Sale of 2 AIG Auto Units Complete

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Jeanine Poggi

07/02/09 - 10:47 AM EDT

The takeover of two car-insurance units that belonged to American International Group(AIG Quote) is complete.

The units were bought by Swiss insurer Zurich Financial Services for $1.9 billion. And a bigger chunk of the deal than had originally been proposed was paid for in cash, Reuters reported on Thursday, lowering AIG's debt.

Zurich said it immediately sold most of the units -- 21st Century Insurance and Agency Auto -- to U.S.-based personal insurer Farmers Exchanges for $1.4 billion.

Zurich doesn't own but manages Farmers Exchanges, meaning the Swiss company will also generate revenue from the car insurance units.

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