20th Century Industries and AIG announce new joint venture to market auto insurance in Arizona.

WOODLAND HILLS, Calif.--(BUSINESS WIRE)--Dec. 12, 1995--20th Century Industries (NYSE:TW) and American International Group Inc. (AIG), Tuesday announced the completion of an agreement to form a jointly owned insurance company to market and service private passenger automobile insurance in Arizona.

The joint venture is the first such undertaking contemplated in the investment and strategic alliance agreement between 20th Century and AIG, which was approved by 20th Century's shareholders on Dec. 15, 1994. Under this agreement, AIG invested $216 million in 20th Century.

The joint venture company, to be named "20th Century Insurance Company of Arizona" and owned 51 percent by AIG and 49 percent by 20th Century, expects to receive regulatory approval from the Arizona Department of Insurance and to begin operations in the spring of 1996.

20th Century's share of the funds to capitalize the joint venture company will be contributed by 20th Century Industries, the holding company.

"We are looking forward to the expansion of 20th Century's direct-marketing skills to our neighbors in Arizona," said William L. Mellick, president and chief executive officer of 20th Century. "Our low-cost, low-expense strategy should be a close fit with the needs of Arizona's insurance consumers, especially within the fast-growing urban and suburban areas.

"In recent years, 20th Century has enjoyed rapid growth in northern California and expanding outside of California is the logical next step. We and our AIG partners consider the direct-response marketing of automobile insurance in the United States to be a substantial opportunity.

"20th Century had previously considered beginning operations in a nearby fast-growing state. Our partnership with AIG in this venture permits us to do so now rather than later."

Also commenting on the new joint venture, Robert M. Sandler, AIG executive vice president, said: "We are excited with this opportunity to help export 20th Century's very successful California franchise to Arizona. We expect that this will be the first of many such partnerships. It also complements and accelerates AIG's overall automobile strategy for the United States and overseas."

AIG is the leading U.S.-based international insurance organization and the largest underwriter of commercial and industrial insurance in the United States. Its member companies write property, casualty, marine, life and financial services insurance in approximately 130 countries and jurisdictions, and are engaged in a range of financial services businesses.

American International Group's common stock is listed on the New York Stock Exchange, as well as the stock exchanges in London, Paris, Switzerland and Tokyo.

Los Angeles-based 20th Century is the fifth-largest insurer of private passenger automobiles in California, covering approximately 1.1 million vehicles throughout the state. Founded in 1958 by Louis W. Foster, the company sells insurance without agents directly to consumers exclusively in California.

20th Century Industries is a publicly held company traded on the New York Stock Exchange under the trading symbol TW. Wholly owned subsidiaries are 20th Century Insurance Company, which markets automobile and excess liability insurance, and 21st Century Casualty Company, which markets automobile insurance. Both insurance subsidiaries sell directly to consumers without agents.

20th Century Industries and subsidiaries' offices are located at 6301 Owensmouth Ave., Woodland Hills, Calif. 91367; 818/704-3514.

CONTACT: 20th Century Industries, Woodland Hills

Rick Dinon or Ric Hill, 818/704-3595

or

Fleishman Hillard Inc., Los Angeles 

Jeanne Ouellette or Cynthia Coulter, 213/629-4974