Safeco Insurance history

Safeco was founded in Seattle, Washington, in 1923 by Hawthorne K. Dent as the General Insurance Company of America, a property and casualty insurer.

When automobiles flourished, General formed the General Casualty Corporation, in 1925, to write liability insurance for that industry.

In 1928 First National Insurance Company was formed to sell higher-cost policies.

General suffered a drop in profits during the price wars, but it had steady growth in sales and was Washington's leading fire insurance company by 1935.

By 1936 the home-office staff had grown to 250 from its starting 14.

The company reported its highest net profit in 15 years in 1937.

In 1940 the Tacoma Narrows Bridge collapsed, and General suffered its first real underwriting error.

General's war-risk premium income was more than $2 million in 1942, when the government formed the War Damage Corporation to insure land war risks.

Willis Campbell had succeeded Dent as president in 1952.

In 1953, the company adopts automated billing to lower rates through a new subsidiary named Selective Auto and Fire Insurance Co. of America, or “Safeco.”

A new subsidiary bearing the company's original name, General Life Insurance Company of America--the forerunner of SAFECO Life Insurance Company--was formed in 1957.

SAFECO Life showed a profit in 1958, its second year, after writing almost $20 million of business in-force.

Campbell became chairman of SAFECO 1966, with Gordon Sweany assuming the presidency.

Winmar Company, a Seattle-based real estate development and management firm, was purchased in 1967 in order to invest in commercial real estate ventures.

Recognizing the success of the Safeco subsidiary, the General is officially renamed Safeco in 1968.

SAFECO Credit Company was formed in 1969 to provide short- and medium-term business financing.

Safeco replaced the Brooklyn Building with the 22-story Safeco Plaza building in 1973.

In 1977 Sweany became chairman of the board while R.M. Trafton took over as president.

In addition to the loss of premium income from the New York and New Jersey business, SAFECO had high cash outlays in 1980, including a $25 million payment to the Internal Revenue Service following a tax audit.

SAFECO, nonetheless, managed a strong return by 1989 year end with the help of healthy investment performance and sharply increased life profits.

In 1990, Safeco relaxes its white-shirt-and-tie dress code and has a “casual day” — but for one day only.

Safeco’s acquisition of American States Insurance of Indianapolis in 1997 doubles the size of Safeco’s business and distribution base, but the cost hurts the company’s financial position.

In 1998, the company purchases the naming rights to the Seattle Mariners ballpark, Safeco Field.

To cut costs, CEO Mike McGavick in 2001 announces that 1,200 employees, or 10 percent of Safeco’s work force, will be cut over two years.

In 2002, the strategy proved successful as our financial strength began to recover and grow.

Utility exec Paula Reynolds joins the company as president and CEO in January 2006.