Zenith Posts Higher First-Quarter Profit

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

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

The Woodland Hills, Calif.-based company, which primarilyprovides workers' compensation insurance, reported that its grossworkers' comp premiums written jumped by nearly 60 percent in the2003 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 90percent in the 2003 first quarter from one year ago.

Zenith's combined ratio for the property-casualty insuranceoperations 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 alsodropped, to 97.5 percent from 106.8 percent one year ago.

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

Mr. Zax added that the company also strengthened its financialcondition in the 2003 first quarter by completing a privateplacement of $125 million of convertible senior notes and repayingits outstanding bank debt.

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