<PAGE> 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
8/3/00
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)
<PAGE> 2
Item 5. Other Events
SAFECO ANNOUNCES SENIOR MANAGEMENT CHANGES
SEATTLE -- (August 3, 2000) -- Roger Eigsti, chairman and chief
executive officer of SAFECO Corporation (NASDAQ: SAFC), today announced
his intention to retire effective Dec. 31, 2000. In addition, Randy
Stoddard, president of SAFECO Property & Casualty companies, submitted
his resignation effective immediately.
In addition to his existing responsibilities, SAFECO president and
chief operating officer, Boh Dickey, will assume Stoddard's
responsibilities as president of SAFECO's largest business unit.
"We believe that a different style of leadership and executive
involvement is required to restore SAFECO to its historic levels of
profitability," said William G. Reed, Jr., who was appointed in May to
serve as lead independent director for the SAFECO board of directors.
"The directors have been disappointed with SAFECO's financial
performance for several quarters. We expect SAFECO to be among the
industry leaders in terms of financial performance," Reed said. "SAFECO
has a recovery plan in place and, recently, we have seen some
encouraging signs of progress. However, overall results in the property
& casualty companies fell below our expectations.
"We are moving as quickly as possible to find a new chief executive
officer, and we are looking at candidates both inside and outside the
company," Reed said, adding that Dickey is definitely a candidate to
become Eigsti's replacement. "We are confident in the ability of the
management team to guide SAFECO during this important time."
A committee of several non-management directors is leading the search
for a new chief executive officer. The board will retain an executive
search firm to assist in the process.
"We're extremely pleased that Roger has agreed to remain on board to
help find his successor," Reed said. "Roger has played a major role in
transforming SAFECO from a West Coast insurance company to a
diversified financial services company with a national reach. Roger has
valuable insights on the type of leader who can put SAFECO back on top
by tapping into the full potential of this company."
Eigsti, 58, joined SAFECO in 1972 after spending eight years in public
accounting. He was elected to the SAFECO board of directors in 1988.
The following year, he was named president and chief operating officer.
Eigsti has served as SAFECO's chief executive officer since 1992, and
chairman of the board since May 1993. In 1997, Eigsti
<PAGE> 3
presided over the acquisition of American States Insurance, the largest
acquisition in SAFECO's history.
Dickey, 55, joined SAFECO in 1982 following 16 years at Deloitte
Haskins & Sells. He was named SAFECO's chief financial officer in 1989,
and elected to SAFECO's board of directors in 1993. Since August 1996,
he has served as SAFECO's president and chief operating officer.
Stoddard, 52, joined SAFECO in 1973. He was named president of the
SAFECO Property & Casualty companies in 1996.
SAFECO, in business since 1923, is a Fortune 500 company based in
Seattle that sells insurance and related financial products. SAFECO and
its more than 17,000 independent agents and financial advisors provide
premier insurance and financial services to individual and business
customers.
-----------------------------
FORWARD-LOOKING INFORMATION IS SUBJECT
TO RISK AND UNCERTAINTY
Statements made in this news release that relate to anticipated
financial performance, business prospects and plans, regulatory
developments and similar matters may be considered "forward-looking
statements" as defined in the Private Securities Litigation Reform Act
of 1995. Statements in this news release that are not historical
information are forward-looking. Such statements are subject to certain
risks and uncertainties that may cause the operations, performance,
development and results of our business to differ materially from those
suggested by the forward-looking statements. The risks and
uncertainties include:
o Our ability to obtain rate increases and non-renew underpriced
insurance accounts;
o Realization of growth and business retention estimates;
o Achievement of our premium targets and profitability;
o Changes in competition and pricing environments;
o Achievement of our expense reduction goals;
o The occurrence of significant natural disasters, including
earthquakes;
o Weather conditions, including the severity and frequency of
storms, hurricanes, snowfalls, hail and winter conditions;
o Driving patterns;
o Fluctuations in interest rates;
o Performance of financial markets;
o Court decisions and trends in litigation;
o Legislative and regulatory developments;
o The adequacy of loss reserves;
o The availability and pricing of reinsurance;
o The development of major Year 2000 related claims or
liabilities; and
o General economic and market conditions.
In particular, because insurance rates in some jurisdictions are subject
to regulatory review and approval, our achievement of rate increases
may occur in amounts and on a time schedule different than planned,
which may affect our efforts to restore earnings in our property and
casualty lines.
<PAGE> 4
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: August 3, 2000 By: /s/ H. Paul Lowber
------------------------------
H. Paul Lowber
Vice President, Controller and
Chief Accounting Officer
