21st Century Earnings Triple for 2nd Quarter

21st Century Insurance Group, a Woodland Hills-based auto insurer, on Wednesday reported a threefold increase in second-quarter net income.

Earnings rose to $29.2 million, or 34 cents a share, from $9.9 million, or 11 cents, a year earlier. However, $9.1 million of the increase represented a one-time gain from a favorable settlement with the IRS and other nonoperating profit.

“The good news is it’s a favorable item; the bad news is it’s not going to happen again,” said John Lorentz, 21st Century’s controller.

Direct premiums written increased 26% to $300.9 million in the second quarter from $238.5 million in the same period a year earlier.

The firm also reported a $10.9-million underwriting profit, contrasted with a $2.5-million underwriting loss a year earlier.

The company’s auto insurance lines were profitable in 2002, Lorentz said, but 21st Century was still grappling with losses on its discontinued homeowner and earthquake insurance lines at this time a year ago.

“We thought they might beat our estimates, but this is a pretty good beat,” said Matthew Carletti, insurance analyst with Fox-Pitt, Kelton Inc. in Hartford, Conn.

21st Century’s stock price increased 15 cents to $15.30 in New York Stock Exchange trading.

The company released earnings after the market closed.

The insurer, which sells policies in five Western states, is reaping the rewards of stronger pricing and lower claims frequency, Carletti said.