Safeco
Encyclopedia
Safeco Insurance, a member of Liberty Mutual Group, is a national U.S. insurance
company. It holds naming rights
to the Seattle Mariners
' baseball
stadium
, Safeco Field
.
in 1923 by Hawthorne K. Dent as the General Insurance Company of America, a property
and casualty insurer. This name is still used by Safeco on some of its insurance products., "members of the Safeco family of companies include" American Economy Insurance Company, American States Insurance Company, American States Insurance Company of Texas, American States Lloyds Insurance Company, American States Preferred Insurance Company, First National Insurance Company of America, General Insurance Company of America, Insurance Company of Illinois, Safeco Insurance Company of America, Safeco Insurance Company of Illinois, Safeco Insurance Company of Indiana, Safeco Insurance Company of Oregon, Safeco Lloyds Insurance Company, Safeco National Insurance Company, and Safeco Surplus Lines Insurance Company. http://www.safeco.com/safeco/legal/default.asp Thirty years later the company founded the Selective Auto and Fire Ensurance Company of America, or SAFECO (i.e., S.A.F.E. Co.).
General Insurance's first headquarters were in downtown Seattle at the corner of University Street and Fourth Avenue. In 1936, it moved to the eight-story Brooklyn Building at the corner of N.E. 45th Street and Brooklyn Avenue N.E. in the University District
.
General Insurance began to sell life insurance
in 1957. Eleven years later the corporate name changed from the General Insurance Company of America to Safeco Corporation. (The company would end up changing the capitalization of its name from SAFECO to Safeco at the turn of the century.) Around the same time the company began to offer mutual funds and commercial credit (though precursors to the Safeco Funds had been around since the 1930s).
Safeco replaced the Brooklyn Building with the 22-story Safeco Plaza
building in 1973. It remains the tallest building in the city outside Downtown.
's WM Life Insurance Company was purchased the same year. Two years later Safeco bought R.F. Bailey (Underwriting Agencies) Limited of London
.
in 2001, and on March 15, 2004, the company announced the sale of its most profitable division, the life insurance and investments business, to a group of private investors led by Safeco board members and Warren Buffett
's Berkshire Hathaway Inc. and White Mountains Insurance Group
, Ltd., incorporating as Symetra
Financial Corporation. The same day, it was announced that Hub International Ltd. was buying Safeco's insurance brokerage operations. Less than a month later, on April 12, it was announced that Mellon Financial Corporation would buy Safeco Trust Company, whose business is providing financial and estate planning services to individuals with over $1 million in assets. On August 2, the closure of Safeco Asset Management, the mutual-fund business, was announced.
On April 6, 2005, CEO Mike McGavick
announced that Safeco would be consolidating operations at either the University District "home office" campus or the newer Eastside campus in Redmond
, pending a competition between Microsoft and the University of Washington for the sale of one or the other location. On January 19, 2006 it was announced that Microsoft
would purchase the Redmond campus for $209.5 million. Plans were announced for a new 125-foot office tower across the street from Safeco Plaza to house the approximately 1,300 Redmond employees. However, McGavick subsequently stepped down as CEO to run for the U.S. Senate. In a surprise move, his replacement Paula Rosput Reynolds announced on August 30, 2006], that the entire University District complex would be sold as well, to the University of Washington
for $130 million. Employees were told they would be moved to leased space in downtown Seattle. Some speculate this signalled the imminent sale of the company, although Safeco denied this. Safeco moved back downtown in 2007; its new headquarters at 1001 Fourth Avenue
became the new Safeco Plaza, and the old Safeco Plaza was renamed UW Tower
.
units in cars driven by children of insureds, allowing parents to monitor location, speed, distance and driving habits, remotely lock or unlock doors, and provide 24/7 roadside assistance.
for $68.25 per share. Safeco continues to offer personal lines insurance (including auto, home, motorcycle, recreational vehicle, watercraft and more) through independent agents
Insurance
In law and economics, insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer is a company selling the...
company. It holds naming rights
Naming rights
In the private sector, naming rights are a financial transaction whereby a corporation or other entity purchases the right to name a facility, typically for a defined period of time. For properties like a multi-purpose arena, performing arts venue or an athletic field, the term ranges from three...
to the Seattle Mariners
Seattle Mariners
The Seattle Mariners are a professional baseball team based in Seattle, Washington. Enfranchised in , the Mariners are a member of the Western Division of Major League Baseball's American League. Safeco Field has been the Mariners' home ballpark since July...
' baseball
Baseball
Baseball is a bat-and-ball sport played between two teams of nine players each. The aim is to score runs by hitting a thrown ball with a bat and touching a series of four bases arranged at the corners of a ninety-foot diamond...
stadium
Stadium
A modern stadium is a place or venue for outdoor sports, concerts, or other events and consists of a field or stage either partly or completely surrounded by a structure designed to allow spectators to stand or sit and view the event.)Pausanias noted that for about half a century the only event...
