On May8, 2018, State Auto Financial Corporation (the "Company") issued a press release disclosing the Company’s results of operations for the three month periods ended March31, 2018 (the “Release"). The full text of the Release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and incorporated herein by reference.

The Release included a non-GAAP financial measure, net income (loss) from operations per diluted share. Net income (loss) from operations differs from GAAP net income (loss) only by the exclusion of net investment gains (losses), net of applicable taxes, on investment activity for the periods being reported. For the three month periods endedMarch31, 2018and2017, GAAP net loss was$0.05per diluted share and$0.08per diluted share, respectively, while net income per share from operations was$0.17per diluted share and net loss per share from operations was$0.20per diluted share for the same respective periods. For the three month periods endedMarch31, 2018and2017, net investment (loss) gain, net of applicable taxes, impacted the GAAP net loss per diluted share by $0.22 and $0.12, respectively.

Management uses net income (loss) from operations because it believes this calculation better indicates the Company’s operating performance than GAAP net income (loss) in that net income (loss) from operations excludes the sometimes volatile realized capital gains/losses, net of applicable federal income taxes, that can produce inconsistent results.

State Auto Financial CORP Exhibit
EX-99.01 2 a1q2018pressrelease.htm PRESS RELEASE Exhibit EXHIBIT 99.1State Auto Financial reports first quarter 2018 results•Quarterly loss of $0.05 per share•Quarterly earnings from operations1 of $0.17 per share•Quarterly GAAP combined ratio of 102.6 •Return on equity of (1.0)% •Book value per share of $19.90 COLUMBUS,…
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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.