As the stock market continues its unexacting volatility, a sector to keep an eye on may be the Insurance Property and Casualty industry. With such industry leaders as ANFI, Inc (NASDAQ: ANFI), Land America Financial Group (NYSE: LFG), Fidelity National Financial Inc., (NYSE: FNF), and Investors Title (NASDAQ: ITIC) making new highs, the outlook may bode very well. For property-and-casualty insurers, the strong pricing environment should result in substantial fourth-quarter revenue growth. Supply and demand along with higher prices stand poised to show up in the top-line growth for many companies. Synergies such as these along with healthier premium gains already has the Insurance sector up 2.7% for the year.

The strong pricing is the result of a supply-and-demand imbalance in commercial lines and reinsurance, as well as the low interest rate environment. Property and Casualty insurers have ridden those favorable conditions to higher returns on equity, margin expansion, and revenue growth over the past year. This correlation has allowed the Property and Casualty sector to be up 15% compared to the S&P 500 over the past 12 months, and 28% versus the NASDAQ 100.

One company that has persevered better than others happens to be right here in our own back yard. Ft. Lauderdale based 21st Century Holding Company (NASDAQ: TCHC) saw their shares surge 332% in 2002 from a low of $3.50 to a high of $13.99. Out of 84 public companies in the South Florida area, only two other companies were up 100%.

21st Century Holding Company (TCHC) is a vertically integrated insurance holding company, which through its subsidiaries, controls all aspects of the insurance underwriting, distribution and claims process. For the nine months ended 9/30/02, total revenues rose 13% to $29.9 million and net income before extra gain, totaled $2.8 million versus a loss of $2.3 million the year prior. These progressive results along with their stellar stock gains ranked TCHC as the number one performing stock in the entire prestigious Dow Jones Insurance, Property and Casualty Index over the past year.

The Property and Casualty sector continues to be one of the few sectors that may be poised with improving fundamentals. In addition to solid fundamentals, fourth quarter numbers will get a boost from the lack of catastrophe claims from around the world at the end of last year, and the probable lack of significant claims related to severe winter weather. With a market cap of $35.4 million and only 3 million shares outstanding, potential continual positive earnings reports should keep TCHC as a leader in the underwriting business in the 21st Century.

James DePelisi works with Independent Securities as a Series 7 and 24 Registered Representative licensed with the NASD, SEC, and the state of Florida. He is also President and CEO of LDV Corporation, a financial consulting firm. 21st Century Holdings is a paid sponsor on the Investors Business Hour. They pay a promotional fee of $1,200 per month to have top billing in the show. The Investors Business Hour provides listeners with information believed to be reliable but makes no representation to its completeness or its accuracy. Additionally, the hosts, guests, affiliates, owners, associates, employees, writers, and relatives of the Investors Business Hour and LDV Consulting may have interests or investments in the companies profiled on the show and may elect to sell or buy additional investments in these companies at any time. Its host does not recommend, warrant, or guarantee any success of action taken in reliance on statements made on this site or on the radio show. This is not an offer to buy or sell securities or consummate business dealings. Investment dealings with companies that are guests on the program may involve substantial risk, making it appropriate for listeners to consult with investment advisors and perform independent research before acting on any information featured on this site or on the radio show. As of the date of this article, James DePelisi has been offered an opportunity to be on the 21st Century Holding Board of Directors with compensation of $500 per board meeting and 10,000 stock options exercised at $13.75. The Investors Business Hour and LDV Consulting is not an securities broker dealer, investment advisor, or securities exchange and is not registered with NASD, SEC, nor any state regulating authority.