Zenith Posts Higher First-Quarter Profit

Zenith Posts Higher First-Quarter Profit

NU Online News Service, May 1, 3:08 p.m. EDT?Zenith National Insurance Corp. reported a first-quarter profit of $11.7 million, or 62 cents per share--more than a four-fold increase from last year.

In the corresponding period last year, the insurer posted a net income of $2.8 million, or 15 cents on a per-share basis.

The Woodland Hills, Calif.-based company, which primarily provides workers' compensation insurance, reported that its gross workers' comp premiums written jumped by nearly 60 percent in the 2003 first quarter compared to the year-ago period.

The increase in premiums written was strongest in California, where gross workers' comp premiums written jumped by more than 90 percent in the 2003 first quarter from one year ago.

Zenith's combined ratio for the property-casualty insurance operations improved to the profitable level of 96.4 percent, compared to 104.5 percent from the 2002 first quarter.

The combined ratio for the workers' comp operations also dropped, to 97.5 percent from 106.8 percent one year ago.

"We are pleased to report improved operating results based upon achieving an underwriting profit in our insurance operations," said Stanley R. Zax, chairman and president at Zenith.

Mr. Zax added that the company also strengthened its financial condition in the 2003 first quarter by completing a private placement of $125 million of convertible senior notes and repaying its outstanding bank debt.

Through its subsidiaries Zenith Insurance, ZNAT Insurance and Zenith Star Insurance, the company underwrites workers' comp policies in more than 40 states, as well as reinsurance treaties. More than 2,000 independent agents and brokers, mostly in California and Florida, sell Zenith's insurance products.