Zenith National Insurance Corp. saw its net income for 2Q 2008 plummet 57 percent to $28.4 million, or $0.76 per share, compared to the second quarter of 2007 when it posted returns of $65.3 million, or $1.75 per share. Shares in Zenith traded at more than four times the average volume with the stock closing down nearly 7 percent, at $34.15. So far in the first half of the year, net income for the Woodland Hills-based insurer is $70.3 million, or $1.88 per share, a drop of 46 percent over the first half of 2007. The company’s income is derived from workers’ compensation underwriting and investments. Underwriting income (before tax) from workers’ comp fell 63 percent in the second quarter versus the same period in 2007. The second quarter was particularly harsh as relates to investment income, with after-tax losses of $1.5 million versus net realized gains of $3.4 million in the same period the previous year. For the first half of 2008, Zenith’s net income from investments is $1.4 million as compared with $7.3 million in the same time period for 2007.
