The 21st Century Insurance Group reported 2005 fourth-quarter net income jumped 15 percent as the Los Angeles area-based company planned an expansion into six states to make up for static home growth.
The carrier reported net income of $26.4 million for the quarter, compared with $22.5 million for the same period last year.
The combined ratio came in at 93 for the quarter, an improvement of 2 points from the comparable 2004 period.
Direct written premiums of $316.5 million, however, represented a 2.9 percent decrease from the $325.8 million of the same year-ago period.
Bruce Marlow, 21st Century chief executive officer, said opportunities for expansion in California remain limited due to flat pricing in general throughout the state.
“But outside of California, we have found good opportunities for growth, which we increased over 80 percent last year,” he said.
The company plans on entering into three states in the second quarter of 2006, and three more in the third quarter, Mr. Marlow said.
For the full year, the company reported net income of $87.4 million, compared with $88.2 million in 2004. The company said the decrease can partially be explained by net realized capital losses of $3.3 million for the year, compared with gains of $10.8 million for 2004.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.