SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C.  20549


                                    FORM 10-Q/A
                                  AMENDMENT NO. 1


                   QUARTERLY REPORT UNDER SECTION 13 OR 15 (d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934


For Quarter Ended September 30, 2000               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
incorporation or organization)                            Identification 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
                                                                 --------------

                                      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  31,  2000
  Common Stock, Without Par Value                 85,145,817  shares


                                        1
<PAGE>
                          PART I - FINANCIAL INFORMATION

ITEM  1.     FINANCIAL  STATEMENTS

<TABLE>
<CAPTION>
                  21ST CENTURY INSURANCE GROUP AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS

                                     ASSETS


                                                  September 30,   December 31,
                                                       2000           1999
                                                  --------------  -------------
                                                   (Unaudited)
                                                      (Amounts in thousands)
<S>                                               <C>             <C>
Investments, available-for-sale, at fair value:
  Fixed maturities                                $      879,691  $     942,982
  Equity securities                                          396            563
                                                  --------------  -------------
    Total investments - Note 3                           880,087        943,545
Cash and cash equivalents                                 31,454         45,034
Accrued investment income                                 13,100         15,403
Premiums receivable                                       78,074         70,796
Reinsurance receivables and recoverables                  67,618         56,616
Prepaid reinsurance premiums                              20,636         32,212
Deferred income taxes - Note 4                            89,390         91,251
Deferred policy acquisition costs                         22,261         22,156
Property and equipment, net of accumulated
  depreciation                                           118,949         84,455
Other assets                                              28,376         17,864
                                                  --------------  -------------
                                                  $    1,349,945  $   1,379,332
                                                  ==============  =============
</TABLE>

       See  accompanying  notes  to  financial  statements.


                                        2
<PAGE>
<TABLE>
<CAPTION>
                    21ST CENTURY INSURANCE GROUP AND SUBSIDIARIES
                       CONSOLIDATED BALANCE SHEETS (continued)

                         LIABILITIES AND STOCKHOLDERS' EQUITY


                                                       September 30,    December 31,
                                                           2000             1999
                                                      ---------------  --------------
                                                        (Unaudited)
                                                 (Amounts in thousands, except share data)
<S>                                                   <C>              <C>
Unpaid losses and loss adjustment expenses            $      286,244   $     276,248
Unearned premiums                                            247,663         232,702
Bank loan payable                                                  -          67,500
Claims checks payable                                         35,147          31,912
Reinsurance payable                                           31,787          22,311
Other liabilities                                             45,754          27,822
                                                      ---------------  --------------
    Total liabilities                                        646,595         658,495

Stockholders' equity
  Capital stock
    Preferred stock, par value $1.00 per share;
    Authorized 500,000 shares, none issued                         -               -

    Series A convertible preferred stock, par value
    $1.00 per share, stated value $1,000 per share;
    Authorized 376,126 shares, none outstanding
    in 2000 and 1999                                               -               -

    Common stock, without par value;  authorized
    110,000,000 shares, outstanding 85,145,817
    in 2000 and 85,918,680 in 1999                           414,845         429,623

  Accumulated other comprehensive loss                       (20,262)        (40,519)

  Retained earnings                                          308,767         331,733
                                                      ---------------  --------------
    Total stockholders' equity                               703,350         720,837
                                                      ---------------  --------------
                                                      $    1,349,945   $   1,379,332
                                                      ===============  ==============
</TABLE>

See  accompanying  notes  to  financial  statements.


                                        3
<PAGE>
<TABLE>
<CAPTION>
                      21ST CENTURY INSURANCE GROUP AND SUBSIDIARIES
                            CONSOLIDATED STATEMENTS OF INCOME
                                       (Unaudited)


                                                Three Months Ended    Nine Months Ended
                                                   September 30,        September 30,
                                               --------------------  -------------------
                                                 2000       1999       2000       1999
                                               ---------  ---------  ---------  --------
<S>                                            <C>        <C>        <C>        <C>
                                             (Amounts in thousands, except per share data)

REVENUES:

