SAFECO Notes Losses of $25M Due to Tragedy

September 24, 2001

SAFECO stated on Sept. 20 that its primary insurance lines will likely incur losses of $25 million due to the Sept. 11 attacks that destroyed the World Trade Center and part of the Pentagon.

The Seattle-based company, which has more than 17,000 independent agents and financial advisors, also estimated that it will book an additional loss of between $5 million and $10 million related to the exposure of its Lloyd’s of London operations.

All told, SAFECO expects the attacks to reduce its third-quarter profit by between 15 and 18 cents per diluted share on an aftertax basis. Analysts on average had been expecting SAFECO to earn 22 cents per share for the period, according to research firm Thomson Financial/First Call.

Estimates of SAFECO’s primary insurance include about $24 million in property-casualty losses and about $1 million in life insurance, disability, and medical insurance losses, the company said.

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