Los Angeles-based Farmers Group Inc. has acquired American International Group Inc.’s 21st Century Insurance Group for $1.9 billion. The acquisition is expected to close by the third quarter, pending regulatory approval. The deal will make Farmers the third-largest personal lines insurer in the United States and the largest automobile insurer in several states as it takes on 21st Century’s more than 2.4 million customers. Farmers is a subsidiary of Zurich Financial Services Group. As part of the deal, Farmers will assume 21st Century’s $100 million in outstanding debt. Zurich plans to raise $1.1 billion in capital from stock offerings to institutional investors, the Los Angeles Business Journal reported.

The federal government has committed $8 billion from the American Recovery and Reinvestment Act and $1 billion a year for five years to help develop a passenger rail system for the United States, the Houston Business Journal reported. Funding could go to 10 high-speed rail corridors including Chicago Hub Network and is designed to help projects that either create new corridors for high-speed rail or make train service along existing rail lines faster. Funds could be awarded as early as this summer.

In a move that’s expected to save the company $16.5 million this year, Nationwide Mutual Insurance Co. is cutting back on the number of vacation days employees can carry over from year to year and eliminating a program allowing employees to purchase extra vacation time, Columbus (Ohio) Business First reported. The company also is suspending its associate referral program, which paid bonuses to workers who referred others to join the company. Nationwide lost $342 million in 2008, but the benefit cuts were not directly related to the loss, said spokeswoman Liz Christopher. The company said April 3 that it was cutting 480 positions.

Catchwind, a Des Moines-based provider of technology that allows organizations and businesses to send broadcast text messages, has been selected by the National Breast Cancer Foundation to send reminders to patients about mammograms and other prevention and detection measures. The foundation will use a Catchwind feature called Remind-On-Time that sends text reminders for critical appointments. The platform also provides personally tailored reminders for children and adults adapting to a diagnosis of a chronic disease, such as diabetes, and it has applications for addiction treatment.

Volunteers are needed for the 2009 Des Moines Arts Festival, which will be held June 26-28 in Western Gateway Park in downtown Des Moines. To register, click here.

The Central Iowa chapter of the Association of Fundraising Professionals is seeking nominations for people and companies who are strong community supporters. Awards will be given for outstanding individual philanthropist, volunteer fund-raiser, corporate/foundation philanthropist and youth in philanthropy. Nominations are due by May 1. For an application, contact Carol Ann Van Wyk at 246-5365. Winners will be recognized at an awards luncheon in November.

FBL Financial Group Inc. will announce its first-quarter earnings after the close of markets on May 7. A conference call to discuss the results will be held on May 8 at 10 a.m. Iowa time. For more information, go to www.fblfinancial.com.