STATE AUTO SWINGS TO UNDERWRITING LOSS AND MISSES ESTIMATE

US property/casualty group State Auto Financial saw third-quarter net income fall 66% to $11.5m, reflecting a swing to a $5.7m underwriting loss from income of $3.6m and a swing to $5.0m in realised investment losses. Operating income per share fell to 34¢ from 44¢ and missed analysts’ forecast of 46¢. The combined ratio added 1.1 points to 99.5%, while written premiums grew 11.0% to $346.8m. For the first nine months of the year, the Ohio-based group’s net income rose 47% to $54.7m as realised gains more than doubled to $50.2m. The combined ratio added a full point to 103.6% and written premiums grew 9.0% to $994.5m.