AIG Finalizes Sale of U.S. Personal Auto Insurance Units to Farmers
National News • July 1, 2009
American International Group, Inc. (AIG) has closed the sale of 21st Century Insurance Group, the wholly owned subsidiaries of AIG's U.S. personal auto insurance business, to Farmers Group, Inc. ...
Insurance Journal is not responsible for the content of the message below.
Subject: BAD DEAL
Posted On: July 3, 2009, 10:08 am CDT
Posted By: Sheltowee
Comment:
They paid too much and 21st Century will prove to be unprofitable. Farmers will learn that it is not the agents commissions causing a strain on profits, but administrative cost (i.e. employee posistions, marketing campaigns that don't prove profitable) and unfair competition in the P & C market. They will have to model Progressive and allow the consumer to choose from having an agent or not.
I think they were simply trying to help AIG, or they were duped by them. I'm not sure which.
Subject: BAD DEAL
I think they were simply trying to help AIG, or they were duped by them. I'm not sure which.