, Safeco Field
Safeco Field
Safeco Field is a retractable roof baseball stadium located in Seattle, Washington. The stadium, owned and operated by the Washington-King County Stadium Authority, is the home stadium of the Seattle Mariners of Major League Baseball and has a seating capacity of 47,878 for baseball...
.
History
Safeco was founded in Seattle, WashingtonSeattle, Washington
Seattle is the county seat of King County, Washington. With 608,660 residents as of the 2010 Census, Seattle is the largest city in the Northwestern United States. The Seattle metropolitan area of about 3.4 million inhabitants is the 15th largest metropolitan area in the country...
in 1923 by Hawthorne K. Dent as the General Insurance Company of America, a property
Property
Property is any physical or intangible entity that is owned by a person or jointly by a group of people or a legal entity like a corporation...
and casualty insurer. This name is still used by Safeco on some of its insurance products., "members of the Safeco family of companies include" American Economy Insurance Company, American States Insurance Company, American States Insurance Company of Texas, American States Lloyds Insurance Company, American States Preferred Insurance Company, First National Insurance Company of America, General Insurance Company of America, Insurance Company of Illinois, Safeco Insurance Company of America, Safeco Insurance Company of Illinois, Safeco Insurance Company of Indiana, Safeco Insurance Company of Oregon, Safeco Lloyds Insurance Company, Safeco National Insurance Company, and Safeco Surplus Lines Insurance Company. http://www.safeco.com/safeco/legal/default.asp Thirty years later the company founded the Selective Auto and Fire Ensurance Company of America, or SAFECO (i.e., S.A.F.E. Co.).
General Insurance's first headquarters were in downtown Seattle at the corner of University Street and Fourth Avenue. In 1936, it moved to the eight-story Brooklyn Building at the corner of N.E. 45th Street and Brooklyn Avenue N.E. in the University District
University District, Seattle, Washington
The University District is a neighborhood in Seattle, Washington, so named because the main campus of the University of Washington is located there. The UW moved in two years after the area was annexed to Seattle, while much of the area was still clear cut forest or stump farmland...
.
General Insurance began to sell life insurance
Life insurance
Life insurance is a contract between an insurance policy holder and an insurer, where the insurer promises to pay a designated beneficiary a sum of money upon the death of the insured person. Depending on the contract, other events such as terminal illness or critical illness may also trigger...
in 1957. Eleven years later the corporate name changed from the General Insurance Company of America to Safeco Corporation. (The company would end up changing the capitalization of its name from SAFECO to Safeco at the turn of the century.) Around the same time the company began to offer mutual funds and commercial credit (though precursors to the Safeco Funds had been around since the 1930s).
Safeco replaced the Brooklyn Building with the 22-story Safeco Plaza
UW Tower
University of Washington Plaza is a skyscraper complex completed in 1975 in the University District of Seattle, Washington. The , 22-storey tower, designed by NBBJ, is the tallest building outside of Downtown Seattle area. The tower was originally constructed as Safeco Plaza to serve as Safeco...
building in 1973. It remains the tallest building in the city outside Downtown.
Acquisitions
In 1997, Safeco bought American States Financial Corporation to expand beyond the West Coast. Washington MutualWashington Mutual
Washington Mutual, Inc. , abbreviated to WaMu, was a savings bank holding company and the former owner of Washington Mutual Bank, which was the United States' largest savings and loan association until its collapse in 2008....
's WM Life Insurance Company was purchased the same year. Two years later Safeco bought R.F. Bailey (Underwriting Agencies) Limited of London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
.
Restructuring
In 2001, new management was brought in to restructure the company. Commercial credit operations were sold to General ElectricGeneral Electric
General Electric Company , or GE, is an American multinational conglomerate corporation incorporated in Schenectady, New York and headquartered in Fairfield, Connecticut, United States...
in 2001, and on March 15, 2004, the company announced the sale of its most profitable division, the life insurance and investments business, to a group of private investors led by Safeco board members and Warren Buffett
Warren Buffett
Warren Edward Buffett is an American business magnate, investor, and philanthropist. He is widely regarded as one of the most successful investors in the world. Often introduced as "legendary investor, Warren Buffett", he is the primary shareholder, chairman and CEO of Berkshire Hathaway. He is...
's Berkshire Hathaway Inc. and White Mountains Insurance Group
White Mountains Insurance Group
White Mountains Insurance Group is a holding company with business interests in property and casualty insurance, and reinsurance. The group owns the direct marketing insurer Esurance and a 75% stake in specialty insurance carrier OneBeacon. In 2008 White Mountains Insurance Group also acquired a...
, Ltd., incorporating as Symetra
Symetra
Symetra Financial is a United States - based family of companies providing retirement plans, employee benefits, annuities and life insurance through independent distributors nationwide....
