Liberty buys Safeco Insurance 6.2 billion

Liberty Insurance purchased Safeco Insurance for 6.2 billion

Liberty Mutual Group Inc. agreed to buy Safeco Corp. for about $6.2 billion,
taking advantage of a 19 percent drop in the company's stock this year to strike
the industry's biggest transaction since 2004.
Liberty Mutual, owned by its
policyholders, will pay $68.25 a share in cash for Safeco, 51 percent more than
Tuesday's closing price, the companies said. The purchase will create the
fifth-largest U.S. property and casualty insurer, the biggest deal since St.
Paul Cos. and Travelers Property Casualty Corp. combined in a $17.9 billion
merger.
Safeco's sale may signal the start of an industry consolidation
predicted on April 14 by Accenture Ltd. after insurance stocks fell 15 percent
in the first quarter. The Seattle-based insurer's auto unit posted a loss at the
end of 2007 because of rising medical claims and repair costs, leading to a 33
percent decline in Safeco's fourth-quarter profit. ....Insurance