Los Angeles-based has completed the acquisition of 100 percent of AIG’s U.S. Personal Auto Group, which includes 21st Century Insurance. In addition to 21st Century Insurance, the acquisition includes the former AIG Direct business and Agency Auto business. The purchase price amounts to approximately $1.9 billion.
Under the agreement, AIG’s U.S. personal auto insurance business is being sold to Farmers Group Inc., a Los Angeles-based subsidiary of Zurich Financial Services Group. Farmers Group Inc. will sell the underlying insurance entities to the Farmers Exchanges, which Farmers Group Inc. manages but does not own, for approximately $1.4 billion.
This acquisition by the Farmers Exchanges should strengthen Farmers’ place as a personal lines insurer in the United States, and position the Farmers Exchanges as the largest auto insurer in several states, including California. The acquisition is the largest in the 81-year history of Farmers.
The acquired companies operate in 49 states and Washington, D.C.; have more that 2.4 million customers; and insure more than 4 million vehicles in the United States, the company said.
According to Robert Woudstra, Farmers CEO, a national network of insurance agents will benefit from the acquisition. “This acquisition will enable 21st Century customers to have access to Farmers agents, who can help them with their other insurance needs, such as homeowners, business, specialty products, life insurance and financial service products,” he said.
Source: Farmers
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