New York  - Liberty Mutual Group Inc is acquiring Safeco Corp for about 6.2 billion dollars in the largest insurance industry deal since 2004, the two companies said Wednesday.

Liberty Mutual, owned by its policyholders, is paying a 51 per cent premium on Safeco's stock, or 68.25 dollars.

The merger will create the fifth-largest US property and casualty insurer, the biggest deal since St Paul Cos and Travelers Property Casualty Corp combined in a 17.9 billion-dollar merger, Bloomberg financial news agency reported. (dpa)