Accounting Changes and Error Corrections

9 Months Ended

Sep. 30, 2020

Accounting Changes and Error Corrections [Abstract]

Accounting Standards Update and Change in Accounting Principle

Correction of Misstatement in Prior Period Financial Statements

The Company has corrected the presentation of premiums receivable on its condensed consolidated balance sheet for the period ended December 31, 2019 to appropriately reflect outstanding balances for premiums billed and due on premiums written directly by the STFC Pooled Companies. Based on the Pooling Arrangement (as defined in Note 7), this has no impact on the underwriting operations of the STFC Pooled Companies given the role of State Auto Mutual as agent for the State Auto Group.

The Company's balance sheet has been revised to include "premiums receivable", which represents the billed and due premium from its policyholders, with an offsetting adjustment to "due to/from affiliates". This adjustment was not material to the Company’s previously issued financial statements.

The effect of the revisions on the Company's previously issued financial statements are provided in the tables below. Amounts throughout the consolidated financial statements and notes thereto have been adjusted to incorporate the revised amounts, where applicable. The following tables reconcile selected lines from the Company’s year-end 2019 consolidated balance sheet and the condensed consolidated statements of cash flows for the nine months ended September 30, 2019 from the previously reported amounts to the revised amounts. There were no changes to the condensed consolidated statements of income, condensed consolidated statements of comprehensive income, and condensed consolidated statements of stockholders' equity.

Revised Consolidated Balance Sheets
($ in millions)	Year Ended December 31, 2019
	As Reported		Adjustment		As Revised
Assets
Premiums receivable	$	—	$	13.6	$	13.6
Due from affiliate	21.5		(13.6)		7.9
Total Assets	$	2,985.4	$	—	$	2,985.4

Revised Consolidated Statement of Cash Flows
($ in millions)	Nine months ended September 30, 2019
	As Reported		Adjustment		As Revised
Cash flows from operating activities:
Changes in operating assets and liabilities:
Premiums receivable	$	—	$	(3.2)	$	(3.2)
Other liabilities and due to/from affiliates, net	(55.0)		3.2		(51.8)
Net cash used in operating activities	$	(43.9)	$	—	$	(43.9)