20th Century Posts Loss of $7.8 Million for Quarter

20th Century Industries posted a net loss in the fourth quarter on a 19% drop in revenues.

The earnings slide was due in part to a pretax charge of $40 million for additional losses stemming from the 1994 Northridge earthquake. This boosts 20th Century’s estimated total damage payouts from the Northridge quake to $1.04 billion.

The Woodland Hills-based auto insurer posted a net loss of $7.8 million in the quarter that ended Dec. 31, compared with a $26.3-million profit in the same period a year earlier. Revenues in the latest quarter were $212.9 million, down from $261.7 million.

For all of last year, 20th Century posted a net profit of $74.1 million, up 6% from a $69.6-million profit in 1995. Revenues last year were $937.1 million, down 15% from $1.1 billion in 1995.

Part of the company’s revenue slide last year was due to the continuing erosion of its auto insurance customers. 20th Century ended the year with 1.01 million vehicle units insured, down 4.7% from 1995.

But since last spring, 20th Century has cut its auto insurance rates and boosted its marketing campaign to try to stem the tide, and the company said that in the fourth quarter the number of vehicles it insured grew by 4,940 units, ending nine straight quarters of decline.