21st Century Insurance Group Reports 38% Increase in Second Quarter Earnings Per Share and 50% Growth in Premium Outside California.WOODLAND HILLS, Calif. -- 21st Century Insurance Group (NYSE NYSE See: New York Stock Exchange :TW) today reported net income of $28.3 million ($0.33 per basic share) for the second quarter of 2006, compared to $20.5 million ($0.24 per basic share) for the same period in 2005. The second quarter results include decreases to prior accident year loss and LAE reserves totaling $18.1 million, versus decreases of $11.9 million in the second quarter of 2005. The second quarter results also include no net realized capital gains or losses capital gains or losses n. particularly when calculating the tax liability of an individual or business, this is the difference between the original cost plus the cost of capital improvements, excluding maintenance, called "basis" and the sales price. , compared to net realized capital losses of $1.3 million in the second quarter of 2005. The Company began operations in Florida Florida, state, United States Florida (flôr`ĭdə, flŏr`–), state in the extreme SE United States. A long, low peninsula between the Atlantic Ocean (E) and the Gulf of Mexico (W), Florida is bordered by Georgia and , Georgia Georgia, country, Asia Georgia (jôr`jə), Georgian Sakartvelo, Rus. Gruziya, officially Republic of Georgia, republic (2005 est. pop. 4,677,000), c.26,900 sq mi (69,700 sq km), in W Transcaucasia. and Pennsylvania Pennsylvania (pĕnsəlvā`nyə), one of the Middle Atlantic states of the United States. It is bordered by New Jersey, across the Delaware River (E), Delaware (SE), Maryland (S), West Virginia (SW), Ohio (W), and Lake Erie and New York during the second quarter of 2006, increasing the percentage of the U.S. personal auto market in which the Company operates from 34% to 49% (see table below - "21st Market Footprint The amount of geographic space covered by an object. A computer footprint is the desk or floor surface it occupies. A satellite's footprint is the earth area covered by its downlink. See form factor. 1. "). "We are on track with our national expansion strategy," said Chief Executive Officer & President Bruce Bruce, Scottish royal family descended from an 11th-century Norman duke, Robert de Brus. He aided William I in his conquest of England (1066) and was given lands in England. Marlow Marlow is the name of: Places United Kingdom
Table 1 - "21st Market Footprint"
U.S. Private Passenger Automobile
---------------------------------- ---------- ------- ---------- -----
Direct
Written
State Premium - Cumulative U.S.
2005 % of % of Rank
(in $Bs) U.S. U.S. (DWP)
---------------------------------- ---------- ------- ---------- -----
Total DWP for the Markets in $79.5 49.2%
which 21st Operates:
---------------------------------- ---------- ------- ---------- -----
CALIFORNIA $19.3 12.0%
NON-CALIFORNIA STATES $60.2 37.2%
---------------------------------- ---------- ------- ---------- -----
TOTAL MARKETS FOR 21ST $79.5 49.2%
---------------------------------- ---------- ------- ---------- -----
Total DWP for the Markets $82.0 50.8%
in which 21st Does Not Operate:
---------------------------------- ---------- ------- ---------- -----
TOTAL U.S. MARKET $161.5 100.0%
================================== ========== ======= ========== =====
Regional Detail:
---------------------------------- ---------- ------- ---------- -----
CALIFORNIA $19.3 12.0% 12.0% 1
================================== ========== ======= ========== =====
Arizona $3.4 2.1% 14.1% 16
Nevada $1.6 1.0% 15.0% 30
Oregon $1.9 1.2% 16.2% 28
Washington $3.5 2.2% 18.4% 15
---------------------------------- ---------- ------- ---------- -----
Western States $10.4 6.4%
---------------------------------- ---------- ------- ---------- -----
Illinois $5.7 3.5% 21.9% 8
Indiana $2.8 1.7% 23.7% 19
Ohio $5.3 3.3% 26.9% 9
Texas $11.6 7.2% 34.1% 3
---------------------------------- ---------- ------- ---------- -----
Central States $25.4 15.7%
---------------------------------- ---------- ------- ---------- -----
Florida $12.2 7.6% 41.7% 2
Georgia $5.1 3.2% 44.8% 10
Pennsylvania $7.1 4.4% 49.2% 5
---------------------------------- ---------- ------- ---------- -----
