20th Century Insurance

20th Century Industries, the Woodland Hills-based parent of 20th Century Insurance, reported an 8% drop in profit for the first quarter, citing greater volume of automobile and homeowners' claims because of the wet winter in Southern California. For the three months that ended March 31, the company earned $23.9 million, compared with $26.1 million a year earlier. Revenue, however, was up 9% for the quarter, to $263.1 million from $242.2 million a year earlier.

We are writing in response to a "Letter to the Editor" from Ray Boston, published in the April 26 Los Angeles Times, Valley Business section, concerning his dissatisfaction with telephone service at 20th Century Insurance. We appreciate Mr. Boston's comments and apologize for his inconvenience. We certainly agree that the level of phone service at 20th Century following the Northridge Earthquake was, at times, below our standards. In addition to the regular volume of automobile and homeowner claims, we received 40,000 earthquake-related claims in the first few weeks following the earthquake.

20th Century Industries, the Woodland Hills parent of 20th Century Insurance, delayed the release of its second-quarter financial results pending its review of a recent decision by California's insurance commissioner. Commissioner Roxani M. Gillespie last week proposed that seven insurers, including 20th Century, roll back their rates to comply with Proposition 103, the insurance-reform initiative passed in 1988. 20th Century's rollback would total about $14 million in premiums.

Earnings in the third quarter ended Sept. 30 increased 80% from the previous year to $7.4 million, or 68 cents a share, 20th Century Industries said, as the company increased its income from premiums and investments. The Woodland Hills-based company, which insures automobiles and homes through its 20th Century Insurance subsidiary, said it wrote $78.8 million in premiums in the quarter, a 49% increase. Total assets were $292 million as of Sept. 30, a 33% increase from a year earlier.

20th Century Industries, the Woodland Hills-based parent of 20th Century Insurance, said its fourth-quarter profit surged 50% from a year earlier, to $22.2 million from $14.8 million. In the quarter that ended Dec. 31, the auto and house insurer said its revenue climbed 11%, to $183.1 million from $165.6 million a year earlier. 20th Century attributed the gains to growth in policies outstanding, investment gains and improved underwriting results.

20th Century Industries, the Woodland Hills-based parent of 20th Century Insurance, said its first-quarter profit fell 12% from a year earlier and that its basic insurance business suffered a loss. 20th Century's operations lost $8.4 million in the quarter ended March 31, more than six times the operating loss of $1.3 million the company posted a year earlier. But a 29% jump in net investment income, to $12.3 million from $9.5 million, enabled 20th Century to show a profit in the latest quarter.