Zenith National Insurance Earnings Jump 503%

Zenith National Insurance reported sharply higher second-quarter earnings of $14 million, up 503% from the same period last year. Revenue was up 152%, to $103.1 million.

In the 1985 second quarter, the Encino-based insurer earned $2.3 million on revenue of $41 million. Per share earnings were 66 cents in the most recent period compared with 20 cents a year ago.

Zenith attributed its improved results to its June, 1985, acquisition of Sacramento-based Cal Farm Insurance, a property-casualty company that faltered after issuing surety bonds against overvalued collateral. On March 29, 1985, state regulators seized Cal Farm and put it up for sale.

But Zenith’s traditional business, workers’ compensation, was off. In that area, Zenith wrote $30.7 million in premiums, down 12%. Fredericka Taubitz, Zenith’s chief financial officer, noted that the company continued to pay out more than it took in on workers’ compensation.

Taubitz said the entire workers’ compensation insurance industry has suffered recently in California, the only state in which Zenith writes such insurance.