Seattle-based insurer Safeco reported yesterday that its second-quarter income dropped 7 percent as its combined ratio increased 3 points over the same period last year.
Second-quarter net income dropped $14 million to $186 million, or $1.75 a share. Revenues in the period rose slightly by less than 1 percent to $1.5 billion.
The combined ratio rose to 89.7 from 86.7 for the same period last year.
For the six months, net income is down 10 percent, or $39 million, to $369 million, or $3.46 a share. Revenues of $3 billion were down $51 billion or 2 percent.
The combined ratio for the six months was up 3 points to 89.8.
In a statement, Paula Rosput Reynolds, the company's president and chief executive officer, said: "With a clear plan and a lot of persistence, we've delivered consistency and strong results."
Ms. Reynolds later added during an analyst's conference call that the company is working at improving its branding and product lines to "increase our relevance and convenience as a distinctive brand."
By line, for the quarter, auto reported a pre-tax underwriting profit of $17.3 million compared with $62 million last year, with a combined ratio increase of 6.5 points to 97.4.
Business insurance underwriting profit came in at $51.9 million compared with $82.6 million for the second quarter last year. The combined ratio rose 8.5 points to 86.6.
Surety underwriting profit rose to $37.3 million from $22 million for the second quarter last year. The combined ratio improved 12.4 points to 56.4.
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