xxxx

AIG has announced that it will be selling 21st Century Insurance Group to Farmer’s Group Inc. Farmer’s Group is a subsidiary of Zurich Financial Services Group.

The deal is reportedly a $2 billion deal.

Farmer’s will pay $1.5 billion in cash and $400 million in capital notes that are backed by Zurich Financial Services for the 21st Century Insurance Group. Farmer’s is also taking the short end of the stick by assuming 21st’s $100 million in outstanding debt.

Hopefully, Zurich Financial Services will be able to raise its expected $1.1 billion in stock offerings to pay for the large and expensive deal.

Jeremy

View all posts by Jeremy
Jeremys website