Net premiums earned                            $208,109   $191,234   $615,442   $577,879
Net investment income                            12,303     14,681     37,780     48,781
Realized investment gains (losses)                 (299)    (7,195)    (5,297)     3,343
                                               ---------  ---------  ---------  --------
                                                220,113    198,720    647,925    630,003

LOSSES AND EXPENSES:

Net losses and loss
  adjustment expenses                           190,547    148,086    553,557    436,465
Policy acquisition costs                         22,744     21,270     68,506     60,034
Other operating expenses                          6,888      3,786     20,820     13,237
Interest and fees expense                           804      1,691      2,901      5,408
                                               ---------  ---------  ---------  --------
                                                220,983    174,833    645,784    515,144
                                               ---------  ---------  ---------  --------

Income (loss) before federal
  income taxes                                     (870)    23,887      2,141    114,859

Federal income taxes (benefit) - Note 4          (3,441)     5,515     (9,044)    34,650
                                               ---------  ---------  ---------  --------
NET INCOME                                     $  2,571   $ 18,372   $ 11,185   $ 80,209
                                               =========  =========  =========  ========

    EARNINGS PER COMMON SHARE - Note 2
    ----------------------------------

    BASIC                                      $   0.03   $   0.21   $   0.13   $   0.92
                                               =========  =========  =========  ========
    DILUTED                                    $   0.03   $   0.21   $   0.13   $   0.92
                                               =========  =========  =========  ========
</TABLE>

See  accompanying  notes  to  financial  statements.


                                        4
<PAGE>
<TABLE>
<CAPTION>
                  21ST CENTURY INSURANCE GROUP AND SUBSIDIARIES
                  CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
                                   (Unaudited)
                       Nine Months Ended September 30, 2000
                       ------------------------------------


                                                         Accumulated
                                                            Other
                                 Common     Retained    Comprehensive
                                  Stock     Earnings    Income (Loss)     Total
                                ---------  ----------  ---------------  ---------
                                           (Amounts in thousands)
<S>                             <C>        <C>         <C>              <C>
Balance at January 1, 2000      $429,623   $ 331,733   $      (40,519)  $720,837
Comprehensive income:
  Net income                                  11,185                      11,185
  Change in accumulated other
  comprehensive income, net -
  Note 3                                                       20,257     20,257
                                                                        ---------
  Total comprehensive income                                              31,442
Cash dividends declared                      (34,151)                    (34,151)
Common stock repurchased
  and retired                    (16,598)                                (16,598)
Other                              1,820                                   1,820
                                ---------  ----------  ---------------  ---------
Balance at September 30, 2000.  $414,845   $ 308,767   $      (20,262)  $703,350
                                =========  ==========  ===============  =========
</TABLE>

                See  accompanying  notes  to  financial  statements.


                                        5
<PAGE>
<TABLE>
<CAPTION>

                  21ST CENTURY INSURANCE GROUP AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS

                                                    Nine Months Ended
                                                      September 30,
                                                   --------------------
                                                     2000       1999
                                                   --------  ----------
<S>                                                <C>       <C>
                                                       (Unaudited)
                                                  (Amounts in thousands)
OPERATING ACTIVITIES:
Net income                                         $11,185   $  80,209
Adjustments to reconcile net income
  to net cash provided by operating
  activities:

  Provision for depreciation and amortization       10,519       9,853
  Provision for deferred income taxes               (9,046)     17,493
  Realized (gains) losses on sale of investments.    5,085      (3,462)
  Federal income taxes                                   -      10,932
  Reinsurance balances                              10,050       6,662
  Unpaid losses and loss adjustment expenses         9,996    (105,383)
  Unearned premiums                                 14,961       4,829
  Claims checks payable                              3,235        (139)
  Other                                              4,245      (1,238)
                                                   --------  ----------
    NET CASH PROVIDED BY
      OPERATING ACTIVITIES                         $60,230   $  19,756
</TABLE>


                                        6
<PAGE>
<TABLE>
<CAPTION>
                  21ST CENTURY INSURANCE GROUP AND SUBSIDIARIES
                CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)


