Swiss insurance company Zurich Financial Services AG said Thursday its subsidiary Farmers Group, Inc. has completed the acquisition of 100% of American International Group Inc’s (AIG) US Personal Auto Group, which includes “21st Century Insurance” (comprising the former “AIG Direct” and “21st Century Insurance”), as well as AIG’s “Agency Auto”.
The transaction positions the Farmers Exchanges as the third largest traditional direct writer of insurance in the US and the third largest US personal lines insurer overall.
The purchase price amounts to approximately USD1.9 billion, of which USD1.7 billion (previously indicated at USD1.5 billion) was paid in cash and USD0.2 billion (previously indicated at USD0.4 billion) in Euro denominated Capital Notes.
The purchase price implies a Price to tangible Book multiple of 1 times.
