ZENITH'S LOSSES FROM SEPT. 11 CLAIMS HIT $35.5 MILLION.Byline: Evan Pondel Staff Writer WOODLAND HILLS - Zenith zenith, in astronomy, the point in the sky directly overhead; more precisely, it is the point at which the celestial sphere is intersected by an upward extension of a plumb line from the observer's location. National Insurance Corp. said total losses received by claims related to the Sept. 11 attacks would be $35.5 million before taxes. ``But, the irony of this thing is when this type of event happens, the (premiums) increase and the future is profitable,'' said Stanley Zax zax n. A tool similar to a hatchet, used for cutting and dressing roofing slates. [Variant of sax, from Middle English, knife, from Old English seax; see sek- , chairman, president and chief executive officer of the company. The net income impact, after the effect of applicable assumed reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. premiums and reinstatement Reinstatement The restoration of an insurance policy after it has lapsed for nonpayment of premiums. premiums, will be a loss of about $15.6 million before tax and $10.1 million after tax. Three days after the Sept. 11 attack, the company issued a statement that said ``there was considerable uncertainty as to the nature and amount of monetary losses associated with the events. Zenith's primary and casualty operation, which consists of direct workers' compensation workers' compensation, payment by employers for some part of the cost of injuries, or in some cases of occupational diseases, received by employees in the course of their work. business, is not suspected to sustain losses.'' However, the company said its assumed reinsurance contracts may be exposed to a potential loss in the range of approximately $7 million to $15 million before tax, and $4.6 million to $9.8 million after tax. ``This doesn't concern me, because this is the business we're in,'' Zax said. Zenith agreed to sell 1 million shares of its common stock in a private placement for $25 a share. The purchaser of the shares will be Connecticut-based Odyssey Odyssey (ŏd`ĭsē): see Homer. Odyssey Homer’s long, narrative poem centered on Odysseus. [Gk. Lit.: Odyssey] See : Epic Odyssey Re Holdings Corp., a subsidiary of Canadian-based Fairfax Financial Holdings Fairfax Financial Holdings Limited TSX: FFH.SV NYSE: FFH is a Toronto, Ontario based financial services holding company which, through its subsidiaries, is engaged in property, casualty and life insurance and reinsurance, investment management and insurance claims Limited. Fairfax owns about 39 percent of Zenith's outstanding stock, which will rise to 42 percent following the sale. Zenith National Insurance is the holding company for Zenith Insurance, ZNAT Insurance and Zenith Star Insurance. The company expects to announce its third quarter results on Oct 30. In the second quarter of 2001, the company saw net income of $2.9 million, or 16 cents a shares, compared with $19.6 million, or $1.14, the same period a year ago. Zenith shares rose 6 cents, or 23 percent, to close Friday at $25.74. |
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