Zenith Posts Profit For The Quarter

NU Online News Service, Oct. 29, 4:14 p.m.EST?Zenith National Insurance Corp. reported net profit of$16.1 million for the third quarter, nearly doubling the $8.7million in income it recorded one year ago.

Management of the Woodland Hills, Calif.-based company, whichunderwrites workers' compensation policies in more than 40 statesincluding California, said it expects that state's workers' compreform legislation to moderate workers' comp medical costs.

Property-casualty underwriting income for the quarter was $10.9million pre-tax, much higher than $400,000 posted during theyear-ago period. Gross workers' compensation premiums written rosenearly 40 percent compared to the corresponding period of 2002.

The overall combined ratio also improved for the third quarter,falling to 94.6 percent from 99.8 percent one year ago.

Commenting on his company's latest earnings figures, StanleyZax, chairman and president at Zenith, said, "Continued growth inpremiums, the favorable rate environment, increased cash flows andour focused service strategy have resulted in record underwritingresults and net income."

Mr. Zax also took note of positive developments regardingCalifornia's workers' compensation environment and said, "Recentlyenacted legislative reforms in California are beneficial and shouldmoderate the growth of medical costs."

Through its subsidiaries Zenith Insurance, ZNAT Insurance andZenith Star Insurance, the company underwrites workers' comppolicies as well as reinsurance treaties. More than 2,000independent agents and brokers, mostly in California and Florida,sell Zenith's insurance products.