The Farmers Insurance Group of Companies completed its $1.9-billion acquisition of 100 percent of AIG's U.S. Personal Auto Group, which includes 21st Century Insurance. The acquisition also includes the former AIG Direct business and Agency Auto business.

Under the agreement, AIG's U.S. personal auto insurance business is being sold to Farmers Group Inc., a Los Angeles-based 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, for approximately $1.4 billion.

This acquisition by the Farmers Exchanges strengthens Farmers' place as the third largest personal lines insurer in the United States, and as the largest auto insurer in several states, including California. The acquisition is the largest in the 81-year history of Farmers.

Farmers Group Inc. CEO F. Robert Woudstra described the acquisition as a "positive and historic milestone for Farmers, 21st Century, Farmers agents, and, most importantly, insurance consumers across the United States."

Woudstra said the 21 st Century acquisition is the largest in the 81-year history of Farmers and demonstrates the company's commitment to growth.

"When you combine this acquisition with the our other, successful, recent acquisitions and integrations of the Foremost Insurance Group in 2000 and the Bristol West Insurance Group in 2007, it's quite obvious we are committed to growing our business when it makes strategic sense to do so for the benefit of our customers, our agents and our prospective customers,". Woudstra says.