Shares in Zenith National Insurance Corp. closed down 5 percent Tuesday and continued to slide Wednesday after the insurance provider reported a big fall in profit and revenue.
The Westlake Village workers’ compensation insurer reported first quarter net income of $41.9 million ($1.12 per share), a 36 percent decrease from $64.5 million ($1.73) for the same period a year earlier. Analysts polled by Thomson Financial projected earnings of $1.18 per share.
Revenue was down 43 percent to $186 million.
The company said that its total workers’ compensation premiums earned decreased 18 percent, with California premiums down 22 percent. The company attributed the declines to a reduction in premium rates following legislative reforms in California and Florida, as well as increased competition.
Shares in Zenith were down 1.2 percent to $37.15 in early trading Wednesday on the New York Stock Exchange.