Zurich Acquires AIG’s Auto Insurance Group
Zurich Financial Services AG agreed to a $1.9 billion deal to acquire the U.S. car insurance unit of American International Group Inc. (AIG), which includes 21st Century Insurance Co.
LOS ANGELES — Zurich Financial Services AG agreed to a $1.9 billion deal to acquire the U.S. car insurance unit of American International Group Inc. (AIG), which includes 21st Century Insurance Co.
Under the agreement, 21st Century Insurance will be sold to Farmers Group Inc., a Los Angeles-based subsidiary of Zurich. The deal makes Zurich, a worldwide insurance-based financial services provider, the third-largest U.S. personal line insurer.
Farmers is a multi-lines U.S. insurer of autos, homes, businesses, specialty products, life insurance and financial services, providing insurance to 10.5 million households nationwide.
21st Century, which includes the former AIG Direct business and Agency Auto business, is the third largest traditional direct writer of insurance in the U.S., and operates in 49 states and Washington, D.C. 21st Century has more than 2.4 million customers and insures more than 4 million vehicles across the country.
Ratings firm A.M. Best Co. said Zurich will benefit from the acquisition through fees generated by Farmers, and growing its market share.
“The group is indirectly strengthening its position in the U.S. personal lines market, and more particularly the rapidly growing direct lines sector, which fits with Zurich’s long term strategy to develop its partnership with the Farmers Exchanges in the U.S. personal lines market,” said the ratings firm.
More F&I

Integrating Nontraditional F&I Products
The niche presents a strategic advantage for auto dealerships as they move to adapt to fast-changing consumer expectations in today’s market.
Read More →
Trust Is Personal
Technology, no matter how efficient, can’t replace what the human F&I manager can do, which is to bridge the divide between cyberspace and the in-store experience.
Read More →
Amplify 2026 Billed as Turning Innovation Into Results
Reynolds and Reynolds says its annual retail summit will connect dealers with practical strategies, peer insight, and technology-driven ideas.
Read More →
Own Your Outcome: F&I in the Digital Customer Journey
Finance has historically been the last step in the car-buying process, but it doesn’t have to be. The customer’s journey starts long before they arrive at the dealership, and so should F&I’s involvement.
Read More →
Tariffs Could Raise Insurance Premiums
As U.S. import tariffs affect repair costs, consumers might find it more affordable to replace a damaged vehicle, according to recent Insurify tariff analysis.
Read More →
Smaller Loans, Longer Terms
The youngest generation of car buyers is more likely to finance less expensive vehicles, more than half of generation Z consumers borrowing less than $25,000.
Read More →
New Lifetime Battery F&I Product Meant to Drive Dealer Traffic
EFG Cos. offering is intended to create lifetime auto dealer engagement with customers.
Read More →
The Psychology Behind Menus That Increase Add-On Sales
There is a science to crafting a menu that gives customers confidence in the choices presented, and moving the process outside the F&I office can further boost results.
Read More →
Why Your F&I PVR Is Misleading You
Here’s a handy checklist of the numbers to track in 2026 instead.
Read More →
Auto Consumer Anxiety Presents Opportunity
A survey of U.S. drivers found the majority are concerned about finances and the economy, but those fears make many ready to buy vehicle-protection products.
Read More →