EX-99.1 2 dex991.htm RESIGNATION LETTER OF RICHARD K. SMITH Resignation letter of Richard K. Smith

Exhibit 99.1

July 2, 2010

To the Board of Directors of

State Auto Financial Corporation

My Fellow Directors:

After over 10 years of service on the State Auto Financial Corporation Board of Directors, I am hereby tendering my resignation effective July 2, 2010.

As you know, I am disappointed with the company’s recent ratings downgrade by Standard & Poor’s and the negative outlook change by A.M. Best, both of which I think were based on lack of rate increases and lack of earnings. I do not believe these bode well for the company. While we have increased rates, I believe we need to be even more aggressive, even at the loss of policies, and more aggressively exiting unprofitable business. I also don’t believe that our expense reduction policies are showing the results that they should.

I wish the Board success in implementing the appropriate practices and policies to turn things around.

I’d like to thank each of you for your friendship during my tenure. I have enjoyed my time with you and have learned much from my fellow Board members.

Sincerely,

/s/ Richard K. Smith

Richard K. Smith