Safeco: Storm Losses To Hurt Quarterly Profit

NU Online News Service, May 20, 12:37 p.m.EDT?Safeco Corporation said that claims from recentMidwest and Southern tornadoes, as well as losses from Texashailstorms earlier in the quarter, will hurt the company'ssecond-quarter profit.

The company put its estimate for claims at some $90 million inpre-tax losses, ending the recent trend of relatively lowweather-related catastrophe losses for the company, Safecosaid.

The company explained that losses from Texas hailstorms in earlyApril totaled some $30 million, while tornadoes and other severeweather events in six states are expected to add more than $55million in losses.

This figure represents, the company noted, losses through May16, with six weeks still remaining in the 2003 second quarter.Safeco will announce its second-quarter financial results onMonday, July 28.

The tornadoes that impacted Safeco were part of what the NewYork-based Insurance Information Institute said yesterday could bethe costliest twister rampage in history.

I.I.I. said 412 tornadoes swept across the central United Statesfrom May 2 to 11 affecting 300 counties in 19 states and causing 40deaths. According to Compu-Weather, a meteorological consultinggroup based in Hopewell Junction, N.Y., the tornado count was evenhigher.

During the first 10 days of May, Compu-Weather said, 434tornadoes touched down across the country. The previous record fora 10-day period was 188, set in 1999. Also, the 2003 May figure hasalready set the record for most tornadoes in any month--theprevious record belonged to June of 1992, with 399 tornadoes.

Safeco, based in Seattle, includes SAFECO Insurance Co. ofAmerica and First National Insurance Co. of America. The companyoffers personal and commercial insurance, such as auto, homeowners,fire, multi-peril and workers' compensation.