New York, April 17, 2015 -- Moody's Investors Service continues to review the A3 insurance financial strength (IFS) ratings of members of the State Automobile Mutual Group (State Auto) and State Auto Financial Corporation (STFC) for downgrade. The company was put on review for downgrade on January 22, 2015, following an announcement by the company that STFC would strengthen reserves by $71.3 million pre-tax in the fourth quarter of 2014. The reserve charge primarily related to two runoff programs, restaurant and commercial trucking, which were written by State Auto's Risk Evaluation & Design (RED) subsidiary. State Auto also entered into an adverse development cover which provides $40 million in coverage to protect against further development on RED's restaurant program in excess of carried reserves.

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