21st Century to lay off 110 workers

WOODLAND HILLS, Calif. --21st Century Insurance Group, which provides personal auto insurance, said Tuesday it plans to lay off about 110 employees, or 4 percent of its work force.

The move will result in about $3.7 million in severance expenses during the first quarter.

In addition, 21st Century said it plans to reduce the number of its information technology contractors from about 300 to 20 over the next three months.

"2005 and 2006 were periods of implementation of new systems and new markets. Now that we have achieved a national capability, we are committed to reducing our expense ratio through expense management, quality of operations and growth in premiums," said Steve Erwin, senior vice president and chief financial officer, in a statement.

The company also reported a 27 percent decline in its fourth-quarter net income.

Shares fell 22 cents to $21.41 in midday trading on the New York Stock Exchange amid widespread market declines.