                                                    Nine Months Ended
                                                      September 30,
                                                 ----------------------
                                                    2000        1999
                                                 ----------  ----------
<S>                                              <C>         <C>
                                                      (Unaudited)
                                                (Amounts in thousands)
INVESTING ACTIVITIES:
  Investments available-for-sale:
    Purchases                                    $(150,897)  $(718,136)
    Calls or maturities                                  -       5,040
    Sales                                          240,254     725,115
  Net purchases of property and equipment          (44,916)    (29,613)
                                                 ----------  ----------
    NET CASH PROVIDED BY (USED IN)
      INVESTING ACTIVITIES                          44,441     (17,594)

FINANCING ACTIVITIES:
  Bank loan principal repayments                   (67,500)    (33,750)
  Dividends paid                                   (34,153)    (41,978)
  Common stock repurchased                         (16,598)    (14,381)
                                                 ----------  ----------
    NET CASH USED IN
      FINANCING ACTIVITIES                        (118,251)    (90,109)
                                                 ----------  ----------

Net decrease in cash                               (13,580)    (87,947)
Cash and cash equivalents, beginning of period.     45,034     167,856
                                                 ----------  ----------
Cash and cash equivalents, end of period         $  31,454   $  79,909
                                                 ==========  ==========
</TABLE>

See  accompanying  notes  to  financial  statements.


                                        7
<PAGE>
                  21ST CENTURY INSURANCE GROUP AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                               September 30, 2000
                                   (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  generally accepted accounting principles 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 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 nine-month period ended September 30, 2000, are not
necessarily  indicative  of the results that may be expected for the year ending
December  31, 2000. 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,  1999.

Certain  amounts  in  the  1999  financial  statements have been reclassified to
conform  to  the  2000  presentation.


                                        8
<PAGE>
                  21ST CENTURY INSURANCE GROUP AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

2.  Earnings  Per  Common  Share

     The  following  table  sets  forth  the  computation  of  basic and diluted
earnings  per  share:

<TABLE>
<CAPTION>
                                               Three Months Ended  Nine Months Ended
                                                   September 30,    September 30,
                                                 ----------------  ----------------
                                                  2000     1999     2000     1999
                                                 -------  -------  -------  -------
                                           (Amounts in thousands, except per share data)
<S>                                              <C>      <C>      <C>      <C>
Numerator for basic and diluted
earnings per share:
  Income available to common stockholders
  after assumed conversions                      $ 2,571  $18,372  $11,185  $80,209
                                                 =======  =======  =======  =======

Denominator:
Denominator for basic earnings per share:
  Weighted-average shares outstanding             85,146   86,995   85,200   87,393

Effect of dilutive securities:
Restricted stock grants                              176       50      176       50
Employee stock options                                22       56       56       57
                                                 -------  -------  -------  -------
Dilutive potential common shares                     198      106      232      107

Denominator for diluted earnings per share:
  Adjusted weighted-average shares outstanding.   85,344   87,101   85,431   87,500
                                                 =======  =======  =======  =======

Basic earnings per share                         $  0.03  $  0.21  $  0.13  $  0.92
                                                 =======  =======  =======  =======

Diluted earnings per share                       $  0.03  $  0.21  $  0.13  $  0.92
                                                 =======  =======  =======  =======
</TABLE>


                                        9
<PAGE>
                  21ST CENTURY INSURANCE GROUP AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

3.  Investments

     The  amortized  cost, gross unrealized gains and losses, and fair values of
investments  as  of      September  30,  2000,  are  as  follows:

<TABLE>
<CAPTION>
                                                      Gross        Gross
                                       Amortized   Unrealized   Unrealized     Fair
                                          Cost        Gains       Losses      Value
                                       ----------  -----------  -----------  --------
                                                  (Amounts in thousands)
<S>                                    <C>         <C>          <C>          <C>
U.S. Treasury securities and
    obligations of U.S. government
    corporations and agencies          $   14,776  $         4  $       502  $ 14,278

 Obligations of states and political
    subdivisions                          834,599        2,396       29,172   807,823

 Corporate securities                      61,843            9        4,262    57,590
                                       ----------  -----------  -----------  --------

    Total fixed maturities                911,218        2,409       33,936   879,691

 Equity securities                             41          355            -       396
                                       ----------  -----------  -----------  --------

