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 OCTOBER 14, 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 officers) (Zip Code) (206) 545-5000 (Registrant's telephone number, including area code) 2 SAFECO TO TAKE THIRD QUARTER CHARGE SEATTLE--(October 14, 1998)-SAFECO Corporation (NASD: SAFC) announced today that its life operation will record a pretax charge to earnings in the third quarter of $46.8 million after the completion of a review of the capital structure, deferred acquisition costs and product lines. The write-off of deferred acquisition costs is specifically tied to two blocks of annuity business, its equity-indexed product and a fixed annuity product, and to its universal life business, all of which have been adversely affected by current market conditions. SAFECO Life also reviewed its capital needs and as a result is paying a dividend of $78 million to SAFECO Corporation. In addition, SAFECO Life is exiting the Multiple Employer Trust (MET) business and focusing on its growing excess loss medical product line and related work site sold products. "These changes are a result of a seven-month effort at our company to position ourselves properly for growth in both revenue and return on equity," said Randall H. Talbot, president of SAFECO Life Insurance Company. "We look forward to an exciting time ahead as our new initiatives are implemented." SAFECO will release its third quarter earnings on October 26, 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: October 15, 1998 By: /s/ H. Paul Lowber ------------------------------ H. Paul Lowber Vice President, Controller and Chief Accounting Officer