20th Century announces quake claim update and availability of additional capital.WOODLAND HILLS, Calif.--(BUSINESS WIRE)--Dec. 8, 1994--20th Century Industries (NYSE NYSE See: New York Stock Exchange :TW) Thursday announced new information concerning claims and expenses, relating to the Jan. 17 Northridge earthquake. Neil H. Ashley, chief executive officer, reported that the company now expects earthquake claims to total $900 million. Ashley said that the company will have access to additional capital through American International Group
American International Group, Inc. (AIG) (NYSE: AIG; TYO: 8685 ) is a major American insurance corporation based in New York City. Inc. (NYSE: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 ) under the terms of an investment plan currently pending shareholder approval. 20th Century previously reported an $815 million estimate on Sept. 8. As of Dec. 7, the company has paid $722 million to customers for earthquake damages and related expenses. In addition, the company has paid $46 million for claim adjustment expenses, principally for independent adjuster services. As previously announced, the company will hold a special shareholder's meeting on Dec. 15 to approve a capitalization plan with AIG, the leading U.S.-based international insurance organization and the nation's largest underwriter of commercial and industrial coverages. Ashley said that shareholders' approval of the capitalization plan is anticipated. 20th Century will receive $216 million from AIG in return for convertible preferred stock Convertible Preferred Stock Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Also known as "convertible preferred shares". and warrants. At the option of the company, up to $70 million for additional preferred shares Preferred shares Preferred shares give investors a fixed dividend from the company's earnings and entitle them to be paid before common shareholders. See: Preferred stock. is available to cover additional claims development in excess of $850 million. He added that the agreement also includes a strategic alliance between the company and AIG for the development of joint ventures for the sale of insurance outside California. According to Ashley, the capitalization proposal has been approved by regulatory authorities and closure is expected Dec. 16 following approval by shareholders. ``We have all had quite a year and we certainly look forward to 1995. We expect this agreement with AIG to bring more opportunity, growth and jobs within California as well as providing a chance to export our expertise to other markets,'' said Ashley. 20th Century Industries is a publicly held company currently 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. 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. 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; 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 Rob Williams, 213/629-4974
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