Higher catastrophe and auto losses helped drive State Auto Financial Corp.’s 2016 second quarter into the red.

The Columbus, Ohio-based super regional insurer 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.

State Auto’s combined ratio for the second quarter 2016 was 114.7 versus 106.1 for the second quarter of 2015.

“Our results for the quarter were poor, driven by catastrophe losses and further adverse development across our automobile lines of business,” State Auto Chairman, President and CEO Mike LaRocco said in prepared remarks, adding that Texas storms accounted for just over half of the insurer’s catastrophe losses.

While the auto insurance sector performed worse than expected for State Auto, LaRocco added that the company has “improved our operations and closed the quarter with strong and appropriate reserves.”

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 percent compared to the same period in 2015. By insurance segment, net written premium decreased for personal and business by 0.4 percent and 7.3 percent, respectively, and specialty increased by 31.6 percent.

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.

The decline in the business insurance segment was significantly driven by the company’s decision to exit its 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.

Non-catastrophe 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 percent compared to the same 2015 period. By insurance segment, net written premium decreased for personal and business by 1.0 percent, and 6.4 percent, respectively, while specialty increased by 21.1 percent.

Source: State Auto Financial Corp.