Safeco Makes Changes at Top.

Citing a need for leadership to help turn around its American States Business Insurance line and disappointing quarterly earnings, Safeco Corp. said Chief Executive Officer and Chairman Roger Eigsti is retiring at the end of the year, and Randy Stoddard, president of Safeco Property & Casualty Cos., has resigned, effective immediately.

"There was nothing wrong with the leadership," said William Reed Jr., the lead independent director for Safeco's board. "The progress we made up to the acquisition of American States in 1997 was satisfactory. But when we made the acquisition, the industry went south." Reed agreed that the company's results grew worse after it acquired American States for $2.8 billion.

Safeco has struggled with the integration of the company for months. In a May meeting with equity analysts, Stoddard said Safeco "is finally getting our arms around the ASI acquisition...I think we've stopped the bleeding."

So far, Safeco has received approval to increase homeowners insurance rates in 33 states and to raise automobile insurance rates in 32 states by more than 5%. During the past six months Safeco terminated about 100 of some 500 underwriting field managers. It also has consolidated offices in 13 regions.