SECURITIES AND EXCHANGE COMMISSION
                               Washington, D.C. 20549
                                          
                                          
                                      FORM 10-Q
                                          
                                          
                     QUARTERLY REPORT UNDER SECTION 13 OR 15 (d)
                       OF THE SECURITIES EXCHANGE ACT OF 1934



For Quarter Ended September 30, 1995               Commission File Number 0-6964
                                                                          ------

                             20TH CENTURY INDUSTRIES                            
--------------------------------------------------------------------------------
               (Exact name of registrant as specified in its charter)


            CALIFORNIA                                  95-1935264              
--------------------------------              ----------------------------------
 (State or other jurisdiction of                (I.R.S. Employer Identification
  incorporation or organization)                          number)



    Suite 700, 6301 Owensmouth Avenue, Woodland Hills, California     91367     
--------------------------------------------------------------------------------
               (Address of principal executive offices)            (Zip Code)



Registrant's telephone number, including area code          (818) 704-3700      
                                                   -----------------------------


                                        None                                    
--------------------------------------------------------------------------------
Former name, former address and former fiscal year, if changed since last report


Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by  Section  13  or  15  (d)  of the Securities Exchange Act of 1934
during the preceding 12 months (or for such shorter  period that the  registrant
was  required  to  file such reports), and (2) has been  subject to such  filing
requirements for the past 90 days.


YES         X                  NO  
    -----------------              ---------------


    Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.

           Class                                Outstanding at October 13, 1995
Common Stock, Without Par Value                        51,493,406 shares

<PAGE> 1
<TABLE>

                           PART I - FINANCIAL INFORMATION


ITEM 1.   FINANCIAL STATEMENTS


                      20TH CENTURY INDUSTRIES AND SUBSIDIARIES
                             CONSOLIDATED BALANCE SHEETS
                                          
                                     A S S E T S


                                                   September 30,       December 31,
                                                      1995                 1994
                                                      ----                 ----
                                                   (unaudited)
                                                       (Amounts in thousands)
Investments:

<S>                                                <C>                 <C>                                                          

     Fixed maturities - available-for-
       sale, at fair value, (amortized
       cost, 1995 $1,083,763; 1994
       $1,002,831) - Note 3                        $1,107,048          $  941,406

     Equity securities, at fair value
       (cost, 1995 $539; 1994 $539)                     1,267                 768
                                                   ----------          ----------
       Total investments                            1,108,315             942,174
Cash and cash equivalents                              41,437             249,834
Accrued investment income                              21,920              19,631
Premiums receivable                                    93,411              90,236
Income taxes receivable                                  -                 74,064
Deferred income taxes - Note 4                        227,846             276,570
Deferred policy acquisition costs                      10,756              14,776
Furniture, equipment and leasehold
     improvements; at cost less accumulated
     depreciation, 1995 $46,455; 1994
     $42,171                                           10,179              13,307
Other assets                                           88,864              22,218
                                                   ----------          ----------

                                                   $1,602,728          $1,702,810
                                                   ==========          ==========



The accompanying notes are an integral part of this statement.
</TABLE>


<PAGE> 2
<TABLE>

                      20TH CENTURY INDUSTRIES AND SUBSIDIARIES
                             CONSOLIDATED BALANCE SHEETS
                                          
                                          
                        LIABILITIES AND STOCKHOLDERS' EQUITY


                                                    September 30,       December 31,
                                                       1995                 1994
                                                       ----                 ----
                                                    (unaudited)
                                            (Amounts in thousands, except share data)


<S>                                                <C>                 <C>                                                          
Unpaid losses and loss
  adjustment expenses                              $  611,811          $  756,243

Unearned premiums                                     296,249             298,519

Bank credit facility payable - Note 5                 170,000             160,000

Claims checks payable                                  53,466              70,725

Proposition 103 payable - Note 6                         -                 78,307

Other liabilities                                      43,701              21,072
                                                   ----------          ----------

     Total liabilities                              1,175,227           1,384,866
                                                   ----------          ----------

Stockholders' equity - Note 8

     Capital stock

          Preferred stock, par value $1.00 per
            share; authorized 500,000 shares,
            none issued                                                       

          Series A convertible preferred
            stock, stated value $1,000 per
            share, authorized 376,126 shares,
            outstanding 224,950 in 1995 and
            200,000 in 1994                           224,950             200,000

          Common stock without par value;
            authorized 110,000,000 shares,
            outstanding 51,495,636 in 1995
            and 51,472,471 in 1994                     69,747              69,340

          Common stock warrants                        16,000              16,000

     Unrealized investment gains (losses), net         15,609             (39,777)

     Retained earnings                                101,195              72,381
                                                   ----------          ----------

       Total stockholders' equity                     427,501             317,944
                                                   ----------          ----------

                                                   $1,602,728          $1,702,810
                                                   ==========          ==========


The accompanying notes are an integral part of this statement.

