11-K


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 11-K
 
 
(Mark One)
x
ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2015
OR
¨
TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from              to             
Commission file number 000-19289
 
 
 
A.
Full title of the plan and address of the plan, if different from that of the issuer named below:
State Auto Property & Casualty Insurance Company
Amended and Restated
Incentive Deferred Compensation Plan
 
B.
Name of issuer of the securities held pursuant to the plan and the address of its principal executive office:
State Auto Financial Corporation
518 East Broad Street
Columbus, Ohio 43215-3976
 
 
 



REQUIRED INFORMATION
See the accompanying financial statements for the State Auto Property & Casualty Insurance Company Amended and Restated Incentive Deferred Compensation Plan as of December 31, 2015 and 2014, and for the years ended December 31, 2015, 2014 and 2013.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees (or other persons who administer the employee benefit plan) have duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
 
 
State Auto Property & Casualty Insurance Company Amended and Restated Incentive Deferred Compensation Plan
 
 
By:
 
/s/ Steven E. English
 
 
Steven E. English
 
 
Senior Vice President, Chief Financial Officer
 
 
 
By:
 
/s/ Melissa A. Centers
 
 
Melissa A. Centers
 
 
Senior Vice President, Secretary and General Counsel
Date: March 24, 2016


INDEX
 
 
Page
 
 
 
 
Audited Financial Statements:
 



Report of Independent Registered Public Accounting Firm

Board of Directors
State Auto Financial Corporation
Columbus, Ohio

We have audited the accompanying statements of net assets available for benefits of the State Auto Property & Casualty Insurance Company Amended and Restated Incentive Deferred Compensation Plan (the Plan), as of December 31, 2015 and 2014, and the related statements of changes in net assets available for benefits for the years ended December 31, 2015, 2014 and 2013. These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Plan is not required to have, nor were we engaged to perform, an audit of the Plan’s internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Plan’s control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of the Plan as of December 31, 2015 and 2014, and the changes in net assets available for benefits for the years ended December 31, 2015, 2014 and 2013 in conformity with accounting principles generally accepted in the United States of America.

 

/s/ Clark, Schaefer, Hackett & Co.

Columbus, Ohio
March 24, 2016

1
STATE AUTO PROPERTY & CASUALTY INSURANCE COMPANY
AMENDED AND RESTATED INCENTIVE DEFERRED COMPENSATION PLAN

Statements of Net Assets Available for Benefits


 
 
December 31
 
 
2015
 
2014
Assets
 
 
 
 
Investments, at fair value:
 
 

 
 

Shares of registered investment companies (cost $4,158,330 and $4,097,389, respectively)
 
$
4,055,657

 
$
4,259,273

Interest-bearing cash
 
1,026,986

 
409,548

Affiliated stock (cost $454,422 and $277,877, respectively)
 
509,697

 
381,070

Total investments
 
5,592,340

 
5,049,891

 
 
 
 
 
Net assets available for benefits
 
$
5,592,340


$
5,049,891


See accompanying notes.

2
STATE AUTO PROPERTY & CASUALTY INSURANCE COMPANY
AMENDED AND RESTATED INCENTIVE DEFERRED COMPENSATION PLAN

Statements of Changes in Net Assets Available for Benefits


 
 
Year Ended December 31
 
 
2015
 
2014
 
2013
Investment income:
 
 
 
 
 
 
  Dividends
 
$
204,446

 
$
247,650

 
$
146,657

  Unrealized (losses) gains
 
(312,475
)
 
(298,427
)
 
405,334

  Realized gains
 
87,703

 
322,302

 
117,958

     Total investment (loss) income
 
$
(20,326
)
 
$
271,525

 
$
669,949

 
 
 
 
 
 
 
Contributions:
 
 
 
 
 
 
  Employee
 
$
861,160

 
$
516,367

 
$
433,270

  Employer
 
27,797

 
21,760

 
36,647

     Total contributions
 
$
888,957

 
$
538,127

 
$
469,917

 
 
 
 
 
 
 
Deductions:
 
 
 
 
 
 
  Benefit payments
 
$
326,182

 
$
275,978

 
$
397,813

    Total deductions
 
$
326,182

 
$
275,978

 
$
397,813

 
 
 
 
 
 
 
Net increase
 
$
542,449

 
$
533,674

 
$
742,053

 
 
 
 
 
 
 
Net assets available for benefits:
 
 
 
 
 
 
  Beginning of year
 
$
5,049,891

 
$
4,516,217

 
$
3,774,164

 
 
 
 
 
 
 
  End of year
 
$
5,592,340

 
$
5,049,891

 
$
4,516,217


See accompanying notes.

