The 2024 transaction involved American International Group (AIG) selling its U.S. personal auto and homeowners business to the Farmers Exchanges, a move that transitioned existing AIG policies into the Farmers Insurance and 21st Century ecosystems. Completed in early 2024, this deal finalized AIG’s strategic exit from the standard personal lines market.
The landscape of American insurance shifted significantly in 2024 when AIG officially moved its book of personal auto business to Farmers Insurance Group. Because 21st Century Insurance is a prominent subsidiary of Farmers, many policyholders saw their accounts rebranded or serviced through the 21st Century and Farmers infrastructure. Now, in 2026, the dust has settled on this transition, but for many long-term policyholders, understanding the mechanics of this sale remains vital for managing their coverage and expectations regarding claims and premiums.
Context of the 2024 AIG Transaction
The sale of AIG’s personal lines business was not a sudden decision but part of a multi-year restructuring effort. AIG, traditionally a powerhouse in both commercial and personal insurance, sought to simplify its portfolio to focus on global commercial property and casualty (P&C) and life and retirement services. By divesting its U.S. personal auto and homeowners business to the Farmers Exchanges, AIG transferred a significant "book of business" that required a massive logistics and data migration effort throughout 2024.
Farmers Insurance Group, through its various exchanges, utilized its existing brands—including 21st Century—to absorb these policies. For the consumer, the "2024 transaction" represented a change in who issues their ID cards, who processes their monthly payments, and which mobile app they use to file a claim. While the legal transition occurred in early 2024, the operational transition for individual policyholders often occurred at their first renewal date following the deal's closing.
From AIG to Farmers and 21st Century
To understand the 21st Century connection, one must look at the corporate hierarchy. 21st Century Insurance was actually an AIG company until 2009, when AIG sold it to Farmers during the financial crisis. The 2024 deal essentially reunited the remaining AIG personal auto policies with the same parent company (Farmers) that had acquired 21st Century years earlier.
In 2026, if you were an AIG auto insurance customer prior to the sale, your policy is likely now branded as either Farmers or 21st Century, depending on the state of residence and the specific tier of coverage you held. AIG's high-net-worth segment, the Private Client Group (PCG), followed a slightly different path, moving into a Managing General Agency (MGA) structure with Stone Point Capital, but the standard personal auto policies were the core of the 2024 Farmers transaction.
What This Means for Policyholders in 2026
If you are reviewing your insurance documents today, you will notice that the AIG logo has been entirely replaced. The transition was designed to be "seamless," meaning coverage limits and deductibles generally remained the same until the end of the policy term active during the sale. However, once those policies came up for renewal under the Farmers/21st Century banner in late 2024 and 2025, new underwriting guidelines were applied.
Changes in Billing and Account Management
One of the most immediate changes for policyholders was the migration of digital accounts. The AIG mobile portal for personal auto was sunsetted in 2024. Customers were required to register for new accounts through the Farmers or 21st Century online portals.
- Payment Methods: Automatic payments (ACH) and recurring credit card authorizations typically had to be re-authorized under the new billing entity to comply with financial privacy laws.
- Policy Numbers: Most customers were issued new policy numbers. In 2026, when calling for support, using an old AIG policy number may result in delays as the system archives those records separately from active 21st Century files.
Claims Processing and Support
For claims that occurred before the 2024 transition but were still open during the sale, AIG and Farmers established a transitional service agreement. However, for any accidents occurring after the 2024 closing date, the claims are handled entirely by the Farmers/21st Century claims department. This change brought a shift in the network of preferred repair shops and the software used for estimating damages.
Farmers and 21st Century use a vast network of adjusters, which often resulted in faster localized service for former AIG customers who lived in areas where AIG’s physical presence was primarily administrative rather than field-based.
Comparing AIG and 21st Century Coverage Models
AIG’s auto insurance was often packaged as part of a comprehensive suite of products for affluent households. 21st Century, by contrast, has historically focused on direct-to-consumer value and efficiency. This difference in philosophy led to some changes in policy "extras" during the 2024 transition.
| Feature | AIG Auto (Pre-2024) | 21st Century / Farmers (2026) |
|---|---|---|
| Primary Target | High-net-worth / Preferred | Standard / Broad Market |
| Claims Service | Concierge-style / Specialized | Large-scale / Digital-first |
| OEM Parts | Frequently included in high-tier | Optional endorsement or standard |
| New Car Replacement | Common feature | Varies by state/tier |
| Mobile App Support | Basic | Robust / Telematics-integrated |
| Agent Access | Mostly through independent brokers | Direct and captive agent network |
In 2026, former AIG customers should carefully review their "Declarations Page." While the fundamental liability and collision coverages remain, specific "white-glove" endorsements that were standard under AIG may now be optional add-ons under the 21st Century or Farmers labels.
The Strategic Shift: Why AIG Exited the Personal Auto Space
The 2024 transaction was a textbook example of "capital reallocation." In the years leading up to the sale, the personal auto insurance industry faced significant headwinds, including rising repair costs due to vehicle technology (ADAS), increased litigation, and higher frequency of severe weather events.
AIG management determined that the volatility of the personal auto market did not align with their goal of becoming a more focused commercial insurer. By selling this book of business to Farmers, AIG was able to:
- Reduce Exposure: They eliminated the risk of large-scale personal injury payouts from standard auto accidents.
