COLUMBUS, Ohio -- March 22, 2000 -- State Auto Financial Corporation (NASDAQ:STFC) announced today a new management and operations agreement. Under that agreement STFC's subsidiary, State Auto Property and Casualty Insurance Company, will provide all employees and services for State Automobile Mutual Insurance Company, State Auto National Insurance Company, State Auto Insurance Company, Milbank Insurance Company and State Auto Property and Casualty Insurance Company. The new agreement, pending regulatory approval, has been approved by the boards of these companies.
"This agreement reflects that State Auto Financial has become a leading partner of the State Auto Group," said Robert L. Bailey, Chairman. Under the prior management agreement, STFC provided only executive management services. Bailey said the new contract is expected to positively affect net earnings by approximately $0.07 per share in 2000.
State Auto Financial Corporation is a regional property and casualty insurance holding company engaged primarily in writing personal and commercial automobile, homeowners, commercial multi-peril, workers' compensation and fire insurance. The company currently markets its products through more than 13,100 agents associated with approximately 2,200 agencies in 26 states. Products are marketed primarily in the Midwest and Eastern United States, excluding New York, New Jersey and the New England states.