Zenith National Records a Hefty Profit Hike in ’86

Zenith National Insurance reported a thirteenfold increase in profit to $42.2 million, or $2 a share, in 1986 compared to $3.4 million, or 29 cents a share, in 1985.

The Encino-based company cited contributions from its CalFarm Life casualty and property operations that were acquired last year as major reasons for the profit jump, as well as contributions from its reinsurance division, which insures other insurance companies.

Zenith said its revenue climbed 78% in 1986 to $411 million, compared to $231.3 million in 1985.

The company said $5.7 million of its 1986 net income was attributable to an extraordinary gain from the use of tax-loss carry- forwards. Zenith’s income from operations for 1986 rose to $27.6 million, or $1.31 a share, from $2.1 million a year earlier.

For the fourth quarter, Zenith posted a profit increase to $11 million, compared to $535,000 a year earlier. Revenue increased 41% to $113.6 million.