Seattle, WA – (October 12, 2004) – Safeco (NASDAQ: SAFC) announced today that its aggregate pretax catastrophe losses for the third quarter are estimated at $195 million. The estimated effect on third-quarter net income is $127 million after tax, or $0.96 per diluted share. Safeco expects its total catastrophe losses to increase the company’s third-quarter combined ratio by 13.9 percentage points and that, as a result, its third-quarter combined ratio will be 101.6 percent.
The estimated pretax catastrophe losses include:
$86 million in personal lines, primarily homeowners claims
$109 million in commercial claims
Hurricane loss estimates
This estimate also includes an adjustment to Safeco’s estimated pretax losses for Hurricanes Charley and Frances. Previously, the company reported it expected $73 million in pretax losses from the two storms; it now estimates those storms will total $117 million. The $44 million increase is primarily due to more large and severe losses than previously estimated....