SAFECO and AAI Enter Agreement to Expand Presence inProviding Insurance for Attorneys.

Business Editors

SEATTLE--(BUSINESS WIRE)--June 5, 2000

SAFECO (Nasdaq:SAFC) has entered into an agreement with Administration Associates, Inc. (AAI) to provide malpractice insurance for attorneys in Maryland, Virginia, and Washington, D.C.

AAI is a wholly owned subsidiary

"We chose AAI because of its wealth of experience in the field, and because of its extensive market penetration," said Jim Stiegler, SAFECO vice president of Select Markets. "This provides a great opportunity for SAFECO to profitably grow this portion of our business."

AAI will initiate its program administrator role with SAFECO on July 12th. AAI will evaluate risks, underwrite insurance policies covering attorney's errors and omissions, and be responsible for marketing. In addition to Maryland, Virginia and Washington, D.C., SAFECO and AAI will jointly consider expansion of the program into other specified states in the near future.

"We're pleased that SAFECO and AAI have established this dynamic relationship." said Nick Gassman, vice president of Business Development for AGIA. "The partnership serves our mutual interests and provides both companies with the appropriate vehicle to expand their presence in the lawyers' professional market."

Currently, SAFECO offers errors and omissions insurance to attorneys practicing in Arizona, Colorado, Connecticut, Illinois, Indiana, Massachusetts, Nevada, New Mexico, Ohio, Oregon, Rhode Island and Utah. In addition, SAFECO offers errors and omissions insurance for other professions including accountants; architects and engineers; insurance adjusters and appraisers; directors and officers of non-profit organizations; and directors and officers of for-profit companies.

SAFECO, in business since 1923, is a Fortune 500 diversified financial services company based in Seattle. SAFECO and its more than 17,000 independent agents and investment advisors provide premier insurance and financial services to individual and business customers. You can find more information about SAFECO at its Web site, www.safeco.com.

AAI is a full-service insurance marketing, underwriting and administrative organization based in Washington, D.C. A specialist in professional liability, AAI has more than 28 years experience in insurance program management. AAI was acquired in 1997 by AGIA, also known Association Group Insurance Administrators. AGIA has been serving the insurance needs of affinity clients since 1956. The company is headquartered in Carpinteria, Calif., and has offices in Phoenix, Minneapolis, Chicago and Washington DC. AGIA is one of the largest privately owned broker administrators in the country and specializes in administration and marketing of a variety of insurance products. Along with their sister company, Insurance Central, AGIA/AAI serve clients representing more than 10,000,000 members nationwide.