Zenith National Insurance Corp

Business: Insurance Symbol: ZNT Shares Outstanding: 19 million Market: NYSE Closing Price on 4/5/93: $26.25 Qtrly Profit (loss) for Dec. 1992: ($1.5 million) Qtrly Revenue for Dec. 1992: $141.8 million *Zenith National Insurance Corp., based in Woodland Hills, provides auto, health, life, housing, workers' compensation and farm insurance. Its units include Zenith Insurance Co. and CalFarm Insurance Co.

Woodland Hills-based Zenith National Insurance Corp. said Monday that it had received letters of inquiry from the California Department of Insurance requesting information about its arrangements and dealings with its agents and brokers. The state agency is among several regulators conducting wide-ranging probes into industry practices. Zenith said it was cooperating with the request, which it announced after the stock market closed. Zenith shares declined 4 cents to $49.

Woodland Hills-based Zenith National Insurance Corp. said Wednesday that it would cut premiums on its workers' compensation policies by 10% this year, reflecting expected savings from the recent overhaul of the state's system for treating injured workers. The rate cuts, just submitted to the state Department of Insurance, are "a measured and gradualistic response" to the overhaul bill signed by Gov. Arnold Schwarzenegger on April 19, Zenith President Stanley Zax said in a statement.

Zenith National Insurance Corp. said its previously announced agreement to buy PAULA Financial for $16.5 million was canceled by mutual consent. Zenith, a Woodland Hills-based insurer, had announced the merger in July. PAULA Financial, based in Pasadena, is a privately held provider of insurance, primarily to agricultural firms.

Zenith National Insurance Corp. said it plans to redeem the outstanding $17.7 million in principal amount of its 10.25% senior notes due Dec. 1, 1994. The Woodland Hills-based insurer said the redemption would occur on June 10, and that it would pay 102.5% of the principal amount and accrued interest.

Zenith National Insurance Corp., Woodland Hills, reported a net loss for the third quarter that ended Sept. 30 of $37.3 million, compared with net income of $3.4 million for the third quarter of 1998. The loss reflects $32.5 million of net charges associated with the acquisition of RISCORP. Revenues dropped to $118.5 million from $162.1 million.

Woodland Hills-based Zenith National Insurance Corp. said Monday that it had received letters of inquiry from the California Department of Insurance requesting information about its arrangements and dealings with its agents and brokers. The state agency is among several regulators conducting wide-ranging probes into industry practices. Zenith said it was cooperating with the request, which it announced after the stock market closed. Zenith shares declined 4 cents to $49.

A Rancho Mirage investor has reduced his stake in Zenith National Insurance Corp., a Woodland Hills property-casualty insurance company, to 1.1 million common shares, or 5.4% of the total outstanding. According to a filing with the Securities and Exchange Commission, Daniel Schwartz, who is also a Zenith director, sold 177,000 shares of Zenith common on May 8 and May 9 for $17 to $17.87 each, or a total of $2.8 million.

Zenith National Insurance Corp., a Woodland Hills property, casualty, auto and worker's compensation insurer, said its earnings fell 16% in the first quarter to $6.9 million, down from $8.2 million a year ago. Revenues for the quarter ended March 31 edged up 8% to $149.6 million, up from $138.2 million a year earlier. Stanley R. Zax, chairman and president, said winter wind and rainstorms that swept the state in January and March caused pretax losses of about $5.7 million.

Shares of Woodland Hills-based Zenith National Insurance Corp. fell Wednesday after Standard & Poor's revised its credit-rating outlook on the firm to "negative" from "stable," which followed the company's announcement Tuesday of a fourth-quarter loss. Shares of Zenith, which writes workers' compensation insurance and property catastrophe reinsurance, slid 42 cents, or nearly 2%, to $21 on the New York Stock Exchange. The stock is down 11% year to date after dropping 16% last year.

Zenith National Insurance Corp. Chairman Stanley Zax, who helped run the Las Vegas Hilton more than three decades ago, offers this advice on placing a bet: Back a proven winner, especially when the odds improve. Zax said Tuesday that Zenith's operating subsidiary spent $13 million to buy 1 million shares of Wynn Resorts Ltd., which will build Le Reve, a $2.4-billion hotel-casino that is the latest venture of Las Vegas veteran and longtime Zax pal Steve Wynn.

Zenith National Insurance Corp. of Woodland Hills reported a net loss of $12.2 million for the third quarter ended Sept. 30, compared with a net loss of $37.3 million for the same quarter last year. Revenue dipped to $112.9 million from $118.5 million. Zenith underwrites property and casualty insurance, particularly workers' compensation insurance.

Zenith National Insurance Corp. in Woodland Hills reported a net loss of $19.6 million for the second quarter ended June 30, compared with a net loss of $3.4 million for the same quarter last year. Revenue rose slightly to $110.8 million from $106.5 million. Zenith underwrites workers' compensation insurance and reinsurance.

Zenith National Insurance Corp., Woodland Hills, reported a net loss for the third quarter that ended Sept. 30 of $37.3 million, compared with net income of $3.4 million for the third quarter of 1998. The loss reflects $32.5 million of net charges associated with the acquisition of RISCORP. Revenues dropped to $118.5 million from $162.1 million.

Zenith National Insurance Corp., a workers' compensation insurer based in Woodland Hills, said third-quarter net income will be cut $32.5 million by reserves needed to cover claims on policies sold by Riscorp Inc., a business Zenith bought a year and a half ago. Zenith National also warned of a third-quarter loss from operations because of price-cutting in the workers' compensation business and because of mounting losses on reinsurance for hurricanes and other catastrophes.

Zenith National Insurance Corp., a Woodland Hills-based insurer, said it has agreed to acquire PAULA Financial of Pasadena for $16.5 million. Zenith, which has assets of about $1.5 billion, said its purchase of PAULA would help expand Zenith's agricultural insurance market in California and Arizona. PAULA, a private company begun in 1946, has about 230 employees in 17 offices in those two states, and specializes in providing insurance products to agricultural firms.

Zenith National Insurance Corp., a workers' compensation insurer, cut its previously reported 1998 profit 12% after reviewing business bought from a financially troubled rival. Zenith last week revised net income to $19.1 million, or $1.11 a share, from $21.6 million, or $1.26, reported in February. On April 1, 1998, Zenith bought the workers' compensation insurance business of Florida-based Riscorp Inc. Zenith also acquired a Riscorp system for managing treatment of on-the-job injuries.

Zenith National Corp. has agreed to sell its CalFarm Insurance Co. subsidiary to Nationwide Mutual Insurance Co. for $272 million. Zenith National, based in Woodland Hills, expects a profit of $100 million, or $5.84 a share, on the all-cash sale by the end of June, the company said. CalFarm, of Sacramento, is the largest insurer of farmers in the state. Zenith wants to sell it to focus on the workers' compensation insurance business, Chairman Stanley Zax said.