Fitch Ratings Upgrades Ratings for 21st Century Insurance

WOODLAND HILLS, Calif.–(BUSINESS WIRE)–Feb. 10, 2005–21st Century Insurance (NYSE:TW) today announced that Fitch Ratings upgraded its insurer financial strength (IFS) ratings on 21st Century Insurance Company and its affiliated insurers to ‘A+’ from ‘A’. Fitch Ratings also upgraded its long-term issuer rating on 21st Century Insurance and its ratings on 21st Century’s 5.9% senior notes due 2013 to ‘BBB+’ from ‘BBB’.

As stated in their press release, “Fitch’s decision to upgrade 21st Century’s ratings reflects the company’s improved underwriting results and Fitch’s increased comfort with the company’s reserve position.” The report, written by analyst Mark Rouck, added, “Fitch’s ratings continue to reflect 21st Century’s strong competitive position in the California auto insurance market, solid capitalization, and low-cost direct distribution platform.”

“Fitch’s upgrade of our rating, as well as our recent upgraded outlook from Standard & Poor’s, confirms the investment community’s positive perception of the Company’s underwriting, investment and cash flow results in 2004. These rating upgrades are also a strong indication of the investment community’s perception of the Company’s prospects in the years to come,” said Senior Vice President and Chief Financial Officer Lawrence Bascom.

21st Century Insurance: Good people to call

Founded in 1958, 21st Century Insurance is a direct-to-consumer provider of personal auto insurance covering over 1.5 million vehicles and with $1.3 billion of premiums in California and eight other Western, Southwestern and Midwestern states. 21st provides superior policy features and customer service at a competitive price. 24/7, customers have the option to purchase insurance, service their policy or report a claim over the phone with our licensed insurance professionals at 1-800-211-SAVE (English) or 1-888-920-2121 (Spanish) or through the Company’s full-service bilingual Web site at www.21st.com. 21st Century Insurance Company and 21st Century Insurance Company of the Southwest are rated A+ by A.M. Best. 21st Century Insurance Company is rated A+ by Standard & Poor’s & Fitch Ratings.

21st Century Insurance 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.

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 which may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act 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 results, expected combined ratio and growth of written premiums, product development, computer systems, regulatory 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. 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; adverse underwriting and claims experience, including as a result of revived earthquake claims under SB 1899; customer service problems; the impact on Company operations of natural disasters, principally earthquake, or civil disturbance, due to the concentration of Company facilities and employees in Woodland Hills, California; information systems problems, including failures to implement information technology projects on time and within budget; internal control failures; adverse developments in financial markets or interest rates; results of legislative, regulatory or legal actions, including the inability to obtain approval for rate increases and product changes and adverse actions taken by state regulators in market conduct examinations; and the Company’s ability to service its debt, including its ability to receive dividends and/or sufficient payments from its subsidiaries to service its obligations. The Company is not under any obligation to (and expressly disclaims any such obligations 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 www.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.

(C) 2005 by 21st Century Insurance. All rights reserved.CONTACT: 21st Century Insurance
Tony Tomich, 818-673-3996

SOURCE: 21st Century Insurance