Zenith’s Third Quarter Net Income Drops from Last Year

Woodland Hills-based Zenith National Insurance Corp. reported net income for the third quarter of 2007 of $64.5 million, or $1.73 per share, compared to net income for the third quarter of 2006 of $72.2 million, or $1.94 per share. Net income for the nine months ended Sept. 30, 2007, was higher than the first nine months of last year, however. In 2007, Zenith had a net income of $194.3 million, or $5.21 per share, compared to net income for the nine months ended Sept. 30, 2006, of $183.8 million, or $4.95 per share. Net income for both the three and nine months ended Sept. 30, 2007, was reduced by catastrophe losses of approximately $2.0 million after tax ($0.05 per share) compared to catastrophe losses after tax of $3.2 million and $12.9 million ($0.09 per share and $0.35 per share) in the three and nine months ended Sept. 30, 2006, respectively. The catastrophe losses are primarily attributable to loss development on Hurricanes Wilma and Rita, which occurred in 2005.