</TABLE>

<PAGE> 3
<TABLE>

                      20TH CENTURY INDUSTRIES AND SUBSIDIARIES
                        CONSOLIDATED STATEMENTS OF OPERATIONS
                                     (unaudited)


                              Three Months Ended September 30,  Nine Months Ended September 30,
                              --------------------------------  -------------------------------
                                    1995            1994             1995           1994
                                    ----            ----             ----           ----
                                        (Amounts in thousands, except per share data)

<S>                               <C>             <C>            <C>            <C>                                                 

REVENUES:
  Net premiums earned             $  237,588      $  252,805     $  726,410     $  777,809
  Net investment income               20,305          19,853         62,118         65,621
  Realized investment gains            3,200           8,216          5,404         61,550
                                  ----------      ----------     ----------     ----------
                                     261,093         280,874        793,932        904,980
                                  ----------      ----------     ----------     ----------
LOSSES AND EXPENSES:
  Net losses and loss
    adjustment expenses              192,705         232,165        639,233        705,871
  Net earthquake losses
    and related
    expenses - Notes 6 and 7            -            129,764         14,576        757,564
  Policy acquisition costs             7,615          10,880         28,612         34,701
  Other operating expenses            12,480          12,570         38,194         39,218
  Proposition 103 expense               -             69,844           -            71,581
  Interest expense                     3,429           3,775         11,130          3,825
                                  ----------      ----------     ----------     ----------
                                     216,229         458,998        731,745      1,612,760
                                  ----------      ----------     ----------     ----------
  Income (loss) before
    federal income taxes              44,864        (178,124)        62,187       (707,780)

  Federal income taxes (benefit)      14,732         (63,870)        18,862       (258,413)
                                  ----------      ----------     ----------     ---------- 

    NET INCOME (LOSS)             $   30,132      $ (114,254)    $   43,325     $ (449,367)
                                  ==========      ==========     ==========     ==========

EARNINGS (LOSS) PER COMMON SHARE - NOTE 2
-----------------------------------------

PRIMARY                           $     0.44      $    (2.22)    $     0.52     $    (8.74)
                                  ==========      ==========     ==========     ==========

FULLY DILUTED                     $     0.39      $      -       $   N/A        $      -
                                  ==========      ==========     ==========     ==========


The accompanying notes are an integral part of this statement.

</TABLE>


<PAGE> 4
<TABLE>

                               20TH CENTURY INDUSTRIES AND SUBSIDIARIES
                            CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
                                 Nine Months Ended September 30, 1995
                                             (unaudited)
                                                   

                               Convertible
                          Preferred Stock   Common Stock             Unrealized
                            $1 Par Value       Without     Common    Investment
                              Per Share       Par Value     Stock       Gains     Retained
                                Amount         Amount      Warrants    (Losses)   Earnings 
                              ---------      ----------   ----------  ---------  ----------
                                               (Amounts in thousands)



<S>                              <C>            <C>          <C>        <C>         <C>                                             
Balance at January 1, 1995       $200,000       $ 69,340     $ 16,000   $(39,777)   $  72,381
  Net profit for the nine
    months                                                                             43,325
  Effects of common stock issued
    under restricted shares plan                     407                         

  Issuance of Series A Pre-
    ferred Stock - Note 8          24,950                                              (4,950)
  Net change in unrealized
    gains (losses) on
    investments, net of
    taxes of $29,823                                                      55,386              
  Cash dividends paid on
    preferred stock                                                                    (9,561)
                                 --------       --------     --------   --------    --------- 
Balance at September 30, 1995    $224,950       $ 69,747     $ 16,000   $ 15,609    $ 101,195
                                 ========       ========     ========   ========    =========



The accompanying notes are an integral part of this statement.

</TABLE>

<PAGE> 5


<TABLE>


                      20TH CENTURY INDUSTRIES AND SUBSIDIARIES
                        CONSOLIDATED STATEMENTS OF CASH FLOWS


                                                   Nine Months Ended September 30, 
                                                  ---------------------------------
                                                      1995                1994
                                                      ----                ----
                                                            (unaudited)
                                                       (Amounts in thousands)
OPERATING ACTIVITIES:
<S>                                                <C>                 <C>                                                          
Net income (loss)                                  $   43,325          $ (449,367)

Adjustments to reconcile net
  income (loss) to net cash
  used by operating activities:

  Provision for depreciation
     and amortization                                   5,073               5,743

  Provision for deferred income taxes                  18,816            (184,848)

  Realized gains on sale of investments,
     fixed assets, etc.                                (5,346)            (61,467)

  Effects of common stock issued
    under restricted shares plan                          407                 385

  Increase in premiums receivable                      (3,175)             (1,279)

  (Increase) decrease in accrued
    investment income                                  (2,289)              8,180

  Decrease in deferred policy
    acquisition costs                                   4,020                 696

  Increase (decrease) in unpaid losses
    and loss adjustment expenses                     (144,432)            130,797

  Increase (decrease) in unearned premiums             (2,270)              1,750

  Increase (decrease) in claims checks payable        (17,259)             35,294

  Increase (decrease) in Proposition 103 payable      (78,307)             71,580

  Change in other assets, other liabilities
    and accrued income taxes                           30,132             (80,041)
                                                   ----------          ---------- 
    NET CASH USED BY
      OPERATING ACTIVITIES                         $ (151,305)         $ (522,577)

</TABLE>

<PAGE> 6

<TABLE>
                      20TH CENTURY INDUSTRIES AND SUBSIDIARIES
                        CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                                                  
                                     (continued)

                                                  Nine Months Ended September 30, 
                                                 ---------------------------------
                                                    1995                1994
                                                    ----                ----
                                                           (unaudited)
                                                        (Amounts in thousands)

INVESTING ACTIVITIES:

<S>                                                <C>                 <C>                                                          
  Investments purchased                            $ (466,249)         $ (858,257)

  Investments called or matured                        10,540              20,595

  Investments sold                                    379,879           1,310,026

  Net purchases of furniture, equipment
    and leasehold improvements                         (1,701)             (3,065)
                                                   ----------          ---------- 

      NET CASH PROVIDED (USED) BY
        INVESTING ACTIVITIES                          (77,531)            469,299

FINANCING ACTIVITIES:

