Sedgwick Rd. Selected As Agency of Record by 21st Century Insurance

SEATTLE--July 11, 2006--21st Century Insurance, a pioneer of selling auto insurance directly to consumers, has named Sedgwick Rd. its advertising agency of record. The new partnership will focus on creating advertising that communicates the superior policy coverage and customer experience provided by 21st in an industry that lacks clear differentiation. Sedgwick Rd. will work closely with 21st to lead integrated campaigns leveraging broadcast, out of home, online, print and direct response media.

21st is rapidly entering new markets beyond its traditional California base to become a national competitor. In the second quarter of 2006, the company entered Florida, Georgia and Pennsylvania, putting it into 45 percent of the national auto insurance market. Additional states will be announced later this year.

The expansion by 21st coincides with an accelerating consumer shift toward companies that sell direct. According to the insurance rating and information agency, A.M. Best, direct-to-consumer companies like 21st, GEICO and Progressive took over four points of market share between 1999 and 2004 from companies that rely on insurance agents. Direct-to-consumer companies typically do not pay commissions, have more efficient operations, provide service 24 hours a day and offer highly competitive pricing compared to agent-based companies.

Fueling the growth of the direct companies are rapidly expanding advertising budgets. GEICO alone spent over $500 million on advertising last year, with the industry total spend exceeding $2 billion. "This is a time when new insurance brands are being created and old brands are under assault," said Jim Walker, president of Sedgwick Rd. "The auto insurance market is like the retail banking category a decade ago. Companies are using marketing and highly creative ad campaigns to differentiate themselves and build their businesses while driving industry consolidation. 21st offers a great product, has a smart growth plan and realizes it's a critical time to position the company for the next decade." Sedgwick Rd. was the agency of record for 14 years during Washington Mutual's rise from a Washington-only thrift to the sixth largest financial institution in the country.

"Advertising is crucial to introducing consumers in new markets to the superior experience and value provided by 21st," said Bruce Marlow, CEO of 21st Century Insurance. "A partner that understands our business model and has the know how to integrate multiple media to produce effective marketing campaigns is critical to a direct company. Sedgwick Rd.'s outstanding track record with other growth companies makes them the right partner for 21st."

About Sedgwick Rd.

Sedgwick Rd., a subsidiary of IPG located in Seattle's SoDo district, provides award-winning creative, brand development, digital services, public relations, and media planning and buying services. Sedgwick Rd. serves as the agency of record, a roster shop or a project shop for companies including Nintendo, Converse, Tower Records, Redhook Ale Brewery, the Seattle Storm, Krispy Kreme/Icon LLC, the Seattle Art Museum and Marshall Field's. Sedgwick Rd. is located at 1741 First Ave. South, Seattle, WA 98134, www.sedgwickrd.com.

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 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+ (Superior) by A.M. Best, 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.