Zenith National Insurance reported that its net income last year was off 58% to $3.4 million, or 29 cents per share, largely because of its acquisition of troubled Cal-Farm Insurance. The acquisition, however, helped boost the Encino-based company's revenue 52% to $230.3 million.
Zenith, which specializes in worker's compensation coverage, acquired Cal-Farm in June after it was placed in conservatorship by state regulators because of losses in its surety bond business. Zenith took over Cal-Farm's life and property-casualty operations.
Zenith's fourth-quarter profit was $535,000, or 4 cents a share, against $3.6 million, or 32 cents, in the same quarter the year before. Fourth-quarter revenue was $80.6 million, more than double the $39.1 million in the same quarter of 1984.