21st Century Insurance Announces Homeowners Marketing Relationship

    WOODLAND HILLS, Calif.--Jan. 4, 2002--21st Century Insurance today announced a marketing agreement for homeowners insurance.
    Under the new marketing relationship with DirectNet Insurance Agency, Inc., a subsidiary of Countrywide Credit Industries, Inc., 21st Century customers will have access to the full line of homeowners, condo owners and renters insurance coverages offered by the Countrywide subsidiary. "It allows each company to focus on its core products," said Bruce Marlow, president and chief executive officer of 21st Century Insurance.
    Under a January 1, 2002 agreement, 21st Century ceded 100% of its in-force homeowner coverages to another Countrywide subsidiary and it will begin nonrenewing homeowner policies expiring on February 21, 2002, and thereafter. In 2001, 21st Century had direct earned premiums of $30.0 million in homeowners insurance, about 3% of the company's total premium.
    "21st Century was founded by Lou Foster in 1958 as a direct to the consumer company providing low rates and superior service for auto insurance," said Marlow. "This is our focus for 2002 and the future."

    About 21st Century

    Founded in 1958, 21st Century Insurance Group is a pioneer in the direct to consumer marketing of personal automobile insurance serving customers in California, Arizona, Nevada, Oregon and Washington. The Company provides full service 24 hours a day, 365 days a year at 1-800-211-SAVE and its website, www.i21.com. 21st Century is rated A+ (Superior) by A.M. Best and A+ by Standard & Poor's.
    21st Century Insurance Group is traded in 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, product development, the success of marketing relationships, regulatory and court approvals, market position, financial results and reserves. It is possible that the Company's actual results and financial condition may differ, possibly materially, from the anticipated results and financial condition indicated in these forward-looking statements. Important factors that could cause the Company's actual results to differ, possibly materially, from those in the specific forward-looking statements include the effects of competition and competitors' pricing actions; unanticipated adverse underwriting and claims experience, including revived claims under SB 1899; systems and customer service problems; termination of marketing relationships; adverse developments in financial markets or interest rates; and unanticipated results of legislative, regulatory or legal actions, including the inability to obtain approval for rate increases and product changes. 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.