Farmers Group to Acquire AIG Business

Skadden is representing UBS Securities LLC as financial advisor to Farmers Group, Inc., a subsidiary of Zurich Financial Services, in its acquisition of the U.S. personal auto lines business of American International Group Inc. Under the terms of the transaction, announced on April 16, Farmers Group will initially purchase the personal auto business from AIG for approximately $1.9 billion (including $400 million in notes) and will then immediately sell the regulated insurance companies to the Farmers Exchanges (which Farmers Group manages but does not own) for approximately $1.4 billion. Upon completion of the acquisition, the Farmers Exchanges would be the third-largest traditional direct writer of insurance in the U.S. and the third- largest U.S. personal lines insurer overall.