Eastern States $24.4 15.1%
---------------------------------- ---------- ------- ---------- -----
NON-CALIFORNIA STATES $60.2 37.2%
================================== ========== ======= ========== =====
Source - 2005 Highline Data (NAIC)
Other second quarter financial highlights: --Direct premiums written of $316.8 million, versus $328.7 million in the second quarter of 2005 (3.6% decrease) --California direct premiums written of $287.4 million, versus $309.2 million in the second quarter of 2005 (7.1% decrease) --Non-California direct premiums written of $29.4 million, versus $19.5 million in the second quarter of 2005 (51.8% increase) --GAAP combined ratio of 91.4% was favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. impacted by 5.6 points of prior accident year loss and LAE reserve decreases, versus 95.2% for the second quarter of 2005, which was favorably impacted by 3.5 points For the six months ended June June: see month. 30, 2006, net income was $49.6 million ($0.58 per basic share), compared to $39.9 million ($0.47 per basic share) for the same six-month period in 2005. The 2006 six-month results include decreases to prior accident year loss and LAE reserves totaling $25.1 million, versus decreases of $19.6 million for the same six-month period in 2005. The 2006 six-month results also include net realized capital losses of $1.0 million, compared to net realized capital losses of $1.7 million for the same six-month period in 2005. Other six-month financial highlights: --Direct premiums written of $655.4 million, versus $680.8 million for the same six-month period in 2005 (3.7% decrease) --California direct premiums written of $599.2 million, versus $641.8 million for the same six-month period in 2005 (6.6% decrease) --Non-California direct premiums written of $56.2 million, versus $39.0 million for the same six-month period in 2005 (44.1% increase) --GAAP combined ratio of 93.0% was favorably impacted by 3.9 points of prior accident year loss and LAE reserve decreases, versus 95.6% for the same six-month period in 2005, which was favorably impacted by 2.9 points Stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. at June 30, 2006 increased to $855.2 million, compared to $810.0 million at June 30, 2005. Book value per share at June 30, 2006 improved to $9.91 per share from $9.45 per share at June 30, 2005. Operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. for the second quarter of 2006 was $25.7 million, compared to $30.8 million in the same period of 2005. Operating cash flow for the six months ended June 30, 2006 was $64.4 million, compared to $70.2 million for the same six-month period of 2005. "I am pleased we have been able to maintain our profitability as we have continued to put the components into place to become a strong national competitor," said the Company's Senior Vice President and Chief Financial Officer, Steve v. t. 1. To pack or stow, as cargo in a ship's hold. See Steeve. Erwin. "Our strong capital position provides a solid foundation to support our growth strategy," added Erwin. About 21st: Good people to call 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 Arizona Arizona (âr'əzō`nə), state in the southwestern United States. It is bordered by Utah (N), New Mexico (E), Mexico (S), and, across the Colorado R., Nevada and California (W). , California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). , Florida, Georgia, Illinois Illinois, river, United States Illinois, river, 273 mi (439 km) long, formed by the confluence of the Des Plaines and Kankakee rivers, NE Ill., and flowing SW to the Mississippi at Grafton, Ill. It is an important commercial and recreational waterway. , Indiana Indiana, state, United States Indiana, midwestern state in the N central United States. It is bordered by Lake Michigan and the state of Michigan (N), Ohio (E), Kentucky, across the Ohio R. (S), and Illinois (W). , Nevada, Ohio Nevada (pronounced nah-VAY-da) is a village in Wyandot County, Ohio, United States. The population was 814 at the 2000 census. Nevada was the home of Dr. Charles E. Sawyer, a homeopathic physician who is blamed for giving a false diagnosis of U.S. President Warren G. , Oregon Oregon, city, United States Oregon, city (1990 pop. 18,334), Lucas co., NW Ohio, a suburb adjacent to Toledo, on Lake Erie; inc. 1958. It is a port with railroad-owned and -operated docks. The city has industries producing oil, chemicals, and metal products. , Pennsylvania, Texas and Washington Washington, town, England Washington, town (1991 pop. 48,856), Sunderland metropolitan district, NE England. Washington was designated one of the new towns in 1964 to alleviate overpopulation in the Tyneside-Wearside area. . 