SAFECO to Pay Out $15 Million for Seattle Quake

SAFECO announced that claims from the Puget Sound-area earthquake on Feb. 28 will add up to approximately a $15-million payout. This is expected to affect first-quarter income by $0.08 per diluted share on an after-tax basis.

“Our claims are expected to be relatively low for a 6.8-magnitude earthquake,” SAFECO President and CEO Mike McGavick stated in a press release. “A number of things worked in our favor, including the fact that SAFECO has done a good job managing its risk; the area was well prepared for the earthquake; and the earthquake occurred deep beneath the earth’s surface, limiting the amount of damage.”

SAFECO is currently rated “A u” (Excellent, under review) by A.M. Best. The company is scheduled to announce its first-quarter financial results on April 23.