21ST Century Reports Net Loss in 2Q Results

21st Century Holding Company, a vertically integrated financial service holding company, reported a net loss of $1,489,671 or $.47 per average common share for its second quarter ended June 30, 2001, compared to net income of $334,769 or $.10 per average common share for its second quarter last year. For the six months ended June 30, 2001, the Company reported net loss of $990,925 or $.31 per average common share versus net income of $875,998 or $.26 per average common share in the same period in 2000.

During the quarter ended June 30, 2001, the Company recorded a one-time write-down of equity securities of $2,430,342 ($1,515,804 after income taxes) due to unfavorable market conditions. Excluding this one-time write-down, the Company would have reported a net income of $26,133 or $0.01 per share for the three months ended June 30, 2001 and net income of $524,879 or $0.16 per share for the six months ended June 30, 2001.

Revenues for the three months ended June 30, 2001 were $8,163,030 versus $10,376,338 for the same period in 2000. Revenues for the six months ended June 30, 2001 were $17,711,180, compared to $19,406,469 for the same period in 2000.

21st Century Holding Company manages its insurance underwriting, distribution and claims process through its subsidiaries.

* The Company underwrites standard and non-standard personal automobile insurance and mobile home, property and casualty insurance in the state of Florida through its subsidiary, Federated National Insurance Company.

* The Company has underwriting authority for third-party insurance companies, which it represents through a wholly owned managing general agent, Assurance Managing General Agents, Inc.

* Claims made by Federated National’s insureds are internally processed by a wholly owned claims adjusting company, Superior Adjusting Inc.

* The Company offers premium financing to its own and third party insureds through a wholly owned subsidiary, Federated Premium Finance Inc.

* Express Tax Service, Inc., an 80% owned subsidiary, licenses its brand name and its software to retail tax preparers and over the Internet.

* The Company offers other ancillary services including electronic income tax filing, tax preparation and tag & title transfer services through Federated Agency Group, Inc., also a wholly owned subsidiary.

Fed USA, Inc., a wholly owned franchiser company, offers single and master franchise opportunities to individuals to own and operate their own business with the support of two brands, Fed USA Insurance and Financial Services and Express Tax.

Topics Profit Loss Claims