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 1. English - (Obsolete) The source code for a program, which may be in any language, as opposed to the linkable or executable binary produced from it by a compiler. The idea behind the term is that to a real hacker, a program written in his favourite programming language is and Spanish Spanish, river, c.150 mi (240 km) long, issuing from Spanish Lake, S Ont., Canada, NW of Sudbury, and flowing generally S through Biskotasi and Agnew lakes to Lake Huron opposite Manitoulin island. There are several hydroelectric stations on the river. , both on the phone and on the web. 21st Century Insurance Company, 21st Century Casualty Company, and 21st Century Insurance Company of the Southwest Southwest or south west is the ordinal direction halfway between south and west, the opposite of northeast. Southwest or south west may also refer to:
An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. and Standard & Poor's. The Company's A+ rating was affirmed af·firm v. af·firmed, af·firm·ing, af·firms v.tr. 1. To declare positively or firmly; maintain to be true. 2. To support or uphold the validity of; confirm. v.intr. by A.M. Best on June 13, 2006. 21st Century Insurance Group 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" and is headquartered at 21st Century Plaza For the hotel in New York City, see . Plaza (IPA /'plaθa/ or /'plasa/ , 6301 Owensmouth Avenue, Woodland Hills, CA 91367. 21st Century Insurance Group (NYSE:TW) will hold an earnings teleconference for investors on Thursday Thursday: see week. , July July: see month. 27, 2006 at 10:00 a.m. EST EST electroshock therapy. EST abbr. electroshock therapy . The public can find information about the call in the Investor Relations Investor relations The process by which the corporation communicates with its investors. section of www.21st.com. The call will be broadcast over the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the via a webcast, as well. Teleconference Details: Dial in number - 1-800-659-2037 International dial in number - 1-617-614-2713 Passcode - 975-122-79 Teleconference Replay Details: Available from 12pm (EST) on July 27th, 2006 until 12pm (EST) on August 10th, 2006 Dial in number - 1-888-286-8010 International dial in number - 1-617-801-6888 Passcode - 468-792-15 Cautionary Statement: Statements contained herein and within other publicly available documents may include, and the Company's officers and representatives may from time to time make, statements that may constitute "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These statements are not historical facts, but instead represent only the Company's belief regarding future events, many of which, by their nature, are inherently uncertain and outside of the Company's control. These statements may address, among other things, the Company's strategy for growth, underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. results, expected combined ratio and growth of written premiums, product development, computer systems, litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. , regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. environment and approvals, market position, financial results, dividend policy and reserves. It is possible that the Company's actual results, actions and financial condition may differ, possibly materially, from the anticipated results, actions and financial condition indicated in these forward-looking statements. Other important factors that could cause the Company's actual results and actions to differ, possibly materially, from those in the specific forward-looking statements include the effects of competition and competitors' pricing actions; changes in consumer preferences or