21st Century Insurance

Two of Southern California's biggest insurance companies are joining forces to create the state's largest auto insurer, at the same time throwing a financial lifeline to troubled insurance giant American International Group Inc. AIG agreed to sell its 21st Century Insurance subsidiary for $1.9 billion to Farmers Insurance Group of Los Angeles, itself a unit of Zurich Financial Services of Switzerland.

U.S. taxpayers got their first look at the potential payback from the bailout of giant insurer American International Group Inc., and so far it looks like a break-even proposition. AIG, whose near-collapse in the fall of 2008 led to one of the biggest bailouts of the financial crisis, sold its first new stock offering since then, pricing 300 million shares at $29 each to raise a total of $8.7 billion. The sale Tuesday included 200 million shares held by the federal government, which picked up $5.8 billion and lowered taxpayers' stake in the company to 77% from 92%. Treasury Secretary Timothy F. Geithner said the sale was "an important milestone" in the Obama administration's attempts to sell its stake in AIG and recover bailout money.

American International Group Inc. acquired Woodland Hills-based 21st Century Insurance Group on Thursday and said it would eliminate 600 jobs in combining its auto unit with 21st Century. Call center staff, claims handlers and administrative workers are among employees from the two companies who will lose their jobs as a result of the transaction, said Chris Winans, spokesman for New York-based AIG, the world's largest insurer.

Farmers Insurance Group plans to lay off nearly 200 people at its recently acquired 21st Century Insurance division over the next three weeks. Since August the company has laid off 343 people at the Woodland Hills headquarters of 21st Century, which Farmers bought in July. Farmers spokesman Mark Toohey said the layoffs were part of a plan to streamline operations at the two companies. An additional 95 jobs will be eliminated next year, he said. Farmers completed its purchase of 21st Century from troubled insurance giant American International Group Inc. on July 1. With the merger, Farmers -- a traditional insurance company that sells home, automobile, life and other insurance products through a network of agents -- added 21st Century's system for selling auto insurance directly to motorists via telephone and the Internet.

Farmers Insurance Group plans to lay off nearly 200 people at its recently acquired 21st Century Insurance division over the next three weeks. Since August the company has laid off 343 people at the Woodland Hills headquarters of 21st Century, which Farmers bought in July. Farmers spokesman Mark Toohey said the layoffs were part of a plan to streamline operations at the two companies. An additional 95 jobs will be eliminated next year, he said. Farmers completed its purchase of 21st Century from troubled insurance giant American International Group Inc. on July 1. With the merger, Farmers -- a traditional insurance company that sells home, automobile, life and other insurance products through a network of agents -- added 21st Century's system for selling auto insurance directly to motorists via telephone and the Internet.

California's largest auto insurer, Farmers Insurance Group, said Thursday that it planned to slash jobs at the offices of its newly acquired 21st Century Insurance unit in Woodland Hills. Los Angeles-based Farmers told employees that it would cut 554 jobs by the end of this year and that the total would reach 750 by the end of 2010. The Woodland Hills complex, which had been 21st Century's headquarters until last November, currently has 979 employees, Farmers said. Farmers completed its purchase of 21st Century from troubled insurance giant American International Group Inc. on July 1. With the merger, Farmers -- a traditional insurance company that sells home, auto, life and other insurance products with a network of agents -- added 21st Century's system for selling auto insurance directly to motorists via telephone and the Internet.

American International Group Inc., the insurer bailed out by the government, will remove AIG from the name of a U.S. auto unit and cut 6.6% of jobs there to boost chances of finding a buyer for the business. AIG will start calling its Aigdirect.com unit 21st Century Insurance in January, reverting to the brand of a California-based car insurer acquired last year, a spokesman said. The company will also close offices in 12 cities, AIG said. The unit had about 5,500 employees as of September 2007.

Norman Sklarewitz of West Hollywood noticed a sign at a commercial building on 3rd Street that said, "Parking for Directors, Producers and Clients Only." Asked Sklarewitz: "But isn't that just about everyone on the Westside?" WAY OUT: Don't get the idea that Orange County's Silverado Canyon--home of Thisa Way, Thata Way and Hidea Way--has a monopoly on unusual street names. Sal Lombardo of West L.A. found Easy Way and Old Fashion Way in Anaheim along with A Better Way in Garden Grove.

