21st Century Insurance

21st Century Insurance is ending its three-year experiment with selling homeowner insurance in California, and instead will refer customers to a subsidiary of Calabasas-based Countrywide Credit Industries Inc. for coverage, company officials said Monday. Woodland Hills-based 21st Century, which is owned by American International Group Inc., said it will stop renewing homeowners' policies beginning Feb. 21 and will send customers to DirectNet Insurance Agency Inc.

21st Century Insurance Co. has requested a 28% increase in its homeowners insurance premiums, according to a state Department of Insurance filing. 21st Century officials said the Woodland Hills company's premiums are significantly below the industry average in California and would remain below average if the hike is approved.

The blame for the horrific plunge in technology stocks over the last year can be laid partly at the door of companies such as 21st Century Insurance. The Woodland Hills-based firm spent the last three years developing a Web site and a pair of sophisticated telephone call centers-- and, in the process, boosted its spending on technology equipment by a heaping 30% to 40% annually.

21st Century Insurance Group of Woodland Hills reported net income of $1.8 million for the fourth quarter ended Dec. 31, compared with $7.3 million for the fourth quarter in 1999. Revenue increased to $221.8 million from $202.7 million. For the year, the company reported net income of $12.9 million, down sharply from net income of $87.5 million. Revenue rose to $869.8 million from $832.7 million.

21st Century Insurance Co. in Woodland Hills has been upgraded to an A+ rating by A.M. Best, the world's oldest authoritative insurance rating and information source. The new A+ (Superior) rating represents Best's recognition of 21st Century's improvement since the 1994 Northridge earthquake, which forced the company to liquidate $500 million of its investment portfolio. The company paid more than $1.

Paul Farber, executive vice president of 21st Century Insurance Group, resigned, becoming the latest defection from the Woodland Hills-based insurer. Farber, 48, who also held the position of chief operating officer, was leaving to "pursue other interests." He joined the company in 1984 and held various positions in the claims, marketing and operations areas of the company. Bruce Marlow, who was named president and chief executive last month, will assume Farber's operating responsibilities.

Norman Sklarewitz of West Hollywood noticed a sign at a commercial building on 3rd Street that said, "Parking for Directors, Producers and Clients Only." Asked Sklarewitz: "But isn't that just about everyone on the Westside?" WAY OUT: Don't get the idea that Orange County's Silverado Canyon--home of Thisa Way, Thata Way and Hidea Way--has a monopoly on unusual street names. Sal Lombardo of West L.A. found Easy Way and Old Fashion Way in Anaheim along with A Better Way in Garden Grove.