buying habits; adverse underwriting and claims experience; customer service problems; the impact on Company operations of natural disasters, principally earthquake earthquake, trembling or shaking movement of the earth's surface. Most earthquakes are minor tremors. Larger earthquakes usually begin with slight tremors but rapidly take the form of one or more violent shocks, and end in vibrations of gradually diminishing force , or civil disturbance Group acts of violence and disorder prejudicial to public law and order. See also domestic emergencies. , due to the concentration of Company facilities and employees in Southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, ; information system problems; control environment failures; adverse developments in financial markets or interest rates; results of legislative, regulatory or legal actions, including the inability to obtain regulatory approval for necessary licenses, rate changes and product changes and possible adverse actions by state regulators in market conduct examinations and rate proceedings; and the Company's ability to service its debt, including its ability to receive dividends and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. sufficient payments from its subsidiaries to service its obligations. The Company is not under any obligation (and expressly disclaims any such obligation) to update or alter any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future events or otherwise. Additional financial information is available on the Company's website at 21st.com (which shall not be deemed to be incorporated in or a part of this release) or by request to the Investor Relations Department. Disclosure of Non-GAAP Measures: The Company may have included financial measures and other information in this document that may not be presented in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with accounting principles generally accepted in the United States of America UNITED STATES OF AMERICA. The name of this country. The United States, now thirty-one in number, are Alabama, Arkansas, Connecticut, Delaware, Florida, Georgia, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Missouri, New Hampshire, ("GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). "). Management believes these financial measures and other information may enhance investors' understanding of the Company's operations or enhance their understanding of the industry, in general. However, these financial measures and other information are not intended to replace, and should be read in conjunction conjunction, in astronomy conjunction, in astronomy, alignment of two celestial bodies as seen from the earth. Conjunction of the moon and the planets is often determined by reference to the sun. with, the GAAP financial results. When possible, the Company has made efforts to reconcile these financial measures and other information to the most directly comparable GAAP financial measures available. Premiums Written represent the premiums charged on policies issued and in effect during a fiscal period. Premiums Earned, the most directly comparable GAAP measure, represents the portion of premiums written that is recognized as income in the financial statements for the periods presented and earned on a pro-rata Pro-rata Used to describe a proportionate allocation. Notes: For example, a pro-rata dividend means that every shareholder gets an equal proportion for each share they own. See also: Dividend basis over the terms of the policies. Premiums Written are meant as supplemental information and are not intended to replace Premiums Earned. Statutory Surplus represents equity as of the end of a fiscal period for the Company's insurance entities, determined in accordance with Statutory Accounting Principles The Statutory Accounting Principles are a set of accounting rules for insurance companies set forth by the National Association of Insurance Commissioners. They are used to prepare the statutory financial statements of insurance companies. , as prescribed pre·scribe v. pre·scribed, pre·scrib·ing, pre·scribes v.tr. 1. To set down as a rule or guide; enjoin. See Synonyms at dictate. 