Fitch puts 21st Century on watch

Fitch Ratings said it placed 21st Century Insurance Group's A long-term issuer default rating and A senior unsecured notes due Dec. 15, 2013 on Rating Watch negative.

The placement follows the announcement by parent company American International Group, Inc. that it agreed to sell a number of its subsidiaries to Farmers Group, Inc. in exchange for $1.5 billion of cash and $400 million of hybrid securities. Farmers Group is a subsidiary of Zurich Insurance Co. (A+/negative).

The A ratings reflect historic benefits from being part of the AIG organization and, more recently, benefits from a series of transactions with the U.S. Government support that have enhanced AIG's financial stability over the last eight months, the agency said - benefits that will be lost once the subsidiaries are sold.

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