AIG Sells Car Insurance Unit For $1.9B

Troubled insurance giant AIG, seeking to raise cash to pay back government bailout money, sold its auto insurance subsidiary to Zurich Financial Services Group today for $1.9 billion.

The sale price won't eat much into the $182.5 billion in government money given or promised to AIG, but it's something.

The subsidiary, 21st Century Insurance, will be folded into Zurich's Farmers Group, based in Los Angeles.

Also, AIG closed a previously announced sale of wealth management subsidiary, AIG Private Bank, to an Abu Dhabi investor for $253 million.

AIG "is moving forward with discussions for several other transactions," chairman and chief executive Edward Liddy said in a statement.

-- Frank Ahrens
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