Safeco Earnings Rise 16 Percent Losses From Earthquake Fail To Slow Insurance Company
Insurer SAFECO Corp. reported on Monday firstquarter net income of $65.2 million, up 16 percent from $56 million a year earlier despite additional losses from the January 1994 earthquake in Southern California.
Earnings for the quarter ended March 31 were $1.04 per share on revenues of $936 million, compared with 89 cents per share on revenues of $903.8 million in the first quarter of 1994.
Property- and casualty-insurance operations had pretax income of $35.1 million before investment gains, compared with $10.6 million a year earlier, SAFECO said.
The company’s underwriting loss for the quarter was $37.4 million, including a recent $25 million increase in the estimated cost of claims from the Northridge earthquake and other catastrophic events.
Most lines of insurance, including personal-auto and surety coverage, were reporting increases in written premiums and steady results, said Chairman Roger Eigsti.
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