Hal, you (State Auto) had another VERY good year!

Let's see, as we look at the 2005 numbers for State Auto, premiums are up by $19Mil, losses are down by $33Mil, reserves are up by a very respectable $231Mil, but reported net income dropped by $11Mil.

How'd that happen? Looks like you increased reserves a bunch, but lost a considerable percentage of net income, even though the loss ratio improved to 41%. (that's 59 cents on the premium dollar gross profit and an enviable improvement by any insurer from 64%, 57%, and 47% in prior respective years!) Your numbers show an increase in net of $52Mil not counting the $231Mil increase in reserves. (I realize that dollars placed into reserves is not counted as net income for insurers; wish us plain folks could do that with our simple savings accounts.)

So, as this adds, you're now needing almost a 243% markup on cost of goods sold (losses of $196,994,498) to make a 4.4% net profit (on premiums of $469,184,858).

BTW, Is Safelite still allowing that 20% markup on cost of parts for shops on your glass claims?

Last year when I brought this up, you mentioned that equations of dividends to shareholders must be included in my calculations. Would that mean that payroll figures may be included in our calculations of shop profits as well? (Or possibly even shareholder dividends in the case of larger glass service providers???)

Up goes another golf course by the ocean.....sorry I am so simple.

Thanks for your message regarding our Company's performance. I am only a Senior Associate rather than an Officer of the Company, but I am proud of our company. We do a lot of things right.

While glass claims represent only a small part of operations--I try to do my part. Likewise, I am sure you expect no less from your Associates.

State Auto is traded on NSDAQ as STFC.

Best wishes-

Q "Where were you on the night of the 5th?"

A "Absolutely, I always brush my teeth every night before going to bed as a part of a good dental care practice."

mark,

i think we are in trouble.


i can now see the how close the insurance company is with politics, they can talk around any issue, without giving an answer. lol

don't look like we stand a chance. ha ha