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
Date of Report: September 12, 1997
Washington Mutual, Inc.
(Exact Name of Registrant as specified in its charter)
Washington 0-25188 91-1653725
(State or Other Jurisdiction (Commission File Number) IRS Identification No.
of Incorporation)
1201 Third Avenue, Seattle, Washington 98101
- -----------------------------------------------------------------------------
Address of Principal Executive Office Postal Code
206-461-2000
Registrant's telephone number including area code
Item 5. Other Events
On September 3, 1997, Washington Mutual, Inc. ("Washington Mutual")
issued a press release announcing the sale of its insurance underwriting
subsidiary, WM Life Insurance Co., to SAFECO Corporation. In addition, SAFECO
Corporation annuities will be distributed through Washington Mutual's consumer
banking (retail branch) network. The transaction is expected to be completed
during the fourth quarter of 1997. For more information, refer to the attached
press releases.
SIGNATURES
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.
WASHINGTON MUTUAL, INC.
Date: September 12, 1997 By: /s/ Marc R. Kittner
Marc R. Kittner,
Senior Vice President and
Deputy General Counsel
[Logo Washington Mutual] 1201 Third Avenue
P.O. Box 834
Seattle, WA 198111
Media Contact: Bill Ehrlich (Washington Mutual)
(206) 461-2204
1-800-228-WAMU (9268)
Investor Contact: Jo Ann DeGrande (Washington Mutual) September 3, 1997
(206) 461-3186 FOR IMMEDIATE RELEASE
Washington Mutual Says SAFECO Transaction
To Be Accretive To Earnings Per Share
SEATTLE -- Washington Mutual, Inc. (Nasdaq: WAMU) today said that its
strategic alliance with SAFECO Corporation (Nasdaq: SAFC) and the resulting sale
of the company's insurance underwriting subsidiary, WM Life Insurance Co., is
expected to result in an after-tax gain of between $12 million and $15 million
in the fourth quarter of 1997. The transaction is expected to be slightly
accretive to ongoing earnings per share thereafter.
The alliance calls for SAFECO annuities to be distributed through
Washington Mutual's consumer banking (retail branch) network. In addition,
SAFECO will acquire WM Life.
"The agreement with SAFECO should add to Washington Mutual's future fee
income, while enabling our company to re-deploy the capital previously invested
in WM Life," Washington Mutual Chairman Kerry Killinger said. "The transaction
should also be beneficial to our company as we strive to meet the financial
targets that we have established, including at least an 18 percent return on
common equity and an annualized 15 percent increase in earnings per share
through the year 2000."
With a history dating back to 1889, Washington Mutual is a regional
financial services company that provides a diversified line of products and
services to consumers and small- to mid-sized businesses. At July 31, 1997,
Washington Mutual and its subsidiaries had consolidated assets of $93.6 billion.
The subsidiaries provide consumer and commercial banking services, securities
brokerage, mutual fund management, property/casualty and life insurance sales,
and underwriting for insurance annuities, and collectively operate more than
1,600 offices in 38 states.
###
Editor's Note: Washington Mutual's press releases are available at no
charge through the company's News On Demand Plus System. For a menu of
Washington Mutual press releases or to retrieve a specific release, call
1-800-329-6236. On the Internet, press releases may be accessed at
http://www.businesswire.com/cnn/wamu.htm
NEWS FROM [SAFECO LOGO] SAFECO(R)
CONTACTS:
SAFECO Corporation, Seattle
Patricia Hillis, 206/545-5771
Washington Mutual Inc., Seattle
Bill Ehrlich, 800/228-9268 or 206/461-2204
JoAnn DeGrande, 206/461-3186
SAFECO AND WASHINGTON MUTUAL
SIGN DISTRIBUTION AGREEMENT
SEATTLE--(September 3, 1997)--Two of the Northwest's leading financial services
companies, SAFECO Corporation (NASDAQ: SAFC) and Washington Mutual Inc. (NASDAQ:
WAMU), jointly announced today the formation of a strategic alliance to
distribute SAFECO annuities through Washington Mutual's multi-state banking
network. As part of the alliance, SAFECO will acquire Washington Mutual's
insurance subsidiary, WM Life Insurance Company. The acquisition is expected to
be completed in the fourth quarter. The overall transaction is valued at $140
million.
Talbot Financial Corporation, a SAFECO subsidiary, will play a major role in the
new alliance. Talbot, based in Albuquerque, N.M., will provide training,
marketing assistance and other annuity distribution and consulting services for
Washington Mutual's consumer banking (retail branch) network, which spans six
western states and Florida.
"This agreement creates a dynamic new alliance between two of the most respected
firms in the financial services industry," said Bob Dickey, President and Chief
Operating Officer of SAFECO Corporation. "We believe that Washington Mutual will
become an important new distribution channel for SAFECO's annuity and related
insurance products."
Kerry Killinger, Washington Mutual's Chairman, President and Chief Executive
Officer, said that his company's customers will benefit from the addition of
SAFECO's annuity products.
"Annuities are an important part of our overall product mix," Killinger said.
"This agreement will allow Washington Mutual to take full advantage of its
strength as a successful marketer and distributor of financial products and
services."
--more--
SAFECO Corporation o Public Relations o SAFECO Plaza o Seattle, Washington
98185
<PAGE>
SAFECO AND WASHINGTON MUTUAL, page 2
Seattle-based WM Life, which was formed by Washington Mutual in 1986, had assets
of $1.1 billion as of June 30, 1997. It will become a subsidiary of SAFECO Life
Insurance Company based in Redmond, Wash.
The distribution agreement and sale of WM Life have been approved by the boards
of directors of both companies. It requires the approval of state insurance
regulators and federal antitrust regulators.
Founded in 1923 as the General Insurance Company of America, SAFECO today is one
of the largest diversified financial corporations in the country with more than
$20 billion in assets. Property and casualty insurance was SAFECO's original
business and remains its largest operation. In addition, SAFECO engages in
surety, real estate investment and management and commercial credit, as well as
life and health insurance and asset management. SAFECO is headquartered in
Seattle with major offices in Redmond, Atlanta, St. Louis, Denver and Fountain
Valley, Calif. SAFECO expects to close its $3 billion acquisition of American
States Financial Corporation on October 1, 1997.
With a history dating back to 1889, Washington Mutual is a regional financial
services company that provides a diversified line of products and services to
consumers and small-to-mid-sized businesses. At July 31, 1997, Washington Mutual
and its subsidiaries had consolidated assets of $93.6 billion. The subsidiaries
provide consumer and commercial banking services, securities brokerage, mutual
fund management, property/casualty and life insurance sales, and underwriting
for insurance annuities, and collectively operate more than 1,600 offices in 38
states.
--end--
<PAGE>
