86104--2/23/2006--SAFECO

related topics

{loss, insurance, financial}

{competitive, industry, competition}

{regulation, government, change}

{product, market, service}

{system, service, information}

{loan, real, estate}

{gas, price, oil}

{operation, natural, condition}

We face strong competition from other property and casualty insurers, which may affect our growth and pressure our pricing Our underwriting results are dependent on our ability to match rate to risk. If our pricing models fail to price risks accurately, our profitability may be adversely affected Our financial results may be adversely affected by the cyclical nature of the property and casualty business in which we participate Increased claims activity resulting from catastrophic events, whether natural or man-made, may result in significant losses We may not be able to effectively manage expenses, which could adversely affect our profitability and our ability to compete in the property and casualty insurance markets We may not be able to effectively attract and retain distributors for our products, or our distributors may be unable to sell our policies, which may adversely affect our market share and our business If we are unable to maintain the availability of our systems and safeguard the security of our data, our ability to conduct our business may be compromised and our reputation may be harmed Claims payments could exceed our reserves and adversely affect the viability and financial strength of our operations The insurance industry is subject to extensive regulation, and changes within this regulatory environment could adversely affect our operating costs and limit the growth of our business Our exposure to individual risks and catastrophic losses may increase if we are unable to purchase sufficient reinsurance at acceptable rates or our reinsurers are unable to pay Judicial decisions affecting the interpretation of insurance policy provisions and coverage, together with changing theories of liability, may cause us to incur increased losses and damages Inflationary pressures on medical care costs, auto parts and repair, construction costs and other economic factors may increase the amount we pay for claims and negatively affect our underwriting results Our investment portfolio includes fixed-income and marketable equity securities, and fluctuations in the fixed-income or equity markets could adversely affect the valuation of our investment portfolio, our net investment income and our overall profitability Our business operations are dependent on our ability to appropriately execute and administer our policies and claims

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86104--2/23/2006--SAFECO_CORP