Zenith National Insurance Corp. (ZNT), a provider of workers compensation insurance, on Thursday reported a 28.5% increase in profit for the fourth quarter despite a decline in revenues, reflecting a gain on investments compared to a loss last year.
The Woodland Hills, California-based company's net income for the fourth quarter rose to $10.80 million or $0.29 per share from $8.40 million or $0.22 per share in the previous-year quarter. On average, seven analysts polled by Thomson Reuters expected the company to report earnings of $0.10 per share for the quarter. Analysts' estimates typically exclude special items.
Net income for the latest quarter includes net realized gains on investments after tax of $6.56 million or $0.17 per share compared to net realized losses on investments after tax of $7.68 million or $0.21 per share a year ago.
Total revenues for the latest quarter declined 9.4% to $140.27 million from $154.78 million a year ago, yet topped analysts' estimate of $134.25 million.
Net premiums earned for the quarter declined to $112.77 million from $140.97 million last year. Net investment income was $17.41 million, down from $25.62 million a year ago.
Workers' compensation underwriting loss before tax was $8.1 million for the quarter, compared to underwriting income before tax of $2.9 million a year ago. Workers' compensation net premiums earned during the quarter decreased 20% from last year as a result of the company's risk-reward strategy, increased unemployment as well as declining payrolls for many of the company's insureds due to the recession and net reductions in premium rates.
The market value of the company's available-for-sale investment portfolio includes net unrealized gains before tax of $56.1 million at December 31, 2009 compared to net unrealized losses before tax of $77.3 million at the end of the prior year, an improvement of $133.4 million during 2009, or $2.32 per share after tax.
For fiscal year 2009, the company's net income declined to $34.40 million or $0.91 per share from $95.30 million or $2.55 per share in the previous year. Analysts expected the company to report earnings of $0.27 per share for the year.
Net income for the year includes net realized gains on investments after tax of $23.56 million or $0.62 per share compared to net realized losses on investments after tax of $12.03 million or $0.32 per share a year ago.
Total revenues for the year were $584.85 million, down 14.4% from $682.85 million last year. Analysts had a consensus revenue estimate for the year of $565.74 million.
The company's accident year loss ratio for the year, excluding loss adjustment expenses, increased to 50.3% from 43.0% a year ago.
ZNT closed Thursday's regular trading at $28.13, down $0.37 or 1.30% on a volume of 0.25 million shares.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.