AIG of the auto insurance business, selling Woodland Hills-based 21st Century Insurance to Farmers Insurance Group for $1.9 billion. Los Angeles based-Farmers, a subsidiary of Zurich Financial Services Group, will keep the 21st Century brand. AIG sold auto insurance policies through its subsidiary unit, AIG Direct. The policies they offered included insurance for private automobiles, motorcycles, recreational vehicles and commercial vehicles.
AIG purchased the remaining 39% that it did not own of online auto insurance specialist 21st Century Insurance in 2007 for $749 million. With the failure of the parent company and the continuing recession in late 2008, AIG rebranded its insurance unit to 21st Century Insurance
“We’re excited about what this can do for us in the future,” Farmers CEO Robert Woudstra said in a conference call.
“Research clearly shows that more and more insurance consumers are shopping, quoting and purchasing insurance products online,” Woudstra said.
“What this transaction really does is put us in position … to sell additional products that customers have needs for but 21st Century doesn’t sell.”
The Farmers Insurance Group of Companies is a personal lines property and casualty insurance group providing homeowners insurance, auto insurance, life insurance, and financial services in the United States. It is the third largest insurance group in the US servicing over 10 million households in 41 states. While Farmers is a wholly owned subsidiary of Zurich Financial Services, it is locally headquartered in Los Angeles, California.The deal is expected to close in the third quarter and includes Farmers assuming $100 million 21st Century’s outstanding debt.
AIG purchased the remaining 39% that it did not own of online auto insurance specialist 21st Century Insurance in 2007 for $749 million. With the failure of the parent company and the continuing recession in late 2008, AIG rebranded its insurance unit to 21st Century Insurance
“We’re excited about what this can do for us in the future,” Farmers CEO Robert Woudstra said in a conference call.
“Research clearly shows that more and more insurance consumers are shopping, quoting and purchasing insurance products online,” Woudstra said.
“What this transaction really does is put us in position … to sell additional products that customers have needs for but 21st Century doesn’t sell.”
The Farmers Insurance Group of Companies is a personal lines property and casualty insurance group providing homeowners insurance, auto insurance, life insurance, and financial services in the United States. It is the third largest insurance group in the US servicing over 10 million households in 41 states. While Farmers is a wholly owned subsidiary of Zurich Financial Services, it is locally headquartered in Los Angeles, California.The deal is expected to close in the third quarter and includes Farmers assuming $100 million 21st Century’s outstanding debt.