Farmers Press Release
FOR IMMEDIATE RELEASE
Mark Toohey 805-907-2216
mark firstname.lastname@example.org OR Jerry Davies 213-400-4459 email@example.com
FARMERS INSURANCE ACQUISITION OF 21st CENTURY INSURANCE FINALIZED
LOS ANGELES, CA—(July 1, 2009) - The Farmers Insurance Group of Companies® announced today that it 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 strengthens Farmers’ place as the 3rd largest personal lines insurer in the US. And, the acquisition positions 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 US. Further, 21st Century