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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
9/28/99
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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Item 5. Other Events
N E W S R E L E A S E
SAFECO THIRD QUARTER EARNINGS EXPECTED TO DECLINE
SEATTLE--(Sept. 28, 1999)--SAFECO Corporation (NASDAQ: SAFC) announced
today that primarily based on results for the months of July and August, it
expects its third quarter earnings from operations will be approximately $0.05
to $0.15 per share, which is significantly below analysts expectations. The
primary causes of the expected lower earnings are increased claims in the
commercial and personal insurance units along with continued intense industry
price competition in these lines of business and approximately $10 million from
claims from Hurricane Floyd. SAFECO intends to announce its third quarter
results on Oct. 25, 1999.
"These results are disappointing and unacceptable," said Roger Eigsti,
Chairman and CEO. "The property and casualty industry is facing intense price
competition as well as several other factors which have resulted in companies
reporting lower than anticipated earnings. We expect to restore earnings through
plans that are in place and in motion. These include promptly seeking rate
increases in personal lines automobile and homeowners and in commercial lines,
strengthening underwriting selection and aggressively managing expenses. These
plans are critical to return SAFECO to profitable long-term growth."
SAFECO's surety, life, asset management and credit operations continue to
perform well.
This release contains forward-looking statements about 1999 third quarter
earnings and actions to improve earnings that are based on management's
estimates, assumptions and projections. The Private Securities Litigation
Reform Act of 1995 provides a safe harbor under the federal securities laws for
forward-looking statements. SAFECO notes that the third quarter has not closed
and that September results could cause actual earnings for this period to
differ from the estimated earnings reported in this release.
Additional factors that could cause actual results in subsequent periods to
differ from those suggested by forward-looking statements in this release
include uncertainties associated with rate increases and non-renewal of
underpriced insurance accounts and more generally, the risks and uncertainties
associated with general economic conditions, including changes in interest rates
and the performance of the financial markets, changes in domestic laws,
regulations and taxes, changes in competition and pricing environments, changes
in asset valuation, and the occurrence of significant natural disasters. In
particular, because insurance rates in some jurisdictions are subject to
regulatory review and approval, achieving rate increases may occur in amounts
and on a time schedule different than planned, which may affect the effort to
restore earnings.
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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: September 29, 1999 By: /s/ H. Paul Lowber
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H. Paul Lowber
Vice President, Controller and
Chief Accounting Officer
