WHO: Delaware Governor Jack Markell (invited), Insurance Commissioner Karen Weldin Stewart and Director of Economic Development Alan Levin (confirmed), will join Paul N. Hopkins, Farmers Group, Inc. Chairman of the Board and CEO of the Americas, Zurich Financial Services; Farmers Group, Inc. CEO F. Robert Woudstra; and 21 st Century CEO Tony DeSantis WHAT: Press conference at Noon, to discuss 21 st Century acquisition WHEN: Tuesday, July 14, 2009 WHERE: 21st Century Insurance and Financial Services, 3 Beaver Valley Road, Wilmington, DE 19803. Call-in number for media unable to attend: 1-877-672-1055 Code: 2522115
The Farmers Insurance Group of Companies(R), has completed the acquisition of AIG's U.S. Personal Auto Group, which includes 21st Century Insurance. A formal signing ceremony press conference to discuss the acquisition will be held at 21 st Century's headquarters Tuesday, July 14, 2009 at noon.
As a result of the acquisition, AIG's U.S. personal auto insurance business has been sold to Farmers Group, Inc., a Los Angeles-based subsidiary of Zurich Financial Services Group. Farmers Group, Inc. then sold the underlying insurance entities to the Farmers Exchanges, which Farmers Group, Inc. manages but does not own, for approximately $1.4 billion.
"On behalf of Zurich Financial Services, I would like to extend a warm welcome to 21st Century CEO Tony DeSantis and his highly professional and accomplished management team and employees," said Paul N. Hopkins, Farmers Group, Inc. Chairman of the Board and CEO of the Americas, Zurich Financial Services.
"This acquisition represents a perfect strategic business fit and will dramatically transform the insurance landscape by positioning Zurich/Farmers as the leading multi-line, multi-channel insurer in the U.S. Most importantly, this acquisition enables us to accommodate the shopping needs of all insurance consumers in North America," Hopkins added.
Farmers Group, Inc. CEO F. Robert Woudstra described the acquisition as a positive and historic milestone for Farmers, 21st Century, Farmers agents, and, most importantly, insurance consumers across the U.S.
"This acquisition by the Farmers Exchanges strengthens Farmers place as the 3rd largest personal lines insurer in the U.S., and the acquisition positions the Farmers Exchanges as the largest auto insurer in several states, including California," noted Woudstra. "The acquisition is the largest in the 81-year history of Farmers."
The acquired companies operate in 49 states and Washington, D.C.; have more that 2.4 million customers; and insure more than 4 million vehicles in the U.S. Further, 21st Century Insurance is the nation's 3rd largest traditional "direct" writer of insurance. Without including 21st Century customers, Farmers already provides auto, home, business, specialty, life insurance and financial services to 10.5 million U.S. households.
In addition to the positive impact on consumers, Mr. Woudstra explained that Farmers vast national network of insurance agents also will benefit from the acquisition. "This acquisition will enable 21st Century customers to have access to Farmers agents, who can help them with their other insurance needs, such as homeowners, business, specialty products, life insurance and financial service products," Mr. Woudstra said.
"Since our founding in 1928, Farmers has been built by thousands of loyal, passionate, customer-focused Farmers agents, district managers and employees," Mr. Woudstra added. "Farmers is strongly committed to growth, success and expansion, all of which include a strong, vibrant agency distribution system. The acquisition of 21st Century is an extension of that commitment to our agents, raising their visibility and access to the rapidly expanding network of internet shoppers."
Mr. Woudstra explained research clearly shows that more and more insurance consumers are shopping, quoting and purchasing insurance products online. "This addition of 21st Century will provide Farmers with a geographically broader and more diverse market presence across the country, including the eastern seaboard - a key target market for future Farmers growth." Mr. Woudstra added.
"When you combine this acquisition with our other, successful, recent acquisitions and integrations of the Foremost Insurance Group in 2000 and the Bristol West Insurance Group in 2007, it's quite obvious we are committed to growing our business when it makes strategic sense to do so for the benefit of our customers, our agents and our prospective customers," concluded Mr. Woudstra.
Farmers is a trade name and may refer to Farmers Group, Inc. or the Farmers Exchanges, as the case may be. Farmers Group, Inc., a management and holding company, along with its subsidiaries, is wholly owned by the Zurich Financial Services Group. The Farmers Exchanges are three reciprocal insurers (Farmers Insurance Exchange, Fire Insurance Exchange and Truck Insurance Exchange), including their subsidiaries and affiliates, owned by their policyholders, and managed by Farmers Group, Inc. and its subsidiaries. For more information about Farmers, visit our Web site at www.farmers.com.
Zurich Financial Services Group (Zurich) is an insurance-based financial services provider with a global network of subsidiaries and offices in North America and Europe as well as in Asia Pacific, Latin America and other markets. Founded in 1872, the Group is headquartered in Zurich, Switzerland. It employs approximately 60,000 people serving customers in more than 170 countries.
First Call Analyst:
SOURCE: Farmers Group, Inc.
CONTACT: Jerry Davies of Farmers Group, Inc., +1-213-400-4459,
Web Site: http://www.farmers.com/