Safeco Company Review

Safeco insurance is one of the leading providers of property and casualty insurance in the United States. Thanks to its partnership with the Liberty Mutual Group in 2008, the two companies today make up one of the largest insurance providers in the nation.

Company history

What is today known as Safeco began in 1923 as the General Insurance Company of America Corporation. Founded by Hawthorne K. Dent, the venture was seen as revolutionary because he sought to bring together two different concepts of the insurance world: investor-owned (stock) companies and policy-owned mutual companies. Many people doubted he would succeed. The company - eventually called "The General" eventually was highly regarded for its excellent service and pricing. But by the 1950s, the insurance world had changed. The General needed to compete with so-called "direct insurance writers." The solution, computer automation, became the trademarked element of a newly named company: Selective Auto and Fire Insurance Company of America - aka, Safeco. Soon after the 1953 establishment of Safeco, the company began selling life insurance. By the late 1960s, mutual funds and lines of credit for businesses also were offered. Soon, success for Safeco was surpassing success of The General, so the entire corporation was renamed Safeco Corporation. The company continued to grow. By 1997, it had acquired American States Financial Corporation, which helped it become a leading insurance provider for small businesses. The company's stature also increased tremendously when it acquired the naming rights for the Seattle Mariners' ballpark - today called Safeco Field. While the company did suffer financial hardship - losing $1 billion in 2001 - it is today in much better financial shape. In fact, by 2002, the company posted profits in excess of $300 million. In 2004, Safeco made the decision to focus on property and casualty insurance and sold its divisions that specialized in life insurance and investments. In recent years, Safeco has enjoyed record-setting profits. The company had a record annual net income of $880 million in 2005. According to the Safeco Web site, the company credits innovation and a focus on its customers for the success. In 2008, Safeco joined the Liberty Mutual Group - which means that it is the fifth-largest property and casualty insurance company in the United States.

In the community

In addition to its standing in the insurance industry, Safeco has emerged as a visible member of the community - not only in the Seattle/Puget Sound area, but also throughout the nation in a variety of capacities:

• Safeco's employees frequently participate in community relations and charity activities.
• The Safeco Insurance Foundation exists to help children and the arts. Many of its programs are directly intended for low-income children, health/human services issues, and cultural groups.
• Baseball fans know Safeco Field very well. It is the home of Major League Baseball's Seattle Mariners and is considered one of the finest ballparks in the nation.
• The Safeco Agent Giving Program allows Safeco insurance agents the chance to nominate people in the community or nonprofit organizations for support by Safeco.
• Safeco also boasts of its extensive collection of more than 2,200 works of art - particularly by Northwest artisans. Safeco displays the works of art not only at its company headquarters, but also throughout the community. Some of the works are located at company offices across the country - but most are in the Puget Sound region.