  Proceeds from issuance of preferred stock            20,000                -

  Proceeds from bank credit facility                   10,000             153,327

  Cash dividends paid                                  (9,561)            (16,471)
                                                   ----------          ---------- 

    NET CASH PROVIDED BY
      FINANCING ACTIVITIES                             20,439             136,856
                                                   ----------          ----------

  Net increase (decrease) in cash                    (208,397)             83,578

  Cash, beginning of year                             249,834              17,894
                                                   ----------          ----------

  Cash, end of quarter                             $   41,437          $  101,472
                                                   ==========          ==========

The accompanying notes are an integral part of this statement.
</TABLE>


<PAGE> 7


                    20TH CENTURY INDUSTRIES AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                  (Unaudited)
                                        

     1.   Basis of Presentation
          
          The accompanying unaudited consolidated financial statements have been
          prepared in accordance  with generally accepted  accounting principles
          for interim financial  information and with  the instructions to  Form
          10-Q  and  Article  10  of  Regulation  S-X.  Accordingly, they do not
          include all  of the  information and  footnotes required  by generally
          accepted accounting principles for complete financial statements.   In
          the  opinion  of  management,  all  adjustments  (consisting of normal
          recurring accruals) considered necessary for a fair presentation  have
          been included.  Operating results for the three and nine month periods
          ended September 30, 1995 are not necessarily indicative of the results
          that  may  be  expected  for  the  year  ended December 31, 1995.  For
          further information,  refer to  the consolidated  financial statements
          and  notes  thereto  included  in  the  20th  Century  Industries  and
          Subsidiaries annual report  on Form 10-K  for the year  ended December
          31, 1994.

     2.   Earnings (Loss) Per Common Share
          
          Primary  earnings  (loss)  per  common  share  were computed using the
          weighted  average  number  of  common  shares  plus  the net effect of
          dilutive  common  equivalent  shares  (warrants  and  stock   options)
          outstanding during the period.   Common equivalent shares  outstanding
          are  computed  using  the  modified  treasury  stock method.  Prior to
          December 16, 1994, the Company had a simple capital structure in which
          there were  no securities  in existence  allowing common  stock to  be
          acquired  as  a  result  of  exercising  the conversion rights of such
          securities.    On  December 16,  1994,  the Company issued convertible
          preferred stock and warrants to  purchase common stock.  The  weighted
          average  number  of  shares   for  the  primary  earnings   per  share
          calculation  was  57,305,434  and  57,194,373  for  the three and nine
          months ended September 30, 1995 and 51,384,548 and 51,393,529 for  the
          three and  nine months  ended September 30,  1994, respectively.   The
          weighted average number of fully diluted shares was 77,159,803 for the
          three  months  ended  September 30,  1995  assuming  conversion of the
          convertible preferred stock.  Fully

<PAGE> 8

                    20TH CENTURY INDUSTRIES AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                  (Unaudited)

     2.   Earnings (Loss) Per Common Share (continued)
          
          diluted earnings per share for  the nine months ended September,  1995
          are not presented as the results are anti-dilutive.

     3.   Investments
          
          In accordance with Statement of Financial Accounting Standards  (SFAS)
          No.  115,  "Accounting  for  Certain  Investments  in  Debt and Equity
          Securities" which was adopted in January, 1994, the Company classifies
          all of its bond portfolio as available-for-sale.
          
          The amortized cost, gross unrealized gains and losses, and fair values
          of fixed maturities as of September 30, 1995 are as follows:

                                                  Gross      Gross
                                  Amortized    Unrealized  Unrealized     Fair
                                    Cost          Gains      Losses       Value
                                  ---------    ----------  ----------     -----
                                              (Amounts in thousands)
Available-For-Sale
------------------
U.S Treasury securities and
  obligations of U.S. government
  corporations and agencies       $  145,718    $ 2,671    $    46    $  148,343
Obligations of states and
  political subdivisions             214,679      1,813      6,519       209,973
Public utilities                     144,103      5,853         95       149,861
Corporate securities                 579,263     20,246        638       598,871
                                  ----------    -------    -------    ----------
  Total                           $1,083,763    $30,583    $ 7,298    $1,107,048
                                  ==========    =======    =======    ==========


     4.   Income Taxes
          
          Income taxes do not bear the expected relationship to pre-tax income
          primarily  because   of  tax-exempt   investment  income.     As  of
          September 30,  1995,   the  Company   has  a   net  operating   loss
          carryforward  of  approximately  $549,000,000  and  $402,000,000 for
          regular tax and

<PAGE> 9

                    20TH CENTURY INDUSTRIES AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                  (Unaudited)
     
     4.   Income Taxes  (continued)
          
          alternative minimum tax, respectively, and an alternative tax credit
          carryforward of  $8,130,000.   The net  operating loss carryforwards
          will expire in 2009.  Alternative minimum tax credits may be carried
          forward indefinitely to offset future regular tax liabilities.
          
          Federal income tax expense consists of:
          
                                         Nine Months Ended September 30, 
                                         --------------------------------
                                                 1995         1994
                                                 ----         ----
                                             (Amounts in thousands)
          Current tax expense (benefit)       $      46   $ (73,565)
          Deferred tax expense (benefit)         18,816    (184,848)
                                              ---------   --------- 
                                              $  18,862   $(258,413)
                                              =========   =========

     5.   Debt
          
          Effective June 30, 1994, the Company secured a five and one-half  year
          reducing-revolver  bank  credit  facility  (the  Facility),  with   an
          aggregate commitment of $175 million.
          
