20th Century Industries announces 1994 financial results.

WOODLAND HILLS, Calif.--(BUSINESS WIRE)--Feb. 13, 1995--20th Century Industries (NYSE:TW), the Woodland Hills-based insurance holding company, Monday reported a net loss for the year ended Dec. 31, 1994, of $498 million, or $9.69 per share, on revenues of $1.1 billion.

Earnings for 1993 were $112.6 million, or $2.19 per share, on revenues of $1.1 billion.

Excluding the effect of the Jan. 17, 1994, Northridge earthquake, including additional cost of catastrophe reinsurance, realized gains, bank interest and Proposition 103, operating pretax earnings were $107.6 million, or $2.10 per share, vs. $113.7 million and $2.21 per share in 1993.

The company reported a loss for the fourth quarter ended Dec. 31, 1994 of $48.7 million, or 95 cents per share, on revenues of $275.3 million. The corresponding figures for fourth-quarter 1993 were a profit of $22.8 million, or 44 cents per share, on revenues of $286.5 million.

Results for the quarter include a reduction of $44 million in the Proposition 103 liability under the terms of the settlement reached with California Insurance Commissioner Quackenbush announced on Jan. 27, 1995. This benefit was offset by a $40 million increase to the company's earthquake claim reserves.

The order also calls for payment of $46 million in refunds to customers insured between Nov. 8, 1988, and Nov. 7, 1989, and payment of an additional $32 million (both fully reserved for as of Dec. 31, 1994) unless earthquake claims exceed $950 million. In that event, the $32 million may be used to pay earthquake claims and expenses.

The effects of the Northridge earthquake include claims for automobile damage in excess of $20 million, as well as homeowner claims covered without specific earthquake coverage of $20 million. Expenses for contract adjusting services and other specialists during the year reached approximately $50 million.

As of Dec. 31, 1994, paid earthquake claims and expense totaled $785.4 million, and reserves total $154.5 million.

In addition to the earthquake claims and expenses, $50.5 million in reinsurance premiums were expended in 1994 for reinstating and increasing the company's catastrophe reinsurance program. In comparison, the company's reinsurance cost in 1993 was $12 million.

The effect on earnings per share of the net incurred earthquake losses and loss adjustment expenses plus additional reinsurance premiums was a reduction of approximately $11.50.

Other 1994 financial notes include:

-- Net premiums written in 1994 remained constant with 1993 at

approximately $1 billion. Net premiums written in the fourth

quarter were $253.2 million, down from $261.9 million in the

same period last year. The net premiums written for 1994

includes a reduction for additional reinsurance costs

incurred during 1994.

-- Net investment income was $84.8 million for the year and

$20 million for the quarter, compared with $97.6 million

and $24.8 million, respectively, in 1993. Invested assets

at year-end 1994 were $942.2 million, compared with

$1.4 billion in 1993. Invested assets do not include

cash and cash equivalents, which totaled $249.8 million at

year-end 1994, compared with $17.9 million a year ago.

-- Realized pretax investment gains for 1994 were $61.6 million,

or $1.20 per share, compared with $16.7 million, or 33 cents

per share, a year ago. Gains for the fourth quarter were

$4,000, or nil per share, compared with $4 million and

8 cents per share for fourth-quarter 1993.

-- Stockholders' equity was $317.9 million on Dec. 31, 1994,

compared with $655.2 million a year ago.

-- Total assets were $1.7 billion, compared with $1.65 billion

a year ago.

-- Book value per share was $6.18 at year-end 1994, compared

with $12.74 on Dec. 31, 1993.

-- 1994 results reflect a contribution to capital of $216 million

from American International Group (NYSE:AIG) in exchange for

preferred stock and warrants, and a $160 million contribution

under a $175 million bank credit agreement by First Chicago

and Union Bank.

-- The combined ratio on a statutory basis was 152.4 for the

fourth quarter of 1994 and 182.9 for the year.

-- Total homeowner earthquake exposure decreased approximately

51 percent in 1994. The company's earthquake endorsements

will totally expire at the end of July 1995.

-- The number of automobiles, homes, condominiums and excess

liability policies underwritten by the insurance subsidiaries

totaled 1,349,844, compared with 1,375,232 a year ago, a

decrease of 1.9 percent.

During 1994, the company was granted rate increases for automobile and homeowner insurance. The average automobile insurance rate increase of 6 percent, which took effect on Oct. 7, 1994, will be fully earned after 12 months. The Aug. 1, 1994, homeowner insurance rate increase, which averages 17.1 percent, will be fully earned after 24 months.

"20th Century overcame tremendous difficulties and challenges in 1994, and we are looking forward to moving ahead in 1995," said Neil H. Ashley, chief executive officer of 20th Century Industries.

"With Proposition 103 finally behind us, a responsible regulatory environment in place and the opportunity for joint ventures with American International Group on the horizon, 20th Century is enjoying a renewal of spirit unlike any in our history. Because of the tremendous opportunity for market share growth in California and the resumption of our marketing efforts, we anticipate an increase in our automobile business of 7.5 percent in 1995.

"In addition, the possibility of expansion into other Western states will allow us to capitalize on our name recognition as a low-cost, high-quality provider and serve the growing communities outside of California. We are truly entering a new era for the company."

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 Co., which markets automobile and excess liability insurance, and 21st Century Casualty Co., 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. Phone: [phone]. -0-

              20TH CENTURY INDUSTRIES AND SUBSIDIARIES
                    CONDENSED FINANCIAL STATEMENT
              (Amounts in thousands, except share data)

                                     For the Fourth Quarter Ended
                                                Dec. 31,
                                        1994               1993
Premiums written --

Direct                               $ 266,962          $ 265,798

Net                                    253,154            261,870

Premiums earned                        256,194            257,880

Underwriting loss and other            (98,327)            (4,621)

Net investment income                   19,996             24,762

Income (loss) before tax               (78,327)            24,129

Net income (loss)                      (48,653)            22,789

Operating earnings (loss)
  per common share                   $   (0.95)         $    0.39

Earnings (loss) per common share     $   (0.95)         $    0.44

Weighted average number of shares   51,367,892         51,414,310

              20TH CENTURY INDUSTRIES AND SUBSIDIARIES
                    CONDENSED FINANCIAL STATEMENT
              (Amounts in thousands, except share data)

                                      For the 12 Months Ended
                                              Dec. 31,
                                       1994               1993
Premiums written --

Direct                              $1,078,663         $1,033,895

Net                                  1,019,737          1,021,902

Premiums earned                      1,021,003            989,712

Underwriting profit (loss) and other  (932,422)            12,643

Net investment income                   84,761             97,574

Income (loss) before tax and
 cumulative effect of accounting
 change for income taxes              (786,107)           126,946

Income (loss) before cumulative
 effect of accounting
 change for income taxes              (498,020)           108,596

Net income (loss)                     (498,020)           112,555

Operating earnings (loss)
 per common share                   $   (10.47)        $     1.90

Earnings (loss) per common share    $    (9.69)        $     2.19/a

Weighted average number of shares   51,387,120         51,411,968

(a)  Includes 8 cents from the cumulative effect of accounting change
     for income taxes due to the implementation of FASB 109,
     "Accounting for Income Taxes."

CONTACT: 20th Century Industries, Woodland Hills

Rick Dinon/Ric Hill, 818/704-3595

or

Fleishman-Hillard Inc., Los Angeles 

Jeanne Ouellette/Rob Williams, 213/629-4974