LAUDERDALE LAKES, Fla., Nov. 5, 2009 (GLOBE NEWSWIRE) -- 21st Century Holding Company (Nasdaq:TCHC), today reported results for the quarter ended September 30, 2009 (see tables).

For the three months ended September 30, 2009, the Company reported a net loss of $3.99 million or $0.50 per share on 8.0 million average undiluted shares outstanding, as compared to a net loss of $1.5 million, or $0.19 per share on 8.0 million average undiluted shares outstanding in the same three month period last year. On a diluted share basis, the Company reported a net loss of $0.50 per share, based on 8.0 million average diluted shares outstanding for the same three month period, as compared to a net loss of $0.19 per share, based on 8.0 million average diluted shares outstanding for the three months ended September 30, 2008. Performance this quarter was affected by increased reinsurance costs, less earned premium from mitigation credits and lower total revenues as a result of the company's decision not to write new homeowners insurance policies during wind season.

For the nine months ended September 30, 2009, the Company reported a net loss of $2.9 million or $0.36 per share on 8.0 million undiluted shares versus net income of $295,419, or $0.04 per share on 7.9 million undiluted shares in the same nine month period last year. On a diluted share basis, the Company reported a net loss of $0.36 per share, based on 8.0 million average diluted shares outstanding for the same nine month period, as compared to net income of $0.04 per share, based on 7.9 million average diluted shares outstanding for the nine months ended September 30, 2008.

Net premiums earned decreased $6.7 million or 41.5% to $9.5 million for the three months ended September 30, 2009, as compared to $16.2 million for the same three-month period last year. Net premiums earned decreased $12.6 million or 25.1% to $37.7 million for the nine months ended September 30, 2009, as compared to $50.3 million for the same nine month period last year. Gross premiums written decreased $3.0 million, or 18.5%, to $12.9 million for the three months ended September 30, 2009, compared with $15.9 million for the three months ended September 30, 2008, as a result of a business decision made by the company not to increase its wind exposure during hurricane season. Gross premiums written increased $4.2 million, or 6.0%, to $74.9 million for the nine months ended September 30, 2009, compared with $70.7 million for the nine months ended September 30, 2008.

Total revenues decreased $3.1 million or 19.3% to $12.9 million for the three months ended September 30, 2009, as compared to $16.0 million for the same three-month period last year. Total revenues decreased $5.8 million or 11.3% to $45.6 million for the nine months ended September 30, 2009, as compared to $51.4 million for the same nine month period last year.

Mr. Michael H. Braun, the Company's Chief Executive Officer, said, "Although we reported improved gross written premium so far this year, we continue to face difficult economic conditions that affected our earnings this quarter and will continue to do so in the 4th quarter. Performance this quarter was affected by our increased reinsurance costs, reduced earned premium due to mitigation credits and lower total revenues as a result of the Company's decision to severely restrict new property business until its recent approval for a nineteen percent (19%) statewide rate increase and the passing of the peak wind season.

"Looking ahead, we expect significant improvement in operating margins as a result of our recent rate approval, our return to writing property insurance and upon the assumption of policies from Citizens Property Insurance Corporation, in which the Company received approval from the Florida Office of Insurance Regulation to assume up to 45,000 additional policies.

"We are taking steps to improve revenue growth and profitability in 2010. From a business standpoint, we continue to diversify our business model both geographically and in the additional business lines we are writing. Additionally, we have seen improvements in our investment portfolio, managed by a team of professional independent advisers and asset managers.

"Generating an attractive return for our shareholders is a top priority. Our board recently announced a stock repurchase plan of up to $4 million which will provide increased value to our shareholders. We believe that we are on the right track, even against difficult economic conditions, and that our strategic growth plan will enable 21st Century shareholders to realize the inherent value of the company."

The Company will hold an investor conference call at 4:30 PM (ET) today, November 5, 2009. The Company's CEO and its CFO, Peter J. Prygelski, III, will discuss the financial results and review the outlook for the Company. Messrs. Braun and Prygelski invite interested parties to participate in the conference call. A live webcast of the call will be available online at http://www.21stcenturyholding.com (in the Conference Calls section). Listeners interested in participating in the Q&A session can access the conference call by dialing toll free 866-243-8959. Please call at least five minutes in advance to ensure that you are connected prior to the presentation. A webcast replay of the conference call will be available shortly after the live webcast is completed and may be accessed via the Company's website.

About the Company

The Company, through its subsidiaries, underwrites commercial general liability insurance, homeowners' property and casualty insurance, flood insurance, personal automobile insurance and commercial automobile insurance in the state of Florida.