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 March 31, 2001                   Commission File Number 0-6964

                          21ST CENTURY INSURANCE GROUP
--------------------------------------------------------------------------------
             (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)

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


        Registrant's telephone number, including area code (818) 704-3700
                              Web site: www.i21.com

                                      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 April 30, 2001
Common Stock, Without Par Value                      85,176,716 shares


                                        1
<PAGE>
                         PART I - FINANCIAL INFORMATION

ITEM  1.     FINANCIAL  STATEMENTS

                  21ST CENTURY INSURANCE GROUP AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEET
                             (Amounts in thousands)


                                                 March 31,   December 31,
                                                    2001         2000
                                                -----------  -------------
                                                (Unaudited)

ASSETS

Investments, available-for-sale, at fair value
   and cash:
  Fixed maturities                               $  906,724  $     912,655
  Equity securities                                     362            433
  Cash and cash equivalents                          14,618          7,240
                                                 ----------  -------------
       Total investments and cash                   921,704        920,328
Accrued investment income                            12,710         12,569
Premiums receivable                                  81,728         78,983
Reinsurance receivables and recoverables             46,637         50,075
Prepaid reinsurance premiums                         17,044         20,300
Deferred income taxes                                69,020         72,434
Deferred policy acquisition costs                    26,810         22,387
Property and equipment, net of accumulated
   depreciation                                     151,161        138,062
Other assets                                         36,075         22,937
                                                 ----------  -------------
TOTAL ASSETS                                     $1,362,889  $   1,338,075
                                                 ==========  =============

See  accompanying  notes  to  financial  statements.


                                        2
<PAGE>
                  21ST CENTURY INSURANCE GROUP AND SUBSIDIARIES
                     CONSOLIDATED BALANCE SHEET (continued)
                    (Amounts in thousands, except share data)

                                                   March 31,   December 31,
                                                      2001         2000
                                                   ----------  -------------
                                                   (Unaudited)
LIABILITIES

Unpaid losses and loss adjustment expenses         $  295,961  $     298,436
Unearned premiums                                     240,855        236,519
Claims checks payable                                  37,492         35,982
Reinsurance payable                                    11,341         15,989
Other liabilities                                      54,692         30,588
                                                   ----------  -------------
      Total liabilities                               640,341        617,514
                                                   ----------  -------------

STOCKHOLDERS' EQUITY

Common stock, without par value; authorized
   110,000,000 shares, outstanding 85,194,591 in
   2001 and 85,145,817 in 2000                        415,450        415,064
Accumulated other comprehensive income                  5,493          1,783
Retained earnings                                     301,605        303,714
                                                   ----------  -------------
     Total stockholders' equity                       722,548        720,561
                                                   ----------  -------------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY         $1,362,889  $   1,338,075
                                                   ==========  =============

See  accompanying  notes  to  financial  statements.


                                        3
<PAGE>
                  21ST CENTURY INSURANCE GROUP AND SUBSIDIARIES
                        CONSOLIDATED STATEMENT OF INCOME
                  (Amounts in thousands, except per share data)
                                  (Unaudited)

                                       Three Months Ended
                                           March 31,
                                      --------------------
                                        2001       2000
                                      ---------  ---------
REVENUES

Net premiums earned                   $214,611   $200,272
Net investment income                   11,805     13,225
Realized investment gains (losses)       1,116     (3,743)
Other                                      (79)      (175)
                                      ---------  ---------
                                       227,453    209,579
                                      ---------  ---------

LOSSES AND EXPENSES

Losses and loss adjustment expenses    194,636    178,857
Policy acquisition costs                24,126     21,690
Other operating expenses                 5,488      7,346
Interest and fees expense                    -      1,137
                                      ---------  ---------
                                       224,250    209,030
                                      ---------  ---------

Income before federal income taxes       3,203        549
Federal income tax benefit              (1,719)    (3,106)
                                      ---------  ---------

NET INCOME                            $  4,922   $  3,655
                                      =========  =========

EARNINGS PER SHARE
------------------
   Basic                              $   0.06   $   0.04
                                      =========  =========

   Diluted                            $   0.06   $   0.04
                                      =========  =========

See  accompanying  notes  to  financial  statements.


