April 17, 2009
Farmers Group, Inc. agrees to purchase the Personal Auto Group, which includes 21st Century Insurance Co., of American International Group.
On April 16, Willkie client Farmers Group, Inc. (Farmers) agreed to purchase the Personal Auto Group, which includes 21st Century Insurance Co., of American International Group (AIG) for $1.9 billion. Immediately after the consummation of the acquisition, Farmers, a Los Angeles-based subsidiary of Zurich Financial Services Group, will sell the acquired regulated insurance businesses to certain insurance exchanges that are managed, but not owned, by Farmers. 21st Century Insurance Group, the wholly owned subsidiaries comprising AIG’s U.S. personal auto insurance business, includes the former AIG Direct business and Agency Auto business, and operates in 49 states and Washington, D.C. It is the third largest traditional "direct" writer of auto insurance in the United States, insuring more than four million cars. Farmers is a leading, top-tier, multi-lines U.S. insurer of autos, homes, businesses, specialty products, life insurance and financial services. Zurich Financial Services Group is a global insurance-based financial services provider with approximately 60,000 employees serving customers in more than 170 countries.
The deal was handled by a multidisciplinary team at Willkie, including: Thomas Cerabino (Corporate), Gregory Astrachan (Corporate), Mark Getachew (Corporate), Serge Benchetrit (Corporate), Richard Reinhold (Tax) and David Rubinsky (Executive Compensation and Employee Benefits); and associates Ameesha Hosmane (Corporate), Andrew Mariniello (Corporate), Urs Reinwald (Corporate), Kristen Smith (Corporate), Kevin Klesh (Environmental, Health and Safety), Jason Ertel (Executive Compensation & Employee Benefits), Robert Kofsky (Intellectual Property), Fara Sunderji (Intellectual Property), Carly Glover (Real Estate), Steven Rosenzweig (Real Estate), Anthony Tortora (Real Estate) and Amanda Granacher (Tax).