In a recent TV ad, a little boy walks into his parents' bedroom in the middle of the night, unable to sleep. But it's not bad dreams that are keeping him awake. "I'm worried about this family's financial future," he announces. Don't worry, his dad assures him, "we're with AIG." The problem for American International Group Inc. these days is that many current and potential customers are worried about its future.

U.S. taxpayers got their first look at the potential payback from the bailout of giant insurer American International Group Inc., and so far it looks like a break-even proposition. AIG, whose near-collapse in the fall of 2008 led to one of the biggest bailouts of the financial crisis, sold its first new stock offering since then, pricing 300 million shares at $29 each to raise a total of $8.7 billion. The sale Tuesday included 200 million shares held by the federal government, which picked up $5.8 billion and lowered taxpayers' stake in the company to 77% from 92%. Treasury Secretary Timothy F. Geithner said the sale was "an important milestone" in the Obama administration's attempts to sell its stake in AIG and recover bailout money.

California's largest auto insurer, Farmers Insurance Group, said Thursday that it planned to slash jobs at the offices of its newly acquired 21st Century Insurance unit in Woodland Hills. Los Angeles-based Farmers told employees that it would cut 554 jobs by the end of this year and that the total would reach 750 by the end of 2010. The Woodland Hills complex, which had been 21st Century's headquarters until last November, currently has 979 employees, Farmers said. Farmers completed its purchase of 21st Century from troubled insurance giant American International Group Inc. on July 1. With the merger, Farmers -- a traditional insurance company that sells home, auto, life and other insurance products with a network of agents -- added 21st Century's system for selling auto insurance directly to motorists via telephone and the Internet.

Two of Southern California's biggest insurance companies are joining forces to create the state's largest auto insurer, at the same time throwing a financial lifeline to troubled insurance giant American International Group Inc. AIG agreed to sell its 21st Century Insurance subsidiary for $1.9 billion to Farmers Insurance Group of Los Angeles, itself a unit of Zurich Financial Services of Switzerland.

In a recent TV ad, a little boy walks into his parents' bedroom in the middle of the night, unable to sleep. But it's not bad dreams that are keeping him awake. "I'm worried about this family's financial future," he announces. Don't worry, his dad assures him, "we're with AIG." The problem for American International Group Inc. these days is that many current and potential customers are worried about its future.

American International Group Inc., the insurer bailed out by the government, will remove AIG from the name of a U.S. auto unit and cut 6.6% of jobs there to boost chances of finding a buyer for the business. AIG will start calling its Aigdirect.com unit 21st Century Insurance in January, reverting to the brand of a California-based car insurer acquired last year, a spokesman said. The company will also close offices in 12 cities, AIG said. The unit had about 5,500 employees as of September 2007.

American International Group Inc. acquired Woodland Hills-based 21st Century Insurance Group on Thursday and said it would eliminate 600 jobs in combining its auto unit with 21st Century. Call center staff, claims handlers and administrative workers are among employees from the two companies who will lose their jobs as a result of the transaction, said Chris Winans, spokesman for New York-based AIG, the world's largest insurer.

Woodland Hills-based 21st Century Insurance Group reported net income of $19.4 million, or 23 cents a share, for the first quarter of 2005, compared with $19.8 million a year earlier. The 2004 results include net realized capital gains of $7.6 million, contrasted with a net realized capital loss of $500,000 for the same period in 2005. Direct premiums written increased 3.4% to $352.1 million in the first quarter, compared with $340.6 million for the same period in 2004.

The blame for the horrific plunge in technology stocks over the last year can be laid partly at the door of companies such as 21st Century Insurance. The Woodland Hills-based firm spent the last three years developing a Web site and a pair of sophisticated telephone call centers-- and, in the process, boosted its spending on technology equipment by a heaping 30% to 40% annually.

A Republican lawmaker on Thursday criticized a major insurance company and his own party for hiding nearly $1 million in company donations in last year's election, and said he believed the transactions amounted to political money laundering. "If the allegations are true, it could constitute money laundering and ought to be investigated," said Sen. Tom McClintock (R-Thousand Oaks). "I disagree with those who say this is only shady, not illegal. I think it is both."