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Letter to the Editor
Monday August 2
Safeco Sells Life and Investments Unit for $1.51 Billion
Insurance firm Safeco Corp. has completed the sale of its life and investments unit to an investor group led by White Mountains Insurance Group Ltd. and Berkshire Hathaway Inc. for $1.51 billion.The company said it will use about $710 million of the proceeds to pay down $620 million in debt, and returned $620 million to shareholders through the repurchase of 13.2 million shares, or nearly 10 percent of Safeco's outstanding shares. Approximately $150 million will be held at the parent company for future uses, Safeco said. The company also reduced its line of credit, which runs through September 2005, to $300 million from $500 million.
"With the sale completed, our energy and focus are fully directed on our property and casualty business," Mike McGavik, Safeco's chairman and chief executive officer, said in a statement.
Safeco sold Safeco Trust Co. in April and completed the sale of Talbot Financial Corp. in July.
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