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 June 30, 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  July  16,  2001
Common  Stock,  Without  Par  Value                  85,204,090  shares


                                                                               1
<PAGE>
<TABLE>
<CAPTION>
                         PART I - FINANCIAL INFORMATION

ITEM  1.     FINANCIAL  STATEMENTS

21ST CENTURY INSURANCE GROUP
CONSOLIDATED BALANCE SHEET
                                                                    June 30,    December 31,
(Amounts in thousands, except share data)                             2001          2000
---------------------------------------------------------------------------------------------
ASSETS                                                            (Unaudited)
<S>                                                               <C>           <C>
Investments, available-for-sale, at fair value and cash:
   Fixed maturities                                               $    893,991  $     912,655
   Equity securities                                                         -            433
   Cash and cash equivalents                                             3,333          7,240
---------------------------------------------------------------------------------------------
      Total investments and cash                                       897,324        920,328
Accrued investment income                                               12,587         12,569
Premiums receivable                                                     76,435         78,983
Reinsurance receivables and recoverables                                60,542         50,075
Prepaid reinsurance premiums                                            16,189         20,300
Deferred income taxes                                                   71,537         72,434
Deferred policy acquisition costs                                       25,448         22,387
Property and equipment, net of accumulated depreciation                164,997        138,062
Other assets                                                            35,398         33,968
---------------------------------------------------------------------------------------------
      Total assets                                                $  1,360,457  $   1,349,106
---------------------------------------------------------------------------------------------

LIABILITIES AND STOCKHOLDERS' EQUITY
Unpaid losses and loss adjustment expenses                        $    288,672  $     298,436
Unearned premiums                                                      243,053        236,519
Claims checks payable                                                   37,548         35,982
Reinsurance payable                                                     22,965         15,989
Other liabilities                                                       51,062         41,619
---------------------------------------------------------------------------------------------
      Total liabilities                                                643,300        628,545
---------------------------------------------------------------------------------------------

Common stock, without par value; authorized 110,000,000 shares,
  outstanding 85,187,340 in 2001 and 85,145,817 in 2000                415,869        415,064
Retained earnings                                                      300,577        303,714
Accumulated other comprehensive income                                     711          1,783
---------------------------------------------------------------------------------------------
Total stockholders' equity                                             717,157        720,561
---------------------------------------------------------------------------------------------
       Total liabilities and stockholders' equity                 $  1,360,457  $   1,349,106
---------------------------------------------------------------------------------------------
</TABLE>

See  accompanying  notes  to  financial  statements.


                                                                               2
<PAGE>
<TABLE>
<CAPTION>
21ST CENTURY INSURANCE GROUP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)

                                               Three Months Ended June 30,  Six Months Ended June 30,
(Amounts in thousands, except per share data)      2001          2000          2001          2000
-----------------------------------------------------------------------------------------------------
<S>                                            <C>           <C>           <C>           <C>

REVENUES
Net premiums earned                            $   217,366   $   207,062   $   431,977   $   407,334
Net investment income                               11,561        12,599        23,366        25,825
Other                                                 (209)         (172)         (288)         (348)
Realized investment gains (losses)                     434        (1,255)        1,550        (4,998)
-----------------------------------------------------------------------------------------------------
                                                   229,152       218,234       456,605       427,813
-----------------------------------------------------------------------------------------------------

LOSSES AND EXPENSES
Net losses and loss adjustment expenses            192,471       184,153       387,107       363,010
Policy acquisition costs                            27,086        24,072        51,212        45,762
Other operating expenses                             4,981         6,586        10,469        13,932
Interest and fees expense                                            960                       2,097
-----------------------------------------------------------------------------------------------------
                                                   224,538       215,771       448,788       424,801
-----------------------------------------------------------------------------------------------------
Income before federal income taxes                   4,614         2,463         7,817         3,012
Federal income tax benefit                           1,183         2,497         2,902         5,603
-----------------------------------------------------------------------------------------------------
   NET INCOME                                  $     5,797   $     4,960   $    10,719   $     8,615
-----------------------------------------------------------------------------------------------------


EARNINGS PER COMMON SHARE
   BASIC                                       $      0.07   $      0.06   $      0.13   $      0.10
-----------------------------------------------------------------------------------------------------
   DILUTED                                     $      0.07   $      0.06   $      0.13   $      0.10
-----------------------------------------------------------------------------------------------------


WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
   BASIC                                            85,177        85,110        85,183        85,226
-----------------------------------------------------------------------------------------------------
   DILUTED                                          85,372        85,412        85,366        85,492
-----------------------------------------------------------------------------------------------------


DIVIDENDS PER SHARE                            $      0.08   $      0.16   $      0.16   $      0.32
-----------------------------------------------------------------------------------------------------
</TABLE>

See  accompanying  notes  to  financial  statements.


