Advertisement
YOU ARE HERE: LAT HomeCollections

BRIEFLY

Insurance

October 19, 1994|From Times Staff and Wire Reports

AIG and 20th Century Sign Deal: American International Group Inc. and 20th Century Industries announced the signing of definitive agreements under which AIG will invest an initial $216 million--and possibly up to $432 million--in 20th Century and the two insurers will embark on joint ventures to sell auto insurance nationally. New York-based AIG will pay $200 million for a new issue of convertible preferred stock, plus $16 million for warrants to buy 16 million shares of 20th Century common stock. At 20th Century's option, AIG could also buy an additional $70 million in preferred stock if 20th Century's losses from the Northridge earthquake--now estimated at $815 million--exceed $850 million. For 20th Century, the infusion of capital rescues it from possible failure.

Advertisement
Los Angeles Times Articles
|
|
|