Zenith National Notes Q3 Results

California-based Zenith National Insurance Corp. reported net income of $16.1 million, or $0.85 per share, for the third quarter of 2003 compared to net income of $8.7 million, or $0.46 per share, for the third quarter of 2002.

Net income for the nine months ended Sept. 30, 2003 was $46.2 million, or $2.45 per share, compared to net income for the nine months ended Sept. 30, 2002 of $18.0 million, or $0.95 per share.

Property-casualty underwriting income before tax for the third quarter of 2003 was $10.9 million compared to $0.4 million for the third quarter of 2002. Property-casualty underwriting income before tax for the nine months ended Sept. 30, 2003 was $23.3 million compared to an underwriting loss before tax of $7.3 million for the nine months ended Sept. 30, 2002.

Gross workers’ compensation premiums written increased about 39 percent and 48 percent in the three and nine months ended Sept. 30, 2003, respectively, compared to the corresponding periods of 2002.

In California, gross workers’ compensation premiums written increased about 62 percent and 73 percent in the three and nine months ended Sept. 30, 2003, respectively, compared to the corresponding periods of 2002.

The combined ratio for the property-casualty insurance operations was 95.8 percent for the nine months ended Sept. 30, 2003 compared to 101.8 percent for the nine months ended Sept. 30, 2002 and 106.5 percent for the year ended Dec. 31, 2002. The combined ratio for the workers’ compensation operations for the nine months ended Sept. 30, 2003 was 96.8 percent compared to 103.6 percent for the nine months ended Sept. 30, 2002 and 108.7 percent for the year ended Dec. 31, 2002.

Commenting on the results, Stanley Zax, chairman & president noted, “Continued growth in premiums, the favorable rate environment, increased cash flows and our focused service strategy has resulted in record underwriting results and net income.

“Recently enacted legislative reforms in California are beneficial and should moderate the growth of medical costs.”