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Reinsurance
 9 Months Ended
Sep. 30, 2018
Insurance [Abstract]  
Reinsurance Reinsurance
The insurance subsidiaries of State Auto Financial, including State Auto P&C, Milbank and SA Ohio (collectively referred to as the “STFC Pooled Companies”) participate in a quota share reinsurance pooling arrangement (“the Pooling Arrangement”) with State Auto Mutual and its subsidiaries and affiliates (collectively referred to as the “Mutual Pooled Companies”).
Effective June 1, 2017, State Auto P&C entered into a quota share agreement with Home State County Mutual Insurance Company ("Home State") to assume 100% of the business issued under this agreement defined as Texas Private Passenger Automobile.  Home State receives a variable fee (capped at 2%) in consideration for this arrangement.
Effective March 1, 2018, the State Auto Group entered into a quota share agreement ("Oil & Gas Quota Share") covering its gas & propane distribution book of business. The Oil & Gas Quota Share expires February 28, 2019. In accordance with this agreement, the State Auto Group ceded to external reinsurers (i) 100% of unearned premiums for this book of business as of the effective date and (ii) 100% of new and renewal policies issued on or after the effective date. In addition, the State Auto Group will receive a minimum ceding commission of 23.0% on premiums ceded under the agreement. On March 1, 2018, the Company ceded unearned premiums of $9.7 million to the reinsurers under the terms of this agreement.
The following table sets forth a summary of the Company’s external reinsurance transactions, as well as reinsurance transactions with State Auto Mutual under the Pooling Arrangement, for the three and nine months ended September 30, 2018 and 2017:
($ millions)
Three months ended September 30
 
Nine months ended September 30
 
2018
 
2017
 
2018
 
2017
Premiums earned:
 
 
 
 
 
 
 
Assumed from external insurers and reinsurers
$
17.3

 
$
2.3

 
$
41.9

 
$
4.7

Assumed under Pooling Arrangement
306.8

 
319.0

 
929.2

 
957.2

Ceded to external insurers and reinsurers
(5.9
)
 
(4.9
)
 
(16.7
)
 
(17.1
)
Ceded under Pooling Arrangement
(234.9
)
 
(203.7
)
 
(678.1
)
 
(608.2
)
Net assumed premiums earned
$
83.3

 
$
112.7

 
$
276.3

 
$
336.6

Losses and loss expenses incurred:
 
 
 
 
 
 
 
Assumed from external insurers and reinsurers
$
10.9

 
$
2.2

 
$
34.2

 
$
4.7

Assumed under Pooling Arrangement
183.1

 
254.0

 
591.4

 
719.5

Ceded to external insurers and reinsurers
(1.9
)
 
(2.7
)
 
(3.4
)
 
(3.7
)
Ceded under Pooling Arrangement
(148.4
)
 
(125.1
)
 
(486.0
)
 
(420.7
)
Net assumed losses and loss expenses incurred
$
43.7

 
$
128.4

 
$
136.3

 
$
299.8