          As of December  31, 1994, the  Company's outstanding advances  against
          the Facility  totalled $160  million.   Loan fees  of $7.2 million are
          being amortized over the five-and-one-half year life of the  Facility.
          Interest is charged  at a variable  rate based, at  the option of  the
          Company, on either (1) the higher of (a) the prime rate or (b) the sum
          of the Federal Funds Effective Rate plus 0.5%, plus a margin of  2.0%,
          or (2) the Eurodollar  rate plus a margin  of 1.00%.  Margins  will be
          reduced in relation to certain financial and operational levels of the
          Company.  Interest is payable at the end of each interest period.  The
          stock of the Company's insurance subsidiaries is pledged as collateral
          under the loan agreement.
          
          In March 1995, as part of the Proposition 103 settlement (see  Note 6)
          with  the  California  Department   of  Insurance,  the  Company   was


<PAGE> 10

                    20TH CENTURY INDUSTRIES AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                  (Unaudited)

     5.   Debt (continued)
          
          instructed to contribute  an additional $30  million to the  insurance
          subsidiaries'  surplus  by  March  31,  1995.    In  order to fund the
          additional capital  contribution, the  Company received  an additional
          $10 million from  the existing  bank credit  facility and  $20 million
          from  an  additional  preferred  stock  issuance  to AIG (see Note 8).
          These  funds  were  then  contributed  to  the insurance subsidiaries'
          surplus.
          
          At  September 30,  1995,  the  interest  rate  for  the  facility  was
          approximately  7%.    Interest   paid  for  the  nine   months  ending
          September 30, 1995 was approximately $10,100,000.

     6.   Proposition 103
          
          On January  27, 1995,  the Company  announced a  settlement of  rebate
          liabilities  associated  with  Proposition  103,  which  was passed by
          California voters on November 8, 1988.  The settlement applied to both
          insurance  subsidiaries,  20th  Century  Insurance  Company  and  21st
          Century  Casualty  Company,  and  applied  to  those customers insured
          between November 8, 1988 and November 7, 1989.  The settlement reduced
          the Company's previously-recorded  obligation of $122  to $78 million.
          The settlement required the Company to immediately process rebates  to
          customers of $46 million.  The remaining $32 million was set aside for
          additional customer refunds, but subject to reduction dependent on the
          ultimate  level  of  claim  costs  associated with the 1994 Northridge
          Earthquake.
          
          During the second  quarter of 1995,  the Company completed  payment of
          the  $46  million  initial  rebate  amount,  reducing the liability to
          $32 million.  This remaining $32 million was reduced to $0 as a result
          of the  increase in  estimated earthquake  losses associated  with the
          1994 Northridge Earthquake (see Note 7).  In addition, the  settlement


<PAGE> 11

                    20TH CENTURY INDUSTRIES AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                  (Unaudited)


     6.   Proposition 103 (continued)
          
          required the Company  to withdraw its  request for a  hearing with the
          United States  Supreme Court  to appeal  the California  Supreme Court
          decision in the Proposition 103 test case "20th Century vs. Garamendi"
          and  abide  by  the  terms  of  the  settlement.  A consumer group has
          challenged the Commissioner's authority  to enter into the  settlement
          as structured.  The challenge  is currently pending in the  California
          Superior Court.
          
          Another condition of the settlement required the Company to obtain new
          capital of $50 million and contribute the funds to the surplus of  the
          insurance subsidiaries, consisting  of $30 million  by March 31,  1995
          and $20 million by December 31, 1995.

     7.   Northridge Earthquake
          
          The Northridge, California Earthquake,  which occurred on January  17,
          1994, significantly affected the  operating results and the  financial
          position of the Company.  The earthquake occurred in an area in  which
          the Company's homeowners  and earthquake coverages  were concentrated.
          Since  the  event  occurred,  the  Company  and  other  members of the
          property and casualty insurance industry have revised their  estimates
          of claim  costs and  related expenses  several times.   Because of the
          unusual  nature  of  the  ground  motion  during  the  earthquake, the
          earthquake  produced  significant  damage  to structures beyond normal
          expectations.  Delayed discovery of the severity of damages has caused
          claims to be  reevaluated as the  additional damage becomes  known and
          has made the  estimation process extremely  difficult.  The  Company's
          estimate of gross  losses and allocated  loss adjustment expenses  for
          this  catastrophe  as  of  September 30  is  $990  million,  of  which
          $50 million was recorded in the second quarter of 1995.  In accordance
          with the  terms of  the settlement  with the  California Department of
          Insurance, the Company offset  the increase in earthquake  losses with
          approximately $32 million in funds previously set aside for  potential
          Proposition 103 rebates (see Note 6).


<PAGE> 12

                    20TH CENTURY INDUSTRIES AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                  (Unaudited)

     8.   Capital Transaction
          
          On December  16, 1994,  the Company  received $216  million of  equity
          capital  from  American  International  Group,  Inc.  ("AIG")  and  in
          exchange,  issued  (i)  200,000  shares  of  Series  A  9% Convertible
          Preferred Stock, par value $1.00 per share, at a price and liquidation
          value of  $1,000 per  share and  convertible into  common shares  at a
          conversion price  of $11.33  per share,  and (ii)  16,000,000 Series A
          Warrants to purchase an  aggregate 16,000,000 shares of  the Company's
          Common  Stock  at  $13.50  per  share  (collectively,  the "Investment
          Agreement").   The Series A Preferred Stock ranks senior to the Common
          Stock in respect to dividend  and liquidation rights.  Cash  dividends
          of  $4,500,000  and  $5,061,375  were  paid  on the preferred stock on
          March 16, 1995 and September 15, 1995, respectively.  Preferred  stock
          dividends of  $4,950,000, representing  4,950 additional  shares, were
          issued on June 26, 1995.   Per the Investment Agreement, the  exercise
          price of  the Series A  Warrants are  reduced $.08  per share for each
          million dollars of gross losses and allocated loss adjustment expenses
          in excess of $945 million  with respect to the  Northridge Earthquake.
          As the  Company's estimate  of the  gross losses  and loss  adjustment
          expenses  for  the  Northridge  Earthquake  rose  to  $990 million  at
          June 30,  1995  (see  Note 7),  the  exercise  price  of  the Series A
          Warrants declined to $9.90 per  share.  The Common Stock  Warrants are
          generally exercisable from February 1998 to February 2007.
          