Financial Corporation. The same day, it was announced that Hub International Ltd. was buying Safeco's insurance brokerage operations. Less than a month later, on April 12, it was announced that Mellon Financial Corporation would buy Safeco Trust Company, whose business is providing financial and estate planning services to individuals with over $1 million in assets. On August 2, the closure of Safeco Asset Management, the mutual-fund business, was announced.
Mike McGavick
Michael S. "Mike" McGavick is an American business executive and a graduate of the University of Washington....
announced that Safeco would be consolidating operations at either the University District "home office" campus or the newer Eastside campus in Redmond
Redmond, Washington
Redmond is a city in King County, Washington, United States, located east of Seattle. The population was 54,144 at the 2010 census,up from 45,256 in 2000....
, pending a competition between Microsoft and the University of Washington for the sale of one or the other location. On January 19, 2006 it was announced that Microsoft
Microsoft
Microsoft Corporation is an American public multinational corporation headquartered in Redmond, Washington, USA that develops, manufactures, licenses, and supports a wide range of products and services predominantly related to computing through its various product divisions...
would purchase the Redmond campus for $209.5 million. Plans were announced for a new 125-foot office tower across the street from Safeco Plaza to house the approximately 1,300 Redmond employees. However, McGavick subsequently stepped down as CEO to run for the U.S. Senate. In a surprise move, his replacement Paula Rosput Reynolds announced on August 30, 2006], that the entire University District complex would be sold as well, to the University of Washington
University of Washington
University of Washington is a public research university, founded in 1861 in Seattle, Washington, United States. The UW is the largest university in the Northwest and the oldest public university on the West Coast. The university has three campuses, with its largest campus in the University...
for $130 million. Employees were told they would be moved to leased space in downtown Seattle. Some speculate this signalled the imminent sale of the company, although Safeco denied this. Safeco moved back downtown in 2007; its new headquarters at 1001 Fourth Avenue
1001 Fourth Avenue Plaza
Safeco Plaza, previously 1001 Fourth Avenue Plaza, and the Seattle-First National Bank Building, is a 50-floor building in downtown Seattle, Washington. Locals nicknamed it "The Box the Space Needle Came In"...
became the new Safeco Plaza, and the old Safeco Plaza was renamed UW Tower
UW Tower
University of Washington Plaza is a skyscraper complex completed in 1975 in the University District of Seattle, Washington. The , 22-storey tower, designed by NBBJ, is the tallest building outside of Downtown Seattle area. The tower was originally constructed as Safeco Plaza to serve as Safeco...
.
"Teensurance"
On June 27, 2007, Safeco introduced a new service, Teensurance, aimed at "providing parents peace of mind while teens earn their freedom." The product put GPSGlobal Positioning System
The Global Positioning System is a space-based global navigation satellite system that provides location and time information in all weather, anywhere on or near the Earth, where there is an unobstructed line of sight to four or more GPS satellites...
units in cars driven by children of insureds, allowing parents to monitor location, speed, distance and driving habits, remotely lock or unlock doors, and provide 24/7 roadside assistance.
Liberty Mutual Agency Corporation
On April 23, 2008, Safeco announced an agreement to be acquired by Liberty MutualLiberty Mutual
Liberty Mutual Group, more commonly known by the name of its primary line of business Liberty Mutual, is a diversified global insurer and the third largest property and casualty insurer in the United States based on 2010 net written premium. It is the 82nd company on the Fortune 500 list for 2011...
for $68.25 per share. Safeco continues to offer personal lines insurance (including auto, home, motorcycle, recreational vehicle, watercraft and more) through independent agents
Philanthropy
On February 12, 2010, Safeco announced its donation of more than 800 pieces of its Safeco Art Collection to the Washington Art Consortium This move was hailed as being a significant and rare gift by members of the local arts community.External links
- Official site
- http://content.lib.washington.edu/cdm4/results.php?CISORESTMP=results.php&CISOVIEWTMP=item_viewer.php&CISOMODE=thumb&CISOGRID=thumbnail,A,1;title,A,1;subjec,A,0;descri,200,0;none,A,0;20;title,none,none,none,none&CISOBIB=title,A,1,N;subjec,A,0,N;descri,200,0,N;none,A,0,N;none,A,0,N;20;title,none,none,none,none&CISOTHUMB=20%20(4x5);publis,none,none,none,none&CISOTITLE=20;title,none,none,none,none&CISOHIERA=20;subjec,title,none,none,none&CISOSUPPRESS=1&CISOTYPE=link&CISOOP1=all&CISOFIELD1=subjec&CISOBOX1=Safeco&CISOOP2=all&CISOFIELD2=subjec&CISOBOX2=&CISOOP3=all&CISOFIELD3=descri&CISOBOX3=&CISOOP4=all&CISOFIELD4=CISOSEARCHALL&CISOBOX4=&c=all&CISOROOT=/reportsHistorical Annual Reports for Safeco]
- Teensurance site