3q00 financial statements
21st Century Insurance Group and Subsidiaries
Condensed Financial Data
Quarter and Year to Date Ended September 30, 2000 and 1999
(amounts in thousands, except share data)
3rd Quarter Year to Date
2000 1999 2000 1999
---------- ---------- ---------- ----------
Gross premium written $226,258 $218,366 $692,910 $665,665
Net premium written 206,538 194,953 632,892 577,522
Net premiums earned 208,109 191,234 615,442 577,879
Underwriting profit (loss) (12,070) 18,092 (27,441) 68,143
Net investment income 12,649 14,742 38,473 49,114
Income before tax (870) 23,887 2,141 114,859
Net income 2,571 18,372 11,185 80,209
Operating earnings per
common share (basic) $ 0.03 $ 0.26 $ 0.17 $ 0.89
Basic earnings per
common share $ 0.03 $ 0.21 $ 0.13 $ 0.92
Diluted earnings per
common share $ 0.03 $ 0.21 $ 0.13 $ 0.92
Basic weighted average
number of shares 85,145,817 86,995,064 85,199,507 87,393,171
Diluted weighted average
number of shares 85,343,970 87,100,554 85,431,114 87,500,306
Loss ratio 74.0% 77.3% 72.0% 64.3%
Loss adjustment
expense ratio 17.6% 0.1% 17.9% 11.2%
Underwriting
expense ratio 14.2% 13.1% 14.5% 12.7%
---------- ---------- ---------- ----------
GAAP combined ratio 105.8% 90.5% 104.4% 88.2%
========== ========== ========== ==========
21st Century Insurance Group and Subsidiaries
Comparative Consolidated Balance Sheets
(amounts in thousands, except share data)
September 30, June 30, December 31,
2000 2000 1999
---------- ---------- ----------
Assets
Investments, available-for-sale,
at fair value:
Fixed maturities $ 879,691 $ 913,955 $ 942,982
Equity securities 396 308 563
------------ ------------ ------------
Total investments 880,087 914,263 943,545
Cash and cash equivalents 31,454 25,660 45,034
Accrued investment income 13,100 13,688 15,403
Premiums receivable 78,074 71,986 70,796
Reinsurance recoverable 67,618 51,020 56,616
Prepaid reinsurance premiums 20,636 20,702 32,212
Deferred income taxes 89,390 90,336 91,251
Deferred policy
acquisition costs 22,261 22,687 22,156
Property and equipment, net of
accumulated depreciation 118,949 104,059 84,455
Other assets 28,376 26,071 17,864
------------ ------------ ------------
Total Assets $ 1,349,945 $ 1,340,472 $ 1,379,332
============ ============ ============
Liabilities and Stockholders' Equity
Liabilities:
Reserves for losses and loss
adjustment expenses $ 286,244 $ 276,410 $ 276,248
Unearned premiums 247,663 249,300 232,702
Bank loan payable -- 33,750 67,500
Reinsurance payable 31,787 16,384 22,311
Other liabilities 80,901 65,221 59,734
------------ ------------ ------------
Total liabilities 646,595 641,065 658,495
------------ ------------ ------------
Stockholders' Equity:
Common stock without par value 414,845 414,798 429,623
Accumulated other
comprehensive income (20,262) (28,413) (40,519)
Retained earnings 308,767 313,022 331,733
------------ ------------ ------------
Total stockholders' equity 703,350 699,407 720,837
------------ ------------ ------------
Total liabilities and
stockholders' equity $ 1,349,945 $ 1,340,472 $ 1,379,332
============ ============ ============
Book Value Per Common Share $ 8.26 $ 8.21 $ 8.39
============ ============ ============
21st Century Insurance Group and Subsidiaries
Comparative Consolidated Statements of Income and Stockholders' Equity
Quarter and Year to Date Ended September 30, 2000 and 1999
(amounts in thousands, except share data)
3rd Quarter Year to Date
2000 1999 2000 1999
---------- ---------- ---------- ----------
Revenues
Net premiums earned $208,109 $191,234 $615,442 $577,879
Net investment income 12,649 14,742 38,473 49,114
Realized investment
gains (losses) (299) (7,195) (5,297) 3,343
Other (346) (61) (693) (333)
---------- ---------- ---------- ----------
220,113 198,720 647,925 630,003
---------- ---------- ---------- ----------
