Nasdaq-listed insurer Safeco has reported fourth-quarter net income of $8.6m (£6.1m), or 6 cents per share, compared with net income of $10.2m (£7.2m), or 8 cents per share, in the same quarter of 2000.
Excluding charges, Safeco posted income of $17.1m (£12.1m), or 13 cents per share, compared with an operating loss of $13.6m (£9.7m), or 11 cents per share, in the year-ago period.
Analysts had, on average, expected a gain of 10 cents per share, according to Thomson Financial/First Call.
Revenue was flat at about $1.6bn (£1.1bn).
Safeco provides property & casualty, surety and life insurance throughout the US. Its other operations include commercial lending and leasing, investment management and insurance agency and financial services distribution.
Safeco president and chief executive officer Mike McGavick, who joined the company on 30 January 2001, said: "We've closed the books on one of the most difficult years in our company's history."
A number of unconnected items hit the company's quarterly results. These included an $18m loss from surety bonds written for bankrupt energy merchant Enron, a $17m increase in loss estimates from the attack on the World Trade Centre, a $13.1m write-off of goodwill tied to its 1999 purchase of RF Bailey weather-related catastrophes that generated $32.3m of losses, and the write-down of $70.2m in its investment portfolio.
The insurance company said its struggling homeowners and large-commercial operations continued to "show positive signs." In the quarter, its homeowners group posted an underwriting loss of $33.2m, roughly even with the comparable quarter in 2000.
"We're pleased with our progress," McGavick said. "Life & Investments produced the best year in its history. The turnaround in our Personal Auto and Business Insurance lines remains on track.
"And while still troubled, our Homeowners and large-commercial books of business are starting to show positive signs."
