20TH CENTURY INSURERS REPORT EARNINGS BELOW EXPECTATIONS.Byline: Chris Sieroty Staff Writer Despite returning to the California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). home insurance business, 20th Century Industries late Wednesday reported third-quarter earnings of 21 cents per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, 14 cents below analysts' expectations. The Woodland Hills-based company reported net income was $18.4 million on revenues of $198.7 million for the third quarter of 1999. This compares with 1998 third-quarter net income of $38.2 million, or 44 cents per diluted share, on revenues of $219.6 million. Revenues were down partly because of a $4.7 million loss related to the company's switch to a tax-exempt portfolio, said 20th Century spokesman Ric Hill. Premium growth was affected by a rate decrease implemented in February and rising claims that affected the company's underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. margin, said William L. Mellick, 20th Century's president and chief executive officer, in a statement. Before the company released its earnings report, Michael Dion, an analyst with Hoefer and Arnett in San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden , said the auto insurance market has recently become very competitive, with companies including Gieco and Progressive driving down rates. In an effort to increase profits, ``the big players like 20th Century are looking to drive up rates, beginning in January, when policies are renewed,'' said Dion. Recently, after a five-year absence after the Northridge Earthquake The Northridge earthquake occurred on January 17, 1994 at 4:31 AM Pacific Standard Time in the city of Los Angeles, California. The earthquake had a "strong" moment magnitude of 6. , 20th Century announced it would resume sales of home insurance policies in California. ``Over the long term, getting back into the home insurance business will help its auto business, because a majority of customers prefer purchasing both policies from the same company,'' said Clifford Gallant with Conning & Co. in Hartford, Conn, before the earnings were released. ``20th Century is a great company,'' added Gallant. ``It has cut rates by 20 percent in the last three years to match the other companies' rates,'' which has helped its auto insurance stay competitively priced, he said. The company, which is the ninth-largest consumer auto insurance company in the nation, markets policies to customers in California, Arizona Arizona (âr'əzō`nə), state in the southwestern United States. It is bordered by Utah (N), New Mexico (E), Mexico (S), and, across the Colorado R., Nevada and California (W). , Nevada, Oregon Oregon, city, United States Oregon, city (1990 pop. 18,334), Lucas co., NW Ohio, a suburb adjacent to Toledo, on Lake Erie; inc. 1958. It is a port with railroad-owned and -operated docks. The city has industries producing oil, chemicals, and metal products. and Washington. Shares of 20th Century closed up 56.25 cents on Wednesday to $19.75. |
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