The acquisition of 100% of the U.S group called the AIG U.S personal auto group has been completed by the Farmers insurance group of companies which is located in Los Angeles. This acquisition includes the insurance of the 21st century. Along with the 21st century insurance, the acquisition also includes the agency auto business and former AIG direct business. The price available for purchase touches 1.9 billion dollars.
The agreements state that the business of AIG’s U.S personal auto insurance is actually being sold to the Farmers group inc. this group is Los Angeles based. It is a subsidiary of another group called the Zurich financial services group. The insurance entities in the acquisition will be sold by the Farmers group Inc to the farmers’ exchanges. Farmer’s exchanges are managed by farmers group Inc but it is not owned by it. These entities will be sold for 1.4 billion dollars approximately.
The acquisition given to the farmers exchange should be made use of accurately. It should strengthen the position of the farmer as an insurer on personal line basis in the United States. It should also bring out the name of the farmers exchangers ranking them as the largest insurers for auto insurance in many states. In the 81 year history of these farmers, this is the biggest acquisition ever made.
The companies that are acquired work their management in about 49 states and of course Washington D.C. they have 2.4 million customers under their hands and more than 4 million vehicles are being insured by them.
The CEO of Farmers group Inc, Robert Woudstra says that the insurance agents from all across the nation would be benefited by this acquisition. He says that 21st century customers will be allowed access to the farmers’ agents because of this acquisition. These agents can help the customers with many different insurance needs like specialty products, products offering financial services, business, home owners and most definitely life insurance.