                                        4
<PAGE>
<TABLE>
<CAPTION>
                  21ST CENTURY INSURANCE GROUP AND SUBSIDIARIES
                 CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
                             (Amounts in thousands)
                                  (Unaudited)


                                    Three Months Ended March 31, 2001
                            ----------------------------------------------------
                                                         Accumulated
                                                            Other
                               Common       Retained    Comprehensive
                                Stock       Earnings        Income           Total
                            -------------  ----------   --------------    ----------
<S>                         <C>            <C>
Balance at January 1, 2001  $    415,064   $ 303,714    $        1,783    $ 720,561
Comprehensive income                           4,922 (1)         3,710 (2)    8,632
Cash dividends declared                       (6,827)                        (6,827)
Other                                386        (204)                           182
                            -------------  ----------   --------------    ----------
Balance at March 31, 2001   $    415,450   $ 301,605    $        5,493    $ 722,548
                            =============  ==========   ==============    ==========
</TABLE>

(1)  Net  income  for  the  three  months  ended  March  31,  2001.
(2)  Net  change  in accumulated other comprehensive income for the three months
     ended  March 31, 2001, comprises net unrealized gains on available-for-sale
     invests  of  $4,457  (net  of  income  tax  expense  of  $2,400)  less  the
     reclassification  adjustment  for gains included in net income of $747 (net
     of  income  tax  benefit  of  $402).

See  accompanying  notes  to  financial  statements.


                                        5
<PAGE>
                  21ST CENTURY INSURANCE GROUP AND SUBSIDIARIES
                      CONSOLIDATED STATEMENT OF CASH FLOWS
                             (Amounts in thousands)
                                  (Unaudited)

                                                     Three Months Ended
                                                          March 31,
                                                     -------------------
                                                       2001      2000
                                                     --------  ---------
OPERATING ACTIVITIES

Net income                                           $ 4,922   $  3,655
Adjustments to reconcile net income
   to net cash provided by operating
   activities:
     Provision for depreciation and amortization       4,789      3,382
     Provision for deferred income taxes               1,417     (3,106)
     Realized (gains) losses on sale of investments   (1,150)     3,716
     Amortization of restricted stock grants             136         45
     Federal income taxes                             (3,114)     3,490
     Reinsurance balances                              2,046      1,261
     Unpaid losses and loss adjustment expenses       (2,474)    (2,174)
     Unearned premiums                                 4,337     10,348
     Claims checks payable                             1,510      1,286
     Net change in other assets                       (6,270)   (10,748)
     Net change in other liabilities                  12,869      8,982
                                                     --------  ---------
        NET CASH PROVIDED BY
          OPERATING ACTIVITIES                       $19,018   $ 20,137


                                        6
<PAGE>
                  21ST CENTURY INSURANCE GROUP AND SUBSIDIARIES
                CONSOLIDATED STATEMENT OF CASH FLOWS (continued)
                             (Amounts in thousands)
                                  (Unaudited)

                                                   Three Months Ended
                                                        March 31,
                                                 ---------------------
                                                    2001       2000
                                                 ----------  ---------

INVESTING ACTIVITIES

   Investments available-for-sale:
     Purchases                                   $(114,035)  $(55,100)
     Calls or maturities                             1,190          -
     Sales                                         125,610     71,398
   Net purchases of property and equipment         (17,828)   (11,965)
                                                 ----------  ---------
      NET CASH PROVIDED BY (USED IN)
         INVESTING ACTIVITIES                       (5,063)     4,333

FINANCING ACTIVITIES

   Common stock repurchased                              -    (13,933)
   Bank loan principal repayment                         -    (22,500)
   Dividends paid                                   (6,827)   (13,689)
   Proceeds from the exercise of stock options         250          -
                                                 ----------  ---------
      NET CASH USED IN FINANCING ACTIVITIES         (6,577)   (50,122)
                                                 ----------  ---------

Net increase (decrease) in cash                      7,378    (25,652)
Cash and cash equivalents, beginning of period       7,240     45,034
                                                 ----------  ---------
Cash and cash equivalents, end of period         $  14,618   $ 19,382
                                                 ==========  =========

See  accompanying  notes  to  financial  statements.


