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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)
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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.
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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
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H. Paul Lowber
Vice President, Controller and
Chief Accounting Officer