                                                                               3
<PAGE>
<TABLE>
<CAPTION>
21ST CENTURY INSURANCE GROUP AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
(Unaudited)

                                                              Accumulated
                                                                 Other
(Amounts in thousands)            Common    Retained         Comprehensive
Six Months Ended June 30, 2001    Stock     Earnings            Income              Total
-------------------------------------------------------------------------------------------
<S>                              <C>       <C>              <C>                   <C>

Balance - January 1, 2001        $415,064  $ 303,714        $        1,783        $720,561
  Comprehensive income                        10,719   (1)          (1,072)  (2)     9,647
  Cash dividends declared                    (13,652)                              (13,652)
  Other                               805       (204)                                  601
-------------------------------------------------------------------------------------------
Balance - June  30, 2001         $415,869  $ 300,577        $          711        $717,157
-------------------------------------------------------------------------------------------
<FN>

(1)  Net  income  for  the  six  months  ended  June  30,  2001.
(2)  Net  change  in  accumulated  other comprehensive income for the six months
     ended  June 30, 2001, comprises net unrealized losses on available-for-sale
     investments  of  ($25)  (net  of  income  tax  benefit  of  $13)  less  the
     reclassification adjustment for gains included in net income of $1,047 (net
     of  income  tax  expense  of  $564).
</TABLE>

See  accompanying  notes  to  financial  statements.


                                                                               4
<PAGE>
<TABLE>
<CAPTION>
21ST  CENTURY  INSURANCE  GROUP
CONSOLIDATED  STATEMENT  OF  CASH  FLOWS
(Unaudited)

(Amounts in thousands)
Six Months Ended June 30,                                 2001       2000
----------------------------------------------------------------------------
<S>                                                    <C>         <C>

OPERATING ACTIVITIES
Net income                                             $  10,719   $  8,615
Adjustments to reconcile net income to
   net cash provided by operating activities:
     Provision for depreciation and amortization           9,572      6,388
     Amortization of restricted stock grant                  306         89
     Provision (benefit) for deferred income taxes         1,475     (5,603)
     Realized (gains) losses on sale of investments       (1,611)     4,899
     Federal income taxes                                 (4,355)     3,490
     Reinsurance balances                                    620     11,179
     Unpaid losses and loss adjustment expenses           (9,764)       162
     Unearned premiums                                     6,535     16,598
     Claims checks payable                                 1,566        391
     Other assets                                          2,446     (8,184)
     Other liabilities                                     9,238      1,607
----------------------------------------------------------------------------
Net cash provided by operating activities                 26,747     39,631
----------------------------------------------------------------------------

INVESTING ACTIVITIES
   Investments available-for-sale:
     Purchases                                          (204,203)   (94,717)
     Calls or maturities                                   1,808          -
     Sales                                               221,259    137,598
   Net purchases of property and equipment               (36,366)   (25,896)
----------------------------------------------------------------------------
Net cash provided by (used in) investing  activities     (17,502)    16,985
----------------------------------------------------------------------------

FINANCING ACTIVITIES
   Dividends paid                                        (13,652)   (27,326)
   Common stock repurchased                                    -    (16,598)
   Bank loan principal repayment                               -    (33,750)
   Proceeds from the exercise of stock options               500      1,684
----------------------------------------------------------------------------
Net cash used in financing activities                    (13,152)   (75,990)
----------------------------------------------------------------------------

   Net decrease in cash                                   (3,907)   (19,374)

Cash and cash equivalents, beginning of period             7,240     45,034
----------------------------------------------------------------------------
Cash and cash equivalents, end of period               $   3,333   $ 25,660
----------------------------------------------------------------------------
</TABLE>

See  accompanying  notes  to  financial  statements.


                                                                               5
<PAGE>
21ST CENTURY INSURANCE GROUP
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2001
(Unaudited)

NOTE 1.  BASIS  OF  PRESENTATION
--------------------------------

The  accompanying  unaudited  consolidated  financial statements of 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  six-month  period  ended  June  30, 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.


                                                                               6
<PAGE>
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 recent periods, the Company has registered underwriting losses.  Although the
Company's liquidity and capital needs have been adequately met by cash flow from
operations,  corrective  actions  have  been  taken  to  restore  underwriting
profitability,  including  rate  increases  in  California,  Nevada,  Oregon and
Washington  implemented  during the fourth quarter of 2000 and the first quarter
of 2001 and the implementation of a class plan revision for California effective
September 1, 2000.  Effective July 1, 2001, the Company received approval for an
additional  3.97%  rate  increase  for  California  auto  lines.

