State Auto’s loss in quarter smaller

State Auto Financial reported a smaller firstquarter loss than a year earlier on Tuesday and says it is starting to benefit from its transition to a digital platform.

The company said it lost $2.1 million, or 5 cents per share, in the three months through March 31, compared with a loss of $3.3 million, or 8 cents per share, in the same period of 2017.

The results came in well below analyst forecasts of a profit of 33 cents per share.

Shares of State Auto fell 38 cents, or 1 percent, to $31.25 in trading Tuesday.

State Auto has switched to a digital platform that, among other things, requires new auto and homeowner customers and the independent agents who sell State Auto policies to conduct business online. That means no more checks, and no more paper documents.

The result has been that the company has seen increases in auto and home policies for the first time in years. “State Auto is now a very different company: a digital company that’s committed to the independent agency channel,” said Mike LaRocco, the company’s chairman, president and CEO, in a statement.

“Buying a policy from us is similar to any online purchase. In our industry, that’s quite unique, and customers are responding by trusting us with their business. Our progress to date is motivating us to deliver even greater progress in the months ahead.”

The company also has been working to control costs and make sure that policies are priced appropriately. It also has been selling parts of the business to focus on its personal and commercial lines of insurance.