ZURICH in Talks to Buy AIG

Posted & filed under Car Insurance News.

Amid speculation about President Obama’s stimulus bill and stocks that continue to plunge, comes more news from the American business front: troubled insurance conglomerate AIG (aka American International Group) one of the companies rescued by government funds last year (the same one that subsequently moved forward with an incredibly expensive junket) is reportedly in advanced negotiations with Swiss insurance company Zurich to sell its American auto insurance unit.

The unit in question, an auto insurance division which is part of AIG’s personal lines unit, is expecting to bring in a price of roughly $2 billion. Included in the auto insurance unit being sold is the book of business held by 21st Century Group.

According to numerous reports, previous announcements from AIG stated that the American company intended to sell parts of its personal lines divisions, including life insurance and property/casualty units.

Zurich, the company potentially buying AIG, has said that its plans involve the future expansion of its personal lines in North America, including global life insurance businesses.

The AIG/Zurich deal has not yet been cemented, but the signs are favorable.