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Thursday, Mar 28, 2024

Deal Makes 21st Century Insurance an AIG Subsidiary

The 21st Century Insurance Group Board of Directors unanimously approved a definitive merger agreement with American International Group, Inc. that will make 21st Century a wholly-owned subsidiary of AIG. Under the agreement, AIG will acquire all of Woodland Hills-based 21st Century’s outstanding shares of common stock it doesn’t currently own for $22 per share in cash. AIG currently owns 60.8 percent of 21st Century’s outstanding shares of common stock. The merger is expected to be completed in the third quarter of this year. “We are pleased to enter into this transaction, which we view as a win for all parties,” said Martin J. Sullivan, president and chief executive officer of AIG. “It allows us to combine our expertise and resources to grow this business, and it allows 21st Century shareholders to monetize their investment at a compelling value.” The merger agreement was approved following the endorsement of a special committee of 21st Century directors who are independent of AIG. Bruce Marlow, president and chief executive officer of 21st Century, will lead AIG’s direct private-passenger auto operations, which will be comprised of both companies.

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