20th Century Industries Reports Strong 1998 Second Quarter Results.WOODLAND HILLS, Calif.--(BUSINESS WIRE)--July 20, 1998--20th Century Industries (NYSE NYSE See: New York Stock Exchange :TW), the Woodland Hills-based insurance holding company, today reported net income of $40.2 million, or $0.68 per share (basic), on revenues of $217.8 million, compared to 1997 second quarter net income of $31.5 million, or $0.51 per share (basic), on revenues of $214.0 million. Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of increased to $0.49 for the 1998 second quarter from $0.39 for the same period of 1997. Net income for the first six months of 1998 increased to $68.0 million, or $1.12 per share (basic), on revenues of $432.9 million, versus net income of $58.4 million, or $0.94 per share (basic), on revenues of $427.9 million. Diluted earnings per share increased to $0.82 for the first six months of 1998 from $0.73 for the first half of 1997. Also during the quarter, the company's board of directors increased the 1998 second quarter common stock dividend 60 percent, to $0.16 per common share from $0.10 per common share, reflecting the company's continued strong financial position and ongoing commitment to increase share value. This common stock dividend increase returns the company's cash dividend to its historic high, last achieved in early 1994. In April, Standard & Poor's raised the company's credit ratings to A-plus, the second upward increase in a year. The rating agency cited 20th Century's solid operating performance, driven by one of the industry's lowest expense ratios and continued strong profit margins. Commenting on the company's second quarter results, William William, crown prince of Germany William or Frederick William, 1882–1951, crown prince of Germany, son of William II. In World War I he commanded (1914) an army on the Western Front and was nominal commander in the German attack L. Mellick, president and chief executive officer of the company, said, "Our second quarter results reflect continuing momentum in our automobile policy growth, especially in Northern California Northern California, sometimes referred to as NorCal, is the northern portion of the U.S. state of California. The region contains the San Francisco Bay Area, the state capital, Sacramento; as well as the substantial natural beauty of the redwood forests, the northern as well as ongoing favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. claim experience. Customer renewal rates remain at historic highs and our planned expansion into three additional states remains on target." During the 1998 second quarter, the company's joint venture in the 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). market continued to produce strong policy growth. Total vehicles insured increased to 13,982, nearly doubling the number of vehicles insured at the end of the first half of 1997. By focusing on fast-growing adj. 1. tending to spread quickly; - used mostly of plants. Adj. 1. fast-growing - tending to spread quickly; "an aggressive tumor" strong-growing, aggressive metropolitan population centers such as Phoenix and Tucson Tucson (t  `sŏn'), city (1990 pop. 405,390), seat of Pima co., SE Ariz.; inc. 1877. ,
the company further optimizes marketing resources and centralized
processing Processing performed in one computer or in a cluster of coupled computers in a single location. Centralized processing evolved from the computers in the 1960s, which were stand-alone with all input and output in the same room. systems for the low overhead delivery of customer service.
These increased efficiencies result in more attractive automobile
insurance prices as well as referrals from satisfied customers.
The company also said it continues to make progress with its startup (STARTing UP) "At startup" means when the computer is first turned on or when a program is first loaded. See Startup folder. operations in 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. The company has obtained the necessary business licenses and expects to begin writing new policies in these new markets, which collectively represent six million vehicles, by the end of the year. Mellick said the company will follow the same proven operational business philosophy it has utilized successfully in 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). and Arizona to pass on cost savings to its customers. Financial Notes Other financial information for the 1998 second quarter includes:
-- Vehicles insured grew by 18,162 in the second quarter of 1998 and
by 39,534 for the first six months. The total vehicles insured at
June 30, 1998, were 1,116,410. Additionally, 20th Century
Insurance Company of Arizona insured 13,982 vehicles as of June
30, 1998.
-- The total non-auto units insured were 69,675 at the end of 1998
second quarter.
