Zenith Insurance Will Trade Notes for Stock

Zenith National Insurance Corp. said it has begun exchanging new seven-year notes for up to 2.5 million shares of the company’s outstanding common stock.

The Encino-based insurance holding company, which specializes in workers’ compensation coverage, said that, for each $18 principal amount of a new seven-year 10% senior note due December, 1994, it will exchange one share of the company’s common stock.