State Auto Financial Announces Approval of Changes to Pooling Agreement

State Auto Financial Corporation

today reported that the previously announced proposed changes to the intercompany reinsurance pooling agreement for the State Auto Group has received all necessary regulatory approvals from various departments of insurance. The pooling changes will be effective as of Dec. 31, 2011, and include changing the overall participation of the STFC Pooled Companies and the SAM Pooled Companies to 65% and 35%, respectively, from their current 80% and 20%, respectively. STFC also reported that final steps are being taken to place, effective by year end, a quota share reinsurance arrangement that would cede a significant portion of its homeowners business, possibly for a multi-year period.