3
STATE AUTO PROPERTY & CASUALTY INSURANCE COMPANY
AMENDED AND RESTATED INCENTIVE DEFERRED COMPENSATION PLAN
Notes to the Financial Statements
December 31, 2015


1. Description of the Plan
Organization
The State Auto Property & Casualty Insurance Company Amended and Restated Incentive Deferred Compensation Plan (the “Plan”) became effective on August 1, 1995. The Plan was amended and restated in its entirety effective as of March 1, 2010, to incorporate amendments made to the Plan subsequent to the Plan’s prior restatement effective as of March 1, 2001, and to add as an investment option a fund comprised solely of shares of the State Auto Financial Corporation common stock (“Affiliated stock”). The Plan was further amended effective as of July 1, 2010 (First Amendment), November 1, 2010 (Second Amendment) and January 1, 2011 (Third Amendment).
Eligible executives include high income or key management employees designated by State Auto Property & Casualty Insurance Company (the “Company”) on an annual basis. Plan participation is voluntary. The Plan provides to those eligible executives the benefits they would otherwise earn under the State Auto Insurance Companies Retirement Savings Plan (the “Qualified Plan”) if certain federal law restrictions did not apply, and the opportunity to defer designated amounts of their salary and bonuses.
Effective as of January 1, 2011, the Plan was amended to include the ability to transfer the maximum annual contributions permissible to be made to the Qualified Plan each calendar year from the Plan to the Qualified Plan no later than the March 15th following the December 31st of the plan year to which the contributions relate.
The benefits provided to participants under the Plan are paid from the general assets of the Company. The Plan is intended to be an unfunded Plan for purposes of the Employee Retirement Income Security Act of 1974 (“ERISA”) and is, therefore, exempt from certain ERISA requirements. Each participant’s right to benefits under the Plan is equivalent to the rights of any unsecured creditor of the Company.
Newly eligible executives who wish to participate in the Plan must enroll within 30 days after becoming eligible to participate and defer income from the current calendar year. For subsequent years, participants must enroll prior to the beginning of each new Plan year.
Contributions
Participants are permitted to defer on a pretax basis (a) from 1% to 100% of the participant’s eligible base salary received in the Plan year, (b) from 1% to 100% of each eligible participant’s bonus and/or (c) from 1% to 100% of any award to the participant under the State Auto Financial Corporation Long-Term Incentive Plan ("LTIP"). In addition, the Company matches eligible base salary deferrals at the same rate and in the same manner that it is generally matching 401(k) deferrals under the Qualified Plan. Any limitations on the match under the Qualified Plan also apply to the Plan, with the match under the Plan being offset by the match to the Qualified Plan to the extent duplicative. For example, at the present time under the Qualified Plan, the Company matches up to 6% of compensation at the rate of 100% on the first 1% of contributions plus 50% on contributions in excess of 1%, up to a maximum of 6%. Under the Plan, the Company similarly matches up to 6% of eligible base salary, as defined above, less amounts matched under the Qualified Plan. The Company is required to make nonelective contributions that are not eligible to be contributed to the Qualified Plan.
Vesting
Each participant is fully vested in base salary deferrals, bonus and LTIP deferrals, and any associated earnings. After five years of service or upon attainment of age 55, retirement, death, or total disability prior to age 55 or other termination of service, each participant is fully vested in matching contributions. After three years of service or upon attainment of age 55, retirement, death, or total disability prior to age 55 or other termination of service, each participant is fully vested in nonelective contributions.
Participant Accounts
Investment funds available under the Plan are merely devices used to calculate gains and losses on the amounts deferred by Plan participants. No participant has any rights or interests in any particular funds, securities or property of the Company or the trust described in Note 6, or in any investment vehicle in which deferrals are deemed to be invested, by virtue of any investment election. Each deferral account, however, is credited or charged in accordance with the Plan with gains and losses as if the participant in fact had made a corresponding actual investment.


4
STATE AUTO PROPERTY & CASUALTY INSURANCE COMPANY
AMENDED AND RESTATED INCENTIVE DEFERRED COMPENSATION PLAN
Notes to the Financial Statements (continued)
December 31, 2015

Payment of Benefits
The balance of each deferral account is distributed in cash to the participant based on the participant’s distribution election upon a specified date certain or the later of age 55 or termination of service. If no distribution election is made, payments are made in monthly installments over a five-year period. In addition, the payment of Company non-elective contributions is made in the form of 60 monthly installments.
2. Significant Accounting Policies
Basis of Presentation
The accounting records of the Plan are maintained in conformity with U.S. generally accepted accounting principles ("GAAP").
Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.
Valuation of Investments and Related Investment Income
The investments of the Plan consist of shares of registered investment companies, interest-bearing cash, and affiliated stock. The Plan’s investments are stated at fair value. Fair value is the price that would be received to sell an asset in an orderly transaction between market participants at the measurement date. See Note 3 for discussion on fair value measurements.
Investment income, including appreciation and depreciation in fair value of investments, is allocated to participant accounts daily based upon the ratio of each participant’s account to the total fund balance. Dividends are recorded on the ex-dividend date. Realized gains and losses on the sale of securities are determined on the average cost method.
Benefit Payments
Benefit payments are recognized when paid.
Administrative Expenses
All administrative expenses are paid by the Company.
Risks and Uncertainties
The Plan invests in various investment securities. Investment securities are exposed to various risks such as interest rate, market and credit risks. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect the amounts reported in the Plan’s statements of net assets available for benefits.
3. Fair Value Measurements
Below is the fair value hierarchy that categorizes into three levels the inputs to valuation techniques that are used to measure fair value:
•Level 1 includes observable inputs which reflect quoted prices for identical assets or liabilities in active markets at the measurement date.
•Level 2 includes observable inputs for assets or liabilities other than quoted prices included in Level 1, and it includes valuation techniques which use prices for similar assets and liabilities.
•Level 3 includes unobservable inputs which reflect the reporting entity’s estimates of the assumptions that market participants would use in pricing the asset or liability (including assumptions about risk).




