20th Century Insurance Co. to renew homeowner policies.

WOODLAND HILLS, Calif.--(BUSINESS WIRE)--Dec. 24, 1996--William L. Mellick, president and chief executive officer of 20th Century Industries, Tuesday announced that the California Department of Insurance has authorized the company to offer renewals to existing homeowner insurance customers whose policies were to expire Feb. 15, 1997, or later.

"We are pleased to continue offering our homeowner customers the same high-quality, affordable service we provide to our automotive customers," said Mellick. "This is a very positive development for the company and for the 68,000 homeowners throughout California who will now have the option of renewing their policies with 20th Century.

"Retaining a low-overhead, low-premium insurer in the California homeowner market is a plus for consumers and reflects the leadership position of 20th Century in the California personal lines insurance industry."

According to Mellick, the company will comply with California's mandatory requirement to offer earthquake coverage by offering a separate, residential earthquake insurance policy underwritten by American Home Assurance Co., a subsidiary of American International Group Inc. (AIG).

American Home Assurance is rated A++ by A.M. Best, the respected insurance rating organization. Mellick added, "Partnering with AIG to offer earthquake protection for 20th Century homeowner customers is a creative, market-driven solution to the earthquake mandate."

"Homeowners is a natural complement to our core automobile insurance business," Mellick said. "An important segment of insurance consumers value the opportunity to insure their home and vehicles with the same company. We look forward to providing a market for both products and this is an important first step in that process."

20th Century, which currently insures nearly a million vehicles throughout California, is engaged an aggressive, statewide marketing program that included opening a new, full-service regional office in Northern Californ last summer. In August, the company also began operations in Arizona, offering private-passenger automobile insurance through a joint venture with AIG.

American International Group Inc. is the leading U.S.-based international insurance organization and among the nation's largest underwriters of commercial and industrial coverages.

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. As of Sept. 30, 1996, AIG reported consolidated assets of $144 billion.

20th Century Industries is the seventh largest publicly-held personal automobile insurer in the United States. Founded in 1958, the company is traded on the New York Stock Exchange under the trading symbol TW. The company's wholly owned subsidiaries, 20th Century Insurance Co. and 21st Century Casualty Co., market personal automobile and personal excess liability insurance.

Both insurance subsidiaries sell directly to consumers without agents. 20th Century Industries has headquarters at 6301 Owensmouth Ave., Woodland Hills, Calif. 91367; 818/704-3514. 20th Century's address on the Internet is http://www.20thCentIns.com .

CONTACT: 20th Century Insurance Co., Woodland Hills

Rick Dinon, 818/704-3514