Zenith National to Sell Life Insurance Company

Zenith National Insurance Corp. has agreed to sell its CalFarm Life Insurance Company to a subsidiary of SunAmerica Inc. for about $120 million.

Zenith National, a workers’ compensation insurer based in Woodland Hills, said that it expects the deal to close by the end of the year and that the sale would result in an after-tax loss of about $19 million during its third quarter from discontinued operations.

CalFarm Life’s operations are based in Sacramento. The company sells fixed annuities, life insurance and group health insurance.

Stanley R. Zax, Zenith’s chairman, said the sale would allow Zenith to focus more on its core workers’ compensation business.