Zenith Announces 4th Q Results

Zenith National Insurance Corp. reported a net loss for the fourth quarter of 2002 of $7.8 million, or $0.42 per share, compared to a net loss for the fourth quarter of 2001 of $9.4 million, or $0.52 per share. Net income for the year ended Dec. 31, 2002 was $10.2 million, or $0.54 per share, compared to a net loss for the year ended Dec. 31, 2001 of $25.9 million, or $1.47 per share.

Net income in 2002 includes a previously reported charge of $19.5 million after tax, or $1.04 per share, for increased workers’ compensation loss reserves in the fourth quarter.

Gross workers’ comp premiums written increased about 49.9 percent and 32.9 percent in the three months and year ended Dec. 31, 2002, respectively, compared to the corresponding periods of 2001. In California, gross workers’ comp premiums written increased about 64.6 percent and 47.3 percent in the three months and year ended Dec. 31, 2002, respectively, compared to the corresponding periods of 2001.

The combined ratio for the property-casualty insurance operations was 106.5 percent for the year ended Dec. 31, 2002 compared to 118.9 percent for the year ended Dec. 31, 2001. The combined ratio for the workers’ comp operations for the year ended Dec. 31, 2002 was 108.7 percent compared to 114.0 percent for the year ended Dec. 31, 2001. Accident year combined ratios for the workers’ comp operations were 131.3 percent, 119.1 percent and 103.2 percent for 2000, 2001 and 2002, respectively.

Book values per share at Dec. 31, 2002 and Dec. 31, 2001 were $16.89 and $16.20, respectively.