                                        7
<PAGE>
                  21ST CENTURY INSURANCE GROUP AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 March 31, 2001
                                   (Unaudited)

1.   Basis  of  Presentation

     The  accompanying  unaudited  consolidated financial statements of the 21st
     Century  Insurance  Group and subsidiaries (the Company) have been prepared
     in  accordance  with accounting principles generally accepted in the United
     States  ("GAAP")  for interim financial information and 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 GAAP 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-month
     period  ended March 31, 2001, are not necessarily indicative of the results
     that  may  be  expected  for the year ending December 31, 2001. For further
     information,  refer  to  the  consolidated  financial  statements and notes
     thereto  included  in the Company's Annual Report on Form 10-K for the year
     ended  December  31,  2000.

     Certain  amounts in the 2000 financial statements have been reclassified to
     conform  to  the  2001  presentation.


                                        8
<PAGE>
                  21ST CENTURY INSURANCE GROUP AND SUBSIDARIES

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

LIQUIDITY  AND  CAPITAL  RESOURCES

The  Company is principally dependent on premiums and the investment income from
its  investment  portfolio  to pay claims and operating expenses.  Loss and loss
adjustment  expense  payments  and  investments  in  new technology are the most
significant  uses  of  cash  for  the  Company. The Company continually monitors
payments  to  provide  projections  of  future  cash  requirements.

In  the  first  quarter  of  2001,  the Company registered an underwriting loss.
Although  the  Company's liquidity and capital needs have been adequately met by
cash  flow  from  operations  and  investment  activities  in  this  period, the
following  corrective  actions  have  been  taken  to  restore  underwriting
profitability:

-    Implementation  of  a  class  plan revision for the California auto program
     effective  September  1,  2000, which rebalances rating factors to create a
     more  accurately  priced  book  of  business.
-    A 6.4% rate increase in the California auto program implemented on November
     1,  2000.
-    A  21%  overall  rate  increase  in  Oregon  effective  November  1,  2000.
-    A  25%  overall  rate  increase  in  Washington  effective January 6, 2001.
-    A  12.6%  overall  rate  increase  in  Nevada  effective  March  15,  2001.
-    In  the first quarter of 2001, the Company filed a request for overall rate
     increases  of  5% in the California auto program and 6.9% in the homeowners
     line.  These  filings  are  pending  regulatory  approval.

These  pricing changes above will not be fully evident in the Company's reported
financial  results  for several months after regulatory approval as premiums are
earned  over  policy  terms  for  financial  reporting  purposes.


                                        9
<PAGE>
                  21ST CENTURY INSURANCE GROUP AND SUBSIDARIES

ITEM  2.  (CONTINUED)

Funds  required by the Company to pay dividends and holding company expenses are
provided  by  the  insurance  subsidiaries.  The  ability  of  the  insurance
subsidiaries  to  pay dividends to the holding company is regulated by state law
which  allows the payment from earned surplus of up to the greater of prior year
statutory  net  income  or 10% of surplus without prior approval from the state.
During  2001,  the  insurance  subsidiaries  could  pay dividends to the holding
company  of  $46.7  million  without  prior approval.  As of March 31, 2001, the
Company's  insurance  subsidiaries  had  a  combined statutory surplus of $472.3
million  compared  to a combined statutory surplus of $475.6 million at December
31, 2000. The Company's ratio of net written premium to surplus was 1.6 at March
31,  2001  compared to 1.4 at March 31, 2000 and 1.8 at December 31, 2000.  Cash
and  investments  at the holding company were $95.2 million at March 31, 2001 as
compared  to  $97.8  million  at  December  31,  2000.

Cash and invested assets as of March 31, 2001 had a fair value of $921.7 million
compared  to  $920.3  million  at  December  31,  2000.  Investment  grade bonds
comprised  over  99%  of the fair value of the fixed-maturity portfolio at March
31,  2001.  Of  the  Company's  total  investments at March 31, 2001, 82.6% were
invested  in  tax-exempt,  fixed-income securities compared to 90.3% at December
31,  2000.  As  of  March 31, 2001, the after-tax unrealized gain on investments
was  $5.5 million compared to an after-tax unrealized gain of $1.8 million as of
December  31,  2000.

