Allied/Nationwide

[todd02]

I hope no one actually believes that these cuts are for the carriers to provide better rates??? The companies don't even believe it when they say it.

Absolutely not about rates. It's about killing smaller Agents who are sitting on their book and transitioning commissions to larger agents who actually produce.

 

[Matt37]

State Auto is being led by a Giant in the Insurance industry! Former Safeco President- Mike LaRocco. He has the ability to turn it around and will.

New Product, new Tech Platform. All brighter days for State Auto!

In addition to this they need to:

1)Empower their staff to make decisions in the field and hold them accountable for those decisions faster.

2) Streamline UWing so the pass though rate increases dramatically! - Dropping expense ratio.

Watch State Auto in 2017 become a new Carrier. The Foundation is set. Now time to execute!

State Auto hasn't hit rock bottom yet..

You can do what you want but when you write crap and write it cheap you are a sinking ship.

This is only year one of a terrible combined due to losses... well until those babies develop and mature.

Hopefully they do not just take the route of what some do and write anything that comes in the door to stay ahead of the claims.

They need to slowly increase rates and slowly dump the crap.. 2-4 year process minimum.

 

[AZDave]

State Auto hasn't hit rock bottom yet..

You can do what you want but when you write crap and write it cheap you are a sinking ship.

This is only year one of a terrible combined due to losses... well until those babies develop and mature.

Hopefully they do not just take the route of what some do and write anything that comes in the door to stay ahead of the claims.

They need to slowly increase rates and slowly dump the crap.. 2-4 year process minimum.

Oh, you mean this:

Columbus, Ohio (August 4, 2016) – State Auto Financial Corporation (NASDAQ:STFC) today reported a second quarter 2016 net loss of $24.6 million, or $0.59 per diluted share, versus net income of $2.7 million, or $0.06 per diluted share, for the second quarter of 2015. Net loss from operations1 per diluted share for the second quarter 2016 was $0.69 versus net loss from operations1 per diluted share of $0.02 for the same 2015 period.

Operating Results

STFC’s GAAP combined ratio for the second quarter 2016 was 114.7 versus 106.1 for the second quarter of 2015. Catastrophe losses during the second quarter 2016 accounted for 13.1 points of the 81.5 total loss ratio points, or $42.3 million, versus 11.4 points of the total 72.1 loss ratio points, or $35.5 million, for the same period in 2015. Non-catastrophe losses during the second quarter 2016 included 6.5 points of adverse development relating to prior years, or $20.9 million, versus 2.0 points of favorable development, or $6.3 million, for the same period in 2015.

Net written premium for the second quarter of 2016 increased 1.9% compared to the same period in 2015. By insurance segment, net written premium decreased for personal and business by 0.4% and 7.3%, respectively, and specialty increased by 31.6%. Personal auto and homeowners new business premium and new policy counts were up, while policies in force were lower, compared to the second quarter of 2015. During the second half of 2015, the Company implemented underwriting actions, including pricing reviews and non-technology process improvements designed to improve personal lines production. The decline in the business insurance segment was significantly driven by our decision to exit our large account business, along with field restructuring and rate actions to improve profitability in commercial auto. The growth in the specialty insurance segment was driven by an increase in new business for both E&S casualty and programs.

For the first six months of 2016, STFC had a net loss of $21.6 million, or $0.52 per diluted share, compared to net income of $27.4 million, or $0.66 per diluted share, for the same 2015 period.

STFC’s GAAP combined ratio for the first six months of 2016 was 109.4 compared to 100.3 for the same 2015 period. Catastrophe losses increased the loss ratio for the first six months of 2016 by 8.9 points, or $57.3 million, compared to 6.4 points, or $40.0 million for the first six months of 2015. Noncatastrophe losses for the first six months of 2016 included 4.9 points of adverse development relating to prior years, or $31.2 million, versus 1.7 points of favorable development, or $10.7 million, for the same period in 2015.

Net written premium for the first six months of 2016 increased 0.6% compared to the same 2015 period. By insurance segment, net written premium decreased for personal and business by 1.0%, and 6.4%, respectively, while specialty increased by 21.1%. The trends in net written premiums are due to the same factors discussed above for the second quarter.

 

[cola2001]

Which cuts, Allied, State Auto, or both? I've seen State Auto cuts announced, but nothing on Allied yet.

 

[FLInsa]

So apparently, SIAA members are not impacted by these cuts.

Being an SIAA member in Florida, I haven't seen nor heard of Allied's commissions dropping.

 

[HelpWanted]

Very disappointed in the lack of communication from SmartChoice on this issue. Cut confirmed.

 

[insurance1822]

^Then Smartchoice must not have 5MM w/ them?

 

[Herkster]

^Then Smartchoice must not have 5MM w/ them?

Both get cut, under $5m you go to 10% renewal commissions, over $5m you go to 12% or 13%, I think. Someone can correct me if I'm wrong.