4 to 5
Risk Management Solutions of Newark, Calif., predicts a storm season similar to 2008 could occur every four to five years on average. Last year’s season, which included nearly 1,700 tornadoes, was the costliest in the past decade, with more than U.S. $10.5 billion in insured losses, and the second most active on record, the risk modeling firm said.
The acquisition price Farmers Insurance Group of Companies said it will pay for American International Group’s Personal Auto Group, which includes 21st Century Insurance Co. Under the agreement, 21st Century Insurance Group, the wholly owned subsidiaries comprising AIG’s U.S. personal auto insurance business, will be sold to Farmers Group Inc., a subsidiary of Zurich Financial Services Group. Farmers Group Inc. will sell the underlying insurance entities to the Farmers Exchanges, which Farmers Group Inc. manages but does not own.
This acquisition by the Farmers Exchanges will position Farmers as the third-largest overall personal lines insurer in the United States, and will position the Farmers Exchanges as the largest auto insurer in several states, including California.