Liberty Mutual buys Safeco

Liberty Mutual buys Safeco

Liberty Mutual company is a very well run company, the management team is top. I believe Liberty Mutual’s objective for buying Safeco is to create value from Safeco’s slack lines. Management at Liberty mutual is solid and I think it will not be hard for them to extract greater value from Safeco then the current management team in place now at Safeco. Safeco’s main weakness was from losses experienced in its auto insurance lines.

Liberty mutual will move from position six to position five in terms of property and causulaty companies. I beleive that insurnace is going through a long term conolidation and similar to banking in the 80s, the industy will find an equilibrium with more effciently run multi state companies.

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