SAFECO CORPORATION
                             EARNINGS ESTIMATE


    SEATTLE - (October 13, 1997) - SAFECO Corporation (NASDAQ: SAFC) today 
announced, based on a preliminary review of results, that it expects its 
third quarter earnings from operations to be 20 to 25 cents lower than the 
First Call consensus of $0.84 per share.  The variance relates primarily to 
several unusually large losses in commercial lines, reduced credit to 
operations from reserve adjustments on claims settled during the quarter, and 
net interest charges for funds accumulated during the quarter which were used 
to close the October 1, 1997, acquisition of American States Financial 
Corporation.  Based on the same preliminary review, SAFECO noted that claims 
severity and frequency in its core voluntary personal automobile line 
continues to be favorable and its overall loss reserve position continues to 
be sound.
     SAFECO will issue its third quarter earnings on its regular schedule on 
October 27, 1997.
     SAFECO is in the process of offering 12,700,000 shares of its common 
stock in an offering underwritten by Smith Barney Inc.; Credit Suisse First 
Boston; Fox-Pitt, Kelton Inc.; Goldman, Sachs & Co. and Merrill Lynch & Co.

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    A registration statement relating to these securities has been filed with
the Securities and Exchange Commission and became effective on October 10, 
1997.  This press release shall not constitute an offer to sell or the 
solicitation of an offer to buy, nor shall there be any sale of these 
securities in any State in which such offer, solicitation or sale would be 
unlawful prior to the registration or qualification under the securities laws 
of any State.