5
STATE AUTO PROPERTY & CASUALTY INSURANCE COMPANY
AMENDED AND RESTATED INCENTIVE DEFERRED COMPENSATION PLAN
Notes to the Financial Statements (continued)
December 31, 2015

The following is a description of the valuation methods used for assets measured at fair value:
•Registered investment companies: Registered investment companies are public investment vehicles valued using net asset value (“NAV”) provided by the administrator of the mutual fund. The NAV is an unadjusted quoted price on an active market and classified within Level 1 of the fair value hierarchy.
•Interest-bearing cash: The carrying value approximates fair value and is classified within Level 1 of the fair value hierarchy.
•Affiliated stock: The fair value is based on the unadjusted closing price reported on the active market on which the security is traded and is classified within Level 1 of the fair value hierarchy.
The following tables reflect the Plan’s investments within the fair value hierarchy at December 31, 2015 and 2014:
2015
Total
Quoted prices in active markets for identical assets
(Level 1)
Significant
other observable
inputs
(Level 2)
Significant unobservable inputs
(Level 3)
Registered investment companies:
 
 
 
 
Large cap equity investments
$
889,241

889,241

—

—

Mid cap equity investments
150,417

150,417

—

—

Small cap equity investments
117,604

117,604

—

—

International equity investments
192,148

192,148

—

—

Blended fund investments
1,959,317

1,959,317

—

—

Income bond investments
746,930

746,930

—

—

Total registered investment companies
4,055,657

4,055,657

—

—

Interest-bearing cash
1,026,986

1,026,986

—

—

Affiliated stock
509,697

509,697

—

—

Total investments
$
5,592,340

5,592,340

—

—

2014
Total
Quoted prices in active markets for identical assets
(Level 1)
Significant
other observable
inputs
(Level 2)
Significant unobservable inputs
(Level 3)
Registered investment companies:
 
 
 
 
Large cap equity investments
$
1,246,517

1,246,517

—

—

Mid cap equity investments
232,150

232,150

—

—

Small cap equity investments
113,890

113,890

—

—

International equity investments
232,557

232,557

—

—

Blended fund investments
1,531,130

1,531,130

—

—

Income bond investments
903,029

903,029

—

—

Total registered investment companies
4,259,273

4,259,273

—

—

Interest-bearing cash
409,548

409,548

—

—

Affiliated stock
381,070

381,070

—

—

Total investments
$
5,049,891

5,049,891

—

—






6
STATE AUTO PROPERTY & CASUALTY INSURANCE COMPANY
AMENDED AND RESTATED INCENTIVE DEFERRED COMPENSATION PLAN
Notes to the Financial Statements (continued)
December 31, 2015

4. Participant Accounts
Participant balances for all funds are maintained in shares. Share values are determined on a periodic basis. At December 31, 2015 and 2014, there were 76 and 73 participants in the Plan, respectively, with contributions in one or more of the following funds. The total number of participants in the Plan is less than the sum of the number of participants set forth in the following table because each participant may make contributions to more than one fund. The total number of shares and share values, and number of participants as of December 31, 2015 and 2014, by fund, were as follows:
2015
 
 
 
 
 
 
Investment Options:
 
Total Number of Shares
 
Net Asset Share Value
 
Number of Participants
Registered investment companies:
 
 
 
 
 
 
ABF Sm Cap Val Inst
 
5,236

 
$
22.46

 
20

Baron Growth Inst
 
1,312

 
64.31

 
15

FID Contrafund K
 
4,457

 
98.88

 
28

MFS Value Fund R5
 
4,663

 
32.79

 
10

FID Total Bond
 
69,691

 
10.26

 
20

TRP Blue Chip Growth
 
1,446

 
72.38

 
18

MFS Inst Intl Equity
 
9,037

 
20.56

 
22

Spartan 500 Index INST
 
2,660

 
71.81

 
15

VANG TOT Bond Mkt ADM
 
2,998

 
10.64

 
3

VANG TOT Intl Stk AD
 
261

 
24.24

 
2

Spartan Ext Mkt IDX ADV
 
1,315

 
50.20

 
11

VANG Target RET 2010
 
437

 
24.88

 
2

VANG Target RET 2015
 
39,960

 
14.23

 
10

VANG Target RET 2020
 
21,643

 
27.15

 
19

VANG Target RET 2025
 
29,892

 
15.62

 
17

VANG Target RET 2030
 
8,291

 
27.72

 
10

VANG Target RET 2035
 
4,172

 
16.84

 
10

VANG Target RET 2040
 
268

 
28.45

 
2

VANG Target RET 2045
 
989

 
17.78

 
4

Total registered investment companies
 
208,728

 
 
