21st Century Insurance Expands into Four New States.

Auto Insurer Brings Superior Policy Features and Low Prices to Consumers in Colorado, Minnesota, Missouri and Wisconsin 

WOODLAND HILLS, Calif. -- 21st Century Insurance Group (NYSE:TW), one of the pioneers of selling auto insurance directly to consumers, is now offering personal auto insurance in Colorado, Minnesota, Missouri and Wisconsin.

The four new markets are the latest phase in the company's geographic expansion strategy. 21st, founded in Los Angeles in 1958, entered Illinois, Indiana and Ohio in 2004; Texas in 2005; and Florida, Georgia, Pennsylvania and New Jersey earlier in 2006.

During 2006, 21st has increased the percentage of the U.S. personal auto market in which it operates from 34 percent to 60 percent. The expansion occurs as a growing number of consumers are bypassing insurance agents and buying directly from companies.

"Consumers are finding that they can make insurance decisions for themselves and avoid paying a lifetime of agent commissions and fees. 21st offers a superior combination of more policy features than any other leading company, 24/7 service on the Web and on the phone with our licensed professionals, and very competitive rates," said 21st President and CEO Bruce Marlow.

According to insurance data provider Highline Data, companies that rely on captive insurance agents lost 2.7 percentage points of national market share between 1999 and 2005. Direct-to-consumer companies like 21st and GEICO gained 4.6 percentage points.

This shift in consumer demand is evident in each of 21st's new state markets. According to Highline Data, the number of premiums written in those states between 1999 and 2005 by direct-to-consumer companies grew at a much faster rate than premiums written at captive-agent companies.

* In Colorado, direct premiums written grew 95.4 percent, compared to 24.3 percent for captive agent policies.

* Direct premiums written grew 66.8 percent in Minnesota, while captive agent premiums written grew only 24.4 percent.

* Premiums written by direct companies in Missouri grew 147.6 percent, compared to 20.8 percent growth for captive-agent premiums written.

* The biggest gap occurred in Wisconsin, where premiums written by direct companies grew 160.5 percent and premiums written by captive agent companies grew 24.3 percent.

21st employees want consumers to know that they are "Drivers Just Like You," who use personal insurance needs and experiences to create consumer-friendly policies and services. The superior policy features resulting from the "Drivers Just Like You" principle were introduced to consumers in Colorado, Minnesota, Missouri and Wisconsin earlier this year as part of a national advertising campaign.

"Every time 21st enters a new state, we find that consumers are ready for new and improved product offerings. 21st's prices, policy features and customer service differentiate us from other insurers," said Tina Wisner, 21st Product Manager. "It's important that consumers shop around for not only the best price, but also the policy features that are most important to them."

Wisner added that 21st is the only major carrier to automatically include all of the following policy features at no extra cost to every policyholder:

* 24-hour towing and roadside assistance;

* full replacement cost of a new car if it's totaled during the first year of ownership or lease; and

* temporary coverage for policyholders' college-aged children when they're home on school holidays and breaks.

21st is committed to customer service and providing resources that help customers understand the coverage they need and compare 21st's rates with other leading companies. Two great tools are available at the company's award-winning Web site, 21st.com, to help customers learn more:

* The Coverage Advisor: Most consumers don't know what insurance coverage they have or what they truly need. Having the wrong liability coverage limit can spell financial disaster after an auto accident. The Coverage Advisor is a quick and easy interactive tool for exploring what coverages and amounts customers should consider.

* The Interactive Rate Comparison Tool: This tool provides customers estimates for 21st and four other leading companies in just seconds. It allows customers to quickly switch between different cars, driving records, family composition and other variables so they can easily see how rates vary among leading companies.

21st.com is available in both English and Spanish versions. Likewise, English and Spanish-speaking licensed professionals are available 24 hours a day, 365 days a year, by calling 21st at 1-800-211-SAVE (7283).

About 21st

Founded in 1958, 21st Century Insurance Group is a direct-to-consumer provider of personal auto insurance. Founded in 1958, 21st Century Insurance Group is a direct-to-consumer provider of personal auto insurance. With $1.4 billion of revenue in 2005, the Company insures over 1.5 million vehicles in 17 states (Arizona, California, Colorado, Florida, Georgia, Illinois, Indiana, Minnesota, Missouri, Nevada, New Jersey, Ohio, Oregon, Pennsylvania, Texas, Washington and Wisconsin).

21st provides superior policy features and 24/7 customer service at a competitive price. Customers can purchase insurance, service their policy or report a claim at 21st.com or on the phone with our licensed insurance professionals at 1-800-211-SAVE (7283), 24 hours a day, 365 days a year. Service is offered in English and Spanish, both on the phone and on the web. 21st Century Insurance Company, 21st Century Casualty Company, and 21st Century Insurance Company of the Southwest are rated A+ by A.M. Best, Fitch Ratings and Standard & Poor's.

21st Century Insurance Group is traded on the New York Stock Exchange under the trading symbol "TW" and is headquartered at 21st Century Plaza, 6301 Owensmouth Avenue, Woodland Hills, CA 91367.