20th Century Industries to Add $145.6 Million in Capital From Exercise of Warrants; AIG to Convert Preferred Stock.WOODLAND HILLS, Calif.--(BUSINESS WIRE)--July 27, 1998--20th Century Industries (NYSE NYSE See: New York Stock Exchange :TW), the Woodland Hills-based insurance holding company, today said American International Group
American International Group, Inc. (AIG) (NYSE: AIG; TYO: 8685 ) is a major American insurance corporation based in New York City. , Inc. (AIG AIG addressee indicator group (US DoD) AIG American International Group, Inc AiG Answers in Genesis (religious group in defense of Scripture) AIG Artificial Intelligence Group AIG Australian Industry Group ) has presented its entire 16 million warrants for exercise to common stock at a price of $9.10 each. Proceeds from the exercise will add $145.6 million to 20th Century's capital. The company also announced that AIG has tendered 224,750 shares of Series A preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. for conversion to common. This will require issuance of 19,836,716 shares of common stock. At June 30, 1998, common shares outstanding were 51,728,381 and book value per common share Book Value Per Common Share A measure used by owners of common shares in a firm to determine the level of safety associated with each individual share after all debts are paid accordingly. Formula: was $7.76. Had this transaction occurred at the end of the second quarter 1998, book value would have been $8.81 and common shares outstanding would have totaled 87,565,098. "The 1994 financial alliance between American International Group, Inc. (AIG) and 20th Century Industries, which saved the Company, has worked exceedingly well and we have foundAIG to be a good strategic partner," said John DeNault, chairman of 20th Century Industries. "Our board of directors will continue to work with AIG to define the future scope of 20th Century. Our objectives are to reach an agreement to continue an equitable dividend policy, obtain proper market support for our stock and establish independent mechanisms to protect and provide assurance for minority stockholders." 20th Century Industries is the eighth-largest publicly held personal automobile insurer in the United States. 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, 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 is www.20thCenturyInsurance.com.
CONTACT: 20th Century Industries, Woodland Hills
Rick Dinon or Ric Hill, 818/704-3514
or
Fleishman-Hillard
Frank Moore, 213/629-4974
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