NEW YORK, April 26 (Reuters) - Auto insurer 21st Century Insurance Group on Wednesday posted a 10 percent rise in first-quarter profit, helped by premium growth in new markets.
Net income rose to $21.3 million, or 25 cents a share, from $19.4 million, or 23 cents a share, from a year earlier.

Direct premiums written fell 3.8 percent to $339 million from a year ago with a 6.2 percent fall in California but a 36.7 percent increase in non-California markets.

Its combined ratio -- a single percentage telling investors whether the company received enough in premiums to cover its expected claims -- was 94.7 percent, down from 95.9 percent a year earlier. A figure under 100 shows the insurer is recording underwriting profit.

The insurer said it was pushing ahead with plans announced last year to start operations in three new states in the second quarter -- in Florida, Georgia and Pennsylvania.

Chief Executive Bruce Marlow said these three states represented 15 percent of the total U.S. personal auto premium, bringing the percentage of the United States where 21st Century actively markets to 45 percent.       
 
21st Century currently insures over 1.5 million vehicles in California, Texas, Illinois, and six other states.

Woodland Hills, California-based 21st Century last month fired Chief Financial Officer Lawrence Bascom, effective April 7, citing difference in management styles.

Its shares closed at $15.90 on Tuesday, having risen about 17 percent in the past year while the S&P Insurance Index has risen about 24 percent.

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