 
 
Interest-bearing cash:
 
 
 
 
 
 
FID Govt MMRK PRM
 
1,026,986

 
1.00

 
15

Total interest-bearing cash
 
1,026,986

 
 
 
 
Affiliated stock:
 
 
 
 
 
 
State Auto Financial Corporation
 
24,755

 
20.59

 
7

Total affiliated stock
 
24,755

 
 
 
 
Total investments
 
1,260,469

 
 
 
 


7
STATE AUTO PROPERTY & CASUALTY INSURANCE COMPANY
AMENDED AND RESTATED INCENTIVE DEFERRED COMPENSATION PLAN
Notes to the Financial Statements (continued)
December 31, 2015

2014
 
 
 
 
 
 
Investment Options:
 
Total Number of Shares
 
Net Asset Share Value
 
Number of Participants
Registered investment companies:
 
 
 
 
 
 
ABF Sm Cap Val Inst
 
4,543

 
$
25.07

 
16

Baron Growth Inst
 
1,702

 
73.24

 
14

FID Contrafund K
 
6,824

 
97.90

 
30

MFS Value Fund R5
 
7,148

 
34.94

 
12

PIM Total RT Inst
 
84,630

 
10.66

 
24

TRP Blue Chip Growth
 
1,069

 
67.27

 
15

MFS Inst Intl Equity
 
11,106

 
20.91

 
24

Spartan 500 Index INST
 
3,525

 
72.86

 
17

VANG TOT Bond Mkt ADM
 
81

 
10.87

 
1

VANG TOT Intl Stk AD
 
12

 
26.00

 
1

Spartan Ext Mkt IDX ADV
 
1,948

 
55.18

 
13

VANG Target RET 2010
 
648

 
26.32

 
1

VANG Target RET 2015
 
26,449

 
15.29

 
9

VANG Target RET 2020
 
14,369

 
28.46

 
17

VANG Target RET 2025
 
23,258

 
16.53

 
11

VANG Target RET 2030
 
8,216

 
29.04

 
9

VANG Target RET 2035
 
3,500

 
17.84

 
8

VANG Target RET 2040
 
258

 
29.76

 
1

VANG Target RET 2045
 
405

 
18.65

 
2

Total registered investment companies
 
199,691

 
 
 
 
Interest-bearing cash:
 
 
 
 
 
 
Fidelity US Govt Bond
 
409,548

 
1.00

 
16

Total interest-bearing cash
 
409,548

 
 
 
 
Affiliated stock:
 
 
 
 
 
 
State Auto Financial Corporation
 
17,150

 
22.22

 
6

Total affiliated stock
 
17,150

 
 
 
 
Total investments
 
626,389

 
 
 
 

8
STATE AUTO PROPERTY & CASUALTY INSURANCE COMPANY
AMENDED AND RESTATED INCENTIVE DEFERRED COMPENSATION PLAN
Notes to the Financial Statements (continued)
December 31, 2015

5. Investments
The Plan’s investments and related changes at December 31, 2015, 2014 and 2013 and for the years then ended were as follows:
2015
Number of Shares
Fair Value
Dividends
Realized Gain (Loss)
Unrealized Gain (Loss)
Contributions
Benefit Payments
Registered investment companies:
 
 
 
 
 
 
 
ABF Sm Cap Val Inst
5,236

$
117,603

$
6,590

$
3,341

$
(15,423
)
$
54,131

$
(12,748
)
Baron Growth Inst
1,312

84,393

7,653

13,345

(22,416
)
26,866

(4,842
)
FID Contrafund K
4,457

440,698

25,164

73,882

(66,091
)
102,007

(40,430
)
MFS Value Fund R5
4,663

152,902

10,530

12,746

(20,841
)
31,431

(22,131
)
FID Total Bond
69,691

715,027

29,517

(7,005
)
(37,491
)
53,162

(28,526
)
PIM Total RT Inst
—

—

400

(9,733
)
25,825

1,498

—

TRP Blue Chip Growth
1,446

104,638

3,270

318

2,715

33,001

(9,145
)
MFS Inst Intl Equity
9,037

185,811

3,129

(2,576
)
250

41,356

(11,709
)
Spartan 500 Index INST
2,660

191,004

7,433

3,562

(6,207
)
62,999

(3,960
)
VANG TOT Bond Mkt ADM
2,998

31,903

429

(313
)
(413
)
8,079

—

VANG TOT Intl Stk AD
261

6,337

94

(144
)
(297
)
6,360

—

Spartan Ext Mkt IDX ADV
1,315

66,024

4,687

(3,299
)
(6,238
)
25,945

(7,477
)
VANG Target RET 2010
437

10,866

577

(42
)
(483
)
21

(6,272
)
VANG Target RET 2015
39,960

568,628

37,213

272

(39,913
)
65,063

(2,052
)
VANG Target RET 2020
21,643

587,618

23,408

(2,417
)
(32,896
)
225,519

(56,407
)
VANG Target RET 2025
29,892

466,911

22,164

233

(28,324
)
89,150

(2,818
)
VANG Target RET 2030
8,291

229,827

8,253

645

(10,731
)
34,531

(9,099
)
VANG Target RET 2035
4,172

70,252

3,135

1

(4,211
)
9,068

(180
)
VANG Target RET 2040
268

7,615

221

(91
)
(326
)
7,207

(7,080
)
VANG Target RET 2045
989

17,592

561

—

(1,046
)
10,521

—

VANG Target RET 2050
—

8

—

—

—

8

—

Total registered investment companies
208,728

4,055,657

194,428

82,725

(264,557
)
887,923

(224,876
)
Interest-bearing cash:
 