          As part  of the  Investment Agreement,  a 10%  quota-share reinsurance
          agreement with AIG applicable to the Company's entire book of business
          was implemented  on January  1, 1995.   In  addition to  AIG's capital
          investment  and  quota-share  agreement,  the  Company  and  AIG   are
          negotiating a strategic business alliance agreement for joint ventures
          for  the  sale  of  automobile  insurance  outside  California.    The
          Companies have agreed on Arizona as the initial western state, and the
          venture expects to begin selling policies in early 1996.

<PAGE> 13

                    20TH CENTURY INDUSTRIES AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                  (Unaudited)


     8.   Capital Transaction (continued)
          
          The Company issued 20,000 additional shares of preferred stock to  AIG
          in exchange for $20 million to partially fund the capital contribution
          required by the Proposition 103 settlement (see Note 6).

     9.   Stock Option Plan
          
          On  May 25,  1995,  the  shareholders  of  the  Company  approved  the
          1995 Stock Option Plan (the "Plan"),  which provides for the grant  of
          stock  options  to  key  employees  and  nonemployee  directors of the
          Company.
          
          The aggregate number  of common shares  issued and issuable  under the
          Plan shall not  exceed 1,000,000.   At September 30, 1995,  options to
          purchase  180,000  common  shares  have  been  granted with an average
          exercise price of $12.56 per share.


<PAGE> 14

                    20TH CENTURY INDUSTRIES AND SUBSIDIARIES

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS
         OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS


Financial Condition
-------------------

Historically,  the  Company  has  experienced  positive cash flow from operating
activities, excluding 1994 and 1995 due to the severe losses arising out of  the
January 17, 1994  Northridge Earthquake.   In  1994, the  Company paid for these
earthquake losses with  cash flow from  operations, investment sales,  loan pro-
ceeds and equity financing.   For 1995, the  Company expects to have  a negative
cash  flow  from  operations  due  to  remaining  earthquake  related losses and
expenses and the payment of Proposition 103 rebates.  Funds needed to pay  these
claims have come from normal operating cash flows, available cash on deposit and
additional  loan  proceeds  of  $10 million  and  preferred  stock  proceeds  of
$20 million in March,  1995.  As  of September 30, 1995,  the Company had  total
cash of $41,437,000 and total investments  at fair value of $1,108,315,000.   Of
the Company's total investments, $183,228,000 at fair value was invested in tax-
exempt state and municipal bonds and the balance was invested in taxable govern-
ment, corporate and municipal securities.

Loss and loss expense payments  are the most significant cash  flow requirements
of the Company.  The Company  continually monitors the loss payments to  provide
projections of future cash requirements.  The Company maintains appropriate cash
and short-term investment positions based upon  future cash flow needs.  As  the
earthquake claims are paid, the Company expects to lengthen the duration of  its
investment portfolio depending on cash flow needs and general market  conditions
at that time.

In 1994, the Company restructured its investment portfolio to increase the  pro-
portion  of  investment-grade  taxable  instruments  to realize capital gains to
increase statutory surplus, to provide cash for earthquake claim payments and to
maximize taxable investment income in order to more quickly utilize the existing
tax  loss  carryforwards.    Accordingly,  the  entire  portfolio  is  shown  as
available-for-sale.  As of September 30, 1995, the portfolio contained 82%  tax-
able instruments compared to 75% a year earlier.  Statutory regulations  require
the majority of the Company's investments to be made in high-grade securities to


<PAGE> 15

                    20TH CENTURY INDUSTRIES AND SUBSIDIARIES
                                        
ITEM 2.  (CONTINUED)

provide ample protection  for policyholders.   The Company primarily  invests in
long-term  maturity  investments  such  as  bonds.   All investments are readily
marketable.

In prior years, the Company's most significant capital requirement resulted from
its need  to maintain  an acceptable  ratio of  net premiums  written to policy-
holders' surplus.  However, the losses from the 1994 Northridge Earthquake  were
so severe that the Company obtained  a $175 million bank credit facility and  an
equity financing from American International Group,  Inc.  See Notes 5 and 8  of
the Notes to Consolidated Financial Statements.

During the first quarter, the insurance subsidiaries acquired $30 million in new
capital, consistent with the Proposition 103 rebate settlement with the Califor-
nia Department  of Insurance  (DOI).   See Note 6  of the  Notes to Consolidated
Financial Statements.  Of this  amount, $20 million was funded through  an addi-
tional preferred stock issuance to AIG, convertible into common stock at  $11.33
per share,  and $10 million  was funded  through additional  bank debt  from the
existing credit line.

At September 30, 1995, the Company has $225 million of preferred stock outstand-
ing, bearing  dividends at  9% per  year payable  quarterly in  cash or in kind.
Cash dividends paid in the  first quarter 1995, based on  $200 million preferred
stock outstanding, were $4,500,000, and  in kind stock dividends were  issued in
the  second  quarter  of  $4,950,000  or  4,950  shares,  based  on $220 million
preferred stock  outstanding.   Cash dividends  of $5,061,375  were paid  in the
third quarter, based on $225 million preferred stock outstanding.

