21st Century Auto Insurance Expands into Georgia; Auto Insurer Expanding as More Consumers Bypass Agents and Purchase Directly from Companies

ATLANTA--May 24, 2006--21st Century Insurance Group , one of the pioneers of selling auto insurance directly to consumers, has begun serving Georgia residents. The 10th largest personal auto insurance market at $5 billion (3 percent of the $161 billion U.S. market, according to insurance rating and information agency A.M. Best's 2004 data), Georgia joins Florida and Pennsylvania in the latest wave of the California-based company's national expansion strategy.

The company's expansion coincides with a shift in the way consumers shop for auto insurance.

More consumers are bypassing insurance agents and purchasing their policies directly from insurance companies. According to the insurance rating and information agency A.M. Best, companies that rely on insurance agents lost more than 2.7 percent of market share between 1999 and 2004. Conversely, direct-to-consumer companies like 21st, GEICO and Progressive increased their market share 4.8 percent during the same period.

Georgia is experiencing a similar trend. Insurers that use agents saw their market share drop 4 percent between 1999 and 2004, while direct-to-consumer companies saw their market share increase 7.3 percent.

Moreover, a 2005 survey by Internet benchmarking firm Keynote Systems showed that 87 percent of consumers shop for auto insurance online before purchasing and 55 percent are willing to purchase policies online.

With a 48-year track record of success in selling directly to consumers and a commitment to providing quality service through the company's award-winning Web site, http://www.21st.com, 21st is an attractive option for auto insurance customers who prefer to bypass insurance agents.

"Today's consumers realize that auto insurance is just like any other consumer financial product -- they don't need to pay an agent a big commission year in and year out to figure it out," said President and Chief Executive Officer Bruce W. Marlow. "By doing it yourself on the phone or on the Web, you save money and gain control."

To reach this growing group of empowered auto insurance consumers, 21st has also launched its first-ever national television advertising campaign with ad buys on 27 national cable networks including USA, TNT and FOX News Channel. The campaign highlights 21st Century Insurance's understanding of modern consumers during all phases of their lives.

At 21st.com, consumers can do everything online that they can do by phone, including purchase insurance, service their policy or report a claim. 21st Century Insurance was the first to launch a fully bilingual Spanish language Web site with policy quote and purchase capabilities. 21st's site was recently named the second best among national auto insurers in 2006 by benchmarking firm Change Sciences Group, and rated highest on its ability to compare rates and provide a coverage recommendation.

21st Century Insurance is the only major carrier to offer all of the following policy features at no extra charge to Georgia residents:

-- 24-hour towing and roadside assistance;

-- the full replacement cost of a new car if it's totaled during the first year of ownership or lease; and

-- temporary coverage for policyholders' children when they're home on school holidays and breaks.

"21st consistently saves consumers money, but price is just one aspect of evaluating auto insurance," said Patrick Light, Georgia Product Manager at 21st Century Insurance. "At 21st, we have more policy features than any leading company, so you get more value."

21st also has a proud history of community service. Among other initiatives, the company partners with law enforcement in several states to promote proper child safety seat use through a series of community safety fairs, bilingual safety guides and advertising. Since the program's inception five years ago, 21st has donated more than 6,000 child safety seats to families in need. The initiative will soon make its way to Georgia. To see a list of upcoming events or to view the child safety seat guides, visit www.21st.com/safety.

About 21st

Founded in 1958, 21st Century Insurance Group is a direct-to-consumer provider of personal auto insurance. With $1.4 billion of revenue in 2005, the company insures over 1.5 million vehicles in Arizona, California, Florida, Georgia, Illinois, Indiana, Nevada, Ohio, Oregon, Pennsylvania, Texas and Washington. 21st provides superior policy features and 24/7 customer service at a competitive price. Customers can purchase insurance, service their policy or report a claim at 21st.com or on the phone with our licensed insurance professionals at 1-800-211-SAVE, 24 hours a day, 365 days a year. Service is offered in English and Spanish both on the phone and on the Web. 21st Century Insurance Company, 21st Century Casualty Company and 21st Century Insurance Company of the Southwest are rated A+ by Fitch Ratings and Standard & Poor's.

21st Century Insurance Group 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.