Zenith Estimates Losses Related to Hurricanes

October 4, 2004

Woodland Hills, Calif.-based Zenith National Insurance Corp. announced its initial estimate of aggregate losses in its assumed reinsurance business attributable to Hurricanes Charley, Frances, Ivan and Jeanne. Zenith currently expects its net after tax loss in the third quarter from these four hurricanes to be in the range of $10 million to $12 million or $0.41 to $0.49 per diluted share.

This initial estimate is subject to substantial uncertainty because of the rapid succession of the four storms and is based on a preliminary review of Zenith’s assumed reinsurance contracts and preliminary information from some ceding companies. The estimate does not include any anticipated impact the four hurricanes may have on our share of the results of our equity investment in Advent Capital (Holdings) PLC, which is reported on a quarter lag. At this time, no workers’ compensation claims directly related to the four storms have been reported to Zenith.

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