The Farmers Insurance Group of Companies will acquire America International Group???s (AIG???s) Personal Auto Group, which includes 21st Century Insurance Co., for A$2.7 billion.
Under the agreement, 21st Century Insurance Group, the wholly owned subsidiaries comprising AIG???s US personal auto insurance business, will be sold to Farmers Group, a Los Angeles-based subsidiary of Zurich Financial Services Group. Farmers Group will sell the underlying insurance entities to the Farmers Exchanges, which Farmers Group manages, but does not own. The acquisition is expected to close by the third quarter of 2009, pending regulatory approvals.
This acquisition by the Farmers Exchanges will position Farmers as the third largest overall, personal lines insurer in the United States, according to industry data. The acquisition also will position the Farmers Exchanges as the largest auto insurer in several states, including California.
Farmers is a leading, top-tier, multi-lines US insurer of autos, homes, businesses, specialty products, life insurance and financial services, providing insurance to 10.5 million households in the United States.
For more information, visit www.farmers.com.