AIG Completes Sale of 21st Century Insurance to Zurich Financial Services Group Unit

 

Thursday, Jul 02,2009, 10:42:09 AM   Click:

American International Group Inc (AIG) announced today that it hasclosed the sale of 21st Century Insurance Group, the entire ownedsubsidiaries AIG in the U.S. personal auto insurance in FarmersGroup, Inc. (FGI), a Zurich subsidiary, for $ 1.9 billion, consistingof $ 1.7 billion in cash and $ 200 million in face value of subordinated securities of euro-denominated notes by Zurich Insurance Company, Zurich's main unit holding. IGF 21st Century'soutstanding also assumed debt of $ 100 million.


The transaction excludes AIG Private Client Group, which providesproperty insurance and high net worth individuals.


"Closing of the sale of 21st Century Insurance Group AIG said in furtherprogress restructuring efforts," said Edward Liddy, AIG'sChairman and CEO. "In addition, IAU Holdings transactionfurther improves the quality of capital monetization itsinterest in the 21st Century Insurance Group. "


AIG in the U.S. personal auto insurance includes 21st CenturyInsurance (including former AIG Direct and 21st Century Insurance) as well as AIG Agency Auto.


American International Group Inc (AIG), a global leader in insuranceand financial services, is the international leader insuranceorganization with operations in over 130 countries andjurisdictions. AIG companies serve commercial, institutional andindividual customers through the most extensive worldwideproperty accident 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 commonstock is listed on the New York Stock Exchange, as well as stockexchanges in Ireland and Tokyo.