Fitch Upgrades Ratings for 21st Century Insurance

February 10, 2005

California-based 21st Century Insurance Group announced that Fitch Ratings upgraded its insurer financial strength (IFS) ratings on 21st Century Insurance Company and its affiliated insurers to ‘A+’ from ‘A’. Fitch Ratings also upgraded its long-term issuer rating on 21st Century Insurance Group and its ratings on 21st Century’s 5.9% senior notes due 2013 to ‘BBB+’ from ‘BBB’.

As stated in its release, “Fitch’s decision to upgrade 21st Century’s ratings reflects the company’s improved underwriting results and Fitch’s increased comfort with the company’s reserve position.” The report, written by analyst Mark Rouck, added, “Fitch’s ratings continue to reflect 21st Century’s strong competitive position in the California auto insurance market, solid capitalization, and low-cost direct distribution platform.”

“Fitch’s upgrade of our rating, as well as our recent upgraded outlook from Standard & Poor’s, confirms the investment community’s positive perception of the Company’s underwriting, investment and cash flow results in 2004. These rating upgrades are also a strong indication of the investment community’s perception of the Company’s prospects in the years to come,” said Senior Vice President and CFO Lawrence Bascom.