AIG closes $1.9B sale of 21st Century Insurance
By
Associated Press
July 2, 2009
|
American International Group Inc. said late Wednesday it has closed the sale of 21st Century Insurance Group to Farmers Group Inc. for $1.9 billion.
The 21st Century Insurance business is a subsidiary of AIG's U.S. personal auto insurance division.
Farmers Group is a subsidiary of Zurich Financial Services Group Unit.
The deal, which was first announced in April, includes $1.7 billion in cash and $200 million in subordinated, Euro-dominated capital notes backed by Zurich Insurance Co., Zurich's principal operating unit.
Farmers Group 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.
The closing represents further progress in AIG's restructuring efforts, CEO Edward Liddy said in a statement.
AIG shares gained 31 cents to $18.37 in afternoon trading Thursday.
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