Server: Microsoft-IIS/3.0 Date: Thu, 18 Dec 1997 10:54:21 GMT Content-Type: text/html Accept-Ranges: bytes Last-Modified: Tue, 21 Oct 1997 17:50:37 GMT Content-Length: 9958 20th Century Industries - About 20th Century

About

20th Century Industries


20th Century Industries is the eighth largest publicly-held personal automobile insurer in the United States and the fifth largest insurer of private passenger automobiles in California.

20th Century Industries markets personal automobile and personal excess liability insurance exclusively in California through it's two wholly-owned subsidiaries: 20th Century Insurance Company and 21st Century Casualty Company. Currently, 20th Century insures approximately one million automobiles throughout the state. The company receives 75 percent of its new business through referrals from current policyholders and the annual renewal rate of existing policyholders is well in excess of 96 percent.

At year-end 1996, 20th Century Industries' assets totaled $1.5 billion with $937.1 million in revenues. In 1996, the company wrote $828 million in net premiums. Headquartered in Woodland Hills, California, 20th Century is traded on the New York Stock Exchange under the trading symbol TW.


Operating Philosophy
20th Century was founded in Los Angeles in 1958, using a business philosophy of direct sales to the customer without the necessity of commissioned agents. Because the company insures only responsible motorists, 20th Century policyholders benefit from premium rates that are among the lowest in the state while still receiving full coverage and service. This has been proven through annual surveys conducted by the California Department of Insurance in which 20th Century has consistently ranked in the top five lowest-priced insurance rates in the state.


Employees/Facilities
20th Century has nearly 2,300 employees and occupies an 11-story headquarters building. The company also operates 14 Division Service offices, 3 Vehicle Inspection Centers and 12 Drive-In Claim Centers located throughout Los Angeles, Orange, San Bernardino, San Diego and Contra Costa Counties.


Senior Management
20th Century's senior management team is led by William L. Mellick, the company's president, chief executive officer, and member of the Board of Directors. A 30-year veteran of the industry, Mr. Mellick has served in a variety of management capacities for 20th Century for 18 years.

20th Century's Board of Directors is chaired by John B. De Nault. A Los Angeles private investor, Mr. De Nault previously held the position of Vice Chairman of the Board, and has served as a director since the company's founding.


Community Involvement
Community involvement and leadership is a cornerstone of 20th Century's philosophy and culture. The company has an extensive Community Support Program which assists providers of a wide range of non-profit human services in communities throughout California. The company's employees also are an active part of the Community Support Program, joining together for volunteer projects and fund-raisers on a regular basis.

For example, more than $1.7 million has been raised in employee contributions for United Way campaigns over the last five years. 20th Century also is an active participant in the local "Adopt-A-School programs, has designed and sponsored "Operation Anti-Scam," a community service program to educate the public about fraud, and "Operation Crime Alert," a community service program to educate the public about burglary prevention.

In 1996, 20th Century took a leading role as the founding sponsor to create the Los Angeles Unified School District Police Academy Magnet School, a new high school magnet program designed to teach citizenship and community service and to prepare young people for careers in law enforcement.

Most recently, 20th Century sponsored the development of the public service program "A Driving Need". This film documentary produced and aired through the Los Angeles public television station KCET, provides senior drivers, their families, and caregivers with basic information and useful tips to ensure continued safety behind the wheel.


History
20th Century's success story begins with its founder, Louis W. Foster. After 20 years in the insurance business as an independent agent, Mr.Foster founded 20th Century in 1958 in downtown Los Angeles as an inter-insurance exchange, which is similar to a cooperative, where policyholders would bind themselves together in order to finance and insure the losses of other policyholders. The small office with one employee grew rapidly and, in 1966, the company moved to Century City to accommodate its expanding staff and volume of policies. The company celebrated a major milestone at the same time - 20th Century had written $1 million in premiums in a single year.

In 1968, the decision was made to convert the inter-insurance exchange to a capital stock company for two reasons. First, the federal government had minimized the tax advantages for the exchange. Secondly, the California Department of Insurance raised the capital and surplus requirements of reciprocals to $1 million. The decision was considered one of the most unique in the annals of business in California. The policyholders of the exchange ultimately became stockholders in the newly structured 20th Century Industries. The profits in the exchange were used as a base for measuring the amount of equity the policyholder would be entitled to in the new company. As a result, people who had bought insurance to save money received the added benefit of becoming stockholders.

The decision served the company well. In 1969, 20th Century wrote $2 million in premiums; $5 million was reached in 1972; and $10 million in 1975.
In 1980, the company moved from its Century City offices to its current 11-story building in Woodland Hills. Its spectacular growth curve continued, writing $100 million in premiums in 1982; $200 million in 1984; $500 million in 1987; and over $1billion in 1993. The successful history of 20th Century Industries is perhaps best put into perspective when this is considered: When Mr. Foster began 20th Century Industries, friends and business associates bought 273,000 shares of stock at $1 a piece. By year-end 1996, a dollar of stock issued when 20th Century converted to a stock company in 1968 was worth $2,430.

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