86104--2/23/2007--SAFECO

related topics

{loss, insurance, financial}

{competitive, industry, competition}

{product, market, service}

{regulation, government, change}

{system, service, information}

{loan, real, estate}

{gas, price, oil}

{operation, natural, condition}

{product, liability, claim}

Our ability to respond to the competitive initiatives of other property and casualty insurers could 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 manage expenses effectively, which could adversely affect our profitability and our ability to compete in the property and casualty insurance markets We may not be able to attract and retain distributors for our products effectively, or our distributors may be unable to sell our policies, which may adversely affect our market share and our business We may not be able to differentiate our products or become among the lowest cost providers 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 Emerging claim and coverage issues could negatively impact our business Prohibition on the use of customer credit or other related information in connection with pricing and underwriting could impact our competitiveness 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 depend on our ability to appropriately execute and administer our policies and claims.

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86104--2/23/2007--SAFECO_CORP