2. To order the use of (a medicine or other treatment). by insurance regulatory authorities Noun 1. regulatory authority - a governmental agency that regulates businesses in the public interest regulatory agency administrative body, administrative unit - a unit with administrative responsibilities . Stockholders' Equity is the most directly comparable GAAP measure. Statutory Surplus is presented as supplemental information and is not intended to replace Stockholders' Equity. These non-GAAP, financial measures should be read in conjunction with the GAAP financial results. The Company has reconciled rec·on·cile v. rec·on·ciled, rec·on·cil·ing, rec·on·ciles v.tr. 1. To reestablish a close relationship between. 2. To settle or resolve. 3. these financial measures with the most directly comparable GAAP financial measures in the supplemental schedules. (C) 2006 by 21st Century Insurance Group. All rights reserved
Exhibit A
21st Century Insurance Group and Subsidiaries
Condensed Consolidated Statements of Operations - All Lines
(Amounts in thousands, except share data)
(Unaudited)
Q2'05 Q3'05 Q4'05 Q1'06 Q2'06
-------------------------------------------------------
Total All Lines
Direct premiums
written $328,669 $349,118 $316,466 $338,569 $316,837
=======================================================
Net premiums
written $327,479 $347,827 $315,172 $337,223 $315,476
=======================================================
Net premiums
earned $336,845 $344,102 $335,626 $325,824 $325,512
Net losses and
loss
adjustment
expenses 248,284 258,105 241,513 236,496 223,094
Underwriting
expenses 72,520 69,638 70,495 71,933 74,391
-------------------------------------------------------
Underwriting
profit 16,041 16,359 23,618 17,395 28,027
Net investment
income 17,006 17,042 18,011 17,755 17,174
Other
(expenses)/
income 367 (3) (407) - (913)
Realized
investment
gains (losses) (1,267) (939) (606) (1,067) 30
Interest and
fees expense (2,031) (1,988) (1,943) (1,898) (1,854)
-------------------------------------------------------
Income before
provision for
taxes 30,116 30,471 38,673 32,185 42,464
Provision for
income taxes (9,621) (9,369) (12,281) (10,868) (14,143)
-------------------------------------------------------
Net income $20,495 $21,102 $26,392 $21,317 $28,321
=======================================================
Net income per
common share -
basic $0.24 $0.25 $0.31 $0.25 $0.33
=======================================================
Net income per
common share -
diluted $0.24 $0.24 $0.31 $0.25 $0.33
=======================================================
Weighted
average shares
outstanding -
basic 85,704,165 85,793,904 85,799,397 85,868,878 85,968,155
Weighted
average shares
outstanding -
diluted 85,890,984 86,205,599 86,427,724 86,517,163 86,232,103
Net losses and
loss
adjustment
expense ratio 73.7% 75.0% 72.0% 72.6% 68.5%
Underwriting
expense ratio 21.5% 20.2% 21.0% 22.1% 22.9%
-------------------------------------------------------
Combined ratio 95.2% 95.2% 93.0% 94.7% 91.4%
=======================================================
Reconciliation of direct
premiums written
to net premiums earned
Direct premiums
written $328,669 $349,118 $316,466 $338,569 $316,837
Ceded premiums
written (1,190) (1,291) (1,294) (1,346) (1,361)
-------------------------------------------------------
Net premiums
written 327,479 347,827 315,172 337,223 315,476
Net change in
unearned
premiums 9,366 (3,725) 20,454 (11,399) 10,036
-------------------------------------------------------
Net premiums
earned $336,845 $344,102 $335,626 $325,824 $325,512
=======================================================
Net losses and
loss
adjustment
expenses
Current
accident year $260,200 $259,301 $245,870 $243,511 $241,215
Prior accident
years (11,916) (1,196) (4,357) (7,015) (18,121)
-------------------------------------------------------
Net losses and
loss
adjustment
expenses $248,284 $258,105 $241,513 $236,496 $223,094
=======================================================
Exhibit B
21st Century Insurance Group and Subsidiaries
Condensed Consolidated Balance Sheets
(Amounts in thousands, except share data)
(Unaudited)
June September December
30, 30, 31,
2005 2005 2005
----------- ----------- ------------
Assets
Investments, available-for-sale,
at fair value:
