Despite the chief executive's assurances of continued growth, Seattle-based insurer Safeco's stock dropped more than 5 percent by midday after the company reported net income for the third quarter dropped 24 percent.
Safeco reported its third-quarter combined ratio, impacted by increased claim severity, had deteriorated by 3.8 points to 92.5, when compared with the period last year.
During an analyst's conference call today, executives said the losses occurred from a combination of increased bodily injury claims in its auto line and weather-related losses in homeowners due to hail storms in the Midwest and Northwest regions.
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