In  September  2000,  the Company exercised its option to prepay a $33.8 million
variable-rate  line  of credit.  Interest payments for the first three months of
2000  totaled  approximately  $1.1  million.

UNDERWRITING  RESULTS

Gross  premiums  written  in  the  first  quarter of 2001 increased $3.0 million
(1.3%)  to  $236.9  million  from  $233.9  million  in  the  same period of 2000
primarily  as a result of the November 2000 6.4% rate increase in the California
auto  program  partially  offset  by  the  effects of a decline in the number of
vehicles  insured.  Net  premiums  earned increased $14.3 million (7.2%) for the
quarter  ended  March  31, 2001 over the quarter ended March 31, 2000, primarily
because  of the scheduled decrease in the cession rate under the AIG quota share
reinsurance treaty from 8% in 2000 to 6% in 2001 and the combined effects of the
rate  increase  and  insured  unit  decline  previously  mentioned.


                                       10
<PAGE>
                  21ST CENTURY INSURANCE GROUP AND SUBSIDARIES

ITEM  2.  (CONTINUED)

The  combined  ratio  decreased  from  107.2%  for the fourth quarter of 2000 to
104.5%  for  the  quarter  ended March 31, 2001, mainly due to the effect of the
rate  increase.  For  the  first quarter of 2000, the combined ratio was 103.8%.
Net paid losses and loss adjustment expenses increased $13.3 million (7.4%) from
$180.5  million  for  the quarter ended March 31, 2000 to $193.8 million for the
comparable  period  of  2001.  Net  incurred losses and loss adjustment expenses
(net  paid  losses plus the net change in loss reserves) increased $15.7 million
(8.8%)  from  $178.9  million  for  the  quarter  ended March 31, 2000 to $194.6
million  for  the  comparable period of 2001. The 2001 amount for net losses and
loss  adjustment  expenses included $4.6 million relating to the 1994 Northridge
Earthquake,  including  $2.3  million  relating to SB 1899 (see discussion below
under  Recent  Legislation),  while  there  was  no  comparable figure for 2000.

Loss  costs  began  trending  upwards in the third quarter of 1999 after several
years  in  which the Company's underwriting results had benefited from declining
trends.  The  higher  loss  costs  can  be  expected  to  negatively  impact the
Company's  underwriting  results  over  the  near  term.  Recent  changes in the
Company's  pricing  strategy  (as  discussed previously in Liquidity and Capital
Resources) will not be fully evident in the Company's reported financial results
for  several  months  following  regulatory approval as premiums are earned over
policy  terms  for  financial  reporting  purposes.

The ratio of net underwriting expenses (excluding loan interest and amortization
of  deferred  loan  fees)  to  net  premiums  earned was 13.8% and 14.5% for the
quarters  ended March 31, 2001 and 2000, respectively.  The decline in the ratio
is  mainly  due  to  an  increase in earned premiums, which more than offset the
increase  in  underwriting  expenses.


                                       11
<PAGE>
                  21ST CENTURY INSURANCE GROUP AND SUBSIDARIES

ITEM  2.  (CONTINUED)

INVESTMENT  INCOME

Compared  to  the  same  period in 2000, net pre-tax investment income decreased
10.7%  for  the  quarter ended March 31, 2001 primarily because of a decrease of
11.2%  in  average  invested  assets.  The decline in invested assets was due to
funds  being  used  for  payment  of the bank loan, acquisitions of property and
equipment,  and  dividends  to stockholders. The average annual pre-tax yield on
invested  assets  for  the  three-month  period  ended  March  31, 2001 was 5.2%
compared  to  5.1%  for  the  same  period  in 2000.  On an after tax basis, the
comparable  yields  were  4.6%  for  the  first  quarters of both 2001 and 2000.