Fixed maturities: $1,369,612 $1,350,411 $1,354,707
Equity securities 49,088 46,380 47,367
----------- ----------- ------------
Total Investments 1,418,700 1,396,791 1,402,074
Cash and cash equivalents 41,322 65,264 68,668
Accrued investment income 16,435 16,183 16,585
Premiums receivable 105,580 116,980 100,900
Reinsurance receivables and
recoverables 5,760 5,914 6,539
Prepaid reinsurance premiums 1,784 1,870 1,946
Deferred income taxes 50,003 53,798 56,209
Deferred policy acquisition costs 62,205 63,760 59,939
Leased property under capital
lease 28,094 25,339 22,651
Property and equipment, net of
accumulated
depreciation 132,376 145,841 145,811
Other assets 30,158 29,930 38,907
----------- ----------- ------------
Total assets $1,892,417 $1,921,670 $1,920,229
=========== =========== ============
Liabilities and Stockholders'
Equity
Liabilities
Unpaid losses and loss
adjustment expenses $495,522 $517,614 $523,835
Unearned premiums 336,243 340,055 319,676
Debt 134,242 131,095 127,972
Claim checks payable 38,567 40,711 42,681
Reinsurance payable 606 663 643
Other liabilities 77,234 78,514 75,450
----------- ----------- ------------
Total liabilities 1,082,414 1,108,652 1,090,257
Stockholders' Equity
Common stock 86 86 86
Additional paid-in capital 422,514 423,795 425,454
Accumulated other
comprehensive income (loss) 13,122 (2,812) (10,382)
Treasury stock - - (84)
Retained earnings 374,281 391,949 414,898
----------- ----------- ------------
Total stockholders'
equity 810,003 813,018 829,972
----------- ----------- ------------
Total liabilities and
stockholders' equity $1,892,417 $1,921,670 $1,920,229
=========== =========== ============
Book Value Per Common Share $9.45 $9.47 $9.66
=========== =========== ============
Outstanding Common Shares 85,744,970 85,835,038 85,933,960
=========== =========== ============
March 31, June 30,
2006 2006
----------- -----------
Assets
Investments, available-for-sale, at fair
value:
Fixed maturities: $1,434,761 $1,426,728
Equity securities 850 -
----------- -----------
Total Investments 1,435,611 1,426,728
Cash and cash equivalents 35,146 40,188
Accrued investment income 17,333 17,304
Premiums receivable 107,231 98,887
Reinsurance receivables and recoverables 6,223 6,521
Prepaid reinsurance premiums 2,023 2,072
Deferred income taxes 59,307 57,321
Deferred policy acquisition costs 62,919 68,248
Leased property under capital lease 21,587 20,568
Property and equipment, net of accumulated
depreciation 147,047 148,213
Other assets 42,183 41,323
----------- -----------
Total assets $1,936,610 $1,927,373
=========== ===========
Liabilities and Stockholders' Equity
Liabilities
Unpaid losses and loss adjustment expenses $508,428 $495,092
Unearned premiums 331,152 321,166
Debt 124,796 121,619
Claim checks payable 40,609 38,363
Reinsurance payable 755 748
Other liabilities 94,057 95,220
----------- -----------
Total liabilities 1,099,797 1,072,208
Stockholders' Equity
Common stock 86 86
Additional paid-in capital 430,360 435,889
Accumulated other comprehensive income
(loss) (22,892) (31,500)
Treasury stock (84) (84)
Retained earnings 429,343 450,774
----------- -----------
Total stockholders' equity 836,813 855,165
----------- -----------
Total liabilities and stockholders' equity $1,936,610 $1,927,373
=========== ===========
Book Value Per Common Share $9.72 $9.91
=========== ===========
Outstanding Common Shares 86,095,739 86,335,335
=========== ===========
Exhibit C
21st Century Insurance Group and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(Amounts in thousands)
(Unaudited)
Q2'05 Q3'05 Q4'05 Q1'06 Q2'06
------------------------------------------
Operating activities
Net Income $20,495 $21,102 $26,392 $21,317 $28,321
Adjustments to reconcile net
income to net cash
provided by operating
activities:
Depreciation and
amortization 8,393 9,507 9,258 6,661 6,643
Net amortization of
investment premiums and
discounts 2,469 2,365 2,165 2,007 2,489
Amortization of stock
compensations, net of tax 104 100 81 4,099 2,379
Provision for deferred
income taxes 2,444 4,784 1,664 2,820 6,611
Realized losses (gains) on
sale of investments 1,263 1,062 493 1,067 (30)
Changes in assets and
liabilities:
Premium receivable 8,730 (11,400) 16,080 (6,331) 8,344
Deferred policy
