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
                                    03/31/05
                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 1.01 Entry into a Material Definitive Agreement

Safeco  Corporation  has  executed a $300  million  five-year  revolving  credit
facility  dated March 31,  2005.  The  facility,  which will be used for working
capital and general  corporate  purposes,  expires on March 31,  2010.  JPMorgan
Chase Bank, N.A. is acting as administrative agent.

This new credit facility replaces an existing $300 million three-year  revolving
credit  facility  that expires in  September  2005.  The new credit  facility is
structured  substantially  the  same as the one it  replaces  and  requires  the
company to:

o        Pay a fee to have funds available;
o        Maintain a specified minimum level of shareholders' equity; and
o        Keep the company's debt-to-capitalization ratio below a specified
         maximum.

The credit  facility  does not  require  the  company to  maintain  deposits  as
compensating  balances.  Safeco  did not  borrow  any funds  under the  existing
facility.

The lenders are:

JPMorgan Chase Bank, N.A.
Bank of America, N.A.
U.S. Bank National Association
KeyBank National Association
The Bank of New York
Wells Fargo Bank, N.A.
Citibank, N.A.
The Bank of Tokyo - Mitsubishi, Ltd., Seattle Branch
The Northern Trust Company
William Street Commitment Corporation
Mellon Bank, N.A.
PNC Bank, National Association


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

Dated: March 31, 2005
                                          /s/ Stephanie Daley-Watson
                                          --------------------------------------
                                          Stephanie Daley-Watson
                                          Vice President and Secretary