-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, GjaUHnazBDKcvxoNeugqDFgeCsBolNXestsXxrucSg03PBRoYlRUED4gsYKS1h2l myRQZFECRDd3awcWfdpe4g== 0000867579-04-000304.txt : 20041013 0000867579-04-000304.hdr.sgml : 20041013 20041013143603 ACCESSION NUMBER: 0000867579-04-000304 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20041012 ITEM INFORMATION: Other Events ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20041013 DATE AS OF CHANGE: 20041013 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SAFECO CORP CENTRAL INDEX KEY: 0000086104 STANDARD INDUSTRIAL CLASSIFICATION: FIRE, MARINE & CASUALTY INSURANCE [6331] IRS NUMBER: 910742146 STATE OF INCORPORATION: WA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-06563 FILM NUMBER: 041076776 BUSINESS ADDRESS: STREET 1: 4333 BROOKLYN AVE NE STREET 2: SAFECO PLAZA CITY: SEATTLE STATE: WA ZIP: 98185 BUSINESS PHONE: 2065455000 MAIL ADDRESS: STREET 1: 4333 BROOKLYN AVE NE CITY: SEATTLE STATE: WA ZIP: 98185 FORMER COMPANY: FORMER CONFORMED NAME: GENERAL AMERICA CORP DATE OF NAME CHANGE: 19680529 8-K 1 en0783.txt 8-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934 10/12/04 Date of Report (Date of earliest event reported) SAFECO CORPORATION (Exact name of registrant as specified in Charter) WASHINGTON 1-6563 91-0742146 (State or other (Commission (IRS Employer jurisdiction of File Number) Identification No.) incorporation) Safeco Plaza, Seattle, Washington 98185 (Address of principal executive officers) (Zip Code) (206) 545-5000 (Registrant's telephone number, including area code) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation to the registrant under any of the following provisions: |_| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |_| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |_| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Item 8.01. Other Events On October 12, 2004, Safeco Corporation issued a press release, filed as Exhibit 99.1, announcing third-quarter catastrophe loss estimates. Item 9.01. Financial Statements and Exhibits Exhibit 99.1 - Press release "Safeco Estimates Third-Quarter Catastrophe Losses" dated October 12, 2004. Signature Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. SAFECO CORPORATION --------------------------------------- Registrant Date: October 13, 2004 /s/ Maurice S. Hebert ---------------------------------------- Maurice S. Hebert Vice President and Corporate Controller EX-99.1 2 en0783pr.txt EX-99.1 [GRAPHIC OMITTED][GRAPHIC OMITTED] INVESTOR RELATIONS CONTACT: Neal Fuller, 206-545-5537 MEDIA RELATIONS CONTACT: Paul Hollie, 206-545-3048 Safeco Estimates Third-Quarter Catastrophe Losses SEATTLE - (Oct. 12, 2004) - Safeco (NASDAQ: SAFC) announced today that its aggregate pretax catastrophe losses for the third quarter are estimated at $195 million. The estimated effect on third-quarter net income is $127 million after tax, or $0.96 per diluted share. Safeco expects its total catastrophe losses to increase the company's third-quarter combined ratio by 13.9 percentage points and that, as a result, its third-quarter combined ratio will be 101.6 percent. The estimated pretax catastrophe losses include: o $86 million in personal lines, primarily homeowners claims o $109 million in commercial claims Hurricane loss estimates Of the $195 million in estimated pretax catastrophe losses, $183 million represents estimated losses from claims from the four hurricanes - Charley, Frances, Ivan and Jeanne - that hit Florida and surrounding states in August and September. The total reflects claims received through Oct. 11, 2004 and future estimates of claims from policyholders with damage from the storms. This estimate also includes an adjustment to Safeco's estimated pretax losses for Hurricanes Charley and Frances. Previously, the company reported it expected $73 million in pretax losses from the two storms; it now estimates those storms will total $117 million. The $44 million increase is primarily due to more large and severe losses than previously estimated. With this update, Safeco also has factored in greater increases in building materials and repair costs due to higher-than-usual demand caused by the multiple storms. In addition, many policyholders hit by Hurricanes Charley and Frances sustained additional damage from subsequent storms. "This hurricane season has taken a tremendous toll in Florida. And though communities are rebuilding, this is no small task. Our claims professionals are still working seven days a week throughout the Southeast to help customers sort through their damage - losses from one, two or even three storms," said Mike McGavick, Safeco chairman and chief executive officer. "While we were taken aback by the number of large losses from Charley, we now have inspected every severe and potential large loss from the hurricanes and 67 percent of all claims," McGavick said. "This is excellent progress and demonstrates our commitment to provide claims service that's second to none." "Four hurricanes hitting one state in a span of just six weeks is an extraordinary event. One factor that is clearly an estimate at this time is the loss cost trends we will see with these storms," he