Safeco: Rita Losses at $27 Million

Seattle-based Safeco announced estimated after-tax catastrophe losses from Hurricane Rita of $27 million, or $0.21 per diluted share. Pretax catastrophe losses from the storm are estimated at $42 million.

These figures represent estimated losses both from claims received through Oct. 9, 2005 and from future expected claims from policyholders with hurricane damage. Safeco does not anticipate reimbursement from the company’s property catastrophe reinsurance program for losses related to Hurricane Rita.

On Sept. 27, 2005, Safeco announced estimated after-tax catastrophe losses from Hurricane Katrina of $78 million, or $0.61 per diluted share.

Total third-quarter 2005 catastrophe losses are estimated at $116 million after tax, or $0.91 per diluted share. This compares with third-quarter 2004 catastrophe losses of $127 million after tax. Estimated pretax catastrophe losses for the third quarter of 2005 are $228 million. Net of reinsurance, pretax catastrophe losses are estimated at $178 million for third-quarter 2005.

Safeco’s National Catastrophe Team remains in force along the Gulf Coast, helping customers in Mississippi, Louisiana, Texas, Alabama and Florida recover from Hurricane Katrina and Hurricane Rita.

In Texas, Safeco has a 1.1 percent share of the homeowners market and a 4.1 percent share of the commercial multi-peril market.

In Louisiana, the company has a 0.6 percent share of the homeowners market and a 0.8 percent share of the commercial multi-peril market. Safeco’s loss estimate is less than proportionate to the company’s market share, due to strict underwriting guidelines in areas susceptible to coastal storms.