Zenith National Insurance Corp. (ZNT) Tuesday reported a rise in profit for the third quarter, despite a decline in revenues, reflecting a gain on investments compared to a loss last year.
Net income for the third quarter rose to $19.20 million or $0.51 per share from $16.60 million or $0.44 per share in the previous year. Net income includes net realized gains on investments after tax of $13.4 million or $0.35 per share.
On average, eight 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.
Total revenues for the quarter declined to $156.89 million from $166.95 million a year ago, yet topped analysts' estimate of $145.91 million.
Net premiums earned for the quarter declined to $115.70 million from $152.96 million last year. Net investment income declined to $20.54 million from $22.87 million a year ago. Net realized gains on investments for the quarter was $20.64 million, compared to a loss of $8.88 million in the previous year.
The company noted that the market value of its available-for-sale investment portfolio improved 2% during the third quarter 2009 to an unrealized gain before tax of $55.6 million at September 30, 2009.
For the nine-month period, net income declined to $23.60 million or $0.62 per share from $86.90 million or $2.32 per share in the same period of the previous year. Total revenues for the period declined to $444.58 million from $528.07 million last year.
ZNT closed Tuesday's regular trading at $30.99, down 0.69 or 2.18%, on a volume of 326K shares on the NYSE.
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