AIG to Merge Insurance Units

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American International Group Inc. said it would eliminate 600 jobs in combining its auto unit with Woodland Hills-based 21st Century Insurance Group, which it acquired on Thursday.


The combined unit, which has 5,500 employees, will be called AIGDirect.com, said New York-based AIG, considered the world’s largest insurer.


Bruce Marlow, chief executive of 21st Century, will be president of the merged auto insurer, and Tony DeSantis, president of AIG Marketing, becomes chief operating officer. 21st Century shareholders approved the acquisition on Thursday in a deal valued at $813 million back in May. AIG has had a majority stake in the insurer since 1998.


Call center staff, claims handlers and administrative workers are among employees from the two companies who will lose their jobs as a result of the merger, according to a spokesman. How many of the eliminated jobs would come from the Woodland Hills operation was not specified.

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