and interest is due at maturity of such advance and is not pre-payable. These loans are fully secured by a pledge of specific investment securities of the applicable borrower.
EXHIBIT INDEX
State Auto Financial CORP ExhibitEX-10.01 2 a2020loanexhibit.htm EXHIBIT 10.01 Exhibit Exhibit 10.01^FHLBCINCINNATI REPO BASED ADVANCE APPLICATIONEmail:
[email protected]: 800-828-4191 Fax: 513-852-5747D.D.A. # 389001 Date: 03/19/2020Pursuant to the BLANKET SECURITY AGREEMENT (\”Agreement\”) and the RESOLUTION FOR ADVANCES (\”Resolution\”) currently on file with the Federal Home Loan Bank of Cincinnati (the \”FHLB\”),…
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About STATE AUTO FINANCIAL CORPORATION (NASDAQ:STFC)
State Auto Financial Corporation (State Auto Financial) is a property and casualty insurance holding company. The Company is engaged in writing personal, business and specialty insurance. Its segments include personal insurance, business insurance, specialty insurance and investment operations. Its personal insurance, business insurance and specialty insurance are known as insurance segments of the Company. It writes standard insurance covering personal exposures to individuals in the personal insurance segment. The Company writes insurance covering small-to-medium sized commercial exposures in the business insurance segment. The specialty insurance segment offers commercial coverages requiring product underwriting, claims handling and/or risk management services through a distribution channel of retail agents and wholesale brokers, which include program administrators and other sources. Its investment portfolio is managed by its subsidiary, Stateco Financial Services, Inc.
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