Each share of Safeco will be exchanged for $68.25 cash, nearly a 51 percent premium over Safeco's closing stock price of $45.23 on Tuesday.

Liberty Mutual is the sixth-largest property and casualty insurer in the United States, based its 2007 direct written premium of $20.2 billion. Safeco had 2007 direct written premium of $5.9 billion.

"Safeco's operations and product mix complement our existing Agency Markets operations," Liberty Mutual Chairman Edmund Kelly said in a statement.

Safeco would become part of Liberty Mutual's Agency Markets business unit. Combined, the organization would have about 15,000 independent agencies.

The deal is subject to approval by Safeco shareholders, as well as regulatory approvals and conditions. The transaction, which is not subject to financing conditions, is expected to close by the end of the third quarter.

Shares of Safeco jumped 46.2 percent, or $20.89, to $66.12 on the New York Stock Exchange. Before that rise, the shares traded at about 7.5 times earnings, below the sector's average multiple of 18.5.

Safeco is scheduled to report first-quarter earnings on April 30. In the fourth quarter, Safeco's net income fell by nearly a third because of competition in auto insurance and losses from California wildfires.

The company had been facing increasing competition from rival car insurers such as Progressive Corp (PGR.N:) , which had been dropping prices to gain market share. (Reporting by Jessica Hall; editing by John Wallace and Steve Orlofsky)

Early yesterday, Health Plan Week issued a special alert after UnitedHealth Group announced that it is lowering its full-year 2008 earnings outlook by 10%. Other health plans are expected to follow suit with negative earnings revisions for the remainder of 2008. The anticipated revisions, analysts say, reflect expectations of a higher commercial medical loss ratio and reduction in investment income (due to recent interest-rate cuts).

Aaron Vaughn, a securities analyst in the St. Louis office of Edward Jones, says health plan stocks are trading at “historic lows” relative to their price-to-earnings (P/E) ratios.

The next worst quarter was the fourth quarter of 1997, “when the sector underperformed the S&P 500 by 22.6%,” adds Stifel Nicolaus equities analyst Tom Carroll. Back then, he tells AIS’s Health Plan Week, there was an abundance of managed care companies, and they competed largely on price to improve market share. While investors rewarded firms that successfully grew membership, some health plans reduced prices at their own peril, and ultimately failed in that strategy because premium revenue wasn’t enough to cover medical costs, he says.

More Plans May Cut Forecasts

Much of the first-quarter deterioration, however, didn’t occur until March 10, when WellPoint, Inc. shocked investors by lowering its full-year 2008 earnings per share expectations. Humana Inc. followed the next day with its own revision, citing different reasons. While Aetna Inc. and CIGNA Corp. responded to those revisions by reaffirming earnings forecasts, UnitedHealth Group, Health Net, Inc. and Coventry Health Care, Inc. have since released statements that fell short of reaffirming earlier forecasts.

This article has been excerpted from AIS’s Health Plan Week. To read the story in its entirety, including the table “Year-to-Date Stock Price Loss or Gain and Price-to-Earnings Ratios as of Last Trading Day of March 2006 to 2008,” visit www.aishealth.com/PressReleases/PR2008_0423_hpw.pdf. For more information on AIS’s Health Plan Week, visit www.aishealth.com/Products/NewsMCW.html.

The bill would eliminate the inequities in federal tax law by excluding the value of domestic partner health coverage from the taxable income of the employee and from wages for purposes of payroll tax obligations. The bill would correct these inequities for domestic partners and others who qualify as plan beneficiaries under the employer plan but do not meet the tax code definition of spouse or dependent.

In particular, it would permit a Voluntary Employees’ Beneficiary Association (also known as a VEBA) to provide full benefits to domestic partners or other non-spouse, non-dependent beneficiaries without endangering its tax-exempt status.

A number of colleges and universities currently provide benefits to domestic partners. Many of these institutions are also considering participating in a tax-exempt VEBA or other similar trusts, as a way to help employees save additional resources to offset the rising cost of health care in retirement.

