NAIC members to approve the purchase of Personal Auto Group AIG's By Farmers Insurance Group

 

Thursday, Jul 02,2009, 12:17:05 PM   Click:

The National Association of Insurance Commissioners (NAIC) announced today that nine of its Member States have approved the acquisition of American International Group (AIG) Personal Auto Group, including ten-eight insurance companies and ten-insurance unrelated entities. The purchase of Personal Auto Group AIG's by Farmers Insurance Group, a subsidiary of Zurich Financial Services Group, has been in force since 1 July 2009. Effective cooperation between the NAIC and its powers, in addition to using the formula A subgroup of AIG Force (under the chairmanship of Pennsylvania), has facilitated the transaction.


Formula One sub-group takes its name from the NAIC, the form, a statement regarding the acquisition of control or merger with a national insurer, which must be filed with the State of domicile to the purchase of an insurance company. The group was responsible for managing communications and coordination of activities relating to the change in ownership of the approval process for insurers proposed to be sold by the AIG holding company. The approval of this purchase represents the steps taken by several States requiring coordination and approval by all national regulators.



"The success and effectiveness of this operation is a testament to the value of the state of collaboration," said Steve Poizner, Insurance Commissioner of California and lead regulator on the purchase. "Formula One subgroup has facilitated the approval process Form A between States to ensure that the sale of AIG insurance subsidiaries proceeded smoothly and orderly."
"The goal of this operation was to ensure that policyholders would not be affected," said Insurance Commissioner Joel Ario of Pennsylvania. "This is demonstrated by the sub-group of the undertaking of a study thorough and comprehensive terms of purchase agreement. "

Originally announced on 16 April 2009, the sale of AIG personal auto lines in companies located in the following nine states: California, Colorado, Delaware, Hawaii, Minnesota, New Jersey, New York, Pennsylvania and Texas.



About the NAIC



Established in 1871, the National Association of Insurance Commissioners (NAIC) is a voluntary organization of chief insurance regulatory officials of the 50 states, the District of Columbia United States and five territories. The NAIC has three offices: Executive Office, Washington, DC, Headquarters, Kansas City, Mo., and securities valuation office of the New York City. NAIC serves the needs of consumers and industry with an objective to support the state regulation of insurance because they protect consumers and maintain the financial stability of the insurance market. For more information, visit www.naic.org.