Zenith Insurance Reports Profit for 4th Quarter

Zenith National Insurance Corp. reported an $8.3-million profit for the fourth quarter, compared with a $33.6-million loss a year earlier when Zenith took a $42.6-million charge to reflect losses in its junk-bond portfolio.

The Woodland Hills-based insurer said the profit in the quarter that ended Dec. 31 came on a 58% surge in its revenue, to $137.8 million from $87.2 million.

But despite the earnings rebound, Zenith said its latest results were hampered by “an above-average incidence of fire and windstorm damage in California” and higher claims costs related to its workers’ compensation business, among other factors.

For all of 1991, Zenith National had a profit of $45.9 million, compared with a loss of $9.16 million the previous year, and its annual revenue rose 17%, to $546.3 million from $468.3 million.