Liberty Mutual to buy Safeco

On Wednesday, property and casualty insurer Safeco Corp. agreed to be acquired by Liberty Mutual Group in a $6.2 billion deal.  The acquisition would make Liberty Mutual the fifth-largest property and casualty insurance-provider in the U.S. and the second-largest surety insurer.  It is an odd time for such a large deal in the insurance business given the current distress in the financial community.  Moreover, the deal will have to survive anti-trust analysis by either the DOJ or the FTC.  Perhaps they are anticipating tougher anti-trust review under a Democratic administration.