“We support those institutions that wish to help cover the retirement health care needs of employees and their dependents,” said Nancy Heller, Senior Managing Director and Head of Institutional Relationships. “We look forward to working as part of the coalition to support passage of legislation that would enable VEBAs to provide full benefits to domestic partners.”

“Every American deserves to be treated with dignity, respect and equal treatment under the law, but that is not happening in the workplace today, because of a glaring inequity that treats a married couple differently than domestic partners when it comes to an employer’s contribution for a health care premium,” Rep. Jim McDermott said. “This is absolutely wrong and I intend to correct this through the Tax Equity for Health Plan Beneficiaries Act.” www.tiaa-cref.org

While the University says the personal information will be hard to access, LoudSiren understands that many University of Miami patients may not want to take that chance.

The U.S. Securities and Exchange Commission cited confidentiality for its decision, the report said.

Sen. Charles Grassley, an Iowa Republican, sent the SEC a letter on April 2 asking for details on why the regulatory body dropped its investigation into the Wall Street firm, the Journal said.

The report added that SEC Chairman Christopher Cox replied in an April 16 letter, saying: "The Commission does not disclose the existence or nonexistence of an investigation or information generated in any investigation unless made a matter of public record in proceedings brought before the Commission or the courts."

Bear Stearns agreed last month to be bought by JPMorgan Chase & Co (JPM.N:) for $10 a share in an all-stock transaction to save it from bankruptcy.

The SEC and Bear Stearns were not immediately available for comment.

(Reporting by Aarthi Sivaraman)

© Thomson Reuters 2008 All rights reserved

LONDON--(BUSINESS WIRE)--Clients of Willis Group Holdings (NYSE: WSH), the global insurance broker, will now have access to the world’s first carrier benchmarking tool, the Willis Quality Index®. Aimed at helping clients make more informed insurance decisions, the new tool will rate and compare carriers on their performance in underwriting, policy administration, claims performance and service activities.

After two years in development and four carrier evaluation surveys gathering qualitative opinions from nearly 4,000 Willis Associates across the globe, the Willis Quality Index has been designed to help clients identify carriers that best meet their individual needs, on a risk-by-risk basis. The Willis Quality Index recognises that a client’s needs and priorities may vary by risk profile and therefore compares only carriers within a specific sector, under the guidance of accredited Willis Client Advocates® and Account Executives.

Commenting on the launch of the Willis Quality Index, Joe Plumeri, Chairman and CEO of Willis, said: “The Willis Quality Index is the ultimate buyer’s guide. It cuts through all the pre-conceived notions of buying the cheapest insurance deal and helps clients select the best partners based on superior performance. By working in partnership with carriers, sharing information from the Willis Quality Index relevant to them, we can together help raise industry standards.”

Carriers are evaluated and assigned stars that are based on their relative performance compared to other carriers in each business sector. Carriers scoring in the top 10% of the range of scores in each sector are assigned five stars; those with scores in the bottom 10% receive one star.

Willis has been sharing the draft findings with major carrier groups over the past year. From their latest Spring 2008 Willis Quality Index carrier survey, Willis found evidence that carriers across all parts of the business had scored, on average, better than in their last survey, suggesting that carriers are recognising the increasing importance of quality service in a soft market.

For more information on the Willis Quality Index go to:  http://www.willis.com/About_Willis/Willis_Quality_Index/ 

WASHINGTON, April 23 /PRNewswire-FirstCall/ -- Most U.S. companies do not support a single-payer health care system or state legislation mandating coverage. Instead, they prefer relying on private-sector solutions, according to research by Watson Wyatt Worldwide, a leading global consulting firm, and the National Business Group on Health.

More than three-quarters (84 percent) of employers do not support a single-payer system such as universal health care coverage. Instead, 78 percent favor private-sector solutions, according to the 13th annual Watson Wyatt/National Business Group on Health report. The organizations surveyed 453 large U.S. employers between November 2007 and January 2008.

"With the election approaching, health care issues are again in the spotlight," said Ted Nussbaum, director of group and health care consulting in North America for Watson Wyatt. "The link between health and productivity is a vital part of a company's success. Most employers are not willing to cede influence over programs that affect their workers' health."

