21st Century Insurance has a long and evolving history as a U.S.-based insurance provider, particularly known for its auto insurance offerings. Here’s a detailed history of the company:
Founding and Early Years (1958–1990s)
- Founded: 21st Century Insurance was originally founded in 1958 by Louis W. Foster as 21st Century Insurance Group.
- Original Name: It was initially known as 20th Century Insurance and was based in Los Angeles, California.
- Business Model: The company began by offering private passenger automobile insurance, primarily targeting California drivers. One of its defining strategies was selling policies directly to consumers rather than through agents, which allowed it to reduce costs.
- Growth: By the 1970s and 1980s, 20th Century Insurance had grown substantially, becoming well-known for competitive pricing and customer service.
Rebranding and Expansion (1990s–2000s)
- Name Change: In the 1990s, the company rebranded to 21st Century Insurance to signal modernization and a forward-looking business strategy.
- IPO: The company was listed on the New York Stock Exchange under the ticker symbol TW.
- Product Expansion: While still focused on auto insurance, 21st Century began expanding its offerings to include homeowners and other forms of property insurance in some states.
- Technology Use: The company was among the early adopters of internet-based policy management and quote systems, helping attract tech-savvy consumers.
Acquisition by AIG (2005)
- In 2005, American International Group (AIG) acquired a majority stake in 21st Century Insurance for approximately $1.2 billion.
- Rationale: AIG aimed to expand its direct-to-consumer auto insurance market presence in the U.S. through this acquisition.
Acquisition by Farmers Insurance (2009)
- Following the 2008 financial crisis, AIG was under pressure to sell off assets.
- In 2009, Farmers Insurance Group, a subsidiary of Zurich Financial Services, acquired 21st Century Insurance from AIG for $1.9 billion.
- Impact: This acquisition positioned Farmers as the third-largest personal lines insurer in the United States at the time.
- Brand Consolidation: After the acquisition, 21st Century Insurance continued as a brand under the Farmers Insurance umbrella, specializing in direct-to-consumer auto insurance.
Recent Years and Present Day
- Operational Focus: 21st Century operates mostly online and over the phone, providing auto insurance directly to consumers in a limited number of states (notably California).
- Brand Role: It serves as Farmers Insurance’s low-cost, direct-sales auto insurance brand.
- Products: Its offerings remain focused mainly on auto insurance, though it occasionally partners with other firms to offer bundled products.
Key Milestones Summary
| Year | Event |
|---|---|
| 1958 | Founded as 20th Century Insurance in Los Angeles, CA |
| 1990s | Rebranded to 21st Century Insurance |
| 2005 | Acquired by AIG |
| 2009 | Sold to Farmers Insurance (Zurich) |
| 2010s–Present | Functions as a direct-to-consumer auto insurance brand under Farmers |
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