AIG trade US car insurance business to Zurich

American Supranational Group (AIG) is selling its US car and commercial vehicle guaranty business to Zurich Financial Services Group.

The disposal is being made against $1.9 billion and is the twelfth but largest yet to be made past the troubled group since its near collapse in September of at year.

Since then, AIG has been propped up by $178 billion in bail-outs from the US Exchequer and has begun a lengthy restructuring process that involves selling businesses worldwide in arrange to repay the debt and allow it to refocus on its sum property and casualty business.

Zurich is funding the acquisition with a $1.1 billion dole out issue aimed at its institutional investors and says the purchase discretion further ambitions for expansion in US markets. The purchase is as a matter of fact being made by Zurich’s US subsidiary, Farmers Group.

The AIG module currently trades under the 21st Century name and according to reports inclination eventually be rebranded as Zurich.