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  June  30,  2001,  the  Company's  insurance  subsidiaries had a combined
statutory  surplus of $438.9 million compared to a combined statutory surplus of
$475.6  million  at December 31, 2000.  The decrease of $36.7 million was caused
mainly  by  the  transfer  of capitalized software,which the recipient insurance
subsidiary  is required to report as a nonadmitted asset for statutory purposes.
The  Company's ratio of net written premium to surplus was 1.9 at June 30, 2001,
compared  to  1.8  at  December  31,  2000.  Cash and investments at the holding
company  were  $92.0  million  at  June 30, 2001 as compared to $97.8 million at
December  31,  2000.

Cash and invested assets as of June 30, 2001, had a fair value of $897.3 million
compared  to  $920.3  million  at  December  31,  2000.  Investment  grade bonds
comprised  99.7%  of  the fair value of the fixed-maturity portfolio at June 30,
2001.  Of  the Company's total investments at June 30, 2001, 86.3% were invested
in  tax-exempt,  fixed-income securities compared to 90.3% at December 31, 2000.
As  of  June  30,  2001,  the  after-tax unrealized gain on investments was $1.6
million  compared to an after-tax unrealized gain of $2.6 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 six months of
2000  totaled  approximately  $1.9  million.

UNDERWRITING  RESULTS
Gross  premiums  written  in  the  second quarter of 2001 increased $3.2 million
(1.4%)  to  $236.0  million  from  $232.8  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


                                                                               7
<PAGE>
vehicles  insured.  Gross  premiums written during the six months ended June 30,
2001,  increased $6.2 million (1.3%) to $472.9 million from $466.7 million.  Net
premiums  earned increased $10.3 million (5.0%) and $24.6 million (6.1%) for the
quarter  and  six  months  ended  June  30,  2001,  respectively, because of the
scheduled  decrease  in  the cession rate under a quota share reinsurance treaty
from  8%  in  2000  to 6% in 2001 and the combined effects of rate increases and
fewer  insured  vehicles.

As compared to the same periods in 2000, net incurred losses and loss adjustment
expenses  increased  $8.3  million  (4.5%)  and  $24.1 million (6.6%) during the
quarter  and  six months ended June 30, 2001, respectively.  The increase is due
to  (i)  a decrease in amounts ceded under the quota share discussed above, (ii)
the  impact  of  new claims filed related to the 1994 Northridge earthquake (see
discussion  in  Recent  Legislation  below),  and  (iii)  slightly  higher
weather-related  losses  on  homeowners  lines.

In total, the combined ratio was 103.3% and 103.9% in the quarter and six months
ended  June  30,  2001,  respectively,  compared  to  103.7%  and  103.8% in the
respective  periods  of  2000.  Underlying  these  results is improvement in the
personal  auto lines combined ratio to 100.0% and 101.0% for the quarter and six
months  ended  June 30, 2001, respectively, compared to 103.9% and 104.2% in the
respective  quarters of 2000.  Mostly offsetting the improvement in the personal
auto  lines  were  the  losses  related  to  the earthquake and homeowners lines
referred  to  above.

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  become  evident in the Company's reported financial results as
the  premium  increases  are  earned  over  the  related  policy  terms.

The ratio of net underwriting expenses (excluding loan interest and amortization
of  deferred  loan  fees) to net premiums earned was 14.8% for both the quarters
ended  June  30,  2001 and 2000.  The net underwriting ratios for the six months
ended  June  30,  2001  and  2000,  were  14.3%  and  14.7%,  respectively.

INVESTMENT  INCOME
Compared  to  the  same  period in 2000, net pre-tax investment income decreased
8.2%  for  the  quarter  ended June 30, 2001, primarily because of a decrease of
10.5%  in  average  invested  assets.  The decline in invested assets was due to
funds being used for acquisitions of software, property and equipment, repayment
of bank debt, and dividends to stockholders. The average annual pre-tax yield on
invested  assets  for  both the three and six-month periods ended June 30, 2001,
was  5.1%,  compared  to  5.0%  and  5.2%  for  the same periods in 2000.  On an
after-tax  basis,  the  comparable  yields  were 4.5% and 4.6% for the three and
six-month  periods  ended June 30, 2001, respectively, compared to 4.5% and 4.7%
for  the  same  periods  in  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, Inc., ("AIG") and 49% by the
Company,  writes  private  passenger  automobile policies in Arizona.  The total


                                                                               8
<PAGE>
investment in and advances to this venture, which is accounted for by the equity
method,  totaled  $4.7 million at June 30, 2001 and $4.6 million at December 31,
2000,  and  is  included in other assets in the consolidated balance sheet.  The
Company's  share  of  the net loss of this venture was $209,000 and $288,000 for
the  three  and  six  months ended June 30, 2001, respectively, and $172,000 and
$347,000  for  the  same  2000  periods  and  is included in other income in the
consolidated  statements  of  income.

