[GRAPHIC OMITTED][GRAPHIC OMITTED]
FOR RELEASE AT 4:35 p.m., Eastern Time
INVESTOR RELATIONS CONTACT: Neal Fuller, 206-545-5537
MEDIA RELATIONS CONTACT: Paul Hollie, 206-545-3048
SAFECO ANNOUNCES NEW LEADERSHIP STRUCTURE TO DRIVE FUTURE PROFIT AND GROWTH
"Office of the President" Created, Will Report to CEO Mike McGavick
SEATTLE--(Sept. 27, 2004)--Safeco (NASDAQ: SAFC) today announced a new
leadership structure for the company, reflecting its evolution from a turnaround
concern to a profit-and-growth enterprise.
The cornerstone of the structure is the newly created "Office of the President,"
which will be led by Safeco Chairman and Chief Executive Officer Mike McGavick
and include Michael LaRocco as co-president responsible for Product,
Underwriting and Claims; Christine Mead as co-president responsible for Service,
Technology and Finance; and a new, yet-to-be-named co-president responsible for
Marketing, Sales and Distribution.
"Now that our turnaround is behind us, our greatest challenge is to accelerate
organic, profitable growth within our company. This new leadership structure
will direct more energy to addressing the strategic issues and opportunities
that will take us to the next level of success," said McGavick. "The three
leaders joining the Office of the President - two promoted from within and one
recruited from outside - will work with me in this important effort."
Today's announcement follows Safeco's recent sale of its Life & Investments
business and its redefinition as a Property & Casualty (P&C) insurance company
serving drivers, homeowners and small- and medium-sized businesses.
"The new design not only streamlines our leadership structure, it aligns with
how we operate: auto, home and business insurance products delivered over a
unified platform through a common network of independent distributors," McGavick
said.
Reporting to McGavick will be:
Michael LaRocco, Co-President - Product, Underwriting and Claims
Formerly President of Safeco Personal Insurance, LaRocco will assume
responsibility for Product, Underwriting and Claims operations for all Safeco
businesses. His new organization will bring together the company's product lines
(auto, home, commercial, surety and specialty lines), underwriting and the team
that fulfills the products' promise when a claim is filed.
Christine Mead, CFO and Co-President - Service, Technology and Finance
In addition to her current responsibilities as Chief Financial Officer, Mead
will oversee Service, Information Technology, Human Resources and Operations.
Central to Mead's organization is the platform that delivers sales and service
support to Safeco distributors and customers - from the underlying technology
and customer service interactions to the people and infrastructure that support
it all.
Co-President - Marketing, Sales and Distribution
A search is underway for this leader, who will be responsible for acquiring new
customers, building and protecting Safeco's brand, and supporting the more than
7,500 independent distributors who sell Safeco insurance products. This
organization will include Sales, Distribution, Marketing, Research, Brand and
Reputation Management.
The new structure will take effect Nov. 3, 2004.
"We've spent much of the last three years in a sprint for survival," said
McGavick. "With a solid financial foundation and a clear P&C business focus, now
we're gearing up for a marathon of long-term profit and growth. This new
leadership structure is designed to reflect our focus and support our business
model to full advantage," said McGavick.
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. More information about Safeco can be found at
www.safeco.com.
####
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.