SAFECO ESTIMATES LOSSES FROM HURRICANE FRANCES:

Seattle-based Safeco announced that its pretax catastrophe losses stemming from Hurricane Frances are estimated at $28 million. This figure represents the estimated losses both from claims received through Sept. 20, 2004 and future expected claims from policyholders with damage from the storm. The effect on third-quarter net income is estimated at $18 million after tax, or $0.13 per diluted share. The estimated pretax losses include $13 million in personal lines, primarily homeowners claims and $15 million in small-business claims. Safeco previously announced that its pretax catastrophe losses stemming from Hurricane Charley are estimated at $45 million. Hurricane Charley’s effect on third-quarter net income is estimated at $29 million after tax, or $0.22 per diluted share. The total impact of Frances and Charley on third-quarter net income per share is estimated at $0.35 per diluted share. Safeco does not anticipate reimbursements from the Florida Hurricane Catastrophe Fund or Safeco’s property catastrophe reinsurance for damages from either Hurricane Frances or Hurricane Charley. The company will announce its third-quarter financial results on Oct. 19, 2004.

Topics Catastrophe Natural Disasters Profit Loss Hurricane