NEW YORK--Jul. 1, 2009--
American International Group, Inc. (AIG) announced today that it has
closed the sale of 21st Century Insurance Group, the wholly owned
subsidiaries of AIG’s U.S. personal auto insurance business, to Farmers
Group, Inc. (FGI), a subsidiary of Zurich, for $1.9 billion, consisting
of $1.7 billion in cash and $200 million in face amount of subordinated,
Euro-denominated capital notes backed by Zurich Insurance Company,
Zurich’s principal operating unit. FGI also assumed 21st Century’s
outstanding debt of $100 million.
The transaction excludes AIG’s Private Client Group, which provides
property and casualty insurance to high-net-worth individuals.
“Closing the sale of 21st Century Insurance Group denotes further
progress in AIG’s restructuring efforts,” said Edward Liddy, AIG’s
Chairman and Chief Executive Officer. “In addition, the transaction
further improves AIU Holdings’ quality of capital by monetizing its
interest in 21st Century Insurance Group.”
AIG’s U.S. personal auto insurance business includes 21st Century
Insurance (comprising the former AIG Direct and 21st Century Insurance),
as well as AIG’s Agency Auto.
American International Group, Inc. (AIG), a world leader in insurance
and financial services, is the leading international insurance
organization with operations in more than 130 countries and
jurisdictions. AIG companies serve commercial, institutional and
individual customers through the most extensive worldwide
property-casualty and life insurance networks of any insurer. In
addition, AIG companies are leading providers of retirement services,
financial services and asset management around the world. AIG's common
stock is listed on the New York Stock Exchange, as well as the stock
exchanges in Ireland and Tokyo.
Source: American International Group, Inc.
American International Group, Inc.