Auto Insurance has New Owner

 
AIG has been in the news a lot lately for the various problems that they have been having financially. First they were asking for assistance from the government, which they got; then they were in trouble for spending that money on trips for their executives. The only thing that was making sense was that the auto insurance company was seeking someone to take over part of their company so that they could start to be self sufficient again.
 
They have finally reached a deal with Zurich Financial Services where they have acquired the auto insurance arm of AIG. Their US subsidiary, Farmer’s Group, has taken over the auto insurance portion of the company, and paid a hefty $1.9 billion dollars to do so. The company released a statement to the effect that both companies were pleased with the deal and that this would be a big help to the auto insurance company.
 
The deal was definitely in favor of the purchaser however, and reports have the deal estimated as much lower than what the auto insurance arm of the company was actually worth. It seems that one of the auto insurance companies that they purchased, 21st Century Insurance had brought in more than $3.6 billion in premiums just on their own.
 
Experts say that this is probably the world’s largest auto insurance market and that by purchasing it they have just set themselves up for a very prolific and successful future. They will assuredly do better than AIG has done with it, and will probably see a much larger return on their investment.

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