Bray’s Report

Insurance Commissioner Steve Poizner  announced that he has approved the purchase of 21^st Century Insurance Group.

“After a thorough review by the Department of Insurance, I have approved the purchase of 21^st Century Insurance Group by Zurich Financial Services’ Farmers Insurance Group,” said Commissioner Poizner. “Before authorizing this purchase, I ordered CDI legal and financial experts to conduct a comprehensive review of the terms of the purchase agreement, which has now been completed. As a result of this purchase, 21^st Century policyholders should not expect to see any impact to their existing policies.”  

On April 16, 2009, Zurich Financial Services and Farmers Insurance Group announced the planned acquisition of AIG’s Personal Auto Group, which includes 21^st Century Insurance Group. Following an extensive review process by the Department of Insurance, Commissioner Poizner approved the purchase of 21^st Century Insurance Group. 

The Department anticipates this transaction to become effective July 1,2009. As part of the approval process, Farmers Insurance Group will be required to submit a written report to the Department of Insurance providing an update on the integration process on or before October 30, 2009.

Under California insurance law, the Department of Insurance must approve the purchase of any California-domiciled insurance company. The approval process includes a thorough review of all aspects of a proposed purchase, including the financial strength of the purchasing company and future plans for the company to be purchased.