Zenith Files for Rate Increase

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Zenith National Insurance Corp. on Tuesday said it will seek an average 4 percent increase in workers’ comp premiums for California employers whose policies renew on or after Jan. 1.

Woodland Hills-based Zenith’s wholly owned subsidiary, Zenith Insurance Co., has filed a rate increase application with the California Department of Insurance. The planned rate increase is in line with the average 5 percent hike that Insurance Commissioner Steve Poizner has said would be justified based on rising medical costs.

Zenith’s proposed increase is significantly smaller than the 9 percent that the State Compensation Insurance Fund, which insures more than 200,000 employer policyholders, announced it wants to hike premiums next year.

Zenith last month warned it would seek a rate increase when it reported third quarter net income fell 74 percent to $16.6 million from a year ago. Much of the drop came from investment losses due to stock market volatility, but the company said rising costs also were a factor.

Zenith made the announcement after the market closed. Shares had closed down 35 cents, or 1 percent, to $29.86.

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