- Unlock Capital: The sale provided liquidity that AIG redirected toward its core commercial lines and dividends for shareholders.
- Simplify Operations: Managing a direct-to-consumer auto platform requires a massive customer service infrastructure that differed significantly from AIG's commercial-broker model.
For Farmers and 21st Century, the acquisition was a growth play. It allowed them to acquire a large number of customers (a "ready-made" book of business) without the high cost of individual marketing and acquisition.
Technical Migration and Regulatory Oversight
Every insurance transaction of this magnitude is subject to strict oversight by State Insurance Departments. In 2024, the transfer of AIG policies to 21st Century required "Form A" filings in various states to ensure that the acquiring company had the financial solvency to honor all existing claims.
Regulators specifically look for "non-renewal" notices. In many states, AIG could not simply "cancel" everyone. Instead, they issued notices of non-renewal on behalf of AIG, simultaneously offering a "replacement policy" with 21st Century or Farmers. This legal nuance ensured that no customer was left without coverage during the transition, provided they accepted the new terms and paid the new premium.
Managing Your Policy in 2026
As we operate in 2026, the AIG branding is a relic of the past. To ensure your coverage is optimized under the current Farmers/21st Century management, consider the following steps:
- Verify Your Telematics Discounts: Farmers and 21st Century offer robust "Signal" or similar telematics programs that track driving habits for discounts. AIG's legacy systems were less focused on these "pay-how-you-drive" models. Transitioning to these can often lower premiums that may have risen during the 2024-2025 renewal cycles.
- Check Multi-Policy Bundles: If you only moved your auto insurance in 2024, check if your homeowners or umbrella insurance is still with an AIG-affiliated MGA or if it can be bundled with your 21st Century auto policy for a deeper discount.
- Review the Claims Contact: Ensure your digital insurance card is updated in your smartphone wallet. The 2024 claims numbers for AIG are no longer the primary point of contact.
Troubleshooting Common Transition Issues
Even two years after the 2024 transaction, some policyholders encounter legacy issues. These typically fall into three categories:
- Historical Records: If you need a "Letter of Experience" or proof of prior coverage from 2022 or 2023 for a mortgage or a new job, you may still need to contact the AIG legacy archive department, though Farmers/21st Century support can often facilitate this.
- Unclaimed Credits: If there were overpayments on an AIG policy right at the time of the 2024 hand-off, some of these credits were tied up in "escheatment" processes or transferred to the new Farmers account. Verify your 2026 balance to ensure all historical credits were applied.
- Lienholder Notifications: If you refinanced your vehicle in late 2024 or 2025, your bank might still have "AIG" listed as the loss payee. This can cause issues during a total loss claim. Update your lender with the correct 21st Century or Farmers mortgagee/loss payee clause immediately.
Impact on the Broader Insurance Market
The AIG-to-21st Century deal was a harbinger of the consolidation seen throughout 2025. Major carriers have increasingly moved toward specialization. The exit of a "diversified giant" like AIG from the standard auto space left more room for "specialist" carriers and large-scale "scale" players like Farmers, Progressive, and GEICO.
For the consumer, this has meant a move toward more digitized, algorithmic pricing. While some missed the personalized broker touch associated with AIG, the 21st Century platform has provided more self-service tools, such as instant ID card downloads and automated roadside assistance requests, which were less integrated under the older AIG personal lines framework.
FAQs
Is AIG auto insurance still available in 2026? No, AIG has exited the standard U.S. personal auto insurance market. All standard policies were transitioned to Farmers Insurance Group or its brands like 21st Century during the 2024 transaction. AIG now focuses primarily on commercial insurance and high-net-worth wealth management.
Did my rates go up when AIG sold to 21st Century? While the sale itself didn't automatically trigger a rate hike, the move to 21st Century’s underwriting models in 2024 and 2025, combined with industry-wide inflation in repair costs, resulted in premium adjustments for most former AIG customers. Most policyholders saw their rates align with Farmers' standard pricing at their first renewal post-acquisition.
What happened to my AIG "Private Client Group" policy? The Private Client Group (PCG), which serves high-net-worth individuals, was handled differently. AIG entered a partnership with Stone Point Capital to move PCG into a Managing General Agency (MGA) called Private Client Select (PCS). This is distinct from the standard auto policies sold to Farmers/21st Century.
How do I file a claim for an old AIG policy today? If the incident occurred before the 2024 transition, you may still need to reference your AIG policy number, but the claim will likely be managed by Farmers/21st Century claims adjusters. For any current incidents, use the 21st Century or Farmers claims portal exclusively.
Can I still use the AIG mobile app for my car insurance? No, the AIG mobile app no longer supports personal auto policies. You must download the Farmers Insurance app or use the 21st Century website to manage your policy, view ID cards, and pay premiums.
Final Recommendation
If you were part of the 2024 AIG to 21st Century transition, the most important action to take in 2026 is a comprehensive policy review. Because the transition moved your coverage between two companies with different risk appetites and discount structures, you may no longer be receiving the best possible rate or the most relevant coverage for your current vehicle. Contact a Farmers agent or visit the 21st Century direct portal to ensure that all current safety features on your vehicle and your current driving habits are reflected in your 2026 premium.
)
