Declarations

Boon for Buyer

“This is the opportunity to take West Coast inventiveness and launch it with a global brand at a substantial premium to Safeco shareholders.”

—Safeco President and CEO Paula Roseput Reynolds, commenting on Liberty Mutual Group’s intention to acquire all outstanding shares of common stock of Safeco Corp. for $68.25 per share. The proposed transaction, which is valued at approximately $6.2 billion, is expected to close by the end of the third quarter of 2008. The deal will make Liberty Mutual the fifth largest U.S. property/casualty insurer and second largest surety writer.

Bill Leads to ‘Bad Faith’

“Insurers take very seriously their obligation to uphold the terms of the insurance contract and to act fairly with policyholders and individuals who file claims. Insurers are committed to investigating claims thoroughly and promptly. A complete review of a claim benefits consumers by reducing instances of fraud. These investigations ultimately help to keep insurance costs in check by ensuring that only legitimate claims and charges are paid.”

—The Property Casualty Insurers Association of America commenting in a press release that it believes Colorado House Bill 1407 is unnecessary and would expand “bad faith” liability for insurance companies. The bill is designed to protect consumers by strengthen penalties — up to $50,000 per act or $750,00 in the aggregate — when insurance carriers act unreasonably. The bill was under consideration by the House at press time.