acquisition costs 5,190 (1,555) 3,821 (2,980) (5,329)
Reinsurance balances 196 (184) (722) 352 (355)
Federal income taxes (10,476) (1,019) 678 4,529 (1,743)
Other assets 2,352 1,482 (10,307) (2,880) 1,015
Unpaid losses and loss
adjustment expenses 5,351 22,092 6,221 (15,407) (13,336)
Unearned premiums (9,372) 3,812 (20,379) 11,476 (9,986)
Claims checks payable (1,447) 2,144 1,970 (2,072) (2,246)
Other liabilities (4,895) (2,164) 477 14,079 2,904
------------------------------------------
Net cash provided by
operating activities 30,797 52,128 37,892 38,737 25,681
------------------------------------------
Investing Activities
Purchases of:
Fixed maturities
available-for-sale (44,815)(17,446)(42,102)(146,738) (33,441)
Equity securities
available-for-sale (89,829)(78,762)(77,847) (35,627) -
Property and equipment (4,962)(19,948) (6,544) (6,627) (6,719)
Maturities and calls of
fixed maturities
available-for-sale 6,450 7,236 13,768 21,139 (8,521)
Sales of:
Fixed maturities
available-for-sale 24,996 1,751 11,181 21,022 34,324
Equity securities
available-for-sale 83,149 81,196 75,696 83,989 847
------------------------------------------
Net cash used in investing
activities (25,011)(25,973)(25,848) (62,842) (13,510)
------------------------------------------
Financing Activities
Repayment of debt (2,999) (3,390) (3,260) (3,352) (3,388)
Dividends paid (3,425) (3) (6,874) (6,872) (6,891)
Proceeds from exercise of
stock options 667 1,180 1,494 718 3,126
Excess tax benefits from
stock-based compensation - - - 89 24
------------------------------------------
Net cash used in financing
activities (5,757) (2,213) (8,640) (9,417) (7,129)
------------------------------------------
Net increase (decrease) in
cash and cash equivalents 29 23,942 3,404 (33,522) 5,042
Cash & cash equivalents at
beginning of period 41,293 $41,322 $65,264 $68,668 35,146
------------------------------------------
Cash & cash equivalents at
end of period $41,322 $65,264 $68,668 $35,146 $40,188
==========================================
Exhibit D
21st Century Insurance Group and Subsidiaries
Supplemental Operational Information
(Amounts in thousands, except ratios)
(Unaudited)
Q2'05 Q3'05 Q4'05 Q1'06 Q2'06
---------------------------------------------------
Direct Premiums
Written
California 309,231 326,048 294,472 311,820 287,389
Non - California 19,438 23,070 21,994 26,749 29,449
---------------------------------------------------
Total direct
premiums written $328,669 $349,118 $316,466 $338,569 $316,838
===================================================
% of Direct
Premiums Written
California 94.1% 93.4% 93.1% 92.1% 90.7%
Non - California 5.9% 6.6% 6.9% 7.9% 9.3%
---------------------------------------------------
Total 100.0% 100.0% 100.0% 100.0% 100.0%
===================================================
Vehicles in-force
California 1,462,669 1,447,471 1,413,909 1,382,296 1,359,217
Non-California 103,668 117,760 127,001 138,257 157,386
---------------------------------------------------
Total Vehicles In-
force at end of
quarter 1,566,337 1,565,231 1,540,910 1,520,553 1,516,603
===================================================
Other Information
Statutory surplus $637,462 $657,666 $704,671 $725,144 $755,326
Ratio of net
premiums written
to statutory
surplus 2.1 2.1 1.9 1.8 1.7
Auto renewal ratio 92% 92% 91% 91% 91%
Reconciliation of
stockholders'
equity
to statutory
surplus
Stockholders'
equity - GAAP $810,003 $813,018 $829,972 $836,813 $855,165
Condensed
adjustments
to
reconcile GAAP
stockholders' equity to
statutory surplus:
Equity in non-
insurance
entities 17,597 22,073 26,798 31,728 39,558
Capital lease
obligation 3,171 3,095 2,975 1,178 (662)
Net unrealized
(gains) losses on
investments (23,304) 644 10,788 31,683 44,778
Deferred policy
acquisition
costs (62,205) (63,760) (59,939) (62,919) (68,248)
Net deferred tax
assets related to
items
nonadmitted under
SAP 47,401 38,394 38,544 24,137 24,438
Assets nonadmitted
for statutory
purposes (155,201) (155,798) (144,467) (137,476) (139,703)
---------------------------------------------------
Statutory surplus $637,462 $657,666 $704,671 $725,144 $755,326
===================================================
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