Zenith Posts Profit For The Quarter

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 $8.7 million in income it recorded one year ago.

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

Property-casualty underwriting income for the quarter was $10.9 million pre-tax, much higher than $400,000 posted during the year-ago period. Gross workers' compensation premiums written rose nearly 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, Stanley Zax, chairman and president at Zenith, said, "Continued growth in premiums, the favorable rate environment, increased cash flows and our focused service strategy have resulted in record underwriting results and net income."

Mr. Zax also took note of positive developments regarding California's workers' compensation environment and said, "Recently enacted legislative reforms in California are beneficial and should moderate the growth of medical costs."

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