21st Century Insurance Posts 4Q Profit
NU Online News Service, Feb. 18, 12:00 p.m. EST?Reversing a loss, 21st Century Insurance Group reported a 2002 fourth-quarter net increase of $55.8 million, or 65 cents on a per-share basis, over the period in the prior year.
The company reported a fourth-quarter profit of $14.8 million, or 17 cents a share, compared with a loss of $41 million, or 48 cents a share, one year ago. For the year 2002, Woodland Hills, Calif.-based 21st Century reported a loss of $12.3 million, or 14 cents a share.
The company also announced that direct premiums written for the personal auto lines increased 20 percent to $268.9 million in the fourth quarter, compared to $224.3 million over the period in the prior year. For the full year 2002, direct premiums written for the personal auto lines rose 11 percent to $995.8 million from $898.9 million for 2001.
Bruce W. Marlow, chief executive officer at 21st Century, said, "2002 is the first year since 1993 that the personal auto line has grown in excess of 10 percent and made an underwriting profit."
He noted that the company, in the fourth quarter, had increased growth rate in personal auto direct premiums written "to 20 percent over the same quarter last year while also improving our combined ratio to 97.9 percent."
"Growth in the fourth quarter was driven by increases in advertising spending, greater effectiveness of advertising and contributions from several new marketing campaigns, and products introduced during 2002, such as the Latino marketing effort," Mr. Marlow said.
Founded in 1958, 21st Century provides personal automobile insurance to customers in California, Arizona, Nevada, Oregon and Washington. The New York-based American International Group owns some 60 percent of the company.
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