Quake Losses Clip 20th Century

20th Century Industries reported Thursday that second-quarter earnings fell 86% on continued claims costs from January’s California earthquake

The Woodland Hills-based property and casualty insurer said net income dropped to $4.9 million, or 9 cents a share, from $34.8 million, or 67 cents, a year earlier. Revenue in the quarter rose to $333.5 million from $272.9 million a year earlier. The results include the latest estimate of $685 million in pretax costs from the Jan. 17 Northridge earthquake.

As of July 13, the company received 33,697 homeowner and condominium claims and 9,860 automobile claims, forcing it to pay $586.7 million in pretax claims losses and expenses.

The insurer said pretax gains from the sale of investments rose to $49.8 million from $4.5 million a year earlier and net investment income fell 11% to $21.6 million.

Hit by fierce competition and a huge restructuring charge, Delta Air Lines said it lost nearly $250 million in the latest quarter.

“Low-fare competition is increasing and has permanently changed the industry,” Delta Chairman Ronald Allen said in a statement.

Delta, the nation’s third-largest carrier, said it lost $249.8 million, or $5.50 a share, in its fiscal fourth quarter after a $413.7-million pretax restructuring charge. Excluding the charge, the Atlanta-based carrier posted net income of $10.8 million for the quarter, compared to net income of $7.2 million a year ago. Revenue rose to $3.18 billion from $3.13 billion.