 
 
 
 
 
 
Fidelity US Govt Bond
—

—

75

—

—

6,839

(89,994
)
FID Govt MMRK PRM
1,026,986

1,026,986

11

—

—

—

(11,312
)
Total interest-bearing cash
1,026,986

1,026,986

86

—

—

6,839

(101,306
)
Affiliated stock:
 
 
 
 
 
 
 
State Auto Financial Corporation
24,755

509,697

9,932

4,978

(47,918
)
(5,805
)
—

Total affiliated stock
24,755

509,697

9,932

4,978

(47,918
)
(5,805
)
—

Total assets held for investment
1,260,469

$
5,592,340

$
204,446

$
87,703

$
(312,475
)
$
888,957

$
(326,182
)

9
STATE AUTO PROPERTY & CASUALTY INSURANCE COMPANY
AMENDED AND RESTATED INCENTIVE DEFERRED COMPENSATION PLAN
Notes to the Financial Statements (continued)
December 31, 2015

2014
Number of Shares
Fair Value
Dividends
Realized Gain (Loss)
Unrealized Gain (Loss)
Contributions
Benefit Payments
Registered investment companies:
 
 
 
 
 
 
 
ABF Sm Cap Val Inst
4,543

$
113,890

$
13,441

$
1,824

$
(10,347
)
$
30,294

$
(12,635
)
Baron Growth Inst
1,702

124,664

5,592

9,419

(10,214
)
19,571

(6,474
)
FID Contrafund K
6,824

668,061

47,330

24,464

(15,221
)
71,730

(37,189
)
FID Diversified Intl K
—

—

—

27,889

(27,042
)
17,297

(2,758
)
FID Freedom K 2010
—

—

817

731

(1,082
)
—

(267
)
FID Freedom K 2015
—

—

20,257

24,046

(30,142
)
42,244

—

FID Freedom K 2020
—

—

12,888

12,251

(16,402
)
53,103

(2,118
)
FID Freedom K 2025
—

—

6,583

7,828

(9,688
)
7,973

(10
)
FID Freedom K 2030
—

—

17,888

17,718

(22,746
)
13,955

(760
)
FID Freedom K 2035
—

—

2,104

3,094

(3,601
)
8,064

—

FID Freedom K 2040
—

—

186

142

(183
)
2,760

(456
)
FID Freedom K 2045
—

—

25

34

(41
)
—

—

FID Freedom K 2050
—

—

442

661

(757
)
—

—

FID Freedom K Income
—

—

5,828

4,465

(4,982
)
5,568

—

FID Intermed Bond
—

—

2,567

2,218

(1,261
)
4,189

(6,720
)
FID Puritan K
—

—

1,689

33,900

(20,551
)
11,011

(7,678
)
Harbor Intl Inst
—

—

—

21,163

(20,918
)
5,559

(12,880
)
JPM Mid Cap Value IS
—

—

—

45,894

(32,772
)
45,001

(16,454
)
MFS Value Fund R5
7,148

249,764

11,287

2,341

9,035

17,774

(19,254
)
PIM Total RT Inst
84,630

902,152

39,969

(368
)
(6,649
)
62,699

(24,425
)
Spartan 500 Index ADV
—

—

1,651

51,067

(36,094
)
26,330

(2,368
)
TRP Blue Chip Growth
1,069

71,882

3,252

5,916

(2,860
)
25,372

(724
)
VANG Mid Cap IDX SIG
—

—

15

21,819

(16,879
)
11,783

(3,925
)
MFS Inst Intl Equity
11,106

232,232

6,444

(914
)
(17,733
)
5,843

(4,076
)
Spartan 500 Index INST
3,525

256,809

3,049

57

7,425

5,827

(1,261
)
VANG TOT Bond Mkt ADM
81

877

3

—

—

876

—

VANG Mid Cap IDX ADM
—

—

—

2,047

—

1,077

(595
)
VANG TOT Intl Stk AD
12

325

2

—

(5
)
329

—

Spartan Ext Mkt IDX ADV
1,948

107,486

2,715

(49
)
(335
)
4,310

(2,350
)
VANG Target RET 2010
648

17,065

504

5

(317
)
—

(2,048
)
VANG Target RET 2015
26,449

404,398

11,613

153

(7,278
)
(603
)
(216
)
VANG Target RET 2020
14,369

408,928

8,196

(2
)
(3,299
)
8,989

(3,517
)
VANG Target RET 2025
23,258

384,459

8,018

—

(3,937
)
3,462

—

VANG Target RET 2030
8,216

238,599

4,728

(2
)
(2,597
)
7,339

(406
)
VANG Target RET 2035
3,500

62,439

1,279

—

(766
)
7,218

(59
)
VANG Target RET 2040
258

7,685

150

—

(92
)
2,194

—

VANG Target RET 2045
405

7,558

153

—

(109
)
1,000

—

Total registered investment companies
199,691

4,259,273

240,665

319,811

(310,440
)
530,138

(171,623
)
Interest-bearing cash:
 
