Liberty Mutual Buying Safeco for $6.2 Billion

Boston-based Liberty Mutual Group announced today it is buying Safeco Corporation of Seattle for $6.2 billion and, as a result, will be the nation's fifth-largest property/casualty insurer. Obtaining a solid foothold in the West Coast market was apparently a prime reason for Liberty Mutual to offer $68.25 cash per share, which is a premium of about 51 percent above the price of Safeco's common stock before it skyrocketed today on the news.

Boards of both companies have approved the deal, which is subject to approval by Safeco's shareholders, they said. The transaction is expected to close by the end of the third quarter of 2008. Liberty Mutual already is the sixth-largest property and casualty insurer in the United States based on its 2007 direct written premium of $20.2 billion; Safeco had 2007 direct written premium of $5.9 billion, according to Liberty Mutual's announcement. Safeco will become part of Liberty Mutual Group's Agency Markets business unit once the acquisition is completed.

"The addition of Safeco significantly expands and strengthens the Liberty Mutual Group," said Edmund F. Kelly, Liberty Mutual Group's chairman, president, CEO. "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." Safeco President/CEO Paula Reynolds said, "This is the opportunity to take West Coast inventiveness and launch it with a global brand at a substantial premium to Safeco shareholders."

Download Center

HTML - No Current Item Deck
  • Free Safety Management Software Demo

    IndustrySafe Safety Management Software helps organizations to improve safety by providing a comprehensive toolset of software modules to help businesses identify trouble spots; reduce claims, lost days, OSHA fines; and more.

  • Get the Ultimate Guide to OSHA Recordkeeping

    When it comes to OSHA recordkeeping there are always questions regarding the requirements and in and outs. IndustrySafe is here to help. We put together this page with critical information to help answer your key questions about OSHA recordkeeping.

  • Safety Training 101

    When it comes to safety training, no matter the industry, there are always questions regarding requirements and certifications. We put together a guide that’s easy to digest so you can ensure you're complying with OSHA's training standards.

  • Conduct EHS Inspections and Audits

    Record and manage your organization’s inspection data with IndustrySafe’s Inspections module. IndustrySafe’s pre-built forms and checklists may be used as is, or can be customized to better suit the needs of your organization.

  • Track Key Safety Performance Indicators

    IndustrySafe’s Dashboard Module allows organizations to easily track safety KPIs and metrics. Gain increased visibility into your business’ operations and safety data.

  • Industry Safe
comments powered by Disqus