OTHER  MATTERS
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 believes this statute violates federal and
state constitutional provisions prohibiting impairment of contracts. The Company
is  evaluating  its options for further legal review following an adverse ruling
by  the  California  appellate  court on July 24, 2001. However, to mitigate the
risk  of an ultimate adverse determination, the Company has, since the effective
date  of this legislation, been adjusting and settling claims made under SB 1899
in  a  normal manner while reserving its right to assert the unconstitutionality
of  the  law  as  a  defense  to  any  claim  or  action.  As  of June 30, 2001,
approximately  850  previously  reported  Northridge earthquake claims have been
presented  for reconsideration under SB 1899. Approximately 30 percent of claims
have  been  closed.  Loss  and  loss  adjustment  expenses  related  to the 1994
earthquake  totaled $6.1 million and $10.7 million in the quarter and six months
ended  June  30,  2001,  respectively.  At this time, the Company cannot predict
either  how  many  claims  ultimately  may  require  further adjustment 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.


                                                                               9
<PAGE>
PART  II  -  OTHER  INFORMATION


ITEM  1.     LEGAL  PROCEEDINGS

On  July  19,  2001, the Company was served with a class action lawsuit filed on
behalf  of claim adjusters who allege that the Company had improperly classified
them as salaried workers not eligible for overtime pay.  Similar suits have been
filed against other California insurance companies.  The Company believes it was
in  compliance  with  applicable  law  and  will vigorously defend itself in the
litigation.


ITEM  4.     SUBMISSION  OF  MATTERS  TO  A  VOTE  OF  SECURITY  HOLDERS

The  annual  meeting  of  shareholders  occurred  on  June 6, 2001, in which the
following  individuals  were  re-elected  as  directors:  John B. De Nault, III,
William  N. Dooley, R. Scott Foster, M.D., Roxani M. Gillespie, Bruce W. Marlow,
James  P.  Miscoll,  Robert  M. Sandler, Gregory M. Shepard and Howard I. Smith.

The  shareholders  also  ratified  the appointment of PricewaterhouseCoopers LLP
("PwC")  as  the  Company's  independent  accountants  for  2001  and  approved
amendments  to  the  Company's  1995  Stock  Option  Plan  ("Plan"),  including
increasing  the  number  of  common  stock  authorized pursuant to the Plan from
4,000,000  to 10,000,000 with the number of common stock authorized for employee
incentive  stock options increasing from 3,600,000 to 9,600,000 and changing the
Plan's  name  to  be  consistent  with  the  Company's  current  name.

The  shareholders  voted  as  follows:

ELECTION OF                                     WITHHOLD
----------                                     ----------
 DIRECTORS                 FOR       AGAINST   OR ABSTAIN
----------              ----------  ---------  ----------

J. De Nault III         76,288,872              4,204,426
W. Dooley               70,601,736              9,891,562
R. Foster, M.D.         71,704,672              8,788,626
R. Gillespie            71,680,572              8,812,726
B. Marlow               71,481,039              9,012,259
J. Miscoll              71,252,594              9,240,704
R. Sandler              70,601,736              9,891,562
G. Shepard              75,466,672              5,026,626
H. Smith                71,456,839              9,036,459


PROPOSALS
---------

Appointment of PwC      76,090,490  4,396,135       6,673

Amendments to the Plan  70,564,233  7,085,041     173,035


ITEM  6.     EXHIBITS  AND  REPORTS  ON  FORM  8-K

(b)  Reports  on  Form  8-K

     A report on Form 8-K was filed on April 13, 2001, regarding the appointment
     of  Douglas  K. Howell as senior vice president and chief financial officer
     effective  April  9,  2001.

     A  report  on Form 8-K was filed on April 23, 2001, regarding the dismissal
     of  Ernst  &  Young LLP and the engagement of PricewaterhouseCoopers LLP as
     the  Company's  independent  auditor  effective  April  26,  2001.


                                                                              10
<PAGE>
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:        July 27, 2001
     -----------------------------        --------------------------------------
                                                      BRUCE W. MARLOW
                                           President and Chief Executive Officer

Date:        July 27, 2001
     -----------------------------        --------------------------------------
                                                     DOUGLAS K. HOWELL
                                                 Senior Vice President and
                                                  Chief Financial Officer


                                                                              11
<PAGE>