More than two-thirds of employers (69 percent) do not support state legislation such as the law enacted in Massachusetts that mandates coverage for state residents. Nearly the same percentage (63 percent) support a joint effort between the public and private sectors that combines government programs, employer coverage and individual requirements. 

"Despite their frustration with rising costs, employers believe they can do a better job managing costs and meeting the needs of their workers than the government can," said Nussbaum. "In the last few years, companies have made considerable progress in increasing employee engagement in health care, through private-sector initiatives such as consumer-directed health plans and health savings accounts. Many feel they will be able to make even more headway in the future."

While companies continue to monitor legislative activity, more than a third (35 percent) say reform proposals are having no influence on their decisions to make plan changes, and 62 percent are still making plan changes as they monitor reform proposals. 

An overview of the 2008 presidential candidates' health care reform proposals is available in the latest issue of the Watson Wyatt Insider at http://www.watsonwyatt.com/healthreform.  

NEW YORK--(BUSINESS WIRE)--The AIG Companies® today introduced AIG PassportSM for Pollution Legal Liability (PLL), a service for U.S.- or Canada-based multinational companies to facilitate purchasing locally admitted PLL insurance to cover international operations and subsidiaries.

PLL policies provide liability coverage for clean-up costs, or third-party claims for bodily injury and property damage arising from losses due to on- or off-site pollution conditions from an owned or operated property. PLL coverage also addresses pollution conditions resulting from transporting wastes or products to sites not owned by the insured.

AIG Passport for PLL is available to address environmental risks in one or more foreign jurisdictions. Foreign PLL policies written through AIG Passport are issued by the locally licensed AIG Company, in compliance with local laws and regulations. Claims are handled by local AIG claims examiners who are supported by a home country claims management team. AIG Passport for PLL is available for new and renewal business.  www.aigpassport.com. 

Because of this trend, Fireman’s Fund has removed liquor receipt restrictions for upscale restaurants. “Restaurants that meet this demand have had to place their insurance in specialty markets due to the increased liquor liability,” says Brian Gerritsen, hospitality product director, Fireman’s Fund. “We eliminated the receipts restriction on upscale restaurants to provide a simpler and more comprehensive risk management option,” says Gerritsen.

Focus group research has shown that restaurants with affluent clientele are interested in a full menu of coverage options including non-employment discrimination, communicable disease expense, food spoilage, and data compromise coverage. www.firemansfund.com

NEW YORK--(BUSINESS WIRE)--American International Group, Inc. (AIG) announced today that it has completed funding for projects in China and the United States that will reduce or sequester greenhouse gas (GHG) emissions. Total funding of the projects is approximately $4 million.

Completing the projects will generate more than 620,000 metric tons of CO2 offset credits, an amount that represents all of the GHG emissions attributable to AIG’s global operations in 2006 as determined by its global greenhouse gas emissions inventory. The credits will then be retired as part of the company’s ongoing environmental strategy.

ST. LOUIS, April 23 /PRNewswire/ -- As hurricane season approaches, GMAC Insurance today revealed the top tips for drivers to keep themselves and their assets secure before a storm heads their way. The company is arming consumers with this information after finding survey results that indicate an alarming number of people are not confident their possessions would be protected if a hurricane strikes.

The GMAC Insurance survey, which polled 5,524 licensed Americans from all 50 states and the District of Columbia, reports that 42 percent of respondents (nearly 85 million licensed drivers) do not feel confident that their assets would be fully covered by their insurance companies in the event of a hurricane. Regional findings show that drivers in the South and the West were most likely to report lack of confidence; numbers were slightly lower in the Midwest and the Northeast.  http://www.gmacinsurance.com

BASEL (Reuters) - UBS (UBSN.VX:) signaled that it will cut its investment bank to a rump after lost bets in subprime mortgages landed the Swiss group with a $37 billion bill, making it the biggest casualty of the financial crisis.

The group's new chief executive told shareholders on Wednesday that the investment bank would no longer be allowed to use UBS's prized wealthy client base to refinance the business, effectively cutting its lifeline.

"The capital required by the investment bank for future growth must be generated under its own steam," Marcel Rohner told shareholders.