 
 
 
 
 
 
Fidelity US Govt Bond
409,548

409,548

46

—

—

13,559

(100,416
)
Total interest-bearing cash
409,548

409,548

46

—

—

13,559

(100,416
)
Affiliated stock:
 
 
 
 
 
 
 
State Auto Financial Corporation
17,150

381,070

6,939

2,491

12,013

(5,570
)
(3,939
)
Total affiliated stock
17,150

381,070

6,939

2,491

12,013

(5,570
)
(3,939
)
Total assets held for investment
626,389

$
5,049,891

$
247,650

$
322,302

$
(298,427
)
$
538,127

$
(275,978
)


10
STATE AUTO PROPERTY & CASUALTY INSURANCE COMPANY
AMENDED AND RESTATED INCENTIVE DEFERRED COMPENSATION PLAN
Notes to the Financial Statements (continued)
December 31, 2015

2013
Number of Shares
Fair Value
Dividends
Realized Gain (Loss)
Unrealized Gain (Loss)
Contributions
Benefit Payments
Registered investment companies:
 
 
 
 
 
 
 
ABF Sm Cap Val Inst
2,924

$
79,494

$
6,868

$
5,898

$
10,906

$
23,897

$
(988
)
Baron Growth Inst
1,929

141,075

3,656

9,952

33,961

22,787

(11,778
)
Calamos Growth Inst
—

—

—

918

2,898

2,471

(6,231
)
FID Contrafund K
7,078

679,982

49,994

23,879

105,548

70,257

(71,117
)
FID Diversified Intl K
3,734

137,553

2,196

3,605

24,369

12,524

(2,787
)
FID Freedom K 2010
778

10,916

212

—

888

—

—

FID Freedom K 2015
21,668

308,556

5,643

2,141

24,774

40,505

(9,139
)
FID Freedom K 2020
9,581

142,566

2,551

233

13,304

7,045

(11,683
)
FID Freedom K 2025
5,575

86,468

1,552

(124
)
8,179

32,946

(13
)
FID Freedom K 2030
9,907

157,121

2,980

642

19,339

19,771

(10,079
)
FID Freedom K 2035
1,675

27,441

361

408

2,858

9,066

(9,094
)
FID Freedom K 2040
90

1,481

21

—

163

476

—

FID Freedom K 2045
20

343

—

113

55

2,379

(6,413
)
FID Freedom K 2050
365

6,158

118

—

757

—

—

FID Freedom K Income
13,597

162,625

3,110

(8
)
3,384

504

—

FID Intermed Bond
13,767

149,100

3,393

1,263

(5,624
)
8,229

(27,988
)
FID Puritan K
8,625

183,017

16,508

2,183

11,531

25,002

(10,143
)
Harbor Intl Inst
1,539

109,280

2,240

1,744

11,202

18,230

(4,208
)
JPM Mid Cap Value IS
4,543

159,552

7,533

6,906

20,810

41,325

(21,563
)
MFS Value Fund R4
—

—

743

45,597

(16,698
)
5,288

(4,662
)
MFS Value Fund R5
6,385

211,996

6,494

395

18,653

2,566

(7,757
)
PIM Total RT Inst
59,795

639,210

20,396

1,147

(33,572
)
74,230

(62,692
)
Spartan US EQ Index ADV
2,405

157,489

2,864

3,996

31,764

24,792

(11,542
)
TRP Blue Chip Growth
928

59,942

—

405

10,191

2,180

(4,888
)
VANG Mid Cap IDX SIG
1,462

62,858

727

3,554

14,170

5,763

(20,943
)
Total registered investment companies
178,370

3,674,223

140,160

114,847

313,810

452,233

(315,708
)
Interest-bearing cash:
 
 
 
 
 
 
 
Fidelity US Govt Bond
506,359

506,359

43

—

—

22,871

(82,105
)
Total interest-bearing cash
506,359

506,359

43

—

—

22,871

(82,105
)
Affiliated stock:
 
 
 
 
 
 
 
State Auto Financial Corporation
15,802

335,635

6,454

3,111

91,524

(5,187
)
—

Total affiliated stock
15,802

335,635

6,454

3,111

91,524

(5,187
)
—

Total assets held for investment
700,531

$
4,516,217

$
146,657

$
117,958

$
405,334

$
469,917

$
(397,813
)
The Plan’s unrealized appreciation (depreciation) at December 31, 2015, 2014 and 2013 were as follows:
 
 
 
Unrealized Gain (Loss)
 
 
 
Beginning Balance
 
During Period
 
Ending Balance
2013
$
158,173

 
405,334

 
563,507

2014
$
563,507

 
(298,427
)
 
265,080

2015
$
265,080

 
(312,475
)
 
(47,395
)
There were no plan assets payable at December 31, 2015 and 2014.

