21st Century Insurance Group Announces Special Dividend.

WOODLAND HILLS, Calif. -- 21st Century Insurance Group (NYSE:TW) announced that the Executive Committee of its Board of Directors declared a special cash dividend today of $0.0055 per common share, payable on October 11, 2007 to shareholders of record as of September 26, 2007. Pursuant to the Agreement and Plan of Merger ("merger agreement") dated May 15, 2007 between 21st and American International Group, Inc. ("AIG"), in the event that the merger closes after September 24, 2007, but before December 21, 2007, the Company is permitted to declare a special dividend per common share equal to $0.16 multiplied by a special dividend ratio. The total cash dividend payable to each shareholder for the total number of common shares held by that shareholder will be rounded to the nearest cent.

The special dividend ratio of 0.0341 is obtained by dividing three days, or the total number of days from and including September 25, 2007 through and including the closing date of the merger, by 88 days, or the total number of days from and including September 25, 2007 through and including December 21, 2007. On August 15, 2007, the Company announced that it scheduled a record date and special meeting date for its stockholders on September 27, 2007 to consider and vote on a proposal to adopt the merger agreement. Therefore, for purposes of the special dividend, September 27, 2007 is assumed to be the closing date for the merger.

On August 14, 2007, the Company declared a regular quarterly cash dividend of $0.16 per common share, payable on October 9, 2007 to shareholders of record as of September 24, 2007.

About 21st: Drivers Just Like You

Founded in 1958, 21st Century Insurance Group is a direct-to-consumer provider of personal auto insurance. With $1.4 billion of revenue in 2006, the Company insures over 1.6 million vehicles in 18 states, including California, Florida, New Jersey, Texas and the Company's newest market, New York. The Company is executing a multi-year geographic expansion strategy which increased the percentage of the U.S. private passenger automobile market in which 21st operates from approximately 18% in 2003 to approximately 66% currently. 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 www.21st.com or on the phone with our licensed insurance professionals at 1-800-211-SAVE, 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.

(c) 2007 by 21st Century Insurance Group. All rights reserved