Seattle-based Safeco Inc. reported third-quarter profits of $101.1 million, compared to a loss for the comparable year-ago period.
The company said it sustained $115.8 million in catastrophe losses in this year's third quarter, mostly attributable to Hurricanes Katrina and Rita.
Last year's third-quarter earnings were marred by catastrophe losses of $126 million, along with some red ink from the sale of the company's life and investment businesses.
The overall property-casualty combined ratio for the third quarter improved to 97.5, compared to 101 in the same period last year.
Safeco Chief Executive Officer Mike McGavick said that improved underwriting profitability helped the company in the task it faced in the Gulf Coast last month.
"The strength of our underlying fundamentals enabled us to withstand these devastating storms and focus on supporting people through the recovery process," Mr. McGavick said.
Mr. McGavick, who has been credited with the company's turnaround from its difficult days in the '90s, has announced he will step down at the end of the year.
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