Posted on 02 Jul 2009
The National Association of Insurance Commissioners (NAIC) on Wednesday announced that nine of its member states approved the purchase of American International Group's (AIG) Personal Auto Group, including eighteen insurance companies and ten related non-insurance entities. The purchase of AIG’s Personal Auto Group by Farmers Insurance Group, a subsidiary of Zurich Financial Services Group, is effective as of July 1, 2009. Effective cooperation between the NAIC and its member jurisdictions, in addition to assistance from the Form A Subgroup of the AIG Special Task Force (chaired by Pennsylvania), facilitated the transaction.
The Form A Subgroup derives its name from the NAIC’s Form A Statement Regarding the Acquisition of Control or Merger with a Domestic Insurer, which must be filed with the domiciliary state upon the purchase of an insurance company. The group was tasked with managing the communication and coordination of activities related to the change in ownership approval process for insurers proposed to be sold by the AIG holding company. The approval of this purchase represents actions taken by multiple states requiring the coordination and approval by all domestic regulators.
“The successful and efficient nature of this transaction is a testament to the value of state collaboration,” said Steve Poizner, California Insurance Commissioner and lead regulator on the purchase. “The Form A Subgroup facilitated the Form A approval process among the states to ensure that the sale of AIG insurance subsidiaries proceeded in a smooth and orderly fashion.”
“The overriding goal of this transaction was to ensure that policyholders would not be adversely impacted,” said Pennsylvania Insurance Commissioner Joel Ario. “This is evidenced by the subgroup’s commitment to a thorough and comprehensive review of the terms of the purchase agreement.”
Originally announced on April 16, 2009, the sale affects AIG’s personal auto lines in companies located in the following nine states: California, Colorado, Delaware, Hawaii, Minnesota, New Jersey, New York, Pennsylvania and Texas.