said. "We're monitoring state and regional market trends very carefully. If we see repair and restoration cost trends that are different from our current estimates, it may require further revision to our loss estimates for these storms. This is a challenge for all companies in the industry that are working so hard to put Florida back together. "Thanks to an extremely well-coordinated and professional claims team, our policyholders' recovery process is well under way." Safeco does not anticipate reimbursements from the Florida Hurricane Catastrophe Fund or Safeco's property catastrophe reinsurance for damages from these hurricanes. Safeco has received no information about state-mandated assessments in Florida and, therefore, the company's estimate does not reflect any provision for assessments. Safeco has 0.6 percent share of the homeowners market and 2 percent share of the commercial market in Florida. Analysts have estimated the industry's total insured losses for the four storms between $20 and $28 billion. The company will announce its third-quarter financial results, which will include the sale of Life & Investments and the completed debt tender offers, on Oct. 19, 2004. Safeco, in business since 1923, is a Fortune 500 property and casualty insurance company based in Seattle. The company sells insurance to drivers, homeowners, and small- and medium-sized businesses through a national network of independent agents and brokers. ### - -------------------------------------------------------------------------------- Forward-looking information contained in this news release is subject to risk and uncertainty Forward-looking information contained in this release is subject to risk and uncertainty. Information contained in this release that relates to anticipated financial performance, business prospects and plans, regulatory developments and similar matters are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Statements in this release that are not historical information are forward-looking. Our business is subject to certain risks and uncertainties that may cause actual results to differ materially from those suggested by the forward-looking statements in this release. The risks and uncertainties include, but are not limited to: >> Risks related to the pricing and underwriting of our products, and the subsequent establishment of reserves, such as: o Successful implementation of a new-business entry model for personal and commercial lines o Our ability to appropriately price and reserve for changes in the mix of our book of business o Our ability to establish pricing for any changes in driving patterns o Inflationary pressures on medical care costs, auto parts and repair, construction costs and other economic factors that increase the severity of claims o Our availability and pricing of our reinsurance, including coverage for loss from terrorism and our ability to collect from our reinsurers o Our ability to price for or exclude the risk of loss from terrorism on our policies >> Risks related to our Property & Casualty insurance strategy, such as: o Our ability to achieve premium targets and profitability, including realization of growth and business retention estimates o Our ability to achieve overall expense goals o Our ability to run off our London business and other businesses that we have exited, or intend to exit in the future, without incurring material unexpected charges >> Regulatory, judicial and legislative risks, such as: o Our ability to freely enter and exit lines of business o Our ability to successfully obtain regulatory approval of rates and underwriting guidelines, including price-tiered products and the use of insurance scores that include credit information as a component o Interpretation of insurance policy provisions by courts or tax authorities, court decisions regarding coverage and theories of liability, trends in litigation and changes in claims settlement practices o The outcome of any litigation against us o Legislative and regulatory developments affecting the actions of insurers, including requirements regarding rates, taxes and availability of coverage >> The competitive pricing environment, initiatives by competitors and other changes in the competition >> Unusual loss activity, such as: o Weather conditions, including the severity and frequency of storms, hurricanes, hail, snowfall and winter conditions o The occurrence of significant natural disasters, including earthquakes o The occurrence of significant man-made disasters, such as terrorist attacks or war o The occurrence of bankruptcies that result in losses on insurance products or investments >> Financial and economic conditions, such as: o Performance of financial markets o Availability of bank credit facilities o Fluctuations in interest rates o General economic conditions >> Operational risks, such as: o Damage to our infrastructure resulting in a disruption of our operations o Internal or external fraud perpetrated against us We assume no obligation to update any forward-looking statements contained in this news release. -------------------------------------------------------------------------- -----END PRIVACY-ENHANCED MESSAGE-----