11
STATE AUTO PROPERTY & CASUALTY INSURANCE COMPANY
AMENDED AND RESTATED INCENTIVE DEFERRED COMPENSATION PLAN
Notes to the Financial Statements (continued)
December 31, 2015

The Plan’s net realized gains and losses were as follows for the years ended December 31, 2015, 2014 and 2013:
2015
 
 
 
 
 
Investment Options:
Aggregate Proceeds
  
Cost
  
Net Realized Gains (Losses)
ABF Sm Cap Val Inst
$
63,751

 
$
60,410

  
$
3,341

Baron Growth Inst
72,295

 
58,950

  
13,345

FID Contrafund K
388,534

 
314,652

  
73,882

MFS Value Fund R5
137,469

 
124,723

 
12,746

FID Total Bond
263,106

 
270,111

  
(7,005
)
PIM Total RT Inst
920,143

 
929,876

  
(9,733
)
TRP Blue Chip Growth
30,287

 
29,969

  
318

MFS Inst Intl Equity
118,581

 
121,157

  
(2,576
)
Spartan 500 Index INST
146,272

 
142,710

  
3,562

VANG TOT Bond Mkt ADM
14,208

 
14,521

  
(313
)
VANG TOT Intl Stk AD
6,488

 
6,632

 
(144
)
Spartan Ext Mkt IDX ADV
82,558

 
85,857

 
(3,299
)
VANG Target RET 2010
6,272

 
6,314

 
(42
)
VANG Target RET 2015
192,418

 
192,146

  
272

VANG Target RET 2020
197,956

 
200,373

  
(2,417
)
VANG Target RET 2025
14,893

 
14,660

  
233

VANG Target RET 2030
41,470

 
40,825

  
645

VANG Target RET 2035
179

 
178

  
1

VANG Target RET 2040
7,080

 
7,171

  
(91
)
VANG Target RET 2045
—

 
—

 
—

VANG Target RET 2050
—

 
—

 
—

Fidelity US Govt Bond
1,128,283

 
1,128,283

 
—

FID Govt MMRK PRM
11,312

 
11,312

 
—

State Auto Financial Corporation
22,422

 
17,444

 
4,978

Total
$
3,865,977

 
$
3,778,274

 
$
87,703



12
STATE AUTO PROPERTY & CASUALTY INSURANCE COMPANY
AMENDED AND RESTATED INCENTIVE DEFERRED COMPENSATION PLAN
Notes to the Financial Statements (continued)
December 31, 2015

2014
 
 
 
 
 
Investment Options:
Aggregate Proceeds
  
Cost
  
Net Realized Gains (Losses)
ABF Sm Cap Val Inst
$
13,811

 
$
11,987

  
$
1,824

Baron Growth Inst
40,780

 
31,361

  
9,419

FID Contrafund K
145,411

 
120,947

  
24,464

FID Diversified Intl K
155,698

 
127,809

 
27,889

FID Freedom K 2010
11,382

 
10,651

  
731

FID Freedom K 2015
364,962

 
340,916

  
24,046

FID Freedom K 2020
204,406

 
192,155

  
12,251

FID Freedom K 2025
99,164

 
91,336

  
7,828

FID Freedom K 2030
268,860

 
251,142

  
17,718

FID Freedom K 2035
37,102

 
34,008

  
3,094

FID Freedom K 2040
4,385

 
4,243

 
142

FID Freedom K 2045
362

 
328

 
34

FID Freedom K 2050
6,504

 
5,843

 
661

FID Freedom K Income
173,504

 
169,039

  
4,465

FID Intermed Bond
158,814

 
156,596

  
2,218

FID Puritan K
231,574

 
197,674

  
33,900

Fidelity US Govt Bond
110,416

 
110,416

  
—

Harbor Intl Inst
127,775

 
106,612

  
21,163

JPM Mid Cap Value IS
221,675

 
175,781

  
45,894

MFS Value Fund R5
22,855

 
20,514

 
2,341

PIM Total RT Inst
45,170

 
45,538

 
(368
)
Spartan 500 Index ADV
249,356

 
198,289

 
51,067

State Auto Financial Corporation
16,419

 
13,928

 
2,491

TRP Blue Chip Growth
31,448

 
25,532

 
5,916

VANG Mid Cap IDX SIG
104,591

 
82,772

 
21,819

MFS Inst Intl Equity
15,949

 
16,863

 
(914
)
Spartan 500 Index INST
2,698

 
2,641

 
57

VANG Mid Cap IDX ADM
103,791

 
101,744

 
2,047

Spartan Ext Mkt IDX ADV
2,349

 
2,398

 
(49
)
VANG Target RET 2010
2,048

 
2,043

 
5

VANG Target RET 2015
12,913

 
12,760

 
153

VANG Target RET 2020
3,515

 
3,517

 
(2
)
VANG Target RET 2030
404

 
406

 
(2
)
VANG Target RET 2035
58

 
58

 
—

Total
$
2,990,149

 
$
2,667,847

 
$
322,302



13
STATE AUTO PROPERTY & CASUALTY INSURANCE COMPANY
AMENDED AND RESTATED INCENTIVE DEFERRED COMPENSATION PLAN
Notes to the Financial Statements (continued)
December 31, 2015