Interest on the $170 million  outstanding bank credit facility  varies according
to market conditions.  For the first nine months of 1995, interest payments were
approximately $10,100,000  and as  of September 30,  1995, the  current interest
rate is approximately 7%.

Funds required by 20th Century Industries  to pay dividends are provided by  the
insurance  subsidiaries.    The  ability  of  the  insurance subsidiaries to pay
dividends to the holding company is regulated by state law.  Because of

<PAGE> 16

                    20TH CENTURY INDUSTRIES AND SUBSIDIARIES
                                        
                                        
ITEM 2.  (CONTINUED)

statutory regulations which require dividends to be paid from earned surplus, no
dividends may be paid by the  subsidiaries in 1995 without prior approval.   The
Company has requested approval from the DOI for an extraordinary dividend to pay
the required dividends and interest, and a response is still pending.

As of June 30, 1995, in accordance with the Proposition 103 settlement, the Com-
pany paid all of the  $46 million initial rebate amount, reducing  the liability
to $32 million.  The remaining $32 million was then reduced to $0 in  accordance
with the settlement  partially offsetting the  increase in estimated  earthquake
losses.  See Note 6 of the Notes to Consolidated Financial Statements.

Total stockholders' equity   increased $109.6 million between December 31,  1994
and  September 30,  1995  from  $317.9 million  to $427.5 million, respectively.
Book value per  common share increased  $1.64 from $2.29  to $3.93 for  the same
time period.

In 1994, the losses caused by the Northridge Earthquake resulted in a net opera-
ting loss of $788.5 million and  $759.5 million for regular tax and  alternative
minimum tax, respectively.  Of these amounts, $238.0 million and  $350.0 million
for regular tax and alternative minimum tax, respectively, were carried back  to
the previous three years offsetting most  of the taxable income for those  years
and resulting in a tax refund  of $74.1 million.  As of September 30,  1995, the
Company has a net operating loss carryforward of approximately $549,000,000  and
$402,000,000 for regular tax and  alternative minimum tax, respectively, and  an
alternative tax credit carryforward  of $8,130,000.  For  the next two to  three
years, the Company  expects to have  very small cash  outlays for income  taxes,
specifically alternative minimum tax.  Until the net operating losses are  fully
utilized, the Company expects  that cash outlays for  income taxes will be  less
than income tax expense recorded in accordance with generally accepted  account-
ing principles.  The  net operating loss carryforwards  will expire in the  year
2009.

<PAGE> 17

                    20TH CENTURY INDUSTRIES AND SUBSIDIARIES
                                        
ITEM 2.  (CONTINUED)

Results of Operations
---------------------

Nine   Months   Ended   September  30,  1995  Compared  to  Nine  Months   Ended
--------------------------------------------------------------------------------
September 30, 1994             
------------------

Although  direct   premiums  written   for  the   first  nine   months  of  1995
($804 million)  reflected  little  change  from  the  first  nine months of 1994
($811.7 million), net premiums written  for the nine months  ended September 30,
1995 of $696 million decreased $83.6 million or 10.7% below the same period dur-
ing 1994.  This decrease reflects  the start of the 10% quota-share  reinsurance
agreement with  AIG plus  a decline  in direct  premiums written.   For the nine
months of 1995,  $79.9 million was ceded  under the quota-share  agreement.  The
decrease  in  direct  premiums  written  during  the  first  nine months of 1995
reflected a decrease in total policies in force of 8.3% below the same period of
1994 substantially offset by rate increases.

Premiums earned  decreased $51.4  million or  6.6% during  the nine months ended
September 30, 1995  compared to  the same  period of  1994, again reflecting the
quota-share agreement with AIG and the decline in direct premiums written.

The Company  experienced an  underwriting profit  of $5.8 million  for the first
nine months of  1995 compared to  an underwriting loss  of $759.6 million during
the  same  period  of  1994  reflecting  primarily  the impact of the Northridge
Earthquake.   As of  September 30, 1995,  the Company  had received  a total  of
36,079 homeowner and condominium claims and 10,211 automobile claims as a result
of the  Northridge Earthquake.   Total  paid loss  and allocated loss adjustment
expense from the catastrophe have reached $930.2 million compared to $785.4 mil-
lion as of December 31, 1994, and $59.8 million remains reserved for  2,494 open
claims  at  September 30,  1995.    Excluding  the  effects  of  the  Northridge
Earthquake  and  Proposition 103,  the  Company  had  an  underwriting profit of
$20.4 million for the first nine months of 1995 compared to an underwriting loss
of $2.0 million for the same period  a year ago.  This improvement  is primarily
attributable to a 6%  rate increase in October  1995 offset by severe  storms in
January 1995.

<PAGE> 18

                    20TH CENTURY INDUSTRIES AND SUBSIDIARIES
                                        
                                        
ITEM 2.  (CONTINUED)

The Company's  voluntary automobile  insurance policies  in force  declined 4.7%
during the first nine months of 1995 from 1,125,300 policies in force at  Decem-
ber 31, 1994  to 1,072,500  policies in  force at  September 30, 1995.  Assigned
Risk  increased  to  8,497  policies  in  force at September 30, 1995 from 7,285
policies in force at December 31, 1994.

Excluding the effect  of the Northridge  Earthquake on automobile  comprehensive
claims and  the Proposition 103  settlement, the  Company's voluntary automobile
programs experienced an  underwriting profit of  $52.5 million during the  first
nine months of 1995 compared  to an underwriting profit of  $17.7 million during
the same period of 1994.   Assigned Risk policies produced an underwriting  loss
of $2.9 million  in the  first nine  months of  1995 compared  to a $3.3 million
underwriting loss for the first nine months of 1994.

