Utility Firm Veteran To Take Safeco Helm

Safeco has chosen a veteran of the utility industry, PaulaRosput Reynolds, to take over as president and chief executiveofficer of the Seattle-based insurer on Jan. 1.

Ms. Reynolds, who was also appointed to Safeco's board, willreplace Mike McGavick, who steps down on Dec. 31 as CEO andchairman to run for the U.S. Senate. He will provide transitionservices for two months as a Safeco employee, the company said.

Ms. Reynolds is currently chair, president and CEO of AGLResources, an Atlanta-based energy holding company that includessix natural gas utilities, wholesale services and energyinvestments.

In her five years as AGL's CEO, the company expanded from aregional gas utility to a multistate, integrated energy company,doubling its share price and market capitalization while increasingits dividend by 37 percent.

Ms. Reynolds said she is enthused by the opportunity “to leadSafeco to the next level of success–creating a sustainablecompetitive advantage and long-term value.”

Safeco also announced the election of Joseph W. “Jay” Brown–aSafeco director since 2001–as its non-executive chairman effectiveJan. 1, replacing Mr. McGavick.

Mr. Brown is chairman of MBIA Inc., a financial servicescompany. Before joining MBIA in 1999, Mr. Brown was chairman,president and CEO of Talegen Holdings Inc., the former insuranceholdings operation of Xerox Corp., as well as president and CEO ofFireman's Fund.

“Rather than a sprint, we're now in the race for the long run.We intend to deliver excellent performance year after year.”

Paula Rosput Reynolds

New President & CEO, Safeco