Safeco Affirmed

A.M. Best Co. affirmed the financial strength rating of “A” (Excellent) of Safeco Ins. Cos. based in Seattle, Wash. Best also affirmed the “bbb+” rating on Safeco’s existing senior debt and the “bbb” rating on its capital securities. Also, Best affirmed the indicative ratings to the remaining $275 million under the company’s shelf registration. The outlook for all the ratings is stable. The rating actions follow Safeco’s completion of the sale of its life and investment operations to an investor group led by White Mountains Insurance Group Ltd. and Berkshire Hathaway Inc. Proceeds from the sale, totaling $1.51 billion, will be used to retire debt and capital securities, return capital to shareholders and retain funds at the parent company for general corporate purposes. The ratings reflect Safeco’s strong presence within the property/casualty industry, excellent capitalization and recently improved operating results following significant restructuring. Safeco writes in all 50 states, with a concentration in the Northwest and Midwest.