Losses and Expenses
Net losses and loss
adjustment expenses 190,547 148,086 553,557 436,465
Operating expenses 29,632 25,056 89,326 73,271
Interest and fees expense 804 1,691 2,901 5,408
---------- ---------- ---------- ----------
220,983 174,833 645,784 515,144
---------- ---------- ---------- ----------
Income (loss) before
federal income taxes (870) 23,887 2,141 114,859
Federal income taxes (3,441) 5,515 (9,044) 34,650
---------- ---------- ---------- ----------
Net Income $ 2,571 $ 18,372 $ 11,185 $ 80,209
========== ========== ========== ==========
Earnings Per Common Share
Basic earnings per
common share $ 0.03 $ 0.21 $ 0.13 $ 0.92
========== ========== ========== ==========
Diluted earnings per
common share $ 0.03 $ 0.21 $ 0.13 $ 0.92
========== ========== ========== ==========
Stockholders' Equity
Stockholders' equity at
beginning of period $699,407 $766,875 $720,837 $785,602
Net income 2,571 18,372 11,185 80,209
Net decrease (increase) in
net unrealized
investment losses 8,151 (8,578) 20,257 (58,163)
Cash dividends declared
on common stock (6,827) (13,944) (34,153) (41,978)
Stock repurchased -- (11,243) (16,598) (14,381)
Other 48 446 1,822 639
---------- ---------- ---------- ----------
Stockholders' equity at
end of period $703,350 $751,928 $703,350 $751,928
========== ========== ========== ==========
21st Century Insurance Group and Subsidiaries
Statement of GAAP Underwriting Profit (Loss) by Line of Business
Quarter and Year to Date Ended September 30, 2000 and 1999
(amounts in thousands)
3rd Quarter Year to Date
2000 1999 2000 1999
---------- ---------- ---------- ----------
Personal Auto
Gross premiums written $221,966 $216,187 $663,988 $640,729
========== ========== ========== ==========
Net premiums written $204,210 $194,569 $610,869 $576,656
========== ========== ========== ==========
Net premiums earned $202,900 $190,893 $599,337 $577,052
Losses incurred 150,177 113,913 435,481 337,141
Loss adjustment
expenses incurred 35,109 31,329 105,561 93,296
Underwriting
expenses incurred 28,287 25,840 85,612 67,689
---------- ---------- ---------- ----------
Underwriting
profit (loss) $(10,673) $ 19,811 $(27,317) $ 78,926
========== ========== ========== ==========
Loss ratio 74.0% 59.7% 72.7% 58.4%
Loss adjustment
expense ratio 17.3% 16.4% 17.6% 16.2%
Underwriting expense ratio 13.9% 13.5% 14.3% 11.7%
---------- ---------- ---------- ----------
GAAP combined ratio 105.2% 89.6% 104.6% 86.3%
========== ========== ========== ==========
Other Personal Lines
Gross premiums written $ 4,292 $ 2,179 $ 28,922 $ 24,936
========== ========== ========== ==========
Net premiums written $ 2,328 $ 384 $ 22,023 $ 866
========== ========== ========== ==========
Net premiums earned $ 5,219 $ 341 $ 16,115 $ 827
Losses incurred 3,415 623 8,897 1,269
Loss adjustment
expenses incurred 768 1,108 2,387 3,589
Underwriting
expenses incurred 1,345 (784) 3,714 5,582
---------- ---------- ---------- ----------
Underwriting profit
(loss) $ (309) $ (606) $ 1,117 $ (9,613)
========== ========== ========== ==========
Loss ratio 65.4% n/m(a) 55.2% n/m(a)
Loss adjustment
expense ratio 14.7% n/m(a) 14.8% n/m(a)
Underwriting expense ratio 25.8% n/m(a) 23.1% n/m(a)
---------- ---------- ---------- ----------
GAAP combined ratio 105.9% n/m(a) 93.1% n/m(a)
========== ========== ========== ==========
Personal Lines Total
Gross premiums written $226,258 $218,366 $692,910 $665,665
========== ========== ========== ==========
Net premiums written $206,538 $194,953 $632,892 $577,522
========== ========== ========== ==========
Net premiums earned $208,119 $191,234 $615,452 $577,879
========== ========== ========== ==========
Losses incurred 153,592 114,536 444,378 338,410
Loss adjustment
expenses incurred 35,877 32,437 107,948 96,885
Underwriting
expenses incurred 29,632 25,056 89,326 73,271