21ST  CENTURY  INSURANCE  COMPANY  OF  ARIZONA

21st  Century  Insurance Company of Arizona ("21st of Arizona"), a joint venture
which  is  owned  51%  by  American  International  Group ("AIG") and 49% by the
Company, writes private passenger automobile policies in Arizona.  The Company's
investment  in  and  advances  to  this  venture, which are accounted for by the
equity  method,  totaled  $5.9  million  at  March  31, 2001 and $4.0 million at
December  31, 2000, and are included in other assets in the consolidated balance
sheet.  The  Company's share of the net loss of this venture was $79,000 for the
three  months  ended  March  31, 2001, and $175,000 for the same period in 2000.

RECENT  LEGISLATION

California  SB  1899  took  effect January 1, 2001, potentially reviving certain
insurance  claims  arising out of the 1994 Northridge earthquake that previously
were  barred  by  the  applicable statute of limitations, the policy contract or
settlement  agreements.  The  Company continues to believe this statute violates
federal  and state constitutional provisions prohibiting impairment of contracts
and  supports  a  legal challenge to the law being undertaken by another insurer
and  two  industry  trade  groups.  However,  to mitigate the risk of an adverse
determination, the Company has begun adjusting and settling claims made under SB
1899 while reserving its right to assert the unconstitutionality of the law as a


                                       12
<PAGE>
                  21ST CENTURY INSURANCE GROUP AND SUBSIDARIES

ITEM  2.  (CONTINUED)

defense  to  any  claim  or  action.  As  of  March  31, 2001, approximately 600
previously  reported  Northridge  earthquake  claims  have  been  presented  for
reconsideration  under  SB  1899.  Approximately  20 percent of claims have been
closed  at  a  cost of $2.3 million including adjustment and other expenses.  At
this  time,  the  Company  cannot predict how many claims ultimately may require
adjustment  under the statute or their ultimate cost.  The Company incurred more
than  $1.1 billion in earthquake-related losses and expenses, closing 94% of the
total  46,000  claims  within  the  first  year  and  98.6%  without litigation.

FORWARD-LOOKING  STATEMENTS

Statements  contained  herein  which  are not historical facts may be considered
forward-looking  statements  as  that  term is defined in the Private Securities
Litigation  Reform  Act  of  1995 relating to, among other things, the Company's
future  performance  and  operations,  management's  future plans and goals, and
business  environment  changes.  Such  forward-looking statements are subject to
risks  and  uncertainties, which could cause actual results to differ materially
from  those projected. Such risks and uncertainties include, but are not limited
to:  the  effects of competition and competitors' pricing actions; unanticipated
adverse  underwriting  and  claims experience, including revived claims under SB
1899;  systems  and  customer  service  problems,  including  potential negative
effects  of  power  shortages  in  California; adverse developments in financial
markets  or interest rates; and unanticipated results of legislative, regulatory
or  legal actions, including the inability to obtain approval for rate increases
and product changes.  The Company does not undertake any obligation to update or
revise  any  forward-looking statements, whether as a result of new information,
future  events  or  otherwise.


                                       13
<PAGE>
                           PART II - OTHER INFORMATION

ITEM  6.     EXHIBITS  AND  REPORTS  ON  FORM  8-K

(b)  Reports  on  Form  8-K

     A report on Form 8-K was filed on March 19, 2001, regarding the resignation
     of  Robert  B.  Tschudy, Senior Vice President and Chief Financial Officer,
     effective  March  30,  2001.


                                       14
<PAGE>
                  21ST CENTURY INSURANCE GROUP AND SUBSIDARIES

                                   SIGNATURES


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




                                        21ST  CENTURY  INSURANCE  GROUP
                                       -----------------------------------
                                                  (Registrant)



Date      May  3,  2001                         /S/  BRUCE  W.  MARLOW
       -------------------------       -----------------------------------
                                                BRUCE  W.  MARLOW
                                        President and Chief Executive Officer



Date      May  3,  2001                         /S/  DOUGLAS  K.  HOWELL
       -------------------------       -----------------------------------
                                                DOUGLAS  K.  HOWELL
                                          Senior  Vice  President  and
                                           Chief  Financial  Officer


                                       15
<PAGE>