A.M. Best Places Ratings of 21st Century Under Review With Negative Implications; Assigns Issuer Credit Ratings.

OLDWICK, N.J. -- A.M. Best Co. has placed the financial strength ratings of A+ (Superior) of 21st Century Insurance Group (Woodland Hills, CA) under review with negative implications. A.M. Best has also placed the "a-" senior debt rating of 21st Century Insurance Group, Inc.'s (NYSE: TW) existing debt securities under review with negative implications.

Concurrently, A.M. Best has assigned issuer credit ratings of "aa-" to 21st Century Insurance Group, Inc.'s property/casualty insurance operating subsidiaries and placed them under review with negative implications. These rating actions do not result from any change in the stand-alone financial condition and operating performance of 21st Century.

These rating actions follow A.M. Best's ratings downgrade of various operating subsidiaries of American International Group, Inc. (AIG), whose current ownership approximates 63% of 21st Century Insurance Group, Inc. Various AIG financial strength ratings were downgraded to A+ (Superior) from A++ (Superior) and issuer credit ratings to "aa-" from "aa+". (See related press release dated May 4, 2005).

A.M. Best will complete an independent review of 21st Century's ratings over the near term and re-evaluate its stand-alone rating and the level of rating enhancement it should continue to receive through its relationship with AIG. As part of this review, A.M. Best will consider 21st Century's stand-alone risk adjusted capitalization, operating performance and business profile, as well as the implicit and demonstrated financial and operating support from AIG.

The financial strength ratings of A+ (Superior) have been placed under review with negative implications, and issuer credit ratings of "aa-" have been assigned and placed under review with negative implications for 21st Century Insurance Group and its following members:

--21st Century Insurance Company

--21st Century Casualty Company

--21st Century Insurance Company of Arizona 

The following senior debt rating has been placed under review with negative implications:

21st Century Insurance Group Inc.

-- "a-" on $100 million of 5.90% senior notes, due 2013

The issuer credit rating of "a-" of 21st Century Insurance Group, Inc. has been placed under review with negative implications.

For Best's Debt Ratings, all other Best's Ratings, an overview of the rating process and rating methodologies, please visit http://www.ambest.com/ratings.

For current Best's Ratings, independent data and analysis on more than 3,000 individual property/casualty companies, groups and industry composites, please visit http://www.ambest.com/pc.

A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at http://www.ambest.com.