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
04/04/01
Date of Report (Date of earliest event reported)
SAFECO CORPORATION
(Exact name of registrant as specified in Charter)
WASHINGTON 1-6563 91-00742146
(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)
Item 5. Other Events
SAFECO EXPECTS SEATTLE EARTHQUAKE LOSSES OF $15 MILLION
SEATTLE - (April 4, 2001) - Claims from the Feb. 28 Puget Sound-area earthquake
are expected to cost SAFECO (NASDAQ: SAFC) approximately $15 million. This is
expected to affect first-quarter income by $0.08 per diluted share on an
after-tax basis.
"Our claims are expected to be relatively low for a 6.8-magnitude earthquake,"
said Mike McGavick, SAFECO president and chief executive officer. "A number of
things worked in our favor, including the fact that SAFECO has done a good job
managing its risk; the area was well prepared for the earthquake; and the
earthquake occurred deep beneath the earth's surface, limiting the amount of
damage."
SAFECO will announce its first-quarter financial results on Monday, April 23.
Founded in 1923, Seattle-based SAFECO and its more than 17,000 independent
agents and financial advisors provide insurance, investment and related
financial products to individual and business customers throughout the United
States. More information about SAFECO is available online at www.safeco.com
FORWARD-LOOKING INFORMATION IS SUBJECT TO RISK AND UNCERTAINTY
Statements made in this report that relate to anticipated financial performance,
business prospects and plans, regulatory developments and similar matters may be
considered "forward-looking statements" as defined in the Private Securities
Litigation Reform Act of 1995. Statements in this report that are not historical
information are forward-looking. Such statements are subject to certain risks
and uncertainties that may cause the operations, performance, development and
results of SAFECO's business to differ materially from those suggested by the
forward-looking statements. The risks and uncertainties include:
o SAFECO's ability to obtain rate increases and non-renew underpriced
insurance accounts;
o Realization of growth and business retention estimates;
o Achievement of SAFECO's premium targets and profitability;
o Changes in competition and pricing environments;
o Achievement of SAFECO's expense reduction goals;
o The occurrence of significant natural disasters, including earthquakes;
o Weather conditions, including the severity and frequency of storms,
hurricanes, snowfalls, hail and winter conditions;
o Changes in the nature of the property and casualty book of business;
o Driving patterns;
o Fluctuations in interest rates;
o Availability of bank credit facilities;
o Performance of financial markets;
o Court decisions and trends in litigation;
o Rating agency actions;
o Legislative and regulatory developments;
o The adequacy of loss reserves;
o The availability and pricing of reinsurance;
o The development of major Year 2000 related claims or liabilities; and
o General economic and market conditions.
In particular, because insurance rates in some jurisdictions are subject to
regulatory review and approval, SAFECO's achievement of rate increases may occur
in amounts and on a time schedule different than planned, which may affect the
Corporation's efforts to restore earnings in the property and casualty lines.
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 hereunto duly authorized.
SAFECO CORPORATION
Dated: April 4, 2001 By: /s/ H. Paul Lowber
------------------------------
H. Paul Lowber
Vice President, Controller and
Chief Accounting Officer