Liberty Mutual to acquire Safeco

Liberty Mutual Group is acquiring Safeco Corporation for roughly US$6.2 billion.
Upon completion of the transaction, Liberty Mutual will become the fifth largest property and casualty insurer in the United States, the company reports in a release.
Currently, Liberty Mutual Group is the sixth-largest property and casualty insurer in the United States, based on the company’s 2007 direct written premium of US$20.2 billion. Safeco had 2007 direct written premium of US$5.9 billion.
The acquisition has been approved by both boards of directors, but is subject to approval by Safeco’s shareholders as well as the customary regulatory approvals and conditions, Liberty Mutual reports in a release.
The transaction is expected to close by the end of 2008 Q3.
“The addition of Safeco significantly expands and strengthens the Liberty Mutual Group,” Edmund F. Kelly, Liberty Mutual Group chairman, president and CEO, said in the release.
“Safeco’s operations and product mix complement our existing Agency Markets operations. Additionally, both organizations have superb surety businesses which when combined will form the second largest surety business in the United States.”