Zenith Profits Rise Despite Revenue Decline

Zenith National Insurance Corp. said Tuesday its third quarter profit rose more than 15 percent on improved investment returns, exceeding Wall Street expectations.

After the markets closed, the Woodland Hills workers compensation insurer reported net income of $19.2 million (51 cents per share), compared with net income of $16.6 million (44 cents) a year ago. Total revenue fell 6 percent to $157 million.

Net income includes net realized gains on investments after taxes of $13.4 million, compared to a loss of $5.8 million a year ago. The workers’ compensation underwriting loss before taxes was $8.5 million.

Analysts surveyed by Thomson Reuters on average expected the company to report adjusted earnings of 10 cents per share on revenue of nearly $146 million.

“When the economy improves, we are optimistic that our excellent financial condition will provide the basis upon which we can find opportunities to grow our business,” said Chairman Stanley R. Zax in a statement.

Zenith shares closed down 69 cents, or 2 percent, to $30.99 on the New York Stock Exchange.