In addition to  the 6% automobile  rate increase authorized  in October 1994,  a
3.6% increase was implemented June 15, 1995, and a 5.2% increase for involuntary
assigned risk automobile policies became effective June 1, 1995.

The Company began an aggressive  marketing program within California during  the
first nine months of 1995 focusing on Northern California and San Diego for  the
first half of the year and on Los Angeles and Orange Counties in the second half
of 1995 which has resulted in the resumption of new business activity.

During the first nine months of 1995, total policies in force for the  Company's
other  programs,  homeowners,  condominiums,  and  personal  excess   liability,
declined to  190,700 from  217,200 policies  in force  as of  December 31, 1994.
This decline is a result of the DOI's order for the Company to discontinue writ-
ing new  homeowners, condominium  owners and  earthquake insurance  in order  to
reduce the Company's earthquake exposure.

Underwriting results for these programs are influenced by the variability caused
by weather-related claims in the  homeowners program.  Excluding the  effects of
the Northridge Earthquake and Proposition 103, the underwriting loss for these

<PAGE> 19


                    20TH CENTURY INDUSTRIES AND SUBSIDIARIES
                                        
                                        
ITEM 2.  (CONTINUED)

programs was  $29.2 million for  the first  nine months  of 1995  compared to an
underwriting  loss  of  $16.3 million  for  the  same  period in 1994.  The 1995
underwriting loss includes 3,946 first-party property claims directly  resulting
from a series of  severe storms in the  first quarter totaling $10.2 million  in
losses on a pre-tax basis.  The weather returned to more mild conditions in  the
second and third quarters.

Results for the first nine months of 1995 also include $7.8 million in  premiums
for catastrophe reinsurance purchased in January 1995 in order to provide  addi-
tional coverage  for the  declining homeowners  earthquake exposure.   The addi-
tional coverage began  at $200 million effective  January 23, 1995  and declined
throughout its term to expiration on May 15, 1995.  As scheduled, the  homeowner
earthquake endorsement non-renewal was completed in July 1995 in accordance with
an  order  from  the  California  Department  of  Insurance.   Consequently, the
extremely  high-limit,  high  premium  reinsurance  required  during the run-off
period is no longer necessary.  Effective July 1, 1995, the Company purchased  a
more  typical  catastrophe  reinsurance  program  of  $100 million  at a cost of
approximately $3.3 million per quarter.

The Company's policy acquisition  and general operating expense  ratio continues
to be one of the lowest in the industry.  The ratio of net underwriting expenses
to net earned premium was  9.2% for the first nine  months of 1995 and 9.5%  for
the first nine months of 1994.

Net investment income decreased 5.3% during  the first nine months of 1995  com-
pared to the same  period of 1994, resulting  from a decrease in  investments in
order to provide cash for earthquake claim payments and Proposition 103 rebates.
The average annual yield on the Company's invested assets was 6.8% for the first
nine months of 1995 and 6.9% for  the first nine months of 1994.   The Company's
investment portfolio was converted  from primarily tax-exempt to  primarily tax-
able bonds during the second and  third quarters of 1994 and more  taxable bonds
were purchased in the first quarter of 1995.  Realized gains on sales of invest-
ments decreased in the first nine months of 1995 to $5.4 million from $61.6 mil-
lion for the same period of 1994.

<PAGE> 20

                    20TH CENTURY INDUSTRIES AND SUBSIDIARIES
                                        
ITEM 2.  (CONTINUED)

Net income during the first nine months of 1995 was $43.3 million compared to  a
net loss of $449.4 million for the same period of 1994, reflecting the  substan-
tial  decrease  in  earthquake  losses  and  related  expenses.   The Northridge
Earthquake contributed  $492.4 million and  $9.5 million of  after-tax losses to
the first nine months of 1994 and the first nine months of 1995 results, respec-
tively.   The Proposition 103  rollback contributed  $45.9 million of  after-tax
loss to the first nine months of 1994.

The effect of  inflation on net  income during both  these periods was  not sig-
nificant.

Three Months  Ended September 30,  1995 Compared  to Three  Months Ended Septem-
--------------------------------------------------------------------------------
ber 30, 1994
------------

Net premiums  written for  the three  months ended  September 30, 1995 decreased
$10.6 million or 4.3% below the  same period of 1994, reflecting the  10% quota-
share reinsurance agreement with AIG, the reduction in homeowners premiums  par-
tially offset by a 6% rate increase effective in October 1994.

The Company's  voluntary automobile  insurance policies  in force  declined 1.9%
during the third quarter of 1995 from 1,092,800 at June 30, 1995 to 1,072,500 at
September 30, 1995.  Assigned Risk policies in force decreased to 8,497 at  Sep-
tember 30,  1995  from  8,544  at  June 30,  1995.    Premiums  earned decreased
$15.2 million or 6.0% during the three months ended September 30, 1995  compared
to the same period of 1994, again reflecting the quota-share reinsurance  agree-
ment with AIG offset partially by rate increases.

