20th Century Net Up 17%, but Operating Loss Noted

The parent of 20th Century Insurance, 20th Century Industries, reported second-quarter net income of $6.9 million, up 17% from the same quarter a year ago. But the company also posted an operating loss of $199,000, down from operating earnings of $1.6 million a year earlier.

The quarter was profitable for 20th Century, thanks to $7.3 million in investment income, up 43%. Per share earnings were up only slightly, to 29 cents from 27 cents, because 3.7 million new shares were issued in May to raise $65 million in capital.

The company attributed its operating loss to its low premiums, which were raised last month.

Net premiums written, the revenue taken in from new policies, totaled $97.9 million, up 40%. The company reported that assets as of June 30 were $434.5 million, up 35% from a year before.

A company spokesman said the recent demotion of G. Robert Thompson from president to executive vice president of both the holding company and the subsidiary was not related to the second-quarter results.