AIU Holdings Sells Its Interest in 21st Century Insurance

AIU Holdings Sells Its Interest in 21st Century Insurance Move Further Positions Aiu Holdings as an Independent,Global Property Casualty Company

NEW YORK--(BUSINESS WIRE)-- AIU Holdings, Inc. (together with AIU Holdings LLC, “AIU Holdings”) today announced that in connection with AIG’s closing of the sale of 21^st Century Insurance Group to Farmers Group, Inc., a subsidiary of Zurich Financial Services, Ltd., it has monetized its interest in 21^st Century, receiving cash proceeds of $1.7 billion as well as $200 million in face amount of subordinated, euro-denominated capital notes backed by Zurich Insurance Company, Zurich’s principal operating unit.

AIU Holdings continues to offer personal lines property and casualty insurance products in the U.S. through its Private Client Group division, which was excluded from the sale.

The transaction marks another significant and positive step toward AIU Holdings’ previously announced strategy to sell non-core, affiliated interests. It also further positions AIU Holdings as an independent entity in preparation for the potential sale of a minority stake in the business, which ultimately may include a public offering of shares, depending on market conditions.

AIU Holdings is a leading property casualty and general insurance organization serving more than 40 million businesses and individuals worldwide. With a 90-year history, more than 500 products and services, deep claims management expertise, and excellent financial strength ratings, AIU Holdings enables individual consumers, entrepreneurial businesses, and large multinationals alike to manage virtually any risk with confidence. Our insurance and risk management products and services are provided through insurance brokers, agents, and other distribution partners around the globe.

AIU Holdings is the marketing name for the worldwide property casualty insurance operations of AIU Holdings, Inc. and AIU Holdings LLC. For additional information, please visit our website at www.aiuholdings.com. In the United States, all products are written by insurance company subsidiaries of AIU Holdings, Inc. Coverage may not be available in all jurisdictions and is subject to actual policy language. Certain coverage may be provided by a surplus lines insurer. Surplus lines insurers do not generally participate in state guaranty funds and insureds are therefore not protected by such funds. Non-insurance products and services may be provided by independent third parties.

AIU Holdings, Inc.

Marie Ali, 212-458-2536

Source: AIU Holdings, Inc.

Copyright Business Wire 2009 AIU Holdings, Inc. today announced that in connection with AIG’s closing of the sale of 21st Century Insurance Group to Farmers Group, Inc., a subsidiary of Zurich Financial Services, Ltd., it has monetized its interest in 21st Century, receiving cash proceeds of $1.7 billion as well as $200 million in face amount of subordinated, euro-denominated capital notes backed by Zurich Insurance Comp...