The Company experienced  an underwriting profit  of $21.3 million for  the third
quarter of 1995  compared to an  underwriting loss of  $206.2 million during the
same  period  of  1994,  reflecting  primarily  the  impact  of  the  Northridge
Earthquake.     Excluding  the   effects  of   the  Northridge   Earthquake  and
Proposition 103, the Company experienced an underwriting profit of $21.3 million
for the third quarter of 1995 compared to an underwriting profit of $1.1 million
during the same period of 1994.  Assigned Risk policies produced an underwriting
loss of $543,000 for the third quarter of 1995 compared to a $930,000 loss in

<PAGE> 21

                    20TH CENTURY INDUSTRIES AND SUBSIDIARIES
                                        
ITEM 2.  (CONTINUED)

the third quarter of 1994.  As previously stated, the Company's policy  acquisi-
tion and general operating  expense ratio continues to  be one of the  lowest in
the industry.  The ratio of underwriting expenses to earned premium was 8.5%  in
the third quarter of 1995 and 9.8% in the third quarter of 1994.

Although there was a minimal  change in average invested assets,  net investment
income increased  2.3% during  the third  quarter of  1995 compared  to the same
period of  1994.   This is  indicative of  a change  in the investment portfolio
reflecting a decrease in cash balances and an increase in bond investments  this
quarter compared to 1994.   The average annual  yield on the Company's  invested
assets was 7.1% for the third quarter of 1995 and 6.9% for the third quarter  of
1994.

Realized  gains  on  sales  of  investments  in  the  third quarter of 1995 were
$3.2 million compared to $8.2 million in the third quarter of 1994.  The Company
invests in high-quality securities, of  which approximately 18% is in  state and
municipal bonds and 82% is in  government and corporate bonds.  The  Company has
no investments in real estate or non-investment grade bonds.

Net income during the third quarter of 1995 was $30.1 million compared to a  net
loss of $114.3 million for the third quarter of 1994, reflecting the substantial
decreases  in  earthquake  losses  and  related  expenses.   The Proposition 103
settlement accounted for $44.7 million of  after-tax loss for the third  quarter
of 1994.

The effect of inflation on net  income of the Company during both  these periods
was not significant.

<PAGE> 22

                                        
                          PART II - OTHER INFORMATION
                                        
                                        
ITEM 6.   EXHIBITS AND REPORTS ON FORM 8-K

(b)  Reports on Form 8-K

There were no reports filed on Form 8-K for the three months ended September 30,
1995.

<PAGE> 23



                                     SIGNATURES




Pursuant  to  the  requirements  of  the  Securities  Exchange  Act of 1934, the
registrant  has  duly  caused  this  report  to  be  signed on its behalf by the
undersigned thereunto duly authorized.








                                  20TH CENTURY INDUSTRIES AND SUBSIDIARIES
                                  ----------------------------------------
                                               (Registrant)







Date  November 09, 1995                           WILLIAM L. MELLICK
    ---------------------                ---------------------------------------
                                         President and Chief Executive Officer





Date  November 09, 1995                            ROBERT B. TSCHUDY
    ---------------------               ----------------------------------------
                                               Senior Vice President and
                                                Chief Financial Officer

<PAGE> 24
<TABLE>

                                          
                      20TH CENTURY INDUSTRIES AND SUBSIDIARIES




EXHIBIT 11:  COMPUTATION OF EARNINGS PER COMMON SHARE



                              Three Months Ended September 30,  Nine Months Ended September 30,
                              --------------------------------  -------------------------------
                                     1995             1994           1995            1994
                                     ----             ----           ----            ----

                                        (Amounts in thousands, except per share data)

Primary:

<S>                               <C>              <C>           <C>             <C>                                                
Average shares outstanding            51,455          51,385         51,444         51,394

Net effect of dilutive stock
  warrants and options based
  on the modified treasury
  stock method using average
  market price                         5,850            -             5,750           -   
                                  ----------       ---------     ----------      ---------

Totals                                57,305          51,385         57,194         51,394
                                  ==========       =========     ==========      =========


Net income (loss)                 $   30,132       $(114,254)    $   43,325      $(449,367)
Dividends on preferred stock          (5,061)           -           (14,511)          -
Net interest expense reduction           169            -             1,112           -   
                                  ----------       ---------     ----------      ---------
Net income (loss) applicable
  to common stock                 $   25,240       $(114,254)    $   29,926      $(449,367)
                                  ==========       =========     ==========      =========

Per share amount                  $     0.44       $   (2.22)    $     0.52      $   (8.74)
                                  ==========       =========     ==========      =========
</TABLE>

<PAGE> 25
<TABLE>

                               20TH CENTURY INDUSTRIES AND SUBSIDIARIES




EXHIBIT 11:  COMPUTATION OF EARNINGS PER COMMON SHARE (continued)



                              Three Months Ended September 30,  Nine Months Ended September 30,
                              --------------------------------  -------------------------------
                                    1995             1994             1995           1994
                                    ----             ----             ----           ----

                                        (Amounts in thousands, except per share data)

Fully diluted:

<S>                               <C>              <C>           <C>             <C>                                                
Average shares outstanding            51,455          51,385         51,444         51,394

Net effect of dilutive stock
  warrants and options based
  on the modified treasury stock
  method using the higher of
  average market price or
  closing price                        5,850            -             5,750           -

Assuming conversion
  of convertible
  preferred stock                     19,855            -            19,035           -   
                                  ----------       ---------     ----------      ---------

Totals                                77,160          51,385         76,229         51,394
                                  ==========       =========     ==========      =========


Net income (loss)                 $   30,132       $(114,254)    $   43,325      $(449,367)
Net interest expense reduction            27            -                89           -   
                                  ----------       ---------     ----------      ---------
Net income (loss) applicable
  to common stock                 $   30,159       $(114,254)    $   43,414      $(449,367)
                                  ==========       =========     ==========      =========

Per share amount                  $     0.39       $   (2.22)    $     0.57      $   (8.74)
                                  ==========       =========     ==========      =========

</TABLE>