A.I.G. to Sell Auto Insurance Unit

The American International Group agreed to offer its mishap scope business in the United States to Zurich Financial Services for $1.9 billion. It will be the move down arrangement's greatest asset bargain since the organization wandered in with help in September.

Zurich's Farmers Group will pick up the 21st Century Insurance Group from A.I.G. as an end-result of $1.5 billion exchange and $400 million out notes maintained by Zurich Insurance. The Farmers Group will moreover expect 21st Century's outstanding commitment of $100 million.

The unit being sold consolidates the past A.I.G. Direct and Agency Auto associations. It works in 49 states and Washington. In 2008, 21st Century uncovered mean premiums of $3.6 billion.

The course of action incorporates around 1.5 million direct auto customers and a normal 500,000 new customers a year to Farmers' own lines exercises. It moreover augments its geographic base, particularly in the eastern United States.

A.I.G. obtained out the minority financial specialists in 21st Century in 2007 out of a game plan that regarded the business, around at that point, at generally $2 billion.