Zenith Quarterly Profit More Than Doubled
NU Online News Service, April 29, 3:46 p.m. EDT? Zenith National Insurance Corp., citing improved property-casualty underwriting, reported that its first-quarter net profit more than doubled to $25.1 million from $11.7 million reported one year earlier.[@@]
The company's property-casualty underwriting pretax income for the first quarter was reported at $21.8 million, up from $6.2 million reported during the 2003 first quarter.
The company's main line of business?workers' compensation?reported a strong showing. Net premiums written for workers' comp for the quarter were $239.06 million, up from $166.07 million one year earlier. Underwriting income, pretax, for workers' comp lines for the quarter was $19.8 million, up from $3.83 million reported a year earlier. Workers' comp combined ratio was 90.7, an improvement from 97.5 reported one year ago.
Meanwhile, net premiums written for reinsurance-treaties business were reported at $17.85 million, falling from $23.5 million one year earlier. Underwriting income, pretax, for reinsurance treaties was $2.04 million, with an 82.3 combined ratio, compared with $2.40 million and an 86.2 combined ratio one year ago.
Commenting on the results, Stanley Zax, Zenith chairman and president, observed that company revenues and underwriting income in the first quarter reflect the continuing improvement in its workers' comp business. "We continue to focus on achieving a favorable combined ratio in our workers' compensation business, particularly in view of the very low level of interest rates," Mr. Zax said.
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.
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