After receiving a $690 million buyout offer from American International Group Inc. (AIG) in January, 21st Century Insurance Group said Tuesday it is cutting 4 percent of its workforce and reported lower fourth-quarter profit, hurt by aggressive growth plans and stock-based compensation expenses.

21st Century reported fourth quarter net income of $19.2 million (22 cents per share) a 27 percent dip from $26.4 million (31 cents) from the same period a year earlier. The earnings missed analysts’ expectation of 28 cents per share, according to a Reuters poll.

Direct premiums written by the Woodland Hills-based insurer rose 1.9 percent to $323 million for the quarter.

The auto insurer said it would incur $3.7 million of severance expense in the first quarter and plans to cut up to 110 jobs in order to streamline operations, the company said. It added that it plans to reduce its information technology contractors from 300 to 20 over the next three months.

AIG, the world’s largest insurer, currently owns 62 percent of 21st Century and offered to pay $19.75 on Jan. 24 for the shares it doesn’t own. 21st Century insures more than 1.5 million cars and operates in 17 states.

Shares in 21st Century slipped 1 percent (22 cents) to $21.41 in afternoon trading Tuesday.