Safeco: Storm Losses To Hurt Quarterly Profit

Safeco: Storm Losses To Hurt Quarterly Profit

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

The company put its estimate for claims at some $90 million in pre-tax losses, ending the recent trend of relatively low weather-related catastrophe losses for the company, Safeco said.

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

This figure represents, the company noted, losses through May 16, with six weeks still remaining in the 2003 second quarter. Safeco will announce its second-quarter financial results on Monday, July 28.

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

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

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

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