-- Net premiums earned for the 1998 second quarter decreased to
$191.9 million from $195.1 million for the second quarter of
1997, due to implemented rate decreases, offset, in part, by
overall unit growth.
-- Net investment income was $18.3 million for the 1998 second
quarter compared to $18.4 million for the second quarter of 1997.
Invested assets were approximately $1.1 billion at June 30, 1998,
and the average pre-tax yield was 6.7 percent for the quarter.
Total assets were approximately $1.5 billion.
-- Realized after-tax investment gains for the second quarter were
$5.0 million compared to $306,000 for the same quarter a year
ago.
-- Stockholders' equity on a GAAP basis at the end of the 1998
second quarter was $626.2 million, compared to $599.7 million at
March 31, 1998. Combined statutory surplus was $586.5 million
compared to $566.1 million at the end of the 1998 first quarter.
-- Book value per common share increased to $7.76 at June 30, 1998,
a nearly 34 percent increase from $5.81 at the end of 1997 second
quarter.
-- The combined ratio on a statutory basis for the second quarter
decreased to 80.2 from 81.9 for the same 1997 period despite
substantial rate reductions last year. For the automobile lines,
the combined ratio was 80.1 for the second quarter compared to
78.0 for the second quarter of 1997.
20th Century Industries is the eighth-largest publicly held personal automobile insurer An individual or company who, through a contractual agreement, undertakes to compensate specified losses, liability, or damages incurred by another individual. An insurer is frequently an insurance company and is also known as an underwriter. in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . Founded in 1958, the company is traded on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. under the trading symbol Trading symbol See: Ticker symbol TW. The company's wholly owned subsidiaries Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , 20th Century Insurance Company and 21st Century Casualty Company, market personal automobile and personal excess liability insurance. Both insurance subsidiaries sell directly to consumers without agents. 20th Century Industries is headquartered at 6301 Owensmouth Avenue, Woodland Hills, Calif., 91367; 818-704-3514. 20th Century's address on the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the is www.20thCenturyInsurance.com. -0-
20TH CENTURY INDUSTRIES AND SUBSIDIARIES
CONDENSED FINANCIAL STATEMENT
For the Second Quarter Ended June 30:
1998 1997
(amounts in thousands, except per share data)
Premiums Written --
Direct $228,791 $238,632
Net 192,618 200,038
Net Premiums Earned 191,883 195,107
Underwriting Profit 38,280 32,608
Net Investment Income 18,262 18,401
Income Before Tax 61,549 48,158
Net Income 40,173 31,507
Operating Earnings Per
Common Share (Basic) $ 0.58 $ 0.51
Basic Earnings Per
Common Share $ 0.68 $ 0.51
Diluted Earnings Per
Common Share $ 0.49 $ 0.39
Basic Weighted Average
Number of Shares 51,589,579 51,490,343
Diluted Weighted Average
Number of Shares 82,778,009 79,999,244
-0-
20TH CENTURY INDUSTRIES AND SUBSIDIARIES
CONDENSED FINANCIAL STATEMENT
For the Six Months Ended June 30:
1998 1997
(amounts in thousands, except per share data)
Premiums Written --
Direct $450,177 $466,497
Net 383,849 399,049
Net Premiums Earned 385,384 390,076
Underwriting Profit 62,320 57,079
Net Investment Income 36,594 36,235
Income Before Tax 104,317 88,242
Net Income 68,041 58,378
Operating Earnings Per
Common Share (Basic) $ 0.99 $ 0.92
Basic Earnings Per
Common Share $ 1.12 $ 0.94
Diluted Earnings Per
Common Share $ 0.82 $ 0.73
Basic Weighted Average
Number of Shares 51,572,147 51,489,593
Diluted Weighted Average
Number of Shares 82,693,641 79,998,494
CONTACT: 20th Century Industries, Woodland Hills Rick Dinon/Ric Hill, 818/704-3514 or Fleishman-Hillard Inc., Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. Frank Moore Frank Moore is a name shared by the following individuals:
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