Although it will keep a rump to sell special products to UBS's wealthy customers, his words mark the departure of an investment banking titan from the global stage and an end to the hopes of fallen chairman Marcel Ospel to conquer Wall Street.

UBS investors gathered on Wednesday to consider a second emergency capital increase within months in order to stabilize the Swiss bank reeling from the subprime crisis.

It coincides with Royal Bank of Scotland's shareholder meeting in Edinburgh, when the board of management is set to come under pressure after a 12 billion pound ($23.89 billion) rights issue to cover damage from toxic investments, the biggest ever cash call by a UK company.

The shareholder meeting in Switzerland is also the last time chairman Marcel Ospel faces angry investors.

The 58-year-old architect of UBS, who had ruled with an iron hand, has been sacked and will likely be replaced by the bank's chief lawyer, Peter Kurer.

(Editing by Paul Bolding)

© Thomson Reuters 2008 All rights reserved

The video simulates an actual interview between a planner and prospective clients that demystifies the interplay of the key components of the wealth planning process.  To view the video, please visit http://www.youtube.com/watch?v=JwSosl4xpCY.

For additional information about Wealthy and Wise, please visit

http://www.insmark.com/ProductCenter/WAW/index.html

For licensing information about InsMark products, individual producers should contact an InsMark Account Executive at 1-888-InsMark (467-6275).  Institutional inquiries should be made to David Grant, Sr. V.P. - Sales at 1-925-543-0513 (dag@insmark.com). For detailed information about InsMark’s entire product line, please visit www.insmark.com.

New York, April 23, 2008

Guy Carpenter & Company, LLC, the leading global risk and reinsurance specialist, today published The Market’s Mixed Signals: Reinsurance Renewals at April 1, 2008, its annual review of reinsurance market conditions at the April 1 renewals period. The briefing focuses on developments in a number of key territories, including India, Japan, the Republic of Korea and the United States, across several classes of business.

According to the briefing, rates across each line in Japan generally decreased from 5 percent to 10 percent. In Korea, reductions were as high as 20 percent for some programs. In the United States, insurers remained aggressive and also achieved significant rate reductions.

The April 1, 2008 renewals period is characterized by mixed signals being sent to the global market. While cedents pushed hard for rate reductions in Asia, reinsurers stood firm, with rates in general already close to technical levels. Most of the rate decreases witnessed in Asia were therefore in the single digits. In contrast, cedents in the United States were more successful in achieving substantial rate reductions as competitive forces prevailed.

"Against the background of a softening reinsurance market in Asia, cedents generally were successful in their push for rate reductions,” said Edward Fenton, Managing Director, Guy Carpenter. "However, reinsurers were able to differentiate between clients and territories. Where rate levels were judged to be nearer to technical minimums, loss history is poor or capacity is tight, the market exercised greater rate discipline."

“As we look ahead to the June 1 and July 1 renewals periods, current trends would suggest that rates in the U.S. are likely to continue to decline,” said Kevin Stokes, Managing Director and Global Head of Guy Carpenter's Property Specialty Practice. “However, this assumes catastrophe losses will remain low. With forecasters expecting an above-average North Atlantic hurricane season, we could see a shift in market dynamics.”

A full copy of the briefing is available for download at www.guycarp.com.

NEW YORK--(BUSINESS WIRE)--The MetLife Mature Market Institute® is making a series of tips available to consumers, particularly those who are not in “traditional families,” to help them make the right choices about how to prepare for retirement, despite the challenges they face. “Family Matters: Retirement Preparation Tips for Different Family Types” follows the Institute’s recent Family Matters study which reports that planning for retirement is tougher and more complicated for middle-aged Americans who are married with children from previous relationships and for single women.

To receive a copy of the tip sheet, Family Matters: Retirement Preparation Tips for Different Family Types, please write to the MetLife Mature Market Institute, 57 Greens Farms Road, Westport, CT 06880, call (203) 221-6580 or e-mail: MatureMarketInstitute@metlife.com. The publication can also be accessed online at http://www.maturemarketinstitute.com/  under ‘What’s New.’