2013
 
 
 
 
 
Investment Options:
Aggregate Proceeds
  
Cost
  
Net Realized Gains (Losses)
ABF Sm Cap Val Inst
$
19,084

  
$
13,186

  
$
5,898

Baron Growth Inst
46,916

  
36,964

  
9,952

Calamos Growth Inst
59,274

  
58,356

  
918

FID Contrafund K
127,815

  
103,936

  
23,879

FID Diversified Intl K
29,555

  
25,950

  
3,605

FID Freedom K 2015
37,857

  
35,716

  
2,141

FID Freedom K 2020
11,636

  
11,403

  
233

FID Freedom K 2025
(143
)
  
(19
)
  
(124
)
FID Freedom K 2030
10,099

  
9,457

  
642

FID Freedom K 2035
9,093

 
8,685

 
408

FID Freedom K 2045
8,508

 
8,395

 
113

FID Freedom K Income
(3
)
  
5

 
(8
)
FID Intermed Bond
33,620

  
32,357

  
1,263

FID Puritan K
16,873

  
14,690

  
2,183

Fidelity US Govt Bond
92,267

  
92,267

  
—

Harbor Intl Inst
14,402

  
12,658

  
1,744

JPM Mid Cap Value IS
39,511

  
32,605

  
6,906

MFS Value Fund R4
189,166

  
143,569

  
45,597

MFS Value Fund R5
13,744

 
13,349

  
395

PIM Total RT Inst
232,370

 
231,223

  
1,147

Spartan US EQ Index ADV
24,382

 
20,386

 
3,996

State Auto Financial Corporation
12,766

 
9,655

 
3,111

TRP Blue Chip Growth
4,883

 
4,478

 
405

VANG Mid Cap IDX SIG
20,965

 
17,411

 
3,554

Total
$
1,054,640

 
$
936,682

 
$
117,958

6. Trust
The Company maintains a trust to provide a source of funds to assist the Company in meeting its obligations under the Plan. The rights of participants and their beneficiaries under the Plan are merely unsecured contractual rights against the Company and its participating subsidiaries. Participants and beneficiaries have no preferred claim on, or any beneficial ownership interest in, any assets of the trust. All assets of the trust are subject to the claims of the general creditors of the Company and its participating subsidiaries under Federal and state law should the Company and its participating subsidiaries become unable to pay their debts as they become due or become subject to Federal bankruptcy proceedings.
7. Related Party
The Plan invests in shares of registered investment companies managed by Fidelity Management Trust Company, custodian of the Plan. Participants may also invest in Affiliated stock.
8. Tax Status
The Plan is not, and is not intended to be, qualified under Section 401 of the Internal Revenue Code of 1986, as amended (the “Code”). Consequently, an application for a favorable determination has not been filed with the Internal Revenue Service. The Plan does not have a tax filing requirement with the Internal Revenue Service, and therefore, no liability (or asset) or disclosure related to income taxes is included in the Plan’s financial statements.
Deferred amounts are subject to FICA and Medicare taxes and most local income taxes at the time of the deferral. Deferred amounts (and the earnings thereon) are not subject to Federal and most state income taxes until distributed from the Plan. Such distributions and the related taxes are the responsibility of the participants.

14
STATE AUTO PROPERTY & CASUALTY INSURANCE COMPANY
AMENDED AND RESTATED INCENTIVE DEFERRED COMPENSATION PLAN

9. Right to Terminate
The Company may terminate the Plan at any time and for any reason. Following termination of the Plan, no additional deferrals may be made, but all existing participant accounts will continue to be administered in accordance with the Plan, unless the Company elects to accelerate distribution of all Plan accounts in accordance with Section 409A of the Code.
10. Investments
The following table sets forth the investments, at fair value, which represent 5% or more of assets available for benefits at December 31, 2015 and 2014:
 
December 31
 
 
2015
 
 
2014
 
  FID Contrafund K
$
440,698

 
 
$
668,061

 
  Fidelity US Govt Bond
—

*
 
409,548

 
  PIM Total RT Inst
—

*
 
902,152

 
  State Auto Financial Corporation
509,697

 
 
381,070

 
  Spartan 500 Index INST
—

*
 
256,809

 
FID Total Bond
715,027

 
 
—

*
VANG Target RET 2015
568,628

 
 
404,398

 
VANG Target RET 2020
587,618

 
 
408,928

 
VANG Target RET 2025
466,911

 
 
384,459

 
FID Govt MMRK PRM
1,026,986

 
 
—

*
 
 
 
 
 
 
*Value is less than five percent of net assets available for benefits.


15