Zenith National Results Reflect CalFarm Wind And Storm Damage

Zenith National Insurance Corp. has reported that income after taxes and before realized gains on investments was $5.5 million, or 32 cents per share, for the first quarter of 1998, compared with $5.9 million, or 33 cents per share, for the same period last year.

Catastrophe losses from wind and storm damage were $3.3 million, after taxes, or 19 cents per share, in the first quarter of 1998, compared with $900,000, after taxes, or 5 cents per share, in the first quarter of 1997.

Excluding catastrophe losses, income after taxes and before realized gains on investments was $8.8 million, or 51 cents per share for the first quarter of 1998, compared to $6.8 million, or 38 cents per share, for the same period last year.

Net income for the first quarter of 1998 was $7.1 million, or 42 cents per share, compared with $7.1 million, or 40 cents per share, for the first quarter of 1997.

Stanley R. Zax, chairman and president, commented, "Our 1998 first-quarter results were excellent given the significant wind and storm damage in our CalFarm operations, which contributed 4.2 points to the total combined ratio. Our workers'-compensation combined ratio improved to 109.5 percent for the quarter from 115.3 percent for the year 1997."

The combined ratio for the property-casualty operations was 102 percent for the three months ended March 31, 1998, compared with 101.6 percent for the three months ended March 31, 1997, and 103.4 percent for the year ended Dec. 31, 1997.

Excluding catastrophe losses, the combined ratio for the three months ended March 31, 1998 and 1997 and the year ended Dec. 31, 1997, was 97.8 percent, 100.5 percent and 103.1 percent, respectively.

"We are delighted that the RISCORP acquisition closed on April 1, 1998, as previously announced. This strategic acquisition provides geographic diversification and expansion into the Southeast. During the next few months, we will be concentrating on assimilating the business acquired into Zenith and determining the final purchase price," Zax concluded.