21st Century Insurance Launches National Advertising Campaign, Expands to East Coast; Auto Insurer Growing As More Consumers Bypass Agents and Purchase Directly from Companies.

LOS ANGELES -- 21st Century Insurance Group (NYSE:TW), one of the pioneers of selling auto insurance directly to consumers, announced today it now serves customers in Florida, Georgia and Pennsylvania, the latest wave of the California-based company's national expansion in the personal auto insurance market. The three East Coast states represent 15 percent of the total U.S. personal auto premium, giving 21st a footprint in nearly half of the U.S. market.

21st's growth coincides with an accelerating shift in the way consumers shop for auto insurance.

More consumers are bypassing insurance agents and purchasing their policies directly from insurance companies. According to the insurance rating and information agency A.M. Best, companies that rely on insurance agents lost more than 2.7 percent of market share between 1999 and 2004. Conversely, direct-to-consumer companies like 21st, GEICO and Progressive increased their market share 4.8 percent during the same period.

In addition, a 2005 survey by Internet benchmarking firm Keynote Systems showed that 87 percent of consumers shop for auto insurance online before purchasing and 55 percent are willing to purchase policies online. At 21st.com, consumers can do everything online that they can do by phone, including purchase insurance, service their policy or report a claim.

"Today's consumers realize that auto insurance is just like any other consumer financial product - they don't need to pay an agent a big commission year in and year out to figure it out," said President and Chief Executive Officer Bruce W. Marlow. "By doing it yourself on the phone or on the Web, you save money and gain control."

To reach this growing group of empowered auto insurance consumers, 21st has also launched its first-ever national television advertising campaign with ad buys on 27 national cable networks including USA, TNT and FOX News Channel. The campaign highlights 21st Century Insurance's understanding of modern consumers during all phases of their lives.

One of the spots, titled "Rearview Mirror," highlights that in the 21st century you see the future in your rearview mirror. The ad reveals a parent's view of his or her children in the back seat, both in proper child safety restraints. Each spot is designed to connect with viewers and reinforce the security, service and savings 21st brings to drivers during each phase of their lives.

"With our entry into Florida, Georgia and Pennsylvania, we've reached the tipping point that allows us to enjoy the economies of scale that come with national advertising," said Marlow. "Our East Coast expansion is the next step in our disciplined growth strategy."

Founded in 1958, 21st Century Insurance was one of the first companies to sell auto insurance directly to the public. Primarily a California company until a few years ago, 21st began doing business in Illinois, Indiana and Ohio in 2004. In January 2005, 21st expanded into Texas and also opened a state-of-the-art customer service center in the Dallas area. 21st is the seventh-largest personal automobile insurer in California and the 21st-largest nationally, according to A.M. Best. 21st now insures more than 1.5 million automobiles in 12 states and employs more than 2,800 people.

The only major carrier to offer 24-hour towing and road assistance as a standard policy feature, 21st Century Insurance was also the first major insurance company to launch a fully bilingual Spanish language Web site with policy quote and purchase capabilities. 21st's site was recently named the second best among national auto insurers in 2006 by benchmarking firm Change Sciences Group, and rated highest on its ability to compare rates and provide a coverage recommendation.

21st also has a proud history of community service. Among other initiatives, the company partners with law enforcement in several states to promote proper child safety seat use through a series of community safety fairs, bilingual safety guides and advertising. Since the program's inception five years ago, 21st has donated more than 6,000 child safety seats to families in need. To see a list of upcoming events or to view the child safety seat guides, visit www.21st.com/safety.

About 21st

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, California, Florida, Georgia, Illinois, Indiana, Nevada, Ohio, Oregon, Pennsylvania, Texas and Washington. 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, 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 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.