---------- ---------- ---------- ----------
Underwriting profit
(loss) $(10,982) $ 19,205 $(26,200) $ 69,313
========== ========== ========== ==========
Loss ratio 73.8% 59.9% 72.2% 58.6%
Loss adjustment
expense ratio 17.3% 17.0% 17.5% 16.8%
Underwriting expense ratio 14.2% 13.1% 14.4% 12.7%
---------- ---------- ---------- ----------
GAAP combined ratio 105.3% 90.0% 104.1% 88.1%
========== ========== ========== ==========
(a) n/m - Not meaningful
21st Century Insurance Group and Subsidiaries
Statement of GAAP Underwriting Profit (Loss) by Line of Business
(Continued)
Quarter and Year to Date Ended September 30, 2000 and 1999
(amounts in thousands)
3rd Quarter Year to Date
2000 1999 2000 1999
---------- ---------- ---------- ----------
Earthquake - Discontinued
Gross premiums written $ -- $ -- $ -- $ --
========== ========== ========== ==========
Net premiums written $ -- $ -- $ -- $ --
========== ========== ========== ==========
Net premiums earned $ (10) $ -- $ (10) $ --
Losses incurred 419 33,449 (1,084) 33,449
Loss adjustment
expenses incurred 659 (32,336)(b) 2,315 (32,279)(b)
Underwriting
expenses incurred -- -- -- --
---------- ---------- ---------- ----------
Underwriting profit
(loss) $ (1,088) $ (1,113) $ (1,241) $ (1,170)
========== ========== ========== ==========
Total All Lines
Gross premiums written $226,258 $218,366 $692,910 $665,665
========== ========== ========== ==========
Net premiums written $206,538 $194,953 $632,892 $577,522
========== ========== ========== ==========
Net premiums earned $208,109 $191,234 $615,442 $577,879
Losses incurred 154,011 147,985 443,294 371,859
Loss adjustment
expenses incurred 36,536 101(b) 110,263 64,606(b)
Underwriting
expenses incurred 29,632 25,056 89,326 73,271
---------- ---------- ---------- ----------
Underwriting profit
(loss) $(12,070) $ 18,092 $(27,441) $ 68,143
========== ========== ========== ==========
Loss ratio 74.0% 77.3% 72.0% 64.3%
Loss adjustment
expense ratio 17.6% 0.1%(b) 17.9% 11.2%(b)
Underwriting expense ratio 14.2% 13.1% 14.5% 12.7%
---------- ---------- ---------- ----------
GAAP combined ratio 105.8% 90.5% 104.4% 88.2%
========== ========== ========== ==========
(b) 1999 loss adjustment expense includes reclassification of
earthquake reserves
21st Century Insurance Group and Subsidiaries
Supplemental Data
As of September 30, 2000
(amounts in thousands)
3rd 2nd 1st 4th 3rd
Quarter Quarter Quarter Quarter Quarter
2000 2000 2000 1999 1999
---- ---- ---- ---- ----
Units in Force
Personal auto -
California (vehicles) 1,167 1,176 1,175 1,167 1,162
Personal auto - outside
California (vehicles) 32 31 27 18 11
-------- -------- -------- -------- --------
Subtotal personal auto 1,199 1,207 1,202 1,185 1,173
Other personal lines
(policies) 83 79 75 69 64
-------- -------- -------- -------- --------
Total units in force 1,282 1,286 1,277 1,254 1,237
======== ======== ======== ======== ========
Direct Premium Written
Personal auto -
California $216,709 $213,758 $218,588 $209,098 $214,132
Personal auto -
outside California 5,257 4,608 5,066 3,176 2,055
-------- -------- -------- -------- --------
Subtotal personal auto 221,966 218,366 223,654 212,274 216,187
Other personal lines 4,292 14,430 10,200 2,593 2,179
-------- -------- -------- -------- --------
Total direct
premium written $226,258 $232,796 $233,854 $214,867 $218,366
======== ======== ======== ======== ========
Arizona - Personal Auto
3rd 2nd 1st 4th 3rd
Quarter Quarter Quarter Quarter Quarter
2000 2000 2000 1999 1999
---- ---- ---- ---- ----
Units In Force 22 22 22 21 20
======== ======== ======== ======== ========
Direct Premium Written $ 3,653 $ 3,591 $ 3,824 $ 3,430 $ 3,478
======== ======== ======== ======== ========
Contact:
21st Century Insurance Group, Woodland Hills
Rick Dinon, 818/704-3595 |
