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Commission File Number 0-6964
 

	Delaware		95-1935264
	(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

	6301 Owensmouth Avenue
	Woodland Hills, California		91367
	(Address of principal executive offices)		(Zip Code)

	(818) 704-3700		www.21st.com
	(Registrant’s telephone number, including area code)		(Registrant’s web site)

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Description	Page Number
Part I - Financial Information
Item 1. Financial Statements
Condensed Consolidated Balance Sheets	2
Condensed Consolidated Statements of Operations	3
Condensed Consolidated Statement of Stockholders’ Equity	4
Condensed Consolidated Statements of Cash Flows	5
Notes to Condensed Consolidated Financial Statements	6
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	15
Item 3. Quantitative and Qualitative Disclosures About Market Risk	29
Item 4. Controls and Procedures	30
Part II - Other Information	31
Item 1. Legal Proceedings	31
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	31
Item 3. Defaults Upon Senior Securities	31
Item 4. Submission of Matters to a Vote of Security Holders	31
Item 5. Other Information	31
Item 6. Exhibits	31
Signatures	32
Exhibit Index	33
31.1 Certification of President and Chief Executive Officer
31.2 Certification of Chief Financial Officer
32.1 Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

 

 

21ST CENTURY INSURANCE GROUP
CONDENSED CONSOLIDATED BALANCE SHEETS
Unaudited
		March 31,			December 31,
AMOUNTS IN THOUSANDS, EXCEPT SHARE DATA		2005			2004
Assets
Fixed maturity investments available-for-sale, at fair value (amortized cost: $1,336,558 and $1,320,592)		$	1,332,235		$	1,342,130
Equity securities available-for-sale, at fair value (cost: $42,813 and $41,450)			41,090			42,085
Total investments			1,373,325			1,384,215
Cash and cash equivalents			41,293			34,697
Accrued investment income			15,991			16,161
Premiums receivable			114,310			105,814
Reinsurance receivables and recoverables			5,964			7,160
Prepaid reinsurance premiums			1,790			1,787
Deferred income taxes			62,553			56,135
Deferred policy acquisition costs			67,395			58,759
Leased property under capital lease, net of deferred gain of $2,720 and $3,116 and net of accumulated amortization of $27,893 and $24,794			29,015			31,719
Property and equipment, at cost less accumulated depreciation of $72,140 and $68,529			133,134			129,372
Other assets			32,988			38,495
Total assets		$	1,877,758		$	1,864,314
Liabilities and stockholders’ equity
Unpaid losses and loss adjustment expenses		$	490,171		$	495,542
Unearned premiums			345,615			331,036
Debt			135,338			138,290
Claims checks payable			40,014			38,737
Reinsurance payable			621			633
Other liabilities			92,606			85,675
Total liabilities			1,104,365			1,089,913
Commitments and contingencies
Stockholders’ equity:
Common stock, par value $0.001 per share; 110,000,000 shares authorized; shares issued and outstanding 85,599,941 and 85,489,061			85			85
Additional paid-in capital			421,744			420,425
Retained earnings			357,211			341,196
Accumulated other comprehensive (loss) income:
Net unrealized (losses) gains on available-for-sale investments, net of income tax benefit (expense) of $2,116 and $(7,760)			(3,930	)		14,412
Minimum pension liability in excess of unamortized prior service cost, net of income tax benefit of $925 and $925			(1,717	)		(1,717	)
Total stockholders’ equity			773,393			774,401
Total liabilities and stockholders’ equity		$	1,877,758		$	1,864,314

 

21ST CENTURY INSURANCE GROUP
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
AMOUNTS IN THOUSANDS, EXCEPT SHARE DATA
Three Months Ended March 31,		2005			2004
Revenues
Net premiums earned		$	336,364		$	318,220
Net investment income			17,037			13,146
Net realized investment (losses) gains			(460	)		7,646
Total revenues			352,941			339,012
Losses and expenses
Net losses and loss adjustment expenses			251,031			247,514
Policy acquisition costs			64,323			53,690
Other operating expenses			7,358			6,400
Interest and fees expense			2,057			2,226
Total losses and expenses			324,769			309,830
Income before provision for income taxes			28,172			29,182
Provision for income taxes			8,735			9,357
Net income		$	19,437		$	19,825
Earnings per common share
Basic and diluted		$	0.23		$	0.23
Weighted average shares outstanding ¾ basic			85,520,909			85,441,615
Weighted average shares outstanding ¾ diluted			85,714,469			85,618,231