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AIG sells car insurance business

16 April 09 20:03 GMT

Troubled US insurer AIG has announced the sale of its car insurance unit to Zurich Financial Services (ZFS).

Under the terms of the deal, which still needs regulatory approval, ZFS' Farmers Group will pay $1.9bn (£1.27bn) for 21st Century Insurance.

AIG boss Ed Liddy said that the insurer is "moving forward with discussions for several other transactions".

The company needs to raise cash during the financial crisis and has already taken $170bn in state aid.

It has been heavily criticised for paying $165m in bonuses after taking the government money, although many top executives have agreed to return the payments.

Farmers Group will also assume 21st Century's outstanding debt of $100m.

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