    Total investments                  $  911,259  $     2,764  $    33,936  $880,087
                                       ==========  ===========  ===========  ========
</TABLE>

Details  follow concerning the change during the nine months ended September 30,
2000,  in the after-tax net unrealized loss on investments, which is included in
the  consolidated  balance  sheet  under  the  caption  "Accumulated  Other
Comprehensive  Loss"  (amounts  in  thousands):


Net unrealized gains on available-for-sale investments, net of
   income tax expense of $9,128                                        $16,951
Plus:  reclassification adjustment for losses included in net income,
   net of income tax benefit of $1,780                                   3,306
                                                                       -------
                                                                       $20,257
                                                                       =======


                                       10
<PAGE>
                  21ST CENTURY INSURANCE GROUP AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)


4.     Federal  Income  Taxes

     Income  taxes  do  not  bear  the  expected  relationship to pre-tax income
because of tax-exempt investment income and other differences in the recognition
of  revenue and expenses for tax and financial statement purposes.  At September
30,  2000,  the  Company  had a net operating loss carryforward of approximately
$132.6  million  for  regular tax purposes and an alternative minimum tax credit
carryforward of $33.0 million.  The net operating loss carryforwards will expire
in  2009  and  2020.  Alternative  minimum  tax  credits  may be carried forward
indefinitely  to  offset  future  regular  tax  liabilities.

     Federal  income  tax  expense  (benefit)  consists  of:

<TABLE>
<CAPTION>
                                Nine Months Ended
                                  September 30,
                                -----------------
                                  2000     1999
                                --------  -------
                             (Amounts in thousands)
<S>                             <C>       <C>
Current tax expense             $     2   $17,157
Deferred tax expense (benefit)   (9,046)   17,493
                                --------  -------
                                $(9,044)  $34,650
                                ========  =======
</TABLE>


                                       11
<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 its portfolio of marketable
securities  and  the  investment  income  thereon  to  pay  claims and operating
expenses.  Loss  and  loss  adjustment expense payments are the most significant
cash  flow  requirement  of  the Company.  The Company continually monitors loss
payments  to  provide  projections  of  future  cash  requirements.

In  the  third  quarter of 2000, the Company registered an underwriting loss for
the  fourth  consecutive  quarter.  Although the Company's liquidity and capital
needs  have  been  adequately  met  by  cash flow from operations and investment
activities in this period, its long-term financial health depends on a return to
underwriting  profitability.  Corrective  actions  taken  in  the  third quarter
included  the  following:

-     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  was  approved  by  the  California  Department of
      Insurance,  which  is  being  implemented  on  November  1,  2000.

-     Implementation  of  a  20%  overall rate increase in the Company's Arizona
      program  effective  for new business on September 1, 2000 and for renewals
      effective  October  1,  2000.

-     Filing  for  rate  changes  for  our  Oregon  and  Washington  programs.

-     Continuation  of  reduced  advertising  spending pending implementation of
      corrective  rate  changes.

Funds  required  by  the  Company to pay dividends, debt obligations 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.  As of September 30, 2000, the Company's insurance subsidiaries had a
combined  statutory  surplus  of $527.2 million compared to a combined statutory
surplus  of  $660.5  million  at  September 30, 1999. The Company's ratio of net
written premium to surplus was 1.6:1 at September 30, 2000, compared to 1.2:1 at
September  30,  1999.


                                       12
<PAGE>
                  21ST CENTURY INSURANCE GROUP AND SUBSIDARIES

ITEM  2.  (CONTINUED)

Invested  assets  as  of  September 30, 2000, had a fair value of $911.5 million
compared  to  $988.6  million  at  December  31, 1999.  All investments in fixed
maturities  are  investment  grade.  Of  the  Company's  total  investments  at
September  30,  2000,  87.4% were invested in tax-exempt fixed-income securities
compared  to  85.6%  at  December  31,  1999  and  76.5%  at September 30, 1999.

The  fixed  maturity  available-for-sale portfolio is subject to decline in fair
value  as  interest  rates  rise.  As  of  September  30,  2000,  the  after-tax
unrealized loss on investments was $20.3 million compared to $40.5 million as of
December  31, 1999.  The Company's strategy has been to minimize the realization
of  these  losses  by  holding  the  underlying  investments,  to  the  extent
practicable,  until  they  regain  their  value.

In  September  2000, the Company exercised its option to prepay a $33.75 million
variable-rate  line of credit resulting in a pre-tax charge of $286,000 from the
write-off of previously unamortized debt issuance costs, which has been included
in  the  third  quarter  interest  expense  for  financial  reporting  purposes.

In August 1996, 21st Century Insurance Company of Arizona, a joint venture owned
51%  by  AIG  and 49% by the Company, began writing private passenger automobile
policies  in  that  state.  The  Company's  investment  in  and advances to this
venture,  which  is  accounted for by the equity method, totaled $4.2 million at
September 30, 2000, and are included in other assets in the consolidated balance
sheet.  The  Company's  share of the net loss of this venture was ($346,000) and
($693,000) for the three and nine months ended September 30, 2000, respectively,
and  ($61,000)  and  ($333,000)  for  the  same  1999 periods and is included in
investment  income  in  the  consolidated  statements  of  income.


                                       13
<PAGE>
                  21ST CENTURY INSURANCE GROUP AND SUBSIDARIES

ITEM  2.  (CONTINUED)

Underwriting  Results
---------------------

Gross  premiums  written  in  the  third  quarter of 2000 increased $7.9 million
(3.6%)  to $226.3 million from $218.4 million in the same period of 1999.  Gross
premiums  written  during  the  nine  months ended September 30, 2000, increased
$27.2  million (4.1%) to $692.9 million from $665.7 million. Net earned premiums
increased $16.9 million (8.8%) and $37.6 million (6.5%) for the quarter and nine
months  ended  September  30,  2000, respectively, mainly due to the termination
effective  January  1,  2000, of the former 100% quota share reinsurance program
relating  to  the  homeowners  line.

The  Company  experienced  an  underwriting  loss  of $12.1 million in the third
quarter  of  2000  compared to an underwriting gain of $18.1 million in the same
quarter  last  year.  An underwriting loss of $27.4 million was incurred for the
first  nine months of the year compared to an underwriting gain of $68.1 million
in  the  same  period  for 1999.  The combined ratio increased from 90.5% in the
third quarter of 1999 to 105.8% for the third quarter of 2000, and from 88.2% to
104.4%  for  the  nine  months  ended September 30, 1999 and 2000, respectively.
Contributing  to  the change in combined ratio were the earning-in of a February
1999  rate  decrease,  an  upturn in loss frequency and severity trends, and the
impact  of  reserve  savings  in  1999.

Net paid losses and loss adjustment expenses increased $11.6 million (6.9%) from
$168.9  million  for  the quarter ended September 30, 1999 to $180.5 million for
the  comparable  period  of 2000.  For the nine months ending September 30, 1999
and  2000,  net paid losses and loss adjustment expenses were $533.7 million and
$541.4  million,  respectively,  an  increase  of  $7.7  million  (1.4%).

Net  incurred  losses and loss adjustment expenses (net paid losses plus the net
change in loss reserves) increased $42.4 million (28.6%) from $148.1 million for
the quarter ended September 30, 1999 to $190.5 million for the comparable period
of  2000.  For  the  nine  months  ending     September  30,  1999 and 2000, net
incurred  losses  and  loss  adjustment  expenses were $436.5 million and $553.6
million,  respectively,  an  increase  of  $117.1  million  (26.8%).


                                       14
<PAGE>
                  21ST CENTURY INSURANCE GROUP AND SUBSIDARIES

ITEM  2.  (CONTINUED)

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.  The Company has received approval from
the  California  Department  of Insurance for a 6.4 percent rate increase to our
California  auto  program  that  will be implemented beginning November 1, 2000.
However,  because  premiums are earned over policy terms for financial operating
purposes,  the  effects  of  any  rate  increases  would  not  be evident in the
Company's  reported  financial  results  for several months following regulatory
approval.

Net  underwriting  expenses, which consist of policy acquisition costs and other
operating  expenses,  increased by $4.6 million (18.3%) for the third quarter of
2000  compared to the same quarter in 1999.  Net underwriting costs for the nine
months  ended September 30, 2000, increased by $16.1 million (21.9%) compared to
1999.  The ratio of net underwriting expenses (excluding loan interest and fees)
to net premiums earned was 14.2% and 14.5% for the quarter and nine months ended
September  30,  2000,  respectively, and 13.1% and 12.7% for the same prior year
periods.  The  increase of this ratio from 12.9% in December 1999 to its current
level  reflects  the  Company's  continuing  investments  in  new  technology,
customer-focused  business practices and the impact of a 6.8% rate decrease that
went  into  effect  in  February  1999.

INVESTMENT  INCOME

In  the  fourth  quarter of 1998, the Company began transitioning its investment
portfolio  from  taxable  to  nontaxable  securities  in  anticipation  of fully
utilizing its remaining net operating loss carryforward.  At September 30, 2000,
$796.7  million,  or  87.4%, of the Company's total cash and investments at fair
value  was invested in tax-exempt bonds compared to $802.9 million, or 76.5%, at
September  30,  1999.


                                       15
<PAGE>
                  21ST CENTURY INSURANCE GROUP AND SUBSIDARIES

ITEM  2.  (CONTINUED)

As a result of the transition of the portfolio into tax-exempt securities, which
generally  have  a  lower  pre-tax  yield  than  taxable securities, net pre-tax
investment  income  decreased  13.8%  and  21.1% for the quarter and nine months
ended  September  30,  2000,  compared to the same periods in 1999.  The average
annual  pre-tax  yield  on  invested assets for the three and nine-month periods
ended  September 30, 2000, was 5.2% and 5.1%, respectively, compared to 5.2% and
5.5% for the same periods in 1999.  On an after tax basis, the comparable yields
were  4.7%  and  4.6%  for  the three and nine month periods ended September 30,
2000,  respectively,  compared  to  4.4%  and 4.2% for the same periods in 1999.
Average  invested  assets decreased 14.3% and 14.5% for the three and nine-month
periods  ended September 30, 2000, respectively, compared to the same periods in
1999.

Realized  losses  on sales of investments were $300,000 and $5.3 million for the
third  quarter and first nine months of 2000 compared to realized losses of $7.2
million  and  realized  gains  of  $3.3  million  for  the same periods in 1999.

RECENT  LEGISLATION

In  September  30,  2000,  California  Governor Davis signed into law SB 1899, a
statute  that  would  "revive"  certain insurance claims arising out of the 1994
Northridge  Earthquake  that  now  are  barred  by  the  applicable  statute  of
limitations, the policy contract or settlement agreements signed by the insured.
The  statute  is  effective  January  1,  2001,  and  would  provide  certain
policyholders  12  months from that date to file additional earthquake claims or
suits against the Company. The Company believes the statute violates federal and
state  constitutions,  which prohibit impairment of contracts, and is evaluating
its  legal options. The Company has diligently and systematically handled claims
from  the  Northridge  Earthquake  and  has  paid out over $1.1 billion in claim
payments.


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                  21ST CENTURY INSURANCE GROUP AND SUBSIDARIES

ITEM  2.  (CONTINUED)

FORWARD-LOOKING  STATEMENTS

Statements  contained  in  this  quarterly 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 claims experience; systems and service problems; financial
or  investment  considerations;  and  unanticipated  results  of  legislative,
regulatory or legal actions, including the inability to obtain approval for rate
increases.

                           PART II - OTHER INFORMATION

ITEM  6.     EXHIBITS  AND  REPORTS  ON  FORM  8-K

(b)     Reports  on  Form  8-K

No  reports  were filed on Form 8-K during the quarter ended September 30, 2000.


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                                   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 November 12, 2000                     /s/ BRUCE W. MARLOW
     ------------------                    -------------------------------------
                                           BRUCE W. MARLOW
                                           President and Chief Executive Officer


Date November 12, 2000                     /s/ ROBERT B. TSCHUDY
     ------------------                    -------------------------------------
                                           ROBERT B. TSCHUDY
                                           Senior Vice President and
                                           Chief Financial Officer


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