Safeco moves investment money to BlackRock

NEW YORK, May 29 (Reuters) - Safeco Corp. SAF.N, a property and casualty insurer, said on Tuesday asset management firm BlackRock Inc. (BLK.N) will assume management of its roughly $10.5 billion investment portfolio.

Safeco said it expects to move its assets to BlackRock in the third quarter, according to a filing with the U.S. Securities and Exchange Commission.

Previously the portfolio was managed internally, spokesman Paul Hollie told Reuters.

Hollie said the development was part of the insurer's previously announced process improvement initiative.

BlackRock, which will also provide investment accounting services to Safeco, was chosen because it has "sophisticated risk management and experience to help us more efficiently and effectively reach our goals," said Hollie.