SAFECO Corp. expects first quarter profits to fall far short of Wall Street expectations due to a wide range of factors including inadequate premiums to costly storms in Texas.
The Seattle-based company expected to post operating profits of roughly 5 cents a share, while the underwriter was expected to earn 33 cents per share.
SAFECO blamed part of its poor performance on $20 million in underwriting losses from hailstorms and the tornado in the Dallas/Fort Worth area last month.
Overall, Safeco said it will see underwriting losses of roughly $135 million for the quarter, compared to $114 million in underwriting losses in the last quarter of 1999. On Thursday, SAFECO shares fell nearly a point to 25 5/8, well below its 52-week high of 46 ¾. The company is expected to report first quarter financial results April 24.
Topics Profit Loss
Was this article valuable?
Here are more articles you may enjoy.
Insurers Face Business Interruption Claims After Global Tech Outage 
Study Urges Rethinking of Disaster Management in Era of Compounding Events 
Allstate Reports Second Quarter Pretax Catastrophe Losses of $2.1B 
Global Tech Outage Disrupts Industries, Highlights Online Risks 
