1 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 JULY 10, 1998 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 offices) (Zip Code) (206) 545-5000 (Registrant's telephone number, including area code) 2 ITEM 5. OTHER EVENTS STORM LOSSES TO AFFECT EARNINGS SEATTLE--(July 10, 1998)--SAFECO Corporation (NASDAQ:SAFC) announced today that as a result of claims from unusual weather patterns, it expects second quarter operating earnings to be between $0.35 and $0.40 per share. The company anticipates an underwriting loss of approximately $60 million for the second quarter as a result of $80 million in claims from catastrophe losses. These claims were caused by numerous storms throughout the country, particularly in the month of June, coupled with weather events earlier in the quarter. SAFECO had previously announced on May 5 that it expected approximately $25 million in claims from adverse weather that hit the southern United States in April. "June claims, which were significant, were widely scattered and not the result of any one or two events," said Chairman and CEO Roger Eigsti. Catastrophe losses are estimated to be 7.5 percent of premiums for the quarter, compared with 2.5 percent during the first quarter, and 2 percent during the second quarter of 1997. SAFECO will release its second quarter earnings on July 27, 1998. 3 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: July 10, 1998 By: /s/ H. Paul Lowber ------